Drug Price-Fixing Scandal: Court of Appeal Strikes Down Pharma Giants
The Court of Appeal has delivered a bombshell verdict, backing the Competition and Markets Authority (CMA) in a major price-fixing showdown against big-name pharma firms. The case involves hydrocortisone tablets—vital medicine for Addison’s disease sufferers—where companies rigged prices and squeezed the NHS dry.
Pharma Firms Caught Colluding to Jack Up Drug Prices
The saga dates back to a July 2021 CMA investigation that exposed Auden McKenzie and Actavis UK for gouging on hydrocortisone prices. The probe revealed these companies teamed up with AMCo (now Advanz Pharma) to squash competition and keep prices sky-high.
Fines Hit £260 Million as NHS Costs Balloon
The CMA slapped fines totaling over £260 million on the firms. Their price-fixing caused the NHS’s annual bill for hydrocortisone to leap from £500,000 to more than £80 million—a staggering blow to public healthcare.
Legal Twist Reversed – CMA Triumphs Again
Though the Competition Appeal Tribunal (CAT) initially upheld the CMA’s ruling in September 2023, a technical dispute in cross-examination led to a March 2024 overturn. The CMA didn’t back down and appealed—the Court of Appeal has now restored justice.
Sarah Cardell, CMA Chief Executive, declared: “We’re delighted the Court of Appeal recognised the CMA’s case as consistent, clear, and fairly defended. This ruling sends a strong message that anti-competitive practices in healthcare will not be tolerated.”
This judgment paves the way for tougher crackdowns on pharmaceutical price-gouging and champions affordable healthcare access for patients and the NHS alike.
