Inquiry launched into high price of NHS drugs

The "excessive prices" that drugs companies charge the NHS for their products is to be investigated.

The Competition and Markets Authority (CMA) has launched an inquiry into suspected breaches of competition law by pharmaceutical firms.

Companies face fines of up to 10% of their turnover if they are found to have broken the law.

The competition watchdog said in a statement: "The investigation relates to suspected unfair pricing by way of charging excessive prices in the supply of certain pharmaceutical products, including to the National Health Service."

Health Secretary Jeremy Hunt called in the CMA in June after an investigation by The Times suggested companies were exploiting a loophole in NHS rules to raise prices of medicines.

The paper alleged that companies were able to charge the high prices because they faced limited competition on long-established, off-patent drugs, bought from large pharmaceutical firms.

The report also claimed that the prices of 32 drugs have risen by more than 1,000% over the past five years.

Concordia International (Frankfurt: 80CB.F - news) revealed it was one of the companies being investigated.

A spokesman said: "We are working co-operatively to better understand the CMA's position and we will continue to work constructively to resolve the matter.

"Although Concordia has also had past discussions with the CMA regarding the supply of certain of its products in the UK, this is the first interaction with the CMA regarding the company's pricing."