The UK’s Competition and Markets Authority has released a preliminary report that criticises the massive increase in the price of the epilepsy drug, phenytoin. When the drug was sold by Pfizer as Epanutin, it cost the NHS £2.3 million. However, since Pfizer sold marketing rights to Flynn, the price has risen dramatically – to almost £50 million in 2013.
The launch of generic drugs usually drives the price down, but then they are normally sold alongside the original, branded version. In this case, Pfizer is still the manufacturer but no longer is responsible for setting the final price.
Flynn and Pfizer have not yet had the opportunity to respond to the accusations although Flynn earlier stated that the drug had been greatly under-priced when it was sold by Pfizer.
Companies can be fined as much as 10% of annual sales for abusing a dominant position in a market, depending on the seriousness of the abuse.
According to a statement from Pfizer – "Ensuring a sustainable supply of our products to UK patients is of paramount importance to Pfizer and was at the heart of our decision to divest the product. Pfizer is co-operating fully with the CMA's ongoing investigation."
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