Campaigners demand investigation into big pharama’s “cartel-like” threats to the NHS

POLITICO has today reported on a joint letter from Balanced Economy Project, Just Treatment, and Global Justice Now to the UK’s Competition and Markets Authority (CMA), calling for an urgent investigation into suspected anti-competitive conduct by major pharmaceutical companies and the Association of the British Pharmaceutical Industry (ABPI).  

Our letter highlights a pattern of paused investments in the UK by leading pharma giants including AstraZeneca, Marck/MSD, and Eli Lilly, which appear timed and coordinated to drive up the cost of medicine prices in the UK. Collectively, these three companies have paused over £1.5 billion worth of UK-investment in the last year.  

These moves come amid US government demands that pharmaceutical companies invest in the US while lowering prices for American consumers and raising them for European consumers, and as Prime Minister Starmer’s chief business adviser Varun Chandra travels to Washington, reportedly to offer more money to the pharmaceutical industry.  

“We believe there is a significant risk that a number of companies, in partnership with their representative trade body, the Association of the British Pharmaceutical Industry (ABPI), have been making and timing their actions and announcements in a coordinated manner to align business strategies for anti-competitive purposes,” our letter reads.  

Claire Godfrey, Executive Director of the Balanced Economy Project said: 

“When pharmaceutical giants abuse their market power — especially through cartel-like coordination — the consequences are devastating. The NHS is forced to pay inflated prices for essential medicines, draining public funds and denying patients timely access to life-saving treatments. Without strong enforcement of competition laws, we risk a future of spiralling costs and deepening health inequality. The CMA should not turn a blind eye.”  

Diarmaid McDonald of patient-led campaign group Just Treatment said:  

“There has been a constant drumbeat of stories building pressure on the UK government – it looks extremely suspicious. Every NSH patient in the country is affected by government decisions on how to allocate valuable resources in our health service. We are already paying over the odds for medicines these companies price at eye-watering amounts thanks to their patent monopolies. If they are also illegally colluding to rip off UK taxpayers and damage the NSH to further boost their profits then it would be an outrage. It is vital the CMA use their powers to find out the truth and ensure charges are brought against those responsible if wrongdoing is found.”  

Nick Dearden, Director of Global Justice Now also said:  

“We know that many of these pharmaceutical companies have spent years demanding higher prices and pushing back on the NSH’ attempts to keep costs under control. They're now using Trump’s chaotic trade policy to double down on these demands. It's vital, if we’re to deliver decent healthcare to British citizens, as well as improving access to medicines globally, we stand up against this offensive. Throwing more money at Big Pharma will not provide the medicines we need at a price we can afford.”  

This is not the first time suspected coordinated action has taken place in the pharmaceutical industry. In 2014 the Phramagate scandal in South Africa erupted when leaked documents revealed a well-resourced effort by foreign drug companies which planned to use asstroturf lobby groups and other unethical tactics to undermine patent law reform efforts in the country. Merck/MSD was one of the companies accused of spearheading the plot.  

The Balanced Economy Project believes this is a major red flag of potential cartel behaviour in a heavily concentrated market that is vital for public health. We repeat and emphasise our call for the CMA to urgently open an investigation.  

Markets do not function in the interests of society when the biggest players are free to collude and act within each other’ interests. This is a matter of public interest, and protecting the UK’s economy and health system from concentrated private capital.