Healthcare
Cinven gets third fine from UK regulators over drug pricing
February 3, 2022
The UK's competition regulator has fined Cinven for a third time over the private equity firm's involvement in drug pricing scandals.
The Competition and Markets Authority fined four drug companies a total of £35 million (about $48 million) after an investigation found that they had participated in an arrangement to restrict competition in the supply of an anti-nausea drug to the National Health Service; Cinven will share in the fine due to its past ownership of one of the suppliers.
Between 2013 and 2018, Alliance Pharmaceuticals, Focus—which Cinven owned before exiting to Advanz—and distributor Lexon created a profit-sharing agreement that led to a 700% increase in the price of the drug prochlorperazine, according to the CMA report. Focus was appointed as the distributor of Alliance's anti-nausea pill, with Lexon and later Medreich, which participated from 2014 to 2018, receiving a share of the profits in exchange for staying out of the market, the report said.
Focus was fined £15.5 million, split between previous owners Cinven and Advanz. Alliance Pharmaceuticals was fined £7.9 million, while Lexon and Medreich were fined £7.3 million and £4.6 million, respectively.
Cinven did not respond to a request for comment.
This is not the first time Cinven has run afoul of regulators over pharmaceutical prices. The competition watchdog said in its report that in the case of Cinven and Advanz, it is the first time the CMA has fined a company in three separate investigations.
Featured image by Mint Images/Getty Images
The Competition and Markets Authority fined four drug companies a total of £35 million (about $48 million) after an investigation found that they had participated in an arrangement to restrict competition in the supply of an anti-nausea drug to the National Health Service; Cinven will share in the fine due to its past ownership of one of the suppliers.
Between 2013 and 2018, Alliance Pharmaceuticals, Focus—which Cinven owned before exiting to Advanz—and distributor Lexon created a profit-sharing agreement that led to a 700% increase in the price of the drug prochlorperazine, according to the CMA report. Focus was appointed as the distributor of Alliance's anti-nausea pill, with Lexon and later Medreich, which participated from 2014 to 2018, receiving a share of the profits in exchange for staying out of the market, the report said.
Focus was fined £15.5 million, split between previous owners Cinven and Advanz. Alliance Pharmaceuticals was fined £7.9 million, while Lexon and Medreich were fined £7.3 million and £4.6 million, respectively.
Cinven did not respond to a request for comment.
This is not the first time Cinven has run afoul of regulators over pharmaceutical prices. The competition watchdog said in its report that in the case of Cinven and Advanz, it is the first time the CMA has fined a company in three separate investigations.
Featured image by Mint Images/Getty Images
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