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OFT Closes its Chapter II Investigation into Allegations of Anticompetitive Behaviour by P&G

After an extensive review, in May 2008 the Office of Fair Trading (OFT) closed its Chapter II investigation into allegations of predatory pricing and other anti-competitive behaviour by Procter & Gamble Pharmaceuticals (P&G) in the supply of Asacol, a mesalazine 400mg drug, in the UK. Based on an analysis of P&G's costs and prices for the supply of Asacol, a modified-release drug used to treat Ulcerative Colitis and Crohn's Disease, to the hospital sector, the OFT found no evidence that P&G's prices were below the appropriate measure of cost. In the absence of evidence of predatory pricing, the OFT decided not to pursue the remaining allegations of brand equalisation (the blending of pricing for generic and branded prescriptions in pharmacies in the community sector) and allegations of anticompetitive marketing practices on the basis of administrative priority grounds.

A CRA team including Andrea Coscelli and Hristina Dantcheva advised P&G throughout the OFT investigation.

See the OFT Press Release.

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