Pfizer fined record $107 million for hiking drug price as much as 2,600%

The Competition and Markets Authority (CMA) also fined Flynn Pharma 5.2 million pounds for overcharging for phenytoin sodium capsules, following a dramatic price hike in 2012.

In the case of phenytoin sodium capsules, the UK price charged for 100 mg packs of the drug jumped from 2.83 pounds to 67.50 in 2012, before reducing to 54.00 from May 2014.

As a result, annual spending on the capsules by Britain's National Health Service rose from 2 million pounds in 2012 to about 50 million in 2013. The CMA said UK prices were many times higher than elsewhere in Europe.

Pfizer used to market the medicine under the brand name Epanutin but sold the rights to Flynn, a privately owned British company, in September 2012.

It was then debranded, meaning that it was no longer subject to price regulation, and the price soared.

"The companies deliberately exploited the opportunity offered by debranding to hike up the price for a drug which is relied upon by many thousands of patients," Philip Marsden, chairman of the CMA's case decision group, said on Wednesday.

"This is the highest fine the CMA has imposed and it sends out a clear message to the sector that we are determined to crack down on such behavior."

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