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]