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

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.