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In a strong signal to pharmaceutical companies the European Commission presented its decision to halt Aspen pharmaceutical from charging exorbitant prices for six drugs used in the treatment of leukaemia. The decision is an important one, as it will save health services millions in delivering vital treatment to cancer patients.
“As a result of today’s decision, Aspen has to radically reduce its prices across Europe for six medicines that are essential to treat certain serious forms of blood cancer, including myeloma and leukaemia,” said Margrethe Vestager, executive vice president in charge of competition policy. “Some patients, including young children, depend on these medicines for their treatment. Aspen’s commitments will save European health systems many dozens of million Euros and will ensure that these crucial medicines remain available.”
The European Commission has made commitments made by Aspen in negotiations with its services legally binding. Aspen has to reduce its prices in Europe for six critical cancer medicines by 73% on average. In addition, Aspen has to ensure the continued supply of these off-patent medicines for a ten year period.
The decision is an important one for anti-trust (competition) in pharma. A EU senior official said that for decades they were told that it would be impossible to enforce the rules against excessive pricing in this sector, with accusations that it could stifle innovation. However, this judgement shows that the Commission can act and sets out some legal principles on how the rules apply, setting out comprehensive and practical guidance on how the rules on excessive pricing can be applied in the pharmaceutical sector. The Commission hopes that it will be helpful to industry and stakeholders in assessing what can be considered excessive.
When asked if this case means that the EU could be looking at a slew of other cases, the senior official said that the Commission didn’t have its eye on a particular case, but it had its eyes wide open. He added that different competition authorities in EU member states have confirmed investigations against excessive pricing in the Netherlands, Spain and Italy; the official said they were vigilant and if necessary ready to take action.
Italy is not part of this decision as it already applied a judgement.
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