Defining excess

In a case against Pfizer Inc. and Flynn Pharma Ltd., the U.K. government has for the first time shown a willingness to bring charges against drug companies for excessive pricing. The case could set a precedent for defining what constitutes an excessive price increase, but thanks to the country's price control mechanisms for branded drugs, only manufacturers and distributors of non-branded generics are likely to be affected.

On Aug. 6, the U.K.'s Competition and Markets Authority (CMA) sent a statement of objections to Pfizer and Flynn and said, after a preliminary investigation, the agency's provisional view is that the companies "abused a dominant position by charging excessive and unfair prices" for epilepsy drug phenytoin. ...