Three drug firms ‘illegally restricted the supply of life-saving treatment for Addison’s disease patients and hiking the price of medications to the NHS by 1,800%’
- Pharmaceutical firm Aspen is alleged to have paid off rivals to ram up its profits
- It admitted driving its prices of Addison’s disease medications up by 1,800%
- Will cough up £8m it made from NHS and could be slapped with extra £2m fine
- Companies Amilco and Tiofarma deny they were paid off and will fight decision
Three drug firms have been found provisionally guilty of colluding to restrict the supply of a life-saving treatment on the NHS to drive up profits.
The Competition and Markets Authority (CMA) believes Aspen paid two rivals to stay out of the market for fludrocortisone acetate tablets.
The pills are used to treat Addison’s disease, a rare but deadly disorder that sees sufferers struggle to produce the essential hormone cortisol.
Aspen is said to have paid off Amilco and Tiofarma to protect its monopoly over the supply of the drugs to the NHS, which around 8,400 patients depend on.
Three drug firms have been found provisionally guilty of colluding to restrict the supply of fludrocortisone acetate tablets – used to Addison’s disease (file image)
The South African-firm was able to drive its prices by up to 1,800 per cent and make an additional £8million from the health service, the CMA said.
In exchange, it is alleged that Tiofarma was made the sole manufacturer of fludrocortisone for direct sale in the UK.
Amilco is also thought to have received a 30 per cent share of the increased prices that Aspen was able to charge.
WHAT IS ADDISON’S DISEASE?
Addison’s disease is a condition in which the body does not make enough of the hormones cortisol and aldosterone.
When the body’s cortisol levels drop too low, this can cause a range of symptoms.
These include weakness, dizziness, fatigue and abdominal pain.
A very low cortisol level can be life-threatening.
This is because cortisol is vital as it helps regulate blood pressure and the immune system and it helps the body respond to stress.
Addison’s disease is treated with hormone replacement tablets.
It is thought about 8,400 people in the UK have the illness and most cases first develop in people aged between 30 and 50.
About 70 per cent of cases are thought to be caused by an autoimmune disease but it can also be triggered by TB.
Source: patient.co.uk
Aspen has already admitted its part in the collusion and will cough up £8m to the NHS as part of a settlement.
The firm will be forced to pay an extra £2.1m if the CMA ultimately decides competition law has been broken.
It marks the first time a CMA probe has secured a payment to the NHS.
Aspen has also committed to ensure there will be at least two suppliers of fludrocortisone in the UK to help the NHS access more competitive prices.
But Amilco, a British company that provides consultancy services to drug companies, and Tiofarma, a Dutch pharmaceutical manufacturer, have yet to admit their part in the alleged illegal market-sharing.
They now have the opportunity to respond to the CMA’s provisional findings. If found guilty, they both could also face similar fines.
Michael Grenfell, the CMA’s executive director of enforcement, said: ‘The NHS should not be denied the opportunity of benefiting from an increased choice of suppliers, and so potential savings on what it spends on essential drugs.
‘This highlights the importance of competition in making sure the NHS, and so ultimately UK taxpayers, do not pay more than they should for medicines.’
Fludrocortisone is a vital treatment, on which thousands of patients depend, mainly to treat primary or secondary adrenal insufficiency, commonly known as Addison’s disease.
The condition’s symptoms include weakness, dizziness, fatigue and abdominal pain – and a very low cortisol level can kill.
Gus Attridge, Aspen’s deputy group chief executive, said: ‘The CMA’s announcement today does not provide new information but is rather a confirmation of the acceptance of the £8m in commitments proposed by Aspen in August 2019.
‘We have offered £8m in commitments to the UK CMA… and admitted liability for entering into an agreement to acquire a potential competitor fludrocortisone with the consequence that the conclusion of this agreement resulted in anti-competitive behaviour.’
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