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| NHS overcharged by millions for key drug, says watchdog | NHS overcharged by millions for key drug, says watchdog |
| (35 minutes later) | |
| Drug company Concordia overcharged the NHS by millions for a key thyroid treatment, the Competition and Markets Authority has provisionally found. | Drug company Concordia overcharged the NHS by millions for a key thyroid treatment, the Competition and Markets Authority has provisionally found. |
| The CMA said that last year the NHS spent £34m on its drug, liothyronine, up from about £600,000 in 2006. | The CMA said that last year the NHS spent £34m on its drug, liothyronine, up from about £600,000 in 2006. |
| The amount the NHS paid per pack rose from around £4.46 in 2007 to £258.19 by July 2017, an increase of almost 6,000%. | The amount the NHS paid per pack rose from around £4.46 in 2007 to £258.19 by July 2017, an increase of almost 6,000%. |
| Concordia said it did "not believe that competition law has been infringed". | Concordia said it did "not believe that competition law has been infringed". |
| The CMA said the price rise took place despite "broadly stable" production costs. | The CMA said the price rise took place despite "broadly stable" production costs. |
| Liothyronine tablets are primarily used to treat hypothyroidism, a condition caused by a deficiency of thyroid hormone affecting at least two in every 100 people and which can lead to depression, tiredness and weight gain. | Liothyronine tablets are primarily used to treat hypothyroidism, a condition caused by a deficiency of thyroid hormone affecting at least two in every 100 people and which can lead to depression, tiredness and weight gain. |
| Until earlier this year, Concordia was the only supplier of the drug. | Until earlier this year, Concordia was the only supplier of the drug. |
| 'Market dominance' | |
| CMA chief executive, Andrea Coscelli, said: "Pharmaceutical companies which abuse their position and overcharge for drugs are forcing the NHS - and the UK taxpayer - to pay over the odds for important medical treatments. | CMA chief executive, Andrea Coscelli, said: "Pharmaceutical companies which abuse their position and overcharge for drugs are forcing the NHS - and the UK taxpayer - to pay over the odds for important medical treatments. |
| "We allege that Concordia used its market dominance in the supply of liothyronine tablets to do exactly that." | "We allege that Concordia used its market dominance in the supply of liothyronine tablets to do exactly that." |
| He stressed that, at this stage in the investigation, the findings were provisional and there had been no definitive decision that there had been a breach of competition law. | |
| If the provisional finding is upheld, though, the CMA can impose a fine of up to 10% of the company's annual worldwide turnover. | |
| The CMA said it was one of a number of cases it was looking at within the pharmaceutical sector. | |
| Previously, the watchdog has fined drugs giant Pfizer and Flynn Pharma nearly £90m in relation to what it called "excessive and unfair prices" for the anti-epilepsy treatment, phenytoin sodium capsules. | |
| It also fined a number of pharmaceutical companies a total of £45m in relation to anti-depressant medicine paroxetine. | |
| Both those decisions are under appeal. | |
| The CMA is pursuing another seven investigations into several companies in relation to drug pricing and competition issues. |