U.K.'s CMA Provisionally Finds Drug Suppliers Broke Competition Law
25 Juillet 2019 - 01:15PM
Dow Jones News
--The U.K. antitrust watchdog provisionally found that drug
sellers broke competition law in the supply of antibiotic
nitrofurantoin
--The Competition and Markets Authority found that drug
suppliers AMCo and Morningside reached an illegal market-sharing
arrangement with Alliance Healthcare
--The companies said they believe competition law wasn't
infringed and that they will respond to the CMA's allegations
By Adria Calatayud
The U.K. antitrust watchdog, the Competition and Markets
Authority, said Thursday that it has provisionally found that drug
sellers broke competition law when supplying antibiotic
nitrofurantoin between 2014 until at least October 2017.
Drug suppliers AMCo--now owned by Advanz Pharma Corp.
(ADVZ.T)--and Morningside Pharmaceuticals Ltd. and wholesaler
Alliance Healthcare--owned by Walgreens Boots Alliance Inc.
(WBA)--entered into arrangements under which Alliance Healthcare
would buy equal volumes of the drug from each of the suppliers so
that they wouldn't compete, the CMA said.
The CMA said it has provisionally found that in May 2014 AMCo
disclosed sensitive pricing information to Morningside with the aim
of reducing competition between them.
The regulator said its provisional findings show that these
arrangements prevented or restricted competition with the aim of
keeping prices of nitrofurantoin capsules, an antibiotic commonly
used to treat urinary-tract infections, artificially high.
The CMA said it will consider representations of the companies
under investigation before determining whether the law has been
infringed.
In emailed statements to Dow Jones Newswires, Alliance
Healthcare, Morningside and Advanz said they will work with the CMA
and respond to its allegations to address the concerns raised.
An Alliance Healthcare spokesperson said that it doesn't believe
competition law has been infringed and that it plans to respond in
detail to the CMA's allegations to defend its position. Alliance
also noted that the CMA has issued a provisional view, which isn't
a finding of infringement nor does it necessarily lead to an
infringement decision.
A Morningside spokesperson said the company strongly refutes the
concerns raised by the CMA, but said it will continue to work with
the regulator to demonstrate its commitment to patient choice and a
competitive market.
AMCo-owner Advanz said it is committed to ensuring access to
high-quality medicines for patients in the U.K. and will respond to
the CMA's preliminary position, as it doesn't believe that
competition law has been infringed.
Write to Adria Calatayud at
adria.calatayudvaello@dowjones.com
(END) Dow Jones Newswires
July 25, 2019 07:00 ET (11:00 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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