- Authorities in the EU are following the U.S.'s lead in probing prescription drug prices, particularly off-patent meds that, in many cases, face limited competition.
- Last month, the European Commission launched an investigation aimed at South Africa's Aspen Pharmacare to determine if it made "unjustified" hikes in the price of five old cancer drugs. If the company comes out on the short end of the inquiry, it could face a fine of up to 10% of sales or $290M.
- Drug industry spokesperson Adrian van den Hoven says, "The investigation may be needed to stop bad behavior, however, this should not lead to a set of fixed principles that are not adapted to different situations, which then creates additional risks and which could increase the pressure on companies to withdraw important older medicines that patients need."
- Italy's competition watchdog fined Aspen $5.5M last year over its cancer drugs. British regulators slapped Pfizer (NYSE:PFE) with $107M fine for its price hikes of an old epilepsy drug.
- Pundits doubt that action will be taken against patented drugs since officials are sensitive about undermining innovation incentives.
- ETFs: BIB BIS CNCR ARKG GNRX PJP IHE XPH PPH XBI BBH
- Now read: Leveraged ETFs Decay Dashboard
Original article