South African company behind Allergex and Panado is under fire
South Africa’s antitrust watchdog has accused pharmaceutical company Adcock Ingram of profiteering from the Covid-19 pandemic, according to people familiar with the matter.
The Competition Commission’s allegations against the company include that it failed to pass on significant pricing benefits and discounts provided by medical-technology company Baxter International.
These discounts were for vital dialysis machines and related drugs during the health crisis, said the people who asked not to be identified, as the information isn’t public.
The penalty for such offences is as much as 10% of annual revenue or more for repeat offenders, the people said. The commission will refer the case to the Competition Tribunal for prosecution, the people said.
Johannesburg-based Adcock is jointly owned by South Africa’s Bidvest, with a 64.3% majority stake, and India’s Natco Pharma, which acquired the remaining shares last year.
Adcock subsequently delisted from the Johannesburg Stock Exchange.
Adcock referred a request for comment to Bidvest, which said it could not comment on the matter. The Competition Commission also said it couldn’t comment at this stage.
The pharmaceutical company reported total sales of R9.76 billion in the year through June 2025.
In 2008, Adcock’s critical-care unit was admitted to price-fixing and collusive tendering for state hospital contracts. At the time, it was forced to pay a R53.5 million penalty.
In 2017, the company was hit with a fine for allegedly unlawfully pre-implementing a merger structure with Bidvest before receiving formal regulatory approval. The firm settled without accepting the charges at the time.
Reported by Loni Prinsloo for Bloomberg.
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