The Competition and Markets Authority (CMA) has abandoned one of two ongoing investigations into anti-competitive behaviour in the generics market without reaching any conclusions.
Several factors are said to have influenced its decision including the evidence gathered to date and of similar behaviours in the sector, the lack of additional benefit in pursuing the investigation and the need to allocate resources efficiently.
The decision follows the introduction of the Health Service Medical Supplies (Costs) Act, which aims to give the Department of Health stronger powers to limit drugs’ prices. This implements additional record-keeping obligations for dispensing GPs.
The abandoned case, which has been running for over a year, is one of two CMA investigations into the generics sector. In April 2016, the CMA began investigating alleged anti-competitive agreements and abusive conduct with respect to hydrocortisone tablets. It expects to continue to gather until June next year.
Two further investigations to date, into price fixing and other anti-competitive behaviours, have already netted nearly £135 million in fines.