Pfizer fined R1.4bn for price hike

BRITAIN’S competition watchdog has fined Pfizer a record £84.2-million (R1.4-billion) for its role in ramping up the cost of an epilepsy drug as much as 2 600%.

The Competition and Markets Authority (CMA) also fined Flynn Pharma £5.2-million (R23-million) for overcharging for phenytoin sodium capsules, following a dramatic price hike in 2012.

The CMA first accused the companies over the matter last year.

As a result of the price increase, National Health Service spending on the capsules rose from £2-million (R34million) a year in 2012 to about £50million (R852-million) in 2013.

The CMA said UK prices for the capsules were many times higher than elsewhere in Europe.

Pfizer used to market the medicine itself as Epanutin, but sold the rights to Flynn, a private British company, in September 2012, after which it was debranded and the price soared.

When the drug became available as a generic product, it was no longer subject to price regulation.

CMA case decision group chairman Philip Marsden said yesterday: “The companies deliberately exploited the opportunity offered by debranding to hike up the price for a drug relied on by many thousands of patients.”

Pfizer said it planned to appeal against all aspects of the verdict.