In a landmark ruling today, the Court of Appeal (CoA) has overturned a previous decision by the Competition Appeal Tribunal (CAT), siding with the Competition and Markets Authority (CMA) in a high-profile price-fixing case involving major pharmaceutical companies. The case centres on the pricing of hydrocortisone tablets, a life-saving drug used to treat conditions such as Addison’s disease.

The case traces back to a July 2021 CMA investigation, which found that Auden Mckenzie and Actavis UK engaged in anti-competitive practices by charging excessive prices for hydrocortisone tablets. Furthermore, the investigation revealed that the firms had colluded with AMCo (now known as Advanz Pharma) to prevent competition, effectively creating a monopoly in the market for vital medication.

The CMA imposed fines amounting to over £260 million on the involved companies, noting that their actions had caused the cost of hydrocortisone to the NHS to skyrocket from £500,000 annually to more than £80 million.

Although the CAT had initially upheld the CMA’s findings in September 2023, a procedural issue during cross-examination led to a reversal of the decision in March 2024. The CMA immediately appealed, and today’s CoA ruling validates their case.

Sarah Cardell, Chief Executive of the CMA, praised the decision, saying: “We’re delighted that the Court of Appeal recognised that the CMA’s case was consistent, clear, and fairly defended on appeal. This ruling sends a strong message that anti-competitive practices in healthcare will not be tolerated.”

This case is expected to set a precedent for future investigations into anti-competitive behaviour in the pharmaceutical industry and further underscores the importance of maintaining affordable access to essential medications for patients and the NHS.