UK OFT evaluation of Napp case finds increased competition in morphine market

The UK’s Office of Fair Trading (OFT) has published an evaluation of its 2001 abuse of dominance case against Napp Pharmaceuticals. The report finds increased competition in the sustained-release morphine (SRM) market over the past decade, following the OFT's intervention. Sustained release morphine is used to manage severe pain and commonly used in the treatment of cancer-related pain.

This OFT research, conducted by OFT economists and independently reviewed by Stephen Davies, a professor at the University of East Anglia, looked at the impact on the SRM market of the decision and restrictions imposed on Napp. In 2001, Napp was found by the OFT to be supplying SRM to patients in the community at excessively high prices while supplying to hospitals at high discount levels with the effect of eliminating competition. The £3.2 million ($5.2 million at current exchange rates) fine against NAPP (subsequently reduced to £2.2 million) was the first financial penalty to be set by the OFT under competition law.

The evaluation found that: