The CMA has provisionally found that 4 pharmaceutical companies broke competition law in relation to the supply of an anti-depressant drug.

The Competition and Markets Authority (CMA) has accused competitors King and Auden Mckenzie of sharing out between them the supply of nortriptyline to a large pharmaceutical wholesaler. The CMA has provisionally found that, in 2014, the 2 companies agreed Auden Mckenzie would supply only 10mg nortriptyline tablets and King would supply only 25mg nortriptyline tablets, as well as agreeing to fix the quantities and the prices of supply.

The CMA has also accused the companies King, Alissa and Lexon of exchanging commercially sensitive information, including information about prices, volumes and entry plans, to try to keep Nortriptyline prices high.

Nortriptyline is prescribed by the NHS and relied on by thousands of patients every month to relieve the symptoms of depression. NHS spending on the drug peaked at £38 million in 2015.

In a Statement of Objections issued today, the CMA has provisionally found that King and Auden Mckenzie’s conduct, and the subsequent conduct of King, Alissa and Lexon, broke competition law.

Geoff Steadman, Director of Antitrust at the CMA, said:

If pharmaceutical companies get together to restrict competition for the supply of a drug, this can lead to the NHS – and ultimately the UK taxpayer – paying over the odds for what are often essential medical treatments.

We expect drug suppliers to abide by competition law so that the NHS is not denied the opportunity of benefitting from lower prices for medicines.

This is the CMA’s provisional finding and the companies now have the chance to make representations to the CMA before it reaches a final decision.

For more information see the case page. 

Notes to editors

1. The Chapter I prohibition in the Competition Act 1998 prohibits anti-competitive agreements and concerted practices between businesses which have as their object or effect the prevention, restriction or distortion of competition within the UK. Similarly, Article 101 of the Treaty on the Functioning of the European Union (TFEU) prohibits anti-competitive agreements and concerted practices which may affect trade between EU member states. 

2. The CMA may impose a financial penalty on any business found to have infringed these prohibitions of up to 10% of its annual worldwide group turnover. In calculating financial penalties, the CMA takes into account a number of factors including seriousness of the infringement(s), turnover in the relevant market and any mitigating or aggravating factors. 

3. A Statement of Objections gives parties notice of a proposed infringement decision under the competition law prohibitions in the Competition Act 1998 or the TFEU. It is a provisional decision only and does not necessarily lead to an infringement decision. Parties have the opportunity to make written and oral representations on the matters set out in the statement of objections. Any such representations will be considered by the CMA before any final decision is made. The final decision will be taken by a case decision group, which is separate from the case investigation team and was not involved in the decision to issue the statement of objections. 

4. The Statement of Objections is addressed to Alissa Healthcare Research Limited, Auden Mckenzie (Pharma Division) Limited, Auden Mckenzie Holdings Limited, Accord-UK Limited, King Pharmaceuticals Limited, Praze Consultants Limited and Lexon (UK) Limited.  

5. The Statement of Objections is addressed to Accord-UK Limited (formerly named Actavis UK Limited) because the CMA provisionally considers it was the economic successor of Auden Mckenzie (Pharma Division) Limited and should therefore be held liable for that company’s direct involvement in the alleged infringement.  

6. The Statement of Objections is addressed to Praze Consultants Limited, a consultancy which conducted King’s corporate and commercial services, because the CMA provisionally considers that Praze directly participated in both the infringements of competition law alleged against King.  

7. All information relating to this case can be found on the CMA case page.   

8. For more information on the CMA see our homepage or follow us on Twitter, LinkedIn and like our Facebook page page. Sign up to our email alerts to receive updates on Competition Act 1998 and cartels cases. 

9. Media enquiries should be directed to the CMA Press Office at press@cma.gov.uk or 020 3738 6460. 

The fourth Flood and Coast Conference opened in Telford today.

The fourth Flood and Coast Conference opened in Telford today.

Sir James Bevan, Chief Executive of the Environment Agency, opened the fourth Flood and Coast Conference in Telford today with a speech highlighting how we need to adapt to make our homes, businesses and communities more resilient to climate change.

Now in its fourth year, the annual event brings together experts from across the globe to share ideas and opportunities to work together to tackle the risk of flooding and coastal erosion.

This year’s Flood & Coast Conference starts today at the Telford International Centre and runs until Thursday 20 June. Registration and the full event programme can be found at on the Flood & Coast website

Other topics including infrastructure resilience, partnership working, community collaboration and incident response will also be debated at the 3 day event.

Speakers this year include the Chief Executive of the Environment Agency, Sir James Bevan, the Chief Scientist of the Met Office, Professor Stephen Belcher, and Natalia Moudrak, Director Climate Resilience at the Intact Centre on Climate Adaptation.

Other speakers include Julie Foley, Director for the FCERM Strategy & National Adaptation at The Environment Agency who will be looking at the three key themes that will help us become more resilient to climate change.

John Curtin, Executive Director of Flood and Coastal Erosion Risk Management said

“Our thoughts are with the residents of Wainfleet today. We need to agree approaches at our Flood and Coast Conference that make our communities more resilient to extreme weather now and for generations to come.”

“There’s two and a half weeks left to share your views as part of the consultation on our long term strategy on the future of flood and coastal erosion risk management in England. We want to hear from everyone so that we can develop the best possible plan for the future.”

Experts from the UK and across the globe will discuss their experiences so we can learn from each other and improve how we manage flood risk and coastal erosion in the UK.

Hannah Bartram, Chief Operating Officer at the Association of Directors of Environment, Economy, Planning & Transport (ADEPT) said

“ADEPT is looking forward to Flood & Coast 2019 – a great opportunity to talk about the Environment Agency’s draft FCERM strategy, particularly given increased awareness of climate change over recent months.

“We welcome the focus on developing climate resilient places and future proofing infrastructure. ADEPT local authority members are focused on building the expertise, partnerships and engagement needed to plan much further into the future”.

The Flood & Coast Conference is a great chance to network – bringing together a rich concentration of flooding and coastal erosion experts with a diverse mix of backgrounds – commercial companies, product manufacturers, public organisations, community representatives and academics.

Bringing these people together in a shared space provides a fantastic opportunity to explore how we can work together to reduce flood risk and manage coastal erosion more effectively in the UK.

More than 200 speakers will talk at the event, and 80 exhibitors will showcase the latest in flood risk management technology and innovation.

Terry Fuller, Chief Executive of CIWEM said:

“This year, perhaps more than ever before, we can positively influence the way that we manage flood and erosion risk.

“The Government’s 25 year Environment Plan sets an ambitious scene and we have the opportunity to create a strategy for flood and coastal erosion risk management in England that is world leading. Flood and Coast provides a unique and well timed forum for discussion and above all for us to think big and be bold.”

You can access the FCERM Strategy consultation here.