Drugs firm to pay NHS £8m after competition probe

[helvella]

For regulars, I'm sure I don't need to say anything.

For newcomers and others who have missed the stories, the CMA is also investigating the pricing of T3 (liothyronine) in the UK. It remains to be seen whether the CMA take similar action in that case.

Drugs firm to pay NHS £8m after competition probe

Drugs firm Aspen is to pay £8m to the NHS after an investigation into the supply of a life-saving drug to thousands of patients.

The Competition and Markets Authority (CMA) said the firm offered to make the payment following an investigation.

The CMA said it suspects competition law was broken after Aspen paid two rivals to stay out of the market.

This left Aspen as the only UK supplier of fludrocortisone and able to set prices without competition, it added.

Aspen may also have to pay an additional £2.1m fine if the CMA formally decides the company broke the law.

Andrea Coscelli, the CMA's chief executive, said it was "unacceptable for the NHS - and the taxpayers who fund it - to have to pay millions of pounds more than they should for this life-saving drug".

The prescription-only fludrocortisone is mainly used to treat Addison's Disease, a rare deficiency of the adrenal glands.

This is the first time a CMA investigation will secure a payment such as this for the NHS.

Rest of article here (may not be available outside the UK):

bbc.co.uk/news/business-493...

[Hidden]

"the CMA is also investigating the pricing of T3 (liothyronine) in the UK."

Hope they get a move on and give them an even heavier fine! Whatever the legal loopholes they may have used, the whole thing is criminal

[knitwitty in reply to Hidden]

Was thinking exactly the same thing myself, they need to get their collective fingers out because their tardiness has resulted in many, many people being denied T3 which they need to feel well, and many others having to source their own medication from 'wherever' because the NHS can't get it's procurement 'house' in order!

Feel better now that's off my chest!

[TSH110]

Is £8million even going to bother them? Doesn’t sound like much of a punishment to me

[helvella Administrator in reply to TSH110]

The fact it has affected their share price perhaps suggests it is significant?

And the payment may be a one-off, but there seem to be other requirements such as always ensuring a second supplier in the market.

[TSH110 in reply to helvella]

That sounds like it has had an effect after all. I tried to find out their annual profit, revenue was 19 673 r’million (whatever that means - rand maybe?) according to their 2019 interim report. Would be interesting to know what that was in meaningful currency.

It is good that two suppliers should be in the market, except that they seem to fix everything between them.

Let’s hope the T3 scandal is dealt with severely and a huge price drop is forthcoming.

[MaisieGray]

Thanks for sharing that helvella , hopefully something positive re the Concordia scandal will follow sooner rather than later.

[crimple]

Well it's good there has been some action. Bad that the action re T3 prices is still not resolved. I am going to ask for another private prescription before Brexit!

[Cooper27]

I feel like this already happened... That the SMA ruled the T3 prices were unlawful, and drug companies were fined, but that the price never changed? I don't know where I got this idea from, but I just feel like that happened around when I was first investigating thyroid issues.

I really hope something does happen to drive down the price again though!

[Hidden]

IF, at some future date the CMA do the right thing, the price of Liothyronine is reduced to a sensible level and Big Pharma is forced to repay £Millions to the NHS, then how exactly will the Lancashire Medicines and Management Group (LMMG), who dictate their recommendations to every CCG in Lancashire, be able to justify this "drug" being made available once more to those who need it?

According to their website ( lancsmmg.nhs.uk/medicines/l... ) "Liothyronine is NOT recommended for use by the NHS in Lancashire in the following setting: as an add-on treatment for refractory hypothyroidism despite adequate monotherapy with levothyroxine" because " There is insufficient evidence to demonstrate efficacy in the above setting............"

I say this as I have been informed that no such similar evidence can be found to warrant the prescribing of Levothyroxine itself. This identical excuse, so often given for the blacklisting of NDT, would therefore no longer be justifiable.

If the LMMG failed to remove this excuse from their blacklisting recommendation for NDT when Liothyronine prices reduce, I shall be sure to call their bluff. If that excuse is consequently deleted for Lancashire, I see no reason why it should not be deleted for the rest of the UK.

[knitwitty in reply to Hidden]

"There is insufficient evidence to demonstrate efficacy in the above setting............"

This is the sentence that really gets me mad, of course there will never be any evidence if they don't conduct any studies ( long or short term) into the use of T3.

It reminds me a bit of some police dramas where the incompetent detectives "fit someone up" for a crime because they don't want to conduct a proper investigation and they end up putting the wrong person in prison.

If many patients are self medicating with T3 the they have had to obtain from sources outside the NHS, then the CCG's can pretend that no one is taking it and no one needs it, it makes my blood boil!!