Better news for Napp Pharma from OFT

23 May 2001

Napp Pharmaceuticals of the UK has been exempted from an Office of FairTrading order to cease anti-competitive practices pending its appeal against a landmark ruling made earlier this year when the firm was hit with a fine of L3.2 million ($4.5 million; Marketletter April 9). Then, it was claimed that Napp was supplying MST (sustained-release morphine) to doctors at excessively high prices while supplying hospitals at discount levels that blocked competitors.

Earlier this month, the OFT imposed a set of directions on Napp, forcing it to alter its pricing policies and refrain from further abuses of its dominant position. However, Sir Christopher Bellamy, president of the Competition Commission Appeal Tribunals, has awarded the firm temporary relief from the order after it agreed to a number of undertakings, should the company's appeal prove unsuccessful.

These involve compensating the UK Department of Health, if the appeal is rejected, for any losses suffered by the National Health Service as a result of the exemption ruling. For its part, Napp pointed out that "the appeals tribunal...was satisfied, without yet having seen Napp's detailed case, that it has proper, arguable grounds for appeal."

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