EC Commits Aspen to Reducing Off-patent Cancer Meds by 73% Following Investigation

BRUSSELS, Belgium – Following an investigation that began in May 2017 into Aspen’s pricing practices regarding six critical off-patent cancer meds, the European Commission has made Aspen’s resulting commitments legally binding under EU antitrust rules.

The commitments mean that Aspen must reduce its prices in Europe for the six critical cancer medicines in question by 73% on average, as well as ensuring the supply of the treatments for a “significant” period.

The investigation was initially opened after the Commission’s analysis of Aspen’s accounting data suggested an “abuse of dominance” following price increases that Aspen earned exceptionally high profits from in Europe since 2012.

The resulting 73% price drop means that Aspen will have to reduce its prices below the price levels of 2012, when it first started increasing the prices.

The medicines are used to treat serious and rare forms of blood cancers such as some types of leukemia and myeloma, and many patients depend fully on them for their treatments.

Specifically, Aspen has agreed in legally binding terms to:

• Reduce its prices across Europe for the six cancer medicines by, on average, approximately 73%, which is on average below the prices of 2012, before Aspen’s price increases started;
• The reduced prices will be the maximum that Aspen can charge for the coming 10 years. They will start taking effect already as of 1 October 2019; and
• Aspen guarantees the supply of the medicines for the next five years, and, for an additional five-year period, will either continue to supply or make its marketing authorization available to other suppliers.

The Commission confirmed in a statement that as of the decision the new commitments will remain in place for the next decade.

The investigation was instigated under Article 102 TFEU, which “prohibits the abuse of a dominant market position, including the imposition of unfair pricing in the form of excessive prices.”

Going forward, if Aspen does not honor the commitments or breaches any of the pledges, the Commission could impose a fine of up to 10% of Aspen’s total annual turnover, without having to find an infringement of EU antitrust rules.