Drugs giant ‘rips off NHS with 12,000% price rise’
A DRUGS firm has been accused of hiking up the price of a vital NHS drug by more than 12,000%.
Actavis UK is being investigated over claims it may have broken competition laws by charging £88 for 10mg hydrocortisone tablets that used to cost just 70p. The pill is used to treat conditions such as Addison’s disease, a life-threatening adrenal gland problem. The Competition and Markets Authority claimed the firm was charging excessive and unfair prices. Senior responsible officer Andrew Groves said: “This is a life-saving drug relied on by thousands of patients, which the NHS has no choice but to continue purchasing.”
Actavas UK acquired the rights to make generic hydrocortisone tablets in 2008 from Merck Sharp & Dohme, which had produced a branded version. De-branded drugs are not subject to price regulation. The CMA claims the firm charged the NHS £102.74 a pack for 20mg pills but the branded version had cost £1.07 – a rise of more than 9,500%.
The CMA yesterday issued a statement of objections to Actavas over the price hike. However Mr Groves said: “The CMA’s findings are provisional and no conclusion should be drawn at this stage that there has been any breach of competition law.” Actavas UK is owned by Israeli drugs outfit Teva, which acquired it earlier this year. Teva is now selling it to India-based Intas to comply with EU rules. Teva vowed to defend the rip-off claims, insisting it had no part to play in Actavis’ price rise.
It added: “Although the pricing was never under Teva’s effective control, Teva believes intervention by the CMA in generic medicine prices raises serious policy concerns.”