South Africa's competition watchdog probes Novo Nordisk and Sanofi for potential anti-competitive practices in the insulin pen market.
South Africa’s competition watchdog is investigating drugmakers Novo Nordisk and Sanofi over possible anti-competitive practices in the human insulin pen market, the authority said on Tuesday.
“We are currently engaging with market participants,”
a spokesperson for South Africa’s Competition Commission told Reuters, declining to provide details.
The inquiry aims to determine whether the companies are using multiple device patents and proprietary designs to stifle competition and block alternative suppliers, according to Bloomberg.
Novo Nordisk and Sanofi are two of the world’s largest makers of insulin.
While Sanofi did not immediately respond to a request for comment, Novo Nordisk told Reuters in a statement it welcomed the opportunity to provide information and would cooperate fully with authorities.
The company decided not to participate in the 2024 tender for human insulin pens in South Africa and instead tendered for insulin vials, it said. The company stated that the decision followed “thorough discussion” with the South African Department of Health and ensured sufficient insulin access through this method.
In November last year, Novo Nordisk told Reuters that it was phasing out production of human insulin pens, as it spends billions to increase manufacturing of its popular obesity and diabetes injections.
Diabetes remains a significant health issue in South Africa, ranking as the leading underlying cause of death among women and straining public healthcare facilities. The discontinuation of insulin pens sparked protests last year, with hundreds marching to Novo Nordisk’s Johannesburg headquarters to demand greater access to human insulin and lower prices.
Meanwhile, Sanofi, which also opted out of the government’s tender to supply insulin pens, left the government to procure a limited number of insulin analogue pens at a higher price, according to Doctors Without Borders (MSF). Insulin analogue pens, which offer adjustable absorption rates, are generally more expensive than human insulin. MSF criticized the lack of bulk supply agreements, which could have provided broader access to the medication.
The Competition Commission’s investigation will assess whether the drugmakers’ actions contributed to inflated prices and restricted access to life-saving medication in a country already grappling with a high diabetes burden.
Source: Bloomberg, Daily Maverick
