Pfizer fined record £84.2m for overcharging NHS

Drugs giant Pfizer has been fined a record £84.2m by the UK's competition watchdog for overcharging the NHS for an anti-epilepsy drug.

The Competition and Markets Authority (CMA) also fined distributor Flynn Pharma

£5.2m for the 2,600% overnight price increase for the drug in 2012.

NHS spending on the capsules, used by 48,000 UK patients, rose from £2m a year in 2012 to about £50m in 2013.

Pfizer rejected the findings and said it would appeal against the decision.

UK prices for the drug were many times higher than in Europe, the CMA said.

'Extraordinary' rises

Philip Marsden of the CMA said: "The companies deliberately exploited the opportunity offered by de-branding to hike up the price for a drug which is relied upon by many thousands of patients.

"These extraordinary price rises have cost the NHS and the taxpayer tens of millions of pounds."

Before 2012, Pfizer manufactured and distributed the drug, which was branded Epanutin.

Pfizer then sold the UK rights to distribute the phenytoin sodium capsules to Flynn Pharma, which de-branded the drug.

That allowed the firms to charge more for the drug because it was no longer subject to a pricing scheme agreed between the NHS and the drugs industry, the CMA said.