Advanz fined for 1,110% price increase for thyroid drug
The UK's competition regulator has fined Advanz and its former private equity owners more than £100m after the drugs company increased the price of its thyroid tablets by 1,110% over eight years.
The Competition and Markets Authority said from 2009 until 2017 Advanz charged excessive and unfair prices for supplying liothyronine tablets used to treat thyroid hormone deficiency. The cost of a packet rose to £248 from £20 over that time.
The CMA fined Advanz £40.9m, HgCapital £8.6m and Cinven £51.9m. These were private equity firms that owned businesses now part of Advanz.
The cost of producing the tablets did not increase significantly but, though subject to generic copying, the drug faced limited or no competition, the CMA said. As a result NHS spending on the drug rose from £600,000 in 2006 to more than £39m in 2016.
The NHS dropped the drug in 2015 forcing patients to stopping their treatment or buying liothyronine tablets themselves. Many patients needed liothyronine to eliminate symptoms such a extreme tiredness and depression.
Andrea Coscelli, the CMA's chief executive, said: “Advanz’s decision to ratchet up the price of liothyronine tablets and impose excessive and unfair prices for over eight years came at a huge cost to the NHS, and ultimately to UK taxpayers. It also meant that 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 due its increased price.
“This fine of over £100m, and our work in the pharma sector to date, sends a clear message that breaking the law has serious consequences.”
The CMA is carrying out a widespread review of the pharma industry. It has secured an £8m repayment to the NHS after companies took took part in illegal arrangements relating to the supply of fludrocortisone and fined companies £260m for competition law breaches in the supply of hydrocortisone tablets. Other investigations are continuing, it said.