2nd Sep 2022 09:01
(Alliance News) - Alliance Pharma PLC shares fell after the firm on Friday said that it has appealed against the UK Competition & Markets Authority's decision to seek a competition disqualification order against its chief executive officer Peter Butterfield.
Shares were trading 5.4% lower at 88.50 pence each on Friday morning in London.
Alliance Pharma is a Chippenham, England-based distributor of consumer healthcare brands and prescription medicines.
The CMA is currently seeking the disqualifications of a total of seven directors from four companies, including Alliance's Butterfield.
The procedures are in consequence of anti-competitive agreements in relation to the sale of prescription prochlorperazine.
In May 2019, the CMA alleged that between 2013 and 2018 Lexon, Medreich, Focus Pharmaceuticals and Alliance had agreed not to compete for the supply of the prescription-only anti-nausea drug to the National Health Service.
The CMA explained that the price of the prochlorperazine drug then rose from GB6.49 per 50 tablets to GBP51.68 between December 2013 and December 2017. As a result, the NHS saw its prochlorperazine bill surge to GBP7.5 million from GBP2.7 million prior.
"Whilst this action is in line with the CMA's stated policy to consider [competition disqualification orders] in all cases where the CMA has found an infringement, the company is very disappointed, in light of the facts, with the CMA's decision to take such action against Mr Butterfield," the company stated.
Alliance said that Butterfield did not participate in, or profit from, any market sharing arrangement. It added that he retains the full confidence and support of the Alliance board.
The company ended that it takes compliance with competition law "very seriously." Further, it noted that it fully assisted the CMA in its investigation.
By Abby Amoakuh; [email protected]
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