Adcock Ingram admits role in medicines cartel
Adcock Ingram Critical Care, a healthcare unit of JSE-listed Tiger Brands, has been fined R53,5-million, or 8% of its annual turnover, for admitting its role in fixing the prices of medicines supplied to hospitals, the local anti-trust authorities said on Friday.
“The Competition Commission, Tiger Brands Limited and Adcock Ingram Critical Care (AICC) on Friday signed a consent agreement in which AICC admits its involvement in a cartel and has agreed to an administrative penalty of 8% of its annual turnover,” the Competition Commission said in a statement.
The consent agreement follows an investigation into a cartel operating in the market for the supply of intravenous medical products to public and private hospitals. This matter was referred to the Competition Tribunal on February 11 2008.
Tiger Brands Limited subsequently approached the commission with a view to settling the matter. This led to the consent agreement in terms of section 49D of the Competition Act, the commission said.—I-Net Bridge