Danish authority takes on CD Pharma for 2,000% 'unfair' price spike

By Flora Southey contact

- Last updated on GMT

(Image: Getty/NicoEINino)
(Image: Getty/NicoEINino)

Related tags: Pharmacology

The Danish competition authority has determined pharmaceutical distributor CD Pharma “abused its dominant position” by unfairly increasing prices for oxytocin-based Syntocinon.

The Danish Competition and Consumer Authority announced​ the ruling last week, in which the Danish Competition Council (DCC) found CD Pharma sold Syntocinon – indicated to induce labor and/or prevent heavy bleeding following childbirth – at an elevated price from April 28 until October 27, 2014.

During this time, the distributor increased its price by 2,000% from DKK 45 (€6) to DKK 945 (€127).

The Danish authority said charging wholesale buyer Amgros an “unfair price” ​for the drug exploited CD Pharma’s dominant position.

Amgros sourced the drug from DC Pharma’s competitor Orifarm from April 1, 2014, to March 31, 2015; however, it called on CD Pharma – who had an exclusive distribution agreement with the producer of Syntocinon – to complement the supply.

“Amgros ended up paying a little less than DKK 6m (approximately €780,000) more than the price in the original contract with the parallel importer [Orifarm], during a period of six months,” ​said the Danish Competition Consumer Authority.

The DCC plans to submit the case to the Danish State Prosecutor for Serious Economic and International Crime.

CD Pharma did not respond to a request for comment.

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