Actavis UK breaks competition law through unfair pricing to NHS

The Competition and Markets Authority (CMA) has ruled that pharmaceutical company Actavis UK, has broken competition law by charging excessive prices to the NHS for hydrocortisone tablets.

The news comes only a week after drug developer Pfizer was fined £84 million for charging excessive and unfair prices in the UK for an anti-epilepsy drug.

The company, increased the price of 10mg hydrocortisone tablets by over 12,000% compared to the branded version of the drug sold by a different company prior to 2008. From 2008 the price of 10mg packs rose from £0.70 to £88 by March 2016.

Actavis UK also increased the price of 20mg hydrocortisone tablets by nearly 9,5000%, charging the NHS £102.74 per pack by March 2016, when it had previously paid £1.07.

Because de-branded drugs are not subject to price regulations, Actavis UK were able to take advantage of the situation and charge excessive prices for the tablets.

Andrew Groves, CMA  senior responsible officer, said:

"This is a lifesaving drug relied on by thousands of patients, which the NHS has no choice but to continue purchasing. We allege that the company has taken advantage of this situation and the removal of the drug from price regulation, leaving the NHS – and ultimately the taxpayer – footing the bill for the substantial price rises."

"The  CMA ’s findings are provisional and no conclusion should be drawn at this stage that there has in fact been any breach of competition law. The  CMA  will carefully consider any representations of the parties under investigation before determining whether the law has been infringed."

Hydrocortisone tablets are used as the primary replacement therapy for people whose adrenal glands do not produce sufficient amounts of natural steroid hormones. In 2008, the NHS spent approximately £522,000 a year of the tablets. By 2015 the NHS expense on the tablets had risen to £70 million a year.