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| UK watchdog slaps Advanz pharma company with massive fine over 6,000% price hike on essential thyroid drug | UK watchdog slaps Advanz pharma company with massive fine over 6,000% price hike on essential thyroid drug |
| (2 months later) | |
| The UK competition watchdog slapped a pharma company with a fine of over $100 million after a more-than-tenfold price hike on a crucial thyroid drug, which made it unaffordable for the NHS and forced people to give up treatments. | The UK competition watchdog slapped a pharma company with a fine of over $100 million after a more-than-tenfold price hike on a crucial thyroid drug, which made it unaffordable for the NHS and forced people to give up treatments. |
| The hefty penalty was imposed on Advanz – a multinational pharma giant with headquarters in London – as well as on two private equity firms which were previously owners of the businesses now forming part of the company, the Competition and Markets Authority (CMA) said in a statement on Thursday. | The hefty penalty was imposed on Advanz – a multinational pharma giant with headquarters in London – as well as on two private equity firms which were previously owners of the businesses now forming part of the company, the Competition and Markets Authority (CMA) said in a statement on Thursday. |
| The CMS investigation revealed that between 2009 and 2017 the company charged “excessive and unfair prices” for its liothyronine tablets, which are essential for patients with thyroid hormone deficiency. | The CMS investigation revealed that between 2009 and 2017 the company charged “excessive and unfair prices” for its liothyronine tablets, which are essential for patients with thyroid hormone deficiency. |
| “They achieved this because liothyronine tablets were among a number of drugs that, although genericised, faced limited or no competition and therefore could sustain repeated price increases,” the statement said. | “They achieved this because liothyronine tablets were among a number of drugs that, although genericised, faced limited or no competition and therefore could sustain repeated price increases,” the statement said. |
| The hikes began in 2007 and eventually saw the price of the drug growing by a whopping 6,000%, the watchdog said. | The hikes began in 2007 and eventually saw the price of the drug growing by a whopping 6,000%, the watchdog said. |
| According to the BBC, the tablets, which used to cost £20 (about $28) a decade ago, were sold at £248 (nearly $350) in 2017. | According to the BBC, the tablets, which used to cost £20 (about $28) a decade ago, were sold at £248 (nearly $350) in 2017. |
| There was no viable justification for such a strategy, given that the production costs of the drug and its volumes didn’t change significantly over that period and no meaningful innovations had been introduced, the CMA said. | There was no viable justification for such a strategy, given that the production costs of the drug and its volumes didn’t change significantly over that period and no meaningful innovations had been introduced, the CMA said. |
| Instead, Advanz had simply “exploited a loophole enabling it to reap much higher profits,” Andrea Coscelli, the watchdog’s chief executive, said. | Instead, Advanz had simply “exploited a loophole enabling it to reap much higher profits,” Andrea Coscelli, the watchdog’s chief executive, said. |
| The strategy eventually made the drugs too expensive for the UK’s publicly funded healthcare system. The NHS used to pay around £600,000 (about $838,000) for the supply of the thyroid remedy before 2009 but, when the bill had increased to £30 million by 2016, the drugs were placed on the ‘drop list.’ | The strategy eventually made the drugs too expensive for the UK’s publicly funded healthcare system. The NHS used to pay around £600,000 (about $838,000) for the supply of the thyroid remedy before 2009 but, when the bill had increased to £30 million by 2016, the drugs were placed on the ‘drop list.’ |
| The decisions made by Advanz “came at a huge cost to the NHS, and ultimately to UK taxpayers,” but more importantly they meant “people dealing with depression and extreme fatigue, as a result of their thyroid conditions, were told they could not continue to receive the most effective treatment for them,” Coscelli said. | The decisions made by Advanz “came at a huge cost to the NHS, and ultimately to UK taxpayers,” but more importantly they meant “people dealing with depression and extreme fatigue, as a result of their thyroid conditions, were told they could not continue to receive the most effective treatment for them,” Coscelli said. |
| The fresh fines and the work done by CMA “sends a clear message that breaking the law has serious consequences” for Advanz and the whole pharma sector in the UK, she added. | The fresh fines and the work done by CMA “sends a clear message that breaking the law has serious consequences” for Advanz and the whole pharma sector in the UK, she added. |
| Advanz itself will be fined around £41 million, while the two private equity firms, HgCapital and Cinven, are finded £8.6 million and £51.9 million respectively. In a statement, an Advanz spokesperson said the company “utterly disagrees” with the CMA’s decision and “will be appealing.” | Advanz itself will be fined around £41 million, while the two private equity firms, HgCapital and Cinven, are finded £8.6 million and £51.9 million respectively. In a statement, an Advanz spokesperson said the company “utterly disagrees” with the CMA’s decision and “will be appealing.” |
| Like this story? Share it with a friend! | Like this story? Share it with a friend! |