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Drugs firm to pay NHS £8m after competition probe | Drugs firm to pay NHS £8m after competition probe |
(about 1 hour later) | |
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. | 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 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. | 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. | 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. | 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". | 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. | 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. | This is the first time a CMA investigation will secure a payment such as this for the NHS. |
In addition, Aspen will ensure that there are at least two fludrocortisone suppliers in the UK. | In addition, Aspen will ensure that there are at least two fludrocortisone suppliers in the UK. |
Shares in the firm dropped nearly 7% after the announcement. | Shares in the firm dropped nearly 7% after the announcement. |
Aspen said in a statement to investors that commitments it made, including the £8m payment to the NHS, did not "constitute an admission of any wrongdoing by Aspen" under EU law. | |
However, it said it had admitted liability "for entering into an agreement to acquire a potential competitor in fludrocortisone with the consequence that the conclusion of this agreement resulted in anti-competitive behaviour". | |
It added that the CMA would impose a penalty "which shall not exceed £2,101,954". |