In the News
Anti-competitive behaviour - UK drug companies fined £260m for inflating prices for NHS
The Competition and Markets Authority (CMA) has fined a UK drug company £260m for inflating the price of hydrocortisone tablets for a decade.
Accord-UK, which was made up of Auden Mckenzie and Actavis UK, were able to increase the price of a 10mg packet of tablets from 70p in April 2008 to £88 by March 2016 using a variety of tactics, not least paying potential rivals not to enter the market.
As a result, the NHS was forced to pay higher prices for the drug.
The head of the CMA is quoted as saying:
“These are without doubt among the most serious breaches we have uncovered in recent years. Our fine serves as a warning to any other drug firm planning to exploit the NHS.”
I pose a simple question: why isn't this a criminal case?
Hasn't the company defrauded the taxpayer of millions of pounds? And haven't the executives of the company been well-rewarded for doing so? It seems that fines are just another cost of doing business as directors seek higher profits, remuneration and dividends