Record fine for Pfizer over 2,600% epilepsy drug price hike
The UK’s Competition and Markets Authority has also fined Flynn Pharma for overcharging for phenytoin sodium capsules
London — Britain’s competition watchdog has fined Pfizer a record £84.2m for its role in ramping up the cost of an epilepsy drug as much as 2,600%. The Competition and Markets Authority (CMA) also fined Flynn Pharma £5.2m for overcharging for phenytoin sodium capsules, following a dramatic price hike in 2012. The CMA had first accused the companies over the matter last year. As a result of the price increase, spending on the capsules by the National Health Service rose from £2m a year in 2012 to about £50m in 2013. The CMA said UK prices for the capsules were many times higher than elsewhere in Europe. Pfizer used to market the medicine itself, under the brand name Epanutin, but it sold the rights to Flynn, a privately owned British company, in September 2012, after which the product was debranded and the price soared. The decision to debrand the drug, or make it available as a generic product, meant that it was no longer subject to price regulation. “The companies deliberately expl...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.