UK Authority Fines Drugmakers for Role in Anti-Competitive Scheme

The UK’s Competition and Markets Authority (CMA) has fined drugmakers and an equity firm $47.5 million for an illegal arrangement the companies forged in order to increase the price of the medicine prochlorperazine by 700 percent.

CMA’s investigation found that from 2013 to 2018, Alliance Pharmaceuticals, Focus (now owned by Advanz, previously owned by the private equity firm Cinven), and Lexon worked together to restrict competition in the supply of prochlorperazine, including paying a competitor not to launch a product.

CMA noted that Advanz, Cinven and Lexon have been fined for breaking competition laws in previous pharmaceutical CMA investigations. Another company, Medreich, was also involved this time.

Prochlorperazine is used to treat nausea, dizziness and migraines.