The ongoing tale of the CMA (Competition and Markets Authority) investigation on Flynn Pharma and Pfizer has reached a verdict in terms of a fine. The two companies are to pay a collective fine of £70M, or $80.61M. According to the U.K. antitrust authorities, the companies took advantage of a loophole to vastly increase prices.
Pfizer Inc. is one of the most prominent North-American multinational companies in the pharmaceutical industry. The company is a biotechnological organization that operates out of Manhattan, New York and was founded in 1849, 173 years ago. The company aims to produce revolutionary medications that elongate the lives of patients suffering from various diseases. The company’s current stock price is just over $51 per share.
Flynn Pharma Ltd. is a pharmaceutical company founded in 2006 that is located in Hertfordshire, United Kingdom. The company operates as a holding company with multiple subsidiaries that indulge in the distribution of pharmaceutical products. It aids the acquisition, development and commercialisation of medicinal products for the secondary healthcare market.
The Competition and Markets Authority (CMA) claims that Pfizer and Flynn Pharma de-branded Epanutin, the epilepsy drug, to steer clear of the regulations, which led to the hikes in the price of between 8.8 times to 17 times the original price. The prices further increased when the drug was supplied to Flynn Pharma, which took it up to 20 times higher than the original price. The difference between the prices paid for the product within a span of a year was astronomical. According to authorities, NHS (National Health Service) in 2012, paid £2M for Epanutin, while in 2013, they paid £50M, which is a hefty increase of 2400% for just a single year (25 times the original price).
