The UK Court of Appeal has confirmed the Competition and Markets Authority's (CMA) findings of excessive and unfair pricing in the supply of liothyronine tablets, a critical medication for thyroid hormone deficiency. The court reinstated the CMA's original fine of £51.9 million on private equity firm Cinven, which was part of the ownership group of Advanz Pharma.

Liothyronine, essential for treating thyroid conditions, saw its price surge from £20 to £248 per box between 2009 and 2017, leading to NHS spending on the drug skyrocketing from £2.3 million to over £30 million annually. The CMA's investigation revealed that Advanz had no justification for these price increases, as production costs remained stable and there was no significant innovation or investment in the product.

Initially, all three companies involved—Advanz Pharma, HgCapital, and Cinven—appealed the CMA's decision. However, the Competition Appeal Tribunal (CAT) upheld the CMA's findings in August 2023, albeit reducing the penalties for HgCapital and Cinven. HgCapital chose not to pursue further appeals and agreed to pay its fine of £6.2 million.

Advanz and Cinven sought to appeal the CAT's decision, but the Court of Appeal unanimously denied their requests, stating there was no valid basis for challenging the CAT's ruling. The court also reinstated Cinven's original penalty, affirming the CMA's stance on the need for fair pricing in the NHS.

Sarah Cardell, Chief Executive of the CMA, emphasized the importance of this ruling as a victory for consumer protection and a deterrent against companies that exploit their market power to the detriment of patients and taxpayers.