MSD is alleged to abused its position in the market for infliximab, the arthritis drug. It is accused of taking action to try to stop purchasers in the NHS from buying cheaper generic alternatives than the one that MSD sells under the brand name Remicade. Generics companies entered the market after MSD's patent expired in 2015, but the UK's competition regulator believes MSD used unlawful tactics to protect its market share.
As well as arthritis, infliximab is used to treat inflammatory conditions such as Crohn's disease and psoriasis. The NHS spends about £150m each year on the medicine to treat 100,000 patients.
The competitors produced biosimilar alternative treatments. Doctors were cautious about switching due to concerns over any effect of small changes on the treatment.
MSD offered a discount on its Remicade brand and said that the discount would be withdrawn from any buyer who bought an alternative. The CMA has issued a statement of objections and provisionally ruled that MSD's policy breached UK competition law.
Breach of competition law has serious consequences. The ultimate fine can be 10% of global turnover, which could run into hundreds of millions of pounds for MSD.
MSD has denied the allegations and has said it will fight them.
Any generics companies who are concerned about being squeezed out of the market by branded suppliers who have large market shares should consider carefully what action can be taken. If they are unsuccessful in trying to get a foothold into the market due to dominant players protecting their position unfairly, there are steps that can be taken.