Competition Markets Authority
Case reference: 50277
Case timetable
| Date | Action |
|---|---|
| September 2021 to October 2021 | Advanz Pharma, Allergan plc, Auden Mckenzie (Pharma) Limited, Cinven and Intas Pharmaceuticals Limited filed appeals in the Competition Appeal Tribunal against the CMAs findings in the Infringement Decision. The CMA will defend the appeals. |
| September 2021 | Waymade plc chose not to appeal the Infringement Decision and have paid the fine issued against them. |
| 15 July 2021 | Infringement Decision issued: unfair pricing abuses and anti-competitive agreements in relation to 10mg and 20mg hydrocortisone tablets |
| Summer 2021 (estimate) | Final decision on case outcome |
| October 2020 to Summer 2021 (estimate) | Considering written and oral representations on the supplementary statement of objections and further evidence gathering and analysis |
| May to September 2020 | Receipt of written and oral representations on the supplementary statement of objections |
| February 2020 | Supplementary statement of objections issued |
Competition Appeal Tribunal judgment
18 September 2023: The Competition Appeal Tribunal has upheld the CMAs findings on liability, resulting in fines of almost 130 million.
- Press notice: CMA decision upheld in major drug price abuse case (18.9.23)
- CAT judgment (18.9.23)
Non-confidential infringement decision
31 March 2022: The CMA has published a non-confidential version of the decision in which the CMA imposed fines totalling over 260 million for competition law breaches in relation to the supply of hydrocortisone tablets in the UK.
- (31.3.22)
- (31.3.22)
Infringement decision
15 July 2021: The CMA has found competition law breaches in relation to the supply of 10mg and 20mg hydrocortisone tablets in the UK.
- Press release: CMA finds drug companies overcharged NHS (15.7.21)
Supplementary statement of objections
On 12 February 2020, the CMA issued a supplementary statement of objections in relation to its hydrocortisone investigations.
The CMA has been conducting three separate investigations into alleged excessive and unfair pricing, anti-competitive agreements and abusive conduct in relation to the supply of hydrocortisone tablets in the UK. The CMA issued statements of objections in relation to those investigations in:
Due to the interrelationship of the facts and allegations in the three hydrocortisone investigations, the CMA brought them together and revised certain aspects of its provisional findings in the respective statements of objections, including taking account of further evidence which has been obtained since the original statements of objections were issued, through this supplementary update.
The CMA continues to allege that:
- Auden Mckenzie and its successor Accord-UK (previously known as Actavis UK) charged excessive and unfair prices for 10mg and 20mg hydrocortisone tablets between October 2008 and July 2018
- Auden Mckenzie entered into an anti-competitive agreement with Waymade with respect to 20mg hydrocortisone tablets which maintained Auden Mckenzies dominance and ability to charge high prices
- Auden Mckenzie entered into an anti-competitive agreement with Waymade and later Advanz Pharma (previously known as Concordia and before that AMCo) with respect to 10mg hydrocortisone tablets. The agreement continued between Actavis UK and Advanz Pharma after Actavis UK took over the business of supplying 10mg hydrocortisone tablets from Auden Mckenzie. The agreement maintained Auden Mckenzies and later Actavis UKs dominance and ability to charge high prices
- These anti-competitive agreements also constitute an abuse of its dominant position by Auden Mckenzie and Actavis UK
The CMA continues to take the provisional view that liability for Auden Mckenzies alleged infringements is attributable to its economic successor Accord-UK (previously known as Actavis UK) and that liability is attributable to Allergan plc as the former parent company of Auden Mckenzie and Actavis UK, to Cinven as the former parent company of Advanz Pharma, and to Accord Pharmaceuticals and Intas as the current parent company of Accord-UK. They would only be liable for their respective periods of ownership.
Notes
- The investigation is under Chapter II of the Competition Act 1998 (CA98) and Article 102 of the Treaty on the Functioning of the European Union (TFEU) and Chapter I CA98 and Article 101 TFEU
- No conclusion should be drawn that there has been an infringement of competition law at this stage and the recipients of the supplementary statement of objections will now have an opportunity to respond to the allegations
- The CMA will consider any representations it receives before any decision is taken as to whether competition law has in fact been infringed
- Further detail of the CMAs procedures in Competition Act 1998 cases is available in CMAs procedures in Competition Act 1998 cases
- Changes to the timing of original entries in the case timetable will be made where the estimated timing changes
Contacts
- Assistant Directors: Suzanne McQueen (020 3738 6358, suzanne.mcqueen@cma.gov.uk), Neil Maxey-Branch (020 3738 6956, neil.maxey@cma.gov.uk)
- Director: Andrew Groves (020 3738 6927, andrew.groves@cma.gov.uk)
- Senior Responsible Officer: Michael Grenfell (020 3738 6134, michael.grenfell@cma.gov.uk)