HomeNews UpdateAdcock allegedly probed for Covid-19 profiteering

Adcock allegedly probed for Covid-19 profiteering

Adcock Ingram is facing prosecution by the Competition Tribunal for allegedly overcharging patients for its kidney dialysis products. Business Day reports that the Competition Commission said in a statement yesterday that it is seeking an order declaring that the company’s hospital division, Adcock Ingram Critical Care (AICC), contravened section 8 (1)(a) of the Competition Act and is liable for a penalty of up to 10% of its annual turnover.

Adcock Ingram, jointly owned by Bidvest Group and Indian Natco Pharma, delisted from the JSE last year. Neither Adcock Ingram nor Bidvest was immediately available for comment. AICC contributed R2.18bn to Adcock Ingram’s total revenue of R9.76bn for the year to June 30 2025.

“The pricing of essential healthcare products has important implications for healthcare costs, access to treatment, and the efficient functioning of healthcare markets,” said commissioner Doris Tshepe.

“The commission’s intervention in this matter reflects its commitment to ensuring that firms do not use market power to charge excessive prices for products that are critical to patient care.”

An estimated 6%-17% of South Africans are living with chronic kidney disease, and this number is likely to rise because of high rates of diabetes, hypertension, and HIV, the Competition Commission said.

Expensive renal replacement therapies can limit access to treatment and place financial pressure on the government, renal facilities, medical schemes and patients, it said.

Anonymous complaint

The Competition Commission said it investigated the matter after a complaint. It did not disclose the source. Its investigation found AICC is dominant in the market for renal replacement therapy products and that its prices for peritoneal dialysis and continuous renal therapy products between July 2019 and June 2024 were excessive.

“They significantly exceeded the economic costs attributable to those products,” it said, adding it was a prima facie indication of an abuse of dominance in terms of section 8(1)(a) of the Competition Act.

In 2008 the competition tribunal fined AICC R53.5m, or 8% of the division’s annual turnover, for collusive tendering and price fixing in the hospital market.

More recently, Adcock Ingram’s over-the-counter division was forced to issue a product recall for some of its Citro-Soda products after the South African Health Products Regulatory Authority identified shortcomings at one of its production facilities. Citro-Soda, one of Adcock Ingram’s signature brands, is used to alleviate the symptoms of heartburn, urinary tract infections and indigestion.

A News24 report says the commission has apparently accused Adcock Ingram of profiteering from the Covid-19 pandemic,

 

News24 article – Panado owner Adcock probed over alleged Covid profiteering, insiders say (Restricted access)

Business Day – Adcock Ingram referred for prosecution for allegedly overcharging kidney dialysis patients

See more from MedicalBrief archives:

 

Indian firm to buy chunk of pharma giant Adcock

 

Adcock Ingram seeks to reduce exposure to healthcare regulation

 

Adcock Ingram acquisition aims to improve pharmaceutical distribution

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