Actavis UK accused of breaking competition law by charging unfair prices

The competition watchdog accused the company of breaking competition law by raising the price of hydrocortisone tablets from £0.70 to £88 over an eight-year span.

Between 2008 and 2015, the CMA claims that the NHS's spending on the drug surged from £522,000 per year to £70m.

CMA senior responsible officer Andrew Groves 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 said that at this stage, its findings were provisional and no conclusion could be drawn that Actavis UK broke competition law.

Groves said: “The CMA will carefully consider any representations of the parties under investigation before determining whether the law has been infringed.”

Israel's Teva Pharmaceutical Industries, which acquired Actavis UK earlier this year, said it would defend itself against the allegations.

A Teva statement said: "Although the pricing of the acquired Actavis product, Hydrocortisone, under investigation was never under Teva's effective control, Teva believes that intervention by the CMA in prices for generic medicines raises serious policy concerns regarding the roles of both the CMA and the Department of Health."

Earlier this month, the CMA fined Pfizer and Flynn Pharma for abusing their dominant position in the UK by charging excessive and unfair prices for an anti-epilepsy drug.

The watchdog fined Pfizer £84.2m and Flynn Pharma £5.2m after they increased prices by as much as 2,600% in September 2012.

Image: Actavis UK accused of overcharging NHS. Photo: courtesy of Crown copyright.