Johannesburg – Pharma giant Aspen says it welcomes a potential
probe into alleged ant-competitive behaviour.
This comes after the official opposition, the Democratic
Alliance, last Wednesday said it would write to the Competition Commission and
the Medicines Control Council (MCC) to request that they investigate the market
conduct of Aspen Pharmacare, the leading South African pharmaceutical company.
That call came after reports in the United Kingdom and
South Africa detailing how staff at Aspen Pharmacare allegedly plotted to
dispose of life-saving cancer medication in order to drive up its price across
Europe.
The London-based Times newspaper reported allegations
that this campaign has seen prices of life-saving cancer treatment inflated by
more than 1 000 percent.
In a statement issued on Monday, Aspen said it welcomed
the “process and the opportunity to categorically set aside such allegations of
anti-competitive behaviour”.
The company notes it is “committed to full and
constructive engagement with the Competition Commission should it wish to
pursue such an investigation”.
Aspen, listed on the JSE, adds pharmaceutical prices are
approved by the Department of Health in terms of the Single Exit Price
regulatory framework, which establishes a universal fixed price for each
pharmaceutical product.
“Aspen has not increased pricing of its products outside
of this regulatory framework.”
Read also: DA wants probe into Aspen anti-competitive allegations
Last week, DA spokesperson on health, Wilmot James, said
the World Bank had already highlighted that the South African pharmaceutical
industry was controlled by cartels and operated in an uncompetitive manner,
which would have the effect of increasing the cost of medication.
"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 said in a
statement.
"It appears to be an effort to manipulate the market
for drugs that effectively will put them out of reach for many if not
most."
The Medicines Control Council is the body responsible for
the regulation of the pharmaceutical industry in South Africa.
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