Napp Pharmaceutical Holdings Ltd: alleged abuse of a dominant position
Office of Fair Trading (OFT) closed Competition Act 1998 case and 2001 evaluation
OFT decision
No. CA98/2D/2001
Decision of the OFT:
Directions given by the Director General of Fair Trading under section 33 of the Competition Act 1998 to Napp Pharmaceutical Holdings Limited and its subsidiaries:
This decision was appealed to the Competition Appeal Tribunal (CAT) on 29 May 2001. On 15 January 2002 the CAT substantially upheld the OFT's decision on liability. For further details see the CAT website.
Evaluation of 2001 Napp case
6 June 2011: The OFT published an evaluation of its 2001 case against Napp Pharmaceuticals. The aim of this evaluation was to understand the extent to which the SRM market has changed as a result of the 2001 decision and to estimate the impact of OFT's intervention in terms of monetary savings to the NHS. The evaluation was conducted 'in-house' by OFT economists and independently reviewed by Professor Stephen Davies.
The evaluation found that the OFT's 2001 intervention has stimulated competition in the market, as demonstrated by a reduction in Napp's market share in both hospital and community segments. Additionally, Napp has removed its exclusionary discounts in the hospital segment and it has also reduced its prices to the community. Annual savings from the intervention are conservatively estimated at £1.5 million.
- Report: (pdf 1Mb)
- (pdf 130kb)
- Press release: OFT evaluation of Napp case finds increased competition in morphine market (6 June 2011)