Aspen given maximum fine

The UK Competition and Markets Authority says it has imposed a £2.1m (R45m) fine on Aspen Pharmacare for entering into an illegal agreement that allowed it to hike the price of a life-saving drug. Aspen said last August that it had reached a settlement and admitted liability for entering into an agreement relating to the UK supply of fludrocortisone, which is used to treat adrenal insufficiency.

The UK Competition and Markets Authority (CMA) said on Thursday that it has imposed a £2.1m (R45m) fine on Aspen Pharmacare for entering into an illegal agreement that allowed it to hike the price of a life-saving drug.

Aspen said in August that it had reached a settlement and admitted liability for entering into an agreement relating to the supply of fludrocortisone in the UK, which is used to treat adrenal insufficiency.

Three companies, Aspen, Tiofarma, and Amilco, have now admitted to taking part in an anti-competitive agreement, the CMA said.

After the agreement was struck, the price of fludrocortisone supplied to the UK’s National Health Service increased by up to 1,800%.

Aspen reached an agreement with the CMA in August, with the £2.1m being the maximum penalty that could be imposed. The CMA said on Thursday the settlement sum had been paid.

The UK competition authorities launched the investigation in 2017, investigating the supply of two drugs, fludrocortisone and dexamethasone, though the probe into the latter was dropped.

The Aspen share price closed 3.46% weaker at R144.06 on the JSE on Thursday.