The UK Court of Appeal has upheld a landmark £99 million fine imposed on the owners of Advanz Pharma for overcharging the NHS for liothyronine, a vital thyroid medication. The judgment reinforces the Competition and Markets Authority’s (CMA) stance on tackling unfair drug pricing in the UK healthcare system.
The unanimous ruling, delivered on Thursday, confirms the CMA’s conclusion that Advanz Pharma charged the National Health Service “excessive and unfair prices” for liothyronine tablets over a sustained period.
Competition Watchdog Wins Legal Battle Over Drug Pricing
The CMA originally fined the pharmaceutical company in 2021 after it found that the price of liothyronine — used primarily to treat hypothyroidism — had risen by more than 6,000% between 2007 and 2017. Despite the medication being off-patent since the mid-2000s, prices soared from around £20 to £248 per pack, with no justified increase in production or supply costs.
The court found no merit in Advanz Pharma’s appeal, supporting the CMA’s view that the company exploited its market dominance at the expense of taxpayers and vulnerable patients relying on NHS prescriptions.
NHS Patients and Taxpayers Suffered the Consequences
Liothyronine is a critical treatment for people with thyroid conditions who do not respond well to the more commonly prescribed levothyroxine. For years, clinicians and patient advocacy groups raised concerns about limited access to the drug due to inflated prices and NHS prescribing restrictions.
According to the CMA, the overcharging forced the NHS to significantly restrict use of liothyronine, impacting the quality of care for thousands of patients.
Background: CMA’s Wider Crackdown on Drug Price Exploitation
This ruling is part of the CMA’s broader effort to clamp down on pharmaceutical companies exploiting loopholes in the UK’s pricing regulations. Other firms have also come under scrutiny for similar practices, including cases involving hydrocortisone and phenytoin sodium.
Andrea Coscelli, former CMA Chief Executive, previously said the authority was determined to protect the NHS from being taken advantage of through unjustified price increases.
What Comes Next for Advanz Pharma
Following the court ruling, Advanz Pharma and its former owners are now required to pay the full fine, with no further legal recourse available unless they appeal to the Supreme Court. The decision is expected to serve as a precedent for future investigations into unfair drug pricing practices in the UK.
