GSK v Takeda: Competact mailer cost claim ruled misleading after Drug Tariff change (AUTH/2012/6/07)

📅 2007 | 🖉 Dr Anzal Qurbain
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Key facts

CaseAUTH/2012/6/07
PartiesGlaxoSmithKline v Takeda
Product/materialCompetact (pioglitazone/metformin) mailer (ref CM060811)
Main issueComparative cost claim stated Competact (unlike other glitazone combinations) cost less than its constituent parts; claim became misleading after January Drug Tariff change and because Avandamet also cost less than its parts
Key datesMailer posted 2 January 2007; complaint received 21 June 2007; case completed 3 September 2007; last sent out (per Takeda) 16 May
Applicable Code year2006
Breach clauses2, 7.2, 7.3, 9.1
SanctionsUndertaking received; Advertisement (additional sanction)
AppealNo appeal
Panel noteRepresentative reprinted and mailed locally outside SOPs; Takeda initially lacked records of continued use; Panel did not report to Appeal Board under Paragraph 8.2

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Reviewed by Dr Anzal Qurbain (FFPM) — ABPI Final Signatory

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What happened

  • GlaxoSmithKline complained about a Takeda mailer for Competact (pioglitazone/metformin) (ref CM060811).
  • The mailer claimed: “Unlike other glitazone combination therapies, Competact costs LESS to prescribe than its constituent parts”.
  • When mailed in early January 2007, GSK’s Avandamet (rosiglitazone/metformin) also cost less than its constituent parts, so the “unlike other” comparative was not true.
  • The mailer was posted on 2 January 2007, when a new NHS Drug Tariff price for generic metformin had come into effect; Takeda did not recheck the January Drug Tariff before sending.
  • During inter-company dialogue (from April 2007), Takeda acknowledged the pricing error and said it had stopped using the claim; a revised mailer removed the claim.
  • Takeda initially described the mailer as a one-off and said it was not used after the issue was identified; later it emerged a representative had reprinted the mailer locally and mailed it in his region outside SOPs.
  • Takeda later advised the mailer was last sent out on 16 May.
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Outcome

  • The Panel ruled the claim was misleading and unfair.
  • The Panel ruled Takeda failed to maintain a high standard by not checking the January Drug Tariff before sending the mailing.
  • The Panel ruled that continued use of a claim acknowledged in inter-company correspondence to be in breach brought discredit on the industry.
  • The Panel decided not to report Takeda to the Appeal Board under Paragraph 8.2 (given the circumstances and the role of an individual acting outside SOPs).
  • No appeal.
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