Nortriptyline investigation: anti-competitive agreement and conduct

The CMA has issued decisions imposing fines on suppliers of nortriptyline tablets for breaching competition law.

From:
Competition and Markets Authority
Published
18 June 2019
Last updated
25 February 2021 — See all updates
Case type:
CA98 and civil cartels
Case state:
Closed
Market sector:
Pharmaceuticals
Outcome:
CA98 - infringement Chapter I
Opened:
10 October 2017

Case reference: 50507.2

Case timetable

Date Action
27 August 2020 The CMA issued court proceedings seeking the disqualification of a director of one of the companies alleged to have breached competition law
21 August 2020 The CMA secured a disqualification undertaking from a director of one of the companies alleged to have breached competition law
17 July 2020 The CMA has published a non-confidential version of the Market Sharing decision in this case
25 June 2020 The CMA has published a non-confidential version of the Information Exchange decision in this case
1 June 2020 The CMA secured a disqualification undertaking from a director of one of the companies alleged to have breached competition law
12 May 2020 Lexon (UK) Limited filed an appeal in the Competition Appeal Tribunal against the CMA’s findings in the Infringement Decision (Information Exchange) and the penalty imposed. The CMA will defend the appeal
4 March 2020 Two Infringement Decisions issued: Market Sharing and Information Exchange
January 2020 Oral Hearing for Lexon (UK) Ltd to make representations on the penalty for the information exchange infringement.
December 2019 The CMA secured a disqualification undertaking from a director of one of the companies alleged to have breached competition law.
November 2019 Oral Hearing for the Lexon UK Ltd to make representations on the Statement of Objections
October 2019 Accord-UK and Auden Mckenzie agree to make £1 million payment to the NHS in connection with the case
October 2019 All parties to the market sharing infringement admit the infringement, and agree to settlement
September 2019 Two of the three parties to the information exchange infringement, King Pharmaceuticals Ltd and Alissa Healthcare Research Ltd admit the infringement and agree to settlement.
June 2019 Statement of objections issued, alleging a market sharing infringement and an information exchange infringement.
July 2018 to Quarter 1 2019 Further investigation including further information gathering in relation to certain alleged anti-competitive agreements and/or concerted practices and certain parties. CMA analysis and review of information gathered.
July 2018 Decision taken to proceed with the investigation.
October 2017 to June 2018 Initial investigation and information gathering. CMA analysis and review of information gathered
October 2017 Investigation opened

Change log

The following changes have been made to the case timetable since it was first published in October 2017:

Date of change Reason for change Change made to timetable
19 April 2018 Additional time needed to gather and analyse additional information Date for completing initial investigation and information gathering changed from April 2018 to June 2018

Competition Appeal Tribunal ruling

25 February 2021: The Competition Appeal Tribunal (CAT) has upheld the CMA’s finding that Lexon broke competition law, dismissing Lexon’s appeal.

Court proceedings seeking director disqualification

21 August 2020: The Competition and Markets Authority (CMA) issued proceedings in the High Court of Justice, Business and Property Courts seeking the disqualification of Mr Pritesh Sonpal, a director of Lexon (UK) Limited.

The proceedings arise from the CMA’s decision dated 4 March 2020 that between 2015 and 2017, Lexon, King Pharmaceuticals Limited and Alissa Healthcare Research Limited exchanged commercially sensitive information about prices for Nortriptyline Tablets, the volumes they were supplying and Alissa’s plans to enter the market.

The CMA found that Lexon participated in the infringing behaviour during the period from 27 July 2015 to 27 May 2016. Lexon have filed an appeal in the Competition Appeal Tribunal against CMA’s decision and the penalty imposed.

The CMA issued these proceedings under section 9A of the Company Directors Disqualification Act 1986 following an investigation into Mr Sonpal’s conduct in relation to the breach of competition law. It is now for the court to decide whether to make a disqualification order against Mr Sonpal.

Non-confidential infringement decision (Market Sharing)

17 July 2020: The CMA has published a non-confidential version of the Market Sharing decision in this case.

Non-confidential infringement decision (Information Exchange)

25 June 2020: The CMA has published a non-confidential version of the Information Exchange decision in this case.

Notice of appeal

12 May 2020: Lexon (UK) Limited filed an appeal in the Competition Appeal Tribunal against the CMA’s findings in the Infringement Decision (Information Exchange) and the penalty imposed. The CMA will defend the appeal.

Infringement decisions

4 March 2020: The CMA has issued 2 separate infringement decisions, finding that 4 suppliers of 10mg and 25mg nortriptyline tablets infringed UK and EU competition law.

The CMA found that between September 2014 and May 2015, King Pharmaceuticals Ltd and Auden Mckenzie (Pharma Division) Ltd shared out between them the supply of nortriptyline tablets to a large pharmaceutical wholesaler. After the infringement, Accord-UK Ltd took control of Auden Mckenzie’s nortriptyline business, and it has been held liable for the infringement, along with King. The CMA has fined King £75,573 and Accord-UK, £1,882,238, with both companies handed reduced fines for admitting the infringement. Accord-UK and Auden Mckenzie have also agreed to make a £1 million payment to the NHS in connection with the case.

In a separate decision, the CMA found that between 2015 and 2017, King, Lexon (UK) Ltd and Alissa Healthcare Research Ltd exchanged commercially sensitive information about prices for Nortriptyline Tablets, the volumes they were supplying and Alissa’s plans to enter the market.

The CMA has fined King £75,573 and Alissa £174,912, with both companies handed reduced fines for admitting the infringement. Lexon did not admit to the infringement, and the CMA has imposed a £1,220,383 fine on Lexon.

Director disqualification undertakings

21 August 2020: The Competition and Markets Authority (CMA) secured a legally binding disqualification undertaking from Mr Robin Davies, director of Alissa Healthcare Research Limited. Mr Davies has given a disqualification undertaking not to act as a director of any UK company for 2 years as of 24 November 2020.

Under the Company Directors Disqualification Act, the CMA has the power to apply to the court to disqualify a director from holding company directorships or performing certain roles in relation to a company for a specified period, if a company which he or she is a director of has breached competition law. The Act also allows the CMA to accept a disqualification undertaking from a director instead of bringing proceedings, which has the same legal effect as a disqualification order.

1 June 2020: The Competition and Markets Authority (CMA) secured a legally binding disqualification undertaking from Mr Amit Patel, a former director of Auden Mckenzie (Pharma Division) Limited and Auden Mckenzie Holdings Limited (together “Auden Mckenzie”). Mr Patel has given a disqualification undertaking not to act as a director of any UK company for 5 years as of 13 July 2020.

Under the Company Directors Disqualification Act, the CMA has the power to apply to the court to disqualify a director from holding company directorships or performing certain roles in relation to a company for a specified period, if a company which he or she is a director of has breached competition law. The Act also allows the CMA to accept a disqualification undertaking from a director instead of bringing proceedings, which has the same legal effect as a disqualification order.

20 December 2019: The CMA secured a legally binding disqualification undertaking from the director of one of the companies found to have infringed competition law.

Dr Hallwood, director of King Pharmaceuticals and Praze Consultants Limited, has given a disqualification undertaking not to act as a director of any UK company for 7 years as of 19 March 2020.

Under the Company Directors Disqualification Act 1986, the CMA has the power to apply to the court to disqualify a director from holding company directorships or performing certain roles in relation to a company for a specified period, if a company which he or she is a director of has breached competition law. The Act also allows the CMA to accept a disqualification undertaking from a director instead of bringing proceedings, which has the same legal effect as a disqualification order.

Settlement

20 September 2019: The CMA announced that King Pharmaceuticals Limited and Alissa Healthcare Research Limited have admitted infringing competition law by exchanging commercially sensitive information in relation to the supply of 10mg and 25mg nortriptyline tablets.

The CMA’s investigation into Lexon is ongoing, as the firm denies involvement in the suspected information exchange infringement.

The Statement of Objections also alleged that King and Auden Mckenzie participated in a market sharing infringement in relation to the supply of 10mg and 25mg nortriptyline tablets, and the CMA’s investigation of this infringement is continuing.

Statement of objections

18 June 2019: The CMA issued a statement of objections alleging that Auden Mckenzie, King Pharmaceuticals Limited, Lexon and Alissa have breached UK and EU competition law in relation to the supply of 10mg and 25mg nortriptyline tablets in the UK.

Notes

  • The investigation is under Chapter I of the Competition Act 1998 (CA98) and Article 101 of the Treaty on the Functioning of the European Union (TFEU).
  • The Statement of Objections alleges infringements of the prohibition imposed by section 2(1) of the Competition Act 1998 (The Chapter I prohibition), and Article 101 (1) of the Treaty on the Functioning of the European Union
  • No conclusion should be drawn that there has been an infringement of competition law at this stage and the addressees of the Statement of Objections will now have the opportunity to respond to the allegations.
  • The CMA will consider any representations it receives before any decision is taken as to whether competition law has in fact been infringed.
  • Changes to the timing of original entries in the case timetable will be made where the estimated timing changes.

Contacts

Assistant Project Director

Elizabeth Sinclair (020 3738 6423, elizabeth.sinclair@cma.gov.uk)

Project Director

Susan Oxley (020 3738 6365, susan.oxley@cma.gov.uk)

Director of Litigation

Jessica Radke (020 3738 6376, jessica.radke@cma.gov.uk)

Senior Responsible Officer

Geoff Steadman (020 3738 6311, geoff.steadman@cma.gov.uk)

Updates to this page

Published 18 June 2019
Last updated 25 February 2021 + show all updates

  1. The Competition Appeal Tribunal (CAT) has upheld the CMA’s finding that Lexon broke competition law, dismissing Lexon’s appeal.

  2. Court proceedings seeking director disqualification and director disqualification undertakings published.

  3. Non-confidential infringement decision (market sharing) published.

  4. Non-confidential infringement decision (Information Exchange) published.

  5. The CMA secured a disqualification undertaking from a director of one of the companies alleged to have breached competition law.

  6. Notice of appeal published.

  7. Infringement decisions announced

  8. Case page updated to reflect that King Pharmaceuticals Limited and Alissa Healthcare Research Limited have admitted to infringing competition law.

  9. First published.

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