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| Actavis UK accused of overcharging NHS for vital drug | Actavis UK accused of overcharging NHS for vital drug |
| (about 1 hour later) | |
| Actavis UK has been accused of overcharging the NHS for a "lifesaving" drug by raising the price by more than 12,000%. | |
| The Competition and Markets Authority (CMA) has accused Actavis UK of breaking competition law by raising the price for 10mg hydrocortisone tablets from 70p to £88 over eight years. | The Competition and Markets Authority (CMA) has accused Actavis UK of breaking competition law by raising the price for 10mg hydrocortisone tablets from 70p to £88 over eight years. |
| Hydrocortisone treats life-threatening conditions such as Addison's disease. | Hydrocortisone treats life-threatening conditions such as Addison's disease. |
| Between 2008 and 2015, the NHS's spend on the drug rose from £522,000 to £70m. | Between 2008 and 2015, the NHS's spend on the drug rose from £522,000 to £70m. |
| Actavis UK was unavailable for comment. | Actavis UK was unavailable for comment. |
| 'Taken advantage' | |
| Activis UK acquired the rights to make generic hydrocortisone tablets in 2008 from Merck Sharp & Dohme, which had produced a branded version of the treatment. De-branded or "generic" drugs are not subject to price regulation. | |
| The CMA compared the price of 10mg and 20mg hydrocortisone tablets that Activis is charging now to Merck Sharp & Dohme's prices in 2008. | |
| It claims that Actavis UK charged the NHS £102.74 a pack for 20mg pills, whereas the branded version previously cost £1.07 a packet. | |
| Andrew Groves, senior responsible officer at the CMA, 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 that no conclusion could be drawn that Actavis UK, which used to be known as Auden McKenzie, had broken competition law. | |
| The competition watchdog has been clamping down on drugs companies for overcharging the NHS. | |
| Earlier in December, the CMA fined Pfizer a record £84.2m for raising the price of an anti-epilepsy treatment by up to 2,600%. It also fined Flynn Pharma £5.2m for overcharging the NHS for phenytoin sodium capsules which prevent and control seizures. | |
| Both companies are to appeal against the decisions. |