Pfizer investigated by Competition Markets Authority
August 6, 2015
UK competition authorities have accused Pfizer Inc. of inflating the price of an epileptic drug to twenty times its original price. The drug is currently used by 50,000 people in the UK.
According to the Competition and Markets Authority, the UK's bill for Phenytoin Sodium, leapt from £2.3m in 2012 to £50m after Pfizer signed a distribution agreement with Stevenage based Flynn Pharma. Prior to this deal, Pfizer sold the drug directly to wholesalers under the brand name Epanutin.
If the CMA finds Pfizer and Flynn have breached competition law, they could each be fined as much as 10% of annual global revenue.
For more information about pharmaceuticals and competition law, read this free chapter Part III Special Sectors, 16 Pharma, B Overview of the Pharma Sector from Faull & Nikpay: The EU Law of Competition (3rd Edition).