Details of CMA investigations into alleged anti-competitive agreements in the pharmaceutical sector

Friday, 8 October 2021 10:39

The CMA is investigating alleged anti-competitive agreements in the pharmaceutical sector under Chapter I CA98 (case reference: 50511-1). From: Competition and Markets Authority Case type: CA98 and civil cartels Case state: Closed Market sector: Pharmaceuticals Opened: 10 October 2017 Case timetable Date Action 8 October 2021 Case...Request free trial

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

From:

Competition and Markets Authority

Case type:

CA98 and civil cartels

Case state:

Closed

Market sector:

Pharmaceuticals

Opened:

10 October 2017

Case timetable

Date	Action
8 October 2021	Case closed on administrative priority grounds
1 January 2021	Following the end of the EU Exit Transition Period on 31 December 2020, the CMA’s investigation continues on the basis of the Chapter I prohibition in the Competition Act 1998 only (see CMA Guidance on the functions of the CMA after the end of the Transition Period)
20 July 2020 to Autumn 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
23 April 2021	Additional time needed to consider parties’ responses to the Statement of Objections	End date for CMA consideration of written and oral representations on the Statement of Objections changed from Spring 2021 to Autumn 2021
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), 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).
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 informationCase closure

On 8 October 2021, the CMA closed its investigation into suspected breaches of competition law relating to the supply of nitrofurantoin capsules on administrative priority grounds.

The reasons for closing the investigation are set out in the CMA’s case closure statement.

Case closure summary (8.10.21)

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.

Following the end of the EU exit ‘Transition Period’ on 31 December 2020, EU law is no longer being applied in the UK and the CMA will only investigate suspected infringements of UK domestic competition law in relation to conduct from both before and after 31 December 2020.The CMA’s investigation in this case since the end of the Transition Period therefore continues on the basis of the Chapter I prohibition in the Competition Act 1998 only.