Drugs firms ‘colluded’ to keep price of life-saving pills high

The UK’s competition watchdog today accused two companies of colluding illegally to keep the prices of life-saving drugs high for thousands of customers and ripping off the NHS.

The Competition and Markets Authority claims Actavis UK, then known as Auden Mckenzie, struck a deal with US firm Concordia’s former Amdipharm business to keep Concordia from entering the UK market with a competitor to its hydrocortisone tablets.

Hydrocortisone is a steroid used to treat adrenal deficiencies like Addison’s disease, which afflicts more than 8000 people.

The CMA alleges that between January 2013 and June last year, Actavis supplied Concordia with a fixed supply of its own tablets at low prices, incentivising it to delay entering the market on its own.

That allegedly helped Actavis, which was the sole supplier of the drug between 2008 and 2015, to prolong high prices during a period when the cost of the drug to the NHS almost doubled from £49 to £88 per pack.

The CMA’s senior officer Andrew Groves said: “Anti-competitive agreements can cost the NHS, and ultimately the taxpayer, by stopping competition bringing down the cost of life-saving drugs like hydrocortisone tablets.

“We allege these agreements were intended to keep Actavis UK as the sole supplier of a drug relied on by thousands of patients and in a position which could allow it to dictate and prolong high prices,” he added.

Drugs firm Teva, which now holds the licence for the Actavis UK trademark, confirmed the firm was the subject of “allegations of anti-competitive conduct” but said neither Teva or Actavis will comment further.

Concordia was unavailable for comment.