Pharmaceutical Business review

UK’s CMA fines Pfizer and Flynn Pharma for epilepsy drug price hike

The Competition and Markets Authority (CMA) fined Pfizer £84.2m and Flynn Pharma £5.2m after they increased prices by as much as 2,600% in September 2012.

Due to the price increases, the UK's National Health Service (NHS) expenditure on phenytoin sodium capsules increased from about £2m per year in 2012 to nearly £50m in 2013.

The CMA gave a deadline of 30 working days and 4 months for Pfizer and Flynn to decrease their respective prices to ensure that the drug supply is not impacted.

CMA investigation chairman of the case decision group Philip Marsden said: “The companies deliberately exploited the opportunity offered by de-branding to hike up the price for a drug which is relied upon by many thousands of patients. These extraordinary price rises have cost the NHS and the taxpayer tens of millions of pounds.”

The CMA also said that the drug prices in the UK were comparatively much higher than the prices charged for the same drug by Pfizer in other European countries.

According to CMA, Phenytoin sodium capsules are critical to treat an estimated 48,000 patients in the country and that those who were already using it cannot switch to other products because of the health risks involved. This it says forced the NHS to settle for the hiked drug prices.

The watchdog has accused both the pharma companies of overpricing the drug by exploiting and abusing their leading position in manufacture and supply of the phenytoin sodium capsules.

Marsden also said: “Businesses are generally free to set prices as they see fit but those holding a dominant position should not abuse this situation and set prices that are excessive and unfair. There is no justification for such rises when phenytoin sodium capsules are a very old drug for which there has been no recent innovation or significant investment.”

Pfizer defended its actions, claiming that the drugs were loss-making product prior to their distribution through Flynn Pharma.

The company also said that the price was less than that of the equivalent medicine from another supplier to the NHS.


Image: Pfizer and Flynn Pharma fined for overpricing anti-epilepsy drug in the UK. Photo: courtesy of Crown copyright.