By Neil Trainis 

The Competition Appeal Tribunal has today upheld the Competition and Markets Authority’s ruling two years ago that the pharmaceutical company Advanz charged the NHS excessive and unfair prices for liothyronine tablets between 2009 and 2017.

The Tribunal’s decision leaves Advanz Pharma, the owner of the Advanz business, along with HgCapital and Cinven, two former owners of the business, facing a fine of more than £84 million.

In July 2021, the CMA found Advanz, who are the sole supplier of the medicine which is used to treat thyroid hormone deficiency, increased the price of packs by 1,110 per cent from £20 in 2009 to £248 in 2017.

The CMA ruled Advanz’s “excessive pricing constituted an abuse of its dominant position in breach of competition law” and fined Advanz £40.9 million, HgCapital £8.6 million and Cinven £51.9 million.

In September 2021, Advanz Pharma, Cinven and HgCapital lodged an appeal with the Competition Appeal Tribunal against the CMA’s ruling that the prices were excessive and unfair. However, the Tribunal has upheld the CMA’s decision that Advanz abused its dominant position by charging excessive and unfair prices for liothyronine tablets during those eight years.

The CMA’s executive director, enforcement, Michael Grenfell said the Tribunal’s “landmark judgment reinforces the need for companies to think carefully about how they set prices and paves the way for the NHS to seek compensation.”

“The CMA will continue to crack down on companies which abuse their market power in ways that harm people and the wider economy,” he said.

The CMA said Advanz’s price increases “were part of a deliberate strategy to exploit the lack of regulatory or competitive constraints and resulted in a significant impact on the NHS.”