UK's CMA takes swift action in bipolar drug investigation

The UK Competition and Markets Authority (CMA) launched a competition law investigation into Essential Pharma last month because of suspicions that the firm may have abused its dominant position by proposing to withdraw the supply of bipolar drug, lithium-based Priadel, to UK patients.

If Priadel was withdrawn, this would require patients to switch to alternative, more expensive treatments such as lithium-based Camcolit, also owned by Essential Pharma, which was recently bought by a Swiss private equity firm Gyrus Capital.

Following the opening of the CMA’s investigation, Essential Pharma paused the withdrawal of Priadel and entered into price negotiations with the Department for Health and Social Care (DHSC). This has resulted in a recent agreement with the DHSC on a revised price for Priadel that is still lower than alternative bipolar drugs.