Celgene to face Tribunal on charges of excessive pricing of cancer drug

Celgene Corporation, an international drug manufacturer, and its subsidiary Celgene Logistics have been referred for prosecution by the Competition Commission to the Competition Tribunal for the alleged excessive pricing of bone marrow cancer treatment drug, Revlimid.

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Revlimid (Lenalidomide) is an immunomodulatory medicine that can change the immune system to work more effectively and is a first line medication used to treat multiple myeloma. Multiple myeloma (sometimes referred to as myeloma) is a blood cancer that develops in plasma cells in the bone marrow in more than one part of the body. Celgene distributes Revlimid in South Africa through Key Oncologics.

Upon investigation of Celgene's pricing, the Competition Commission found that on the basis of the cost estimates it used, the drug manufacturer's mark-ups for Revlimid were excessive - and are therefore considered in contravention of the Competition Act 89 of 1998 (as amended).

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The Commission’s investigation also identified that Celgene’s excessive pricing took place from April 2016 until December 2020 in the private healthcare sector. The Commission also found that Celgene was a dominant firm in the relevant market between 2016 and 2020, as Revlimid was the only Lenalidomide medicine registered with the Medicines Control Council for use in the treatment of multiple myeloma in South Africa during this period.

The Commission further received evidence from various affected patients about the devastating impact the excessive Revlimid prices had on their ability to access treatment during the aforementioned period.

The Commission has asked the Tribunal to impose a maximum penalty against Celgene for the alleged contravention of the Competition Act.