Actavis accused of overcharging NHS for lifesaving drug

The Competition and Markets Authority has accused pharmaceutical company Actavis UK – formerly Auden Mckenzie – of breaking competition law by overcharging the NHS for hydrocortisone tablets.

Actavis has bumped up the price of 10mg hydrocortisone tablets by over 12,000% compared to the branded version of the drug which was sold by a different company before April 2008. The company was charging the NHS 70p for 10mg packs of the drug in April 2008, but this rose to £88.00 per pack by March 2016.

Actavis also hiked the price of 20mg hydrocortisone tablets by nearly 9,500%, with prices charged to the NHS rising from to £102.74 per pack by March 2016 compared to £1.07 for the branded drug. De-branded or generic drugs are not subject to price regulation.

Hydrocortisone tablets are used as the primary replacement therapy for people whose adrenal glands do not produce sufficient amounts of natural steroid hormones (adrenal insufficiency), such as those suffering from life-threatening condition Addison’s disease.

Prior to April 2008, the NHS spent about £522,000 a year on hydrocortisone tablets but by 2015, this had risen to £70m a year.

Andrew Groves, CMA senior responsible officer, 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’s findings are provisional and no conclusion should be drawn at this stage that there has in fact been any breach of competition law. The CMA will carefully consider any representations of the parties under investigation before determining whether the law has been infringed.”