CMA helps NHS secure price and supply commitment for cancer drugs

The UK’s Competition and Markets Authority (CMA) said today that it has worked to ensure that pharmaceutical company Aspen’s commitments to reduce prices for life-saving cancer medicines can be enforced in the UK following its exit from the European Union.

The European Commission opened an investigation into Aspen, the UK unit of South African drugmaker Aspen Pharma (JSE: APN), in 2017 to investigate concerns that the company had engaged in excessive pricing for six off-patent cancer medicines. Last year the European Commission accepted commitments by Aspen to reduce prices for the six medicines to address these concerns.

As a result, Aspen reduced its prices across Europe - including in the UK - by an average of approximately 73%. In addition, Aspen guaranteed the supply of the six cancer medicines for a period of five years, and, for an additional five-year period, will either continue to supply or make its marketing authorization available to other suppliers. This means that over the 10-year period, Aspen cannot charge more than the price set out in the commitments.