RE:Pfizer and Flynn Pharma still in BusinessThe case you are quoting at the bottom is unlikely to have anything to do with AMCo, but I agree with your overall assertion. Pfizer and Flynn are still in business.
It takes years for these cases to play out, even to decide IF to continue with the investigation can take years. By that time CXR will have paid off a significant chunk of debt and would be able to pay out any likely fines with cash on hand. Nevermind the fact, that AMCo was playing by the rules that the NHS set down. They had to petition the goverment to make the changes to allow them to do this EVERY TIME and get approval in order to do so. I think sanctions in this case are unlikely. Also, the NHS set up these types of rules in order to encourage generics to enter the market. Overall generic competition saves the NHS far more than the amount that is apparently lost to this loophole.
Any companies bidding on the company would be aware of this investigation (or if this is not related to AMCo, the possibility of an investigation) yet proceeding anyway. This tells you how much they fear it. If anything they likely see this as an opportunity to purchase a company that would not otherwise be available.
Marcel
jimmyjong wrote: Ann Pope, CMA Senior Director of Antitrust Enforcement, said:
While businesses are generally free to set prices as they see fit, those that hold a dominant position have a special responsibility to ensure that their conduct does not impair genuine competition and that their prices are not excessive and unfair. The prices that the CMA is concerned about in this case are very high compared to those prices previously charged and have led to a big increase in the total NHS drug bill for what is a very important drug for tens of thousands of patients.
The CMA’s findings on dominance and abuse are provisional and no conclusion can be drawn at this stage that there has, in fact, been any breach of competition law. We will carefully consider any representations from Pfizer and Flynn Pharma before deciding whether the law has been infringed.
CMA opens investigation into discounting in the pharmaceutical sector
On 2 December 2015, the UK Competition and Markets Authority (“CMA”) announced the opening of a new investigation in the pharmaceutical sector. The investigation is focussed on whether an unnamed company has abused a dominant market position through discounting of its pharmaceutical products.
There are no further details publicly available on the identity of the company under investigation or the product concerned. The CMA has set a deadline of May 2016 to decide whether to proceed with the investigation.