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CMA issues Infringement Decision against Flynn

Flynn Pharma Limited ('Flynn') is disappointed that the Competition and Markets Authority ('CMA') reached the decision it has in its case relating to Phenytoin Sodium capsules ('Phenytoin'). 

The CMA has taken more than 3½ years to reach this decision which in Flynn’s view is based on a wholly flawed understanding of the UK pharmaceutical market. This has resulted in the CMA making a serious error in its decision which we believe may have unintended consequences on future investment in, and availability of, generics. 

Flynn will appeal to overturn the CMA's findings in the courts.

"Phenytoin sodium capsules are already less expensive than the alternative equivalent drugs in the UK market. It beggars belief that the CMA seeks to punish Flynn for selling phenytoin capsules at a significant discount to phenytoin tablets.  Phenytoin tablets are used for an identical purpose and for the last 9 years have been sold at a price negotiated and accepted by the Department of Health," said David Fakes from Flynn Pharma.

Flynn believes the CMA has ignored or misunderstood a number of pertinent points:

  • Flynn is heavily committed to Phenytoin capsules and has ensured this important epilepsy treatment remains available to doctors and their patients.
  • There are other epilepsy drugs available in the UK, as alternatives to Phenytoin, and Phenytoin is still less expensive than many of these. It makes little sense that the CMA has chosen to penalise the cheaper therapy supplier.
  • The CMA has deemed Flynn’s price to be excessive and unfair by reference to an entirely novel theory as to the level of margin that can be made by a generic company. This theory has never been discussed, let alone agreed, with the pharmaceutical industry.

"We believe that left unchallenged, the CMA's decision today would stunt investment in generics, eventually leading to a reduction in supply and less choice for doctors and patients. It is a matter of common interest for us to appeal and see this decision overturned.

"In the coming weeks, Flynn and its legal team will prepare its appeal. We are confident the CMA's findings will be overturned," said David Fakes of Flynn Pharma.

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