NHS set to benefit from £23 million following CMA pharma probe
The CMA has secured an offer of £23m from Vifor Pharma to the NHS, as part of a wider package, to address concerns that doctors were given potentially misleading information.
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The Competition and Markets Authority’s (CMA’s) investigation, which launched earlier this year, considered whether Vifor Pharma – which makes the intravenous iron deficiency treatment Ferinject – had restricted competition by spreading misinformation to healthcare professionals about the safety of a rival treatment, Monofer, supplied by Pharmacosmos.
Iron deficiency anaemia is a condition where a lack of iron in the body leads to a reduction in the number of red blood cells. The CMA’s investigation focused on intravenous iron treatments, typically prescribed where oral medicine is not suitable – such as treating patients with long term health conditions or before undergoing major surgery.
Vifor Pharma has agreed to quickly address the CMA’s competition concerns and offer a number of commitments which the CMA will now consult on. These include:
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Making a payment of £23 million to healthcare systems across the four nations, following concerns that the claims could have an adverse financial impact on the NHS.
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Writing to healthcare professionals to correct any potentially misleading communications regarding the safety of Monofer and Ferinject.
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Introducing several measures to prevent dissemination of misleading information in the future.
If accepted, the commitments will become legally binding and will mean that it is not necessary for the CMA to decide whether Vifor Pharma broke competition law – allowing the investigation to conclude swiftly, so that the benefits can be felt sooner.
Juliette Enser, Executive Director for Competition Enforcement, said:
Pharmaceutical companies must think carefully when making claims about competitors – these can have real impact on the doctors and nurses making potentially life-changing decisions about treatment and, of course, on the patients themselves.
Iron deficiency anaemia affects millions of people across the country and can have a serious impact on their quality of life. We know that vulnerable patients with long-term health conditions such as coeliac disease and heart failure depend on this vital treatment.
As well as ensuring patients are protected, the commitments we are consulting on support competition - enabling businesses to operate on an even playing field and the NHS to get good value for money.
Health Minister Karin Smyth said:
It is unacceptable for any company to seek to mislead and exploit the NHS. Iron-deficiency anaemia is a serious condition, and it is essential that doctors and nurses have access to the correct information.
We welcome this investigation, and we’re clawing back £23 million to benefit the NHS and patients. We thank the Competition and Markets Authority for their work on this case.
This is the first time a misleading claims case of this nature has been investigated by the CMA under its competition law enforcement powers. The CMA has taken on several cases in the pharmaceutical sector to protect and deliver significant savings for the NHS – in total, it has imposed large fines in the region of £400m.
The CMA will now consult on the proposed commitments until 17 January 2025, when its consultation closes. The CMA is required to consult interested parties before accepting commitments which it considers address its competition concerns.
For more information, visit the Vifor Pharma investigation page.
Notes to editors:
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Vifor Pharma is a global pharmaceutical company headquartered in Australia and supplies Ferinject (ferric carboxymaltose). Pharmacosmos is a family-owned specialist pharmaceutical company focused notably on the treatment of iron deficiency conditions and supplies Monofer (ferric derisomaltose).
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The CMA opened its investigation in January 2024 further to it having reasonable grounds to suspect that Vifor Pharma had infringed the Chapter II prohibition of the Competition Act 1998 (CA98). The Chapter II prohibition of the CA98 prohibits the abuse of a dominant position by one or more undertakings which may affect trade within the UK or part of it.
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Formal acceptance of the commitments would result in the CMA not continuing its investigation and not proceeding to a decision on whether the CA98 has been infringed. Any decision by the CMA to accept binding commitments will not include any statement as to whether or not Vifor Pharma’s conduct has infringed the CA98.
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All enquiries from journalists should be directed to the CMA press office by email on press@cma.gov.uk or by phone on 020 3738 6460.