Last year, the Competition and Markets Authority (‘CMA’) concluded its investigation into the supply of nortriptyline, a drug relied on by thousands of patients daily to relieve symptoms of depression. The investigation has led to fines and a company director disqualification.
The CMA found that pharmaceutical firm Lexon, along with King Pharmaceuticals Ltd and Alissa Healthcare Research Ltd, had illegally shared commercially sensitive information to try to keep nortriptyline prices up. From 2015 to 2017, when the cost of the drug was falling, the 3 suppliers exchanged information about prices, the volumes they were supplying, and Alissa’s plans to enter the market.
As a result, the CMA fined all 3 companies, fining Lexon a total of £1.2 million. Lexon maintained that it had not broken the law and so appealed against the decision and the fine, but this was subsequently upheld. Pritesh Sonpal – a former director of Lexon – will also be disqualified from taking up any director role or being involved in the management of any company based in England, Scotland or Wales for 4 years, for his part in the company breaking competition laws.
Michael Grenfell, Executive Director of Enforcement at the CMA, said:
“This should be a message to all directors – if your company breaches competition law, you risk personal disqualification”.
The CMA has issued a range of guidance to help businesses and directors understand more about how to comply with competition law, including compliance advice for company directors on how to avoid director disqualification and the competition law risk guide.
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