Sunday, October 17, 2021
HomeBreaking NewsAnti-competitive acts in UK to cost SA's Aspen almost R190m

Anti-competitive acts in UK to cost SA's Aspen almost R190m

South African drugmaker Aspen Pharmacare’s share price dropped to its worst level in five months, after the company said it had settled with UK competition authorities on an £8m payment, with an additional fine of not more than £2.1m.

The settlement relates to the supply of Fludrocortisone and Dexamethasone, a life-saving medicine mainly used to treat Addison’s disease, paid for by the NHS.

Business Live reports that the UK Competition and Markets Authority (CMA) has investigated alleged anti-competitive agreements that Aspen made with rival companies in the UK in 2016 related to these drugs, with Aspen further admitting liability in seeking to acquire a potential competitor.

It is the first time that the UK's Competition and Markets Authority has secured such a payment to the NHS as part of one of its investigations.

Aspen, which is also facing a fine of up to £2.1m, supplies the NHS with fludrocortisone, a life-saving medicine mainly used to treat Addison’s disease. It is paid for by the NHS.

“The CMA launched this investigation because we consider it unacceptable for the NHS – and the taxpayers who fund it – to have to pay millions of pounds more than they should for this life-saving drug,” said Andrea Coscelli, the chief executive of the CMA.

[link url="https://www.businesslive.co.za/bd/companies/2019-08-14-aspen-shares-fall-to-five-month-lows-on-8m-anti-competitive-fine/"]Business Live report[/link]

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