UK competition watchdog launches investigation into pharma firm over supply of bipolar drug

Essential Pharma is suspected of anti-competitive practices after proposing to withdraw the supply of a treatment

Around 50,000 mental health patients in the UK are reliant on Essential Pharma’s Priadel drug (AFP via Getty Images)

A probe has been launched into suspected anti-competitive practices in the supply of a bipolar treatment used by around 50,000 patients across the UK.

The Competition and Markets Authority (CMA) watchdog is investigating whether the pharmaceutical firm Essential Pharma has abused its dominant market position by proposing to withdraw the supply of Priadel, one of two bipolar treatments that it sells to the NHS.

This would mean that thousands of UK patients would be forced to switch to alternative, more expensive lithium treatments, such as Essential Pharma’s Camcolit drug.

Medical bodies and charities also warned that switching bipolar medication can be a difficult process for patients, raising the prospect of health complications.

According to the CMA, the vast majority of those taking a lithium-based drug to manage their symptoms use Priadel. Around 50,000 mental health patients in the UK are reliant on the treatment.

"This is particularly concerning at a time when the national health service is under unprecedented pressure because of the coronavirus (Covid-19) pandemic," the CMA said.

The Department of Health and Social Care (DHSC) had requested that the CMA impose ‘interim measures’ to pause the withdrawal of Priadel while the investigation is ongoing.

Essential Pharma later agreed to continue supplying the drug to facilitate discussions on pricing, removing the immediate threat to patients.

However, the CMA’s investigation it still open, as the threat of the drug being withdrawn remains if agreement cannot be reached on price.

No decision has yet to be made whether Essential Pharma broke the law. If the company is found to have breached competition rules, it could be fined up to 10 per cent of its annual worldwide turnover.

Andrea Coscelli, chief executive of the CMA said: "Thousands of people across the UK rely on lithium-based drugs to manage bipolar disorder, so it's important that we protect their interests by scrutinising potential competition concerns to reach a fair conclusion as quickly as possible.

Sir Simon Stevens, NHS chief executive, said: "This move by the CMA will be welcomed by 50,000 vulnerable mental health patients across the country who are reliant on this drug, as well as their families and the NHS staff working hard to keep them safe and well.

"This particular company should now swiftly and constructively engage with all parties to find a solution that does not put patients at unnecessary clinical risk or land British taxpayers with an unfair and unjustifiable bill."

Last month, Sir Simon accused Essential Pharma of trying to “price-gouge” taxpayers.

“You do occasionally get the one bad apple – which isn’t the same as the whole barrel,” he said. 

“There is a case, unfortunately going on right now, where we have a company, Essential Pharma, who are trying to jack the prices of a longstanding medicine for people particularly with bipolar disorder. 

“This is them just using the cover of coronavirus to try and price gouge British taxpayers, in a way which is also introducing clinical risk for vulnerable patients, and it is completely unacceptable.” 

At the time, an Essential Pharma spokesman said: “We have sought to minimise disruption to patients and to allow time for the transfer to suitable alternative lithium products by providing an extended notice period of such discontinuance.”