Pharmaceutical drugs: suspected anti-competitive agreements (update)

Monday, 20 July 2020 11:19

The CMA is investigating alleged anti-competitive agreements in the pharmaceutical sector under Chapter I CA98 and Article 101 TFEU (case reference: 50511-1). Case timetable Date Action Spring 2021 Final decision on case outcome 20 July 2020 to Spring 2021 (estimate) Considering written and oral representations on the...Request free trial

The CMA is investigating alleged anti-competitive agreements in the pharmaceutical sector under Chapter I CA98 and Article 101 TFEU (case reference: 50511-1).

Case timetable

Date	Action
Spring 2021	Final decision on case outcome
20 July 2020 to Spring 2021 (estimate)	Considering written and oral representations on the Statement of Objections
7 April to 20 July 2020	Case paused in order to reallocate resources to ensure that the CMA is able to focus on urgent work during the Coronavirus (COVID-19) pandemic
February 2020 to April 2020	Receipt of written representations on the Statement of Objections
July 2019	Statement of objections issued
Q2 2019	Decision on whether to issue a statement of objections for certain alleged anti-competitive agreements and/or concerted practices and certain parties
July 2018 to Q1 2019	Further investigation including further information gathering in relation to certain alleged anti-competitive agreements and/or concerted practices and certain parties. CMA analysis and review of information gathered.
October 2017 to June 2018	Initial investigation and information gathering. CMA analysis and review of information gathered.
October 2017	Investigation opened

Change log

The following changes have been made to the case timetable since it was first published:

Date of change	Reason for change	Change made to timetable
20 July 2020	Case resumed	Date for CMA final decision on case outcome changed to Spring 2021
7 April 2020	Case paused in order to reallocate resources to ensure that the CMA is able to focus on urgent work during the Coronavirus (COVID-19) pandemic	Timetable paused
28 March 2019	Additional time needed to analyse information	Date for CMA decision on whether to issue a statement of objections changed from Q1 2019 to Q2 2019.

Statement of objections

25 July 2019: The CMA issued a statement of objections alleging that AMCo (now Advanz Pharma Services (UK) Limited), Alliance Healthcare (Distribution) Limited, Morningside Healthcare Limited and Morningside Pharmaceuticals Limited (Morningside), have breached UK and EU competition law by participating in anti-competitive agreements and/or concerted practices in relation to the supply of nitrofurantoin 50mg and 100mg capsules in the UK. The CMA also alleges that AMCo disclosed sensitive pricing information to Morningside with the aim of reducing competition between them.

Press release: Drug firms accused of illegal market sharing in supply of antibiotic (25.7.19)

Notes

The investigation is under Chapter I of the Competition Act 1998 (CA98) and Article 101 of the Treaty on the Functioning of the European Union (TFEU).
No conclusion should be drawn that there has been an infringement of competition law at this stage and the recipients of the Statement of Objections will now have the opportunity to respond to the allegations.
The CMA will consider any representations it receives before any decision is taken as to whether competition law has in fact been infringed.
Changes to the timing of original entries in the case timetable will be made where the estimated timing changes.

Case information

On 10 October 2017, the CMA launched an investigation under Chapter 1 of the CA98 and Article 101 of the TFEU into suspected breaches of competition law by various parties. The investigation relates to alleged anti-competitive agreements and/or concerted practices in relation to generic pharmaceutical products.

The CMA has not reached a view on whether there is sufficient evidence of an infringement of competition law for it to issue a statement of objections to the parties under investigation. Not all cases result in the CMA issuing a statement of objections.