Court upholds CMA바카라 사이트™s £99m fine on pharma over excessive NHS thyroid drug prices
The Court of Appeal has unanimously upheld the CMA바카라 사이트™s finding that Advanz broke the law by overcharging the NHS for essential thyroid drug liothyronine.
- CMA secures important win in the Court of Appeal after Advanz and Cinven sought to appeal
- Court of Appeal also reinstated the CMA바카라 사이트™s original fine of £51.9 million on Cinven after the CAT reduced the figure to £37.1 million in 2023
- Total amount in fines stands at £99 million, divided amongst Advanz바카라 사이트™s owners across the infringement period: £6.2m for HgCapital; £51.9m for Cinven; and £40.9m for Advanz
In a unanimous judgment, the Court of Appeal has confirmed the Competition and Markets Authority바카라 사이트™s (CMA) finding of excessive and unfair pricing in the supply of liothyronine tablets in the UK; and has reinstated the full penalty of £51.9 million imposed by the CMA on private equity firm Cinven.
Liothyronine is an essential medicine used to treat thyroid hormone deficiency. In 2006, the total NHS annual spend on the tablets was £600,000. Between 2009 and 2017, Advanz, the sole supplier of liothyronine tablets in the UK, increased the price it charged from £20 to £248 per box 바카라 사이트“ an increase of over 1,110%. As a result, NHS annual spending on liothyronine jumped from over £2.3 million in 2009 to more than £30 million by 2016.
After an extensive investigation, in July 2021, the CMA found that Advanz had broken the law by this level of pricing to the NHS, without justification: the cost of producing the tablets did not increase significantly; and there was no evidence of meaningful innovation or investment by the supplier. The CMA fined Advanz Pharma (the current owner of the Advanz business) together with two former owners (HgCapital and Cinven) for their part in the infringement over their ownership periods. Â
All three companies originally appealed the CMA바카라 사이트™s decision before the Competition Appeal Tribunal (CAT). In August 2023, the CAT fully upheld the CMA바카라 사이트™s findings, but reduced the penalties imposed on HgCapital and Cinven.
HgCapital decided not to pursue its appeal further, instead agreeing with the CMA to pay its fine of £6.2 million. Advanz and Cinven both sought permission to appeal the CAT바카라 사이트™s decision to the Court of Appeal and the CMA, in turn, sought to overturn the CAT바카라 사이트™s reduction in Cinven바카라 사이트™s penalty.
Following a 3-day hearing in December 2024, the Court of Appeal unanimously refused Advanz Pharma and Cinven permission to appeal the CAT judgment, ruling that they had no arguable basis upon which to challenge the CAT바카라 사이트™s decision to uphold the CMA바카라 사이트™s findings.
The Court of Appeal also agreed that the CMA바카라 사이트™s original penalty for Cinven was appropriate and reinstated it in full to £51.9 million.
Sarah Cardell, Chief Executive of the CMA, said:
This is another resounding win for the CMA in this case 바카라 사이트“ and a vote of confidence for the work we do to protect consumers and tackle illegal behaviour.
Prices charged to the NHS, and ultimately taxpayers, must be fair. We will continue to stand up for patients and take action against companies that abuse their market power, thereby harming consumers and the wider economy.
For more information on the CMA바카라 사이트™s investigation, visit the .
Notes for editors:
- For media queries, please contact the press office on press@cma.gov.uk or on 020 3738 6460.
- Advanz Pharma and Cinven both appealed against the CAT바카라 사이트™s judgment. The CMA cross-appealed against the CAT바카라 사이트™s reduction of Cinven바카라 사이트™s penalty from £51.9 million to £37.1 million.
- HgCapital did not appeal the CAT바카라 사이트™s judgment.
- A three-day hearing took place in December 2024 to hear all parties바카라 사이트™ appeals. The Court of Appeal had adjourned all applications for permission to appeal the CAT바카라 사이트™s judgment into a 바카라 사이트™rolled-up바카라 사이트™ hearing of both those applications for permission and the substantive appeals.
- Previous action taken by the CMA in relation to the pharmaceutical sector and the fines imposed:
-     Fludrocortisone (2019): £2.3 million in fines and £8 million redress to the NHS for market-sharing.
-      Nortriptyline (2020): £3.4 million in fines and £1 million redress to the NHS for illegal arrangements including market-sharing and information exchange.
-      Paroxetine (2021): £27.1 million in fines for anti-competitive agreements and abuse of dominance.
-      Hydrocortisone (2021): £260 million in fines for excessive and unfair pricing and market sharing (currently under appeal).