The Competition and Markets Authority (CMA) has worked to ensure that pharmaceutical company Aspen’s commitments to cut prices for life-saving cancer medicines can be enforced in the UK following Brexit.
The European Commission began an investigation into Aspen 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 cut prices for the six medicines to address these concerns.
Consequently, Aspen has reduced its prices across Europe – including in the UK – by an average of approximately 73%.
In addition, Aspen has 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 authorisation available to other suppliers. This means that over this 10-year period, Aspen cannot charge more than the price set out in the commitments made.
While these commitments were offered while the UK was a member of the European Union, the commitments became legally binding under EU law after Brexit.
The CMA has now helped the NHS to secure binding undertakings from Aspen, under the law of England and Wales, which enshrine the UK elements of the commitments and are enforceable by UK courts, including in relation to the supply of these drugs in Northern Ireland and Scotland.
This means that the NHS will have effective mechanisms to monitor and ensure compliance by Aspen following Brexit.
