UK: Actavis probed for raising drug price by 12000%

Actavis faces fines for raising the cost of hydrocortisone tablets by more than 12,000 percent, the UK antitrust regulator said Friday as it continued a crackdown on excessive pricing in the drug industry.

Actavis “broke competition law by charging excessive and unfair prices in the UK,” the regulator said in a statement. In one example, The company raised the price of the 10 milligram packs from 70 pence to 88 pounds. Teva Pharmaceutical Industries, which acquired Actavis for $40.5 billion from Allergan earlier this year, said it will “defend the allegations.”

“This is a lifesaving drug relied on by thousands of patients, which the NHS has no choice but to continue purchasing,” said Andrew Groves, CMA senior responsible officer. “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 sent Actavis a statement of objections laying out its concerns amid a wider crackdown on unfair drug pricing. On Dec. 7, the CMA finedPfizer and Flynn Pharma a record amount for abusing their dominant position by charging unfair prices for unbranded versions of the Epanutin anti-epilepsy drug.

Full Content: Bloomberg

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