Private Equity Firms Fined by U.K. Watchdog for Drug Price Hikes

Private equity firms Cinven and Hg have been fined by the U.K.’s competition watchdog after a pharmaceutical firm they once owned was found to have overcharged for crucial drugs.

The Competition and Markets Authority charged Cinven 51.9 million pounds ($72 million) and Hg 8.6 million pounds following investigations into Advanz Pharma Corp., according to a statement Thursday. It said the drug company marked up prices by more than 1,000% over eight years for thyroid hormone deficiency tablets known as liothyronine.

Cinven and Hg, both based in London, previously owned businesses that now form part of Advanz. The penalty is ...