Taxpayers Could Recoup More Than £175 Million From Nordic Capital Backed Advanz Pharma
As first reported in The Times. Taxpayers could recoup more than £175 million from Advanz Pharma, the drug company that was exposed by The Times for hiking the price of a crucial medicine from £4 to £248 per packet.
The Competition and Markets Authority (CMA) has found that Advanz Pharma abused its dominant position in the market for the drug, Sodium Thiopental, by charging excessive prices.
The CMA has ordered Advanz Pharma to repay £175 million to the NHS and other public bodies that have been overcharged for the drug.
The CMA’s decision is a landmark victory for patients and taxpayers. It sends a clear message to drug companies that they cannot abuse their market power to charge excessive prices for essential medicines.
Sodium Thiopental is a general anesthetic that is used to induce unconsciousness during surgery. It is a crucial medicine that is used to save lives.
However, Advanz Pharma hiked the price of the drug by 6,200% in 2014.
This price increase made it unaffordable for many patients, and it forced the NHS to ration the drug.
The Times exposed Advanz Pharma’s price-gouging in 2019.
The newspaper’s investigation found that Advanz Pharma had made £100 million in profits from the drug in just two years.The CMA’s investigation found that Advanz Pharma had a “dominant position” in the market for Sodium Thiopental.
The company was the only supplier of the drug in the UK, and it had no competition. This gave Advanz Pharma the power to charge whatever price it wanted for the drug.The CMA also found that Advanz Pharma had abused its dominant position by charging excessive prices for Sodium Thiopental.
The company had no legitimate reason for hiking the price of the drug by 6,200%.The CMA’s decision to order Advanz Pharma to repay £175 million is a victory for patients and taxpayers.
It sends a clear message to drug companies that they cannot abuse their market power to charge excessive prices for essential medicines.
The CMA’s decision is also a victory for The Times.
The newspaper’s investigation exposed Advanz Pharma’s price-gouging and forced the CMA to take action. The CMA’s decision is a reminder that the media can play a role in holding powerful companies to account….well done The Times!
