The Competition Commission has halted an investigation into a Tuberculosis (TB) drug after its intervention saw the price drop by 40%.
The commission has therefore decided not to prosecute a complaint of alleged anti-competitive conduct initiated against Johnson Johnson and its subsidiary company, Janssen Pharmaceutica.
The Commission investigated allegations of abuse of dominance after the companies filed a secondary patent for Bedaquiline (trading as Sirturo), a drug used in the treatment of tuberculosis (TB), effectively restricting the entry of generic alternatives.
After extensive engagement with the two companies, the commission decided not to refer the complaint to the Competition Tribunal for prosecution and the companies, in turn, agreed not to enforce the Bedaquiline patent in 134 low- and middle-income countries, including South Africa, opening the market allowing for the entry of generic suppliers.
In addition, the companies renegotiated the Bedaquiline prices they companies charged the National Department of Health . Accordingly, the price of Bedaquiline was reduced by approximately 40% from R5 577.12 to R 3 148.00 inclusive of VAT and logistics. The price is aligned with the price the companies offer the Global Drug Facility, the worlds largest procurer of TB medicines and diagnostics.
