Aspen in SA cleared of price-fixing allegations

Aspen Pharmacare has been cleared of anti-competitive allegations by the Competition Commission.

The leading pharmaceutical company was sent to the competition commission for price-fixing but has been cleared of any wrongdoing.

In April, the Democratic Alliance asked the Competition Commission to investigate the market conduct of Aspen Pharmacare.

This was in response to an article published by the London-based Times newspaper revealing damning allegations that the prices of life-saving cancer drugs were inflated by more than 1000%.

Then DA shadow minister for health Wilmot James was quoted as saying at the time: “Given the reports about how the cost of cancer drugs in Europe have been inflated, an investigation by the Competition Commission and the Medicines Control Council must, therefore, look into whether the same tactics are being used in our own country.”

James continued that the Competition Commission ought to make public the findings of their investigation.

“Access to medicines is a very important principle of health justice, and it is unacceptable that ill patients are exploited for financial gains by big companies,” James said.

After a preliminary investigation, this week the Competition Commission has cleared Aspen.

The Competition Commission carried out preliminary investigations into the market conduct of all pharmaceutical companies operating in South Africa and in the Brics consortium (Brazil, Russia, India, China, South Africa).

Aspen’s senior executive: strategic trade development, Stavros Nicolaou, was quoted by the Business Report as saying they were “satisfied” that there was no evidence Aspen had engaged in alleged anti-competitive behaviour.

Dr Mzukisi Grootboom, of the South African Medical Association, said they were happy that Aspen had been cleared.

“We were really concerned because they are a large supplier of medicines in South Africa. It was a worrying allegation,” said Grootboom.