South Africa’s competition regulator is preparing to take action against pharmaceutical manufacturer Adcock Ingram Holdings Ltd. over allegations linked to its conduct during the Covid-19 pandemic, according to people familiar with the matter.
The Competition Commission alleges that Adcock Ingram failed to pass on substantial pricing reductions and discounts it received from Baxter International Inc. for dialysis equipment and associated medicines that were considered critical during the health emergency, according to Bloomberg. The information has not been made public, and the sources requested anonymity because of the sensitivity of the matter.
The regulator intends to refer the case to the Competition Tribunal, which will determine whether the company violated competition laws. If found guilty, Adcock could face a penalty of up to 10% of its annual revenue, with higher sanctions possible for repeat violations, according to people familiar with the case.
The allegations center on pricing practices involving dialysis machines and related pharmaceutical products supplied during the pandemic. The Competition Commission believes the company did not adequately transfer cost savings received from Baxter to customers, according to Bloomberg.
Adcock Ingram, headquartered in Johannesburg, is controlled by South African conglomerate Bidvest Group Ltd., which holds a 64.3% stake. The remaining shares were acquired by India-based Natco Pharma Ltd. last year. Following the transaction, Adcock was removed from trading on the Johannesburg Stock Exchange.
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When contacted for comment, Adcock directed inquiries to Bidvest. Bidvest declined to comment on the matter, while the Competition Commission also said it was unable to comment at this stage.
The company reported sales of 9.76 billion rand (approximately $602 million) for the financial year ending in June 2025.
The latest allegations add to a history of regulatory scrutiny involving the pharmaceutical group. In 2008, Adcock’s critical-care division acknowledged involvement in price-fixing and collusive tendering related to contracts for state hospitals. The company was subsequently required to pay a penalty of 53.5 million rand.
The firm also faced regulatory action in 2017 over allegations that it implemented aspects of a merger arrangement with Bidvest before obtaining the necessary approvals from competition authorities. That matter was settled without Adcock admitting liability.
According to Bloomberg, the Competition Tribunal will ultimately determine whether the company’s conduct during the pandemic amounted to excessive pricing or other competition-law violations and whether financial penalties should be imposed.
