Remicade: alleged abusive discount scheme

Case OutcomeCA98 - no grounds for action
Decision Date02 December 2015
Date02 December 2015
Subject MatterCA98 and civil cartels
CourtCompetition and Markets Authority (EW)
No Grounds For Action Decision
Competition Act 1998
Remicade
50236
Addressed to:
Merck Sharp & Dohme Limited
Merck & Co., Inc.
14 March 2019
Page 2 of 69
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Page 3 of 69
CONTENTS
1. Introduction and summary ................................................................................. 4
A. Introduction ................................................................................................ 4
B. Summary ................................................................................................... 6
2. Factual background ........................................................................................... 9
A. Infliximab, Remicade and Biosimilars ........................................................ 9
B. The structure of secondary healthcare in the NHS .................................. 13
C. Prescribing and purchasing decisions in secondary healthcare in the NHS
................................................................................................................ 17
D. The tendering process within the NHS .................................................... 21
E. MSD's Discount Scheme ......................................................................... 22
F. MSD's revised pricing proposals for Remicade ....................................... 27
G. Changes in prices and volumes of Remicade and Biosimilars ................ 28
3. Market definition and dominant position........................................................... 31
A. Market definition ...................................................................................... 31
B. Dominant position .................................................................................... 36
4. Abuse............................................................................................................... 41
A. Legal framework ...................................................................................... 41
B. The CMA's analysis of MSD's Discount Scheme .................................... 46
5. The CMA's conclusion ..................................................................................... 69

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