South Africa’s Competition Commission is preparing to take pharmaceutical manufacturer Adcock Ingram to the Competition Tribunal over allegations that the company profited unfairly during the Covid-19 pandemic.
According to sources familiar with the matter, the antitrust watchdog alleges that Adcock Ingram failed to pass on substantial pricing benefits and discounts it received from medical technology company Baxter International for dialysis machines and related medication during the health crisis.
The discounts were reportedly intended to reduce the cost of critical healthcare equipment and treatments at a time when healthcare systems were under significant pressure.
The Competition Commission is expected to refer the matter to the Competition Tribunal for prosecution. If found guilty, Adcock Ingram could face penalties of up to 10% of its annual revenue, with higher sanctions possible for repeat offenders.
The allegations have not yet been publicly detailed by the Commission, and both parties have declined to comment on the matter.
Adcock Ingram referred requests for comment to its majority shareholder, Bidvest Group, which said it could not comment. The Competition Commission also indicated that it was unable to comment at this stage of the process.
Johannesburg-based Adcock Ingram is majority-owned by Bidvest, which holds a 64.3% stake. The remaining shares were acquired by India's Natco Pharma last year, after which Adcock Ingram was delisted from the Johannesburg Stock Exchange.
The company reported total sales of R9.76 billion for the financial year ending June 2025.
The latest allegations add to a history of regulatory scrutiny involving the pharmaceutical group. In 2008, Adcock Ingram's critical-care division admitted to price-fixing and collusive tendering related to state hospital contracts and was fined R53.5 million.
In 2017, the company was again penalised after allegedly implementing a merger arrangement with Bidvest before obtaining the necessary regulatory approval. The matter was settled without Adcock Ingram admitting liability.
The Competition Tribunal is expected to determine whether the company's conduct during the pandemic amounted to excessive pricing or anti-competitive behaviour, should the matter proceed to a formal hearing.