Win for Pfizer and Flynn in UK price gouging case

Drugmakers Pfizer (NYSE: PFE) and Flynn Pharma have successfully overturned fines of nearly nearly £90 million ($120 million) levied by the UK’s competition authority in 2016 over allegations of price gouging.

The Competition Appeal Tribunal says the Competition and Markets Authority (CMA) had failed to demonstrate that the ramping up of the cost of an epilepsy drug was in breach of competition law.

Pfizer manufactures phenytoin sodium capsules and supplies them to Flynn Pharma, which distributes them to UK wholesalers and pharmacies. The CMA’s allegations relate to both the prices Pfizer charged to Flynn Pharma and that Flynn Pharma charged to its customers, since September 2012.