The Big Bad CMA in the UKSo there has been a lot written about the CMA in the press in the UK and by the shorts.
The Secretary of State for Health Jeremy Hunt has asked the CMA to "urgently" investigate this drug price scandal.
Well, unfortunately he may be waiting some time for resolution.
A quick look at pending and closed CMA cases under "CA98 and civil cartels" the type that this investigation would be show 105 cases, from "Hotel Online booking Investigations", to "Distribution of road fuels in parts of Scotland", to "Sports bras RPM investigation".
Here is a list of all 10 pharmaceuticals investigations:
https://www.gov.uk/cma-cases?keywords=&case_type%5B%5D=ca98-and-civil-cartels&market_sector%5B%5D=pharmaceuticals&closed_date%5Bfrom%5D=&closed_date%5Bto%5D=
5 are open and 5 are closed.
The average time from open to closed is at least 3 years, and that is before the right to appeal. Not only that, initially it takes months initially in gathering evidence before they make a decision on whether to proceed with the investigation.
Here is one that was opened in Jun 2014, took until November to decide on whether to proceed with the investigation, and then decided not to proceed in June 2015 a full year later on "administrative priority grounds".
https://www.gov.uk/cma-cases/investigation-into-conduct-in-the-pharmaceutical-sector
The case against Pfizer started in May 2013 and they estimate they will have a decision in August 2016. And then Pfizer has the right of appeal, so add another 6 months.
In 3 years CXR will have been able to pay down at least 1B in debt with current earnings estimates.
Keep in mind, as CXR is new to the UK market, and the largest increases did not come on their watch, they are in a great place to negotiatie a settlement with the government to "clean up" the industry and resolve these pricing issues. The Times articles in fact state that the governmenr is already in negotiations with generics companies on new pricing regulations.
GLTA
Marcel