South Africa Investigates Novo Norteisk and Sanofi for Anti-Competitive Practices in Insulin Market
The South African government is probing Novo Nordisk and Sanofi for alleged anti-competitive practices in the insulin market. The investigation focuses on device patents and market limitations as insulin prices face pressure from recent U.S. policies. The insulin sector continues to evolve, with significant price cuts announced by major manufacturers. Despite the challenges, both companies are working on innovative insulin products.
In recent developments concerning the insulin market, the South African government is conducting an investigation into Novo Nordisk and Sanofi. This inquiry centers around potential anti-competitive practices related to human insulin pens, with the Competition Commission of South Africa examining device patents and proprietary designs to assess any limitations on market competition. The Commission is currently coordinating with the local branches of both companies for this investigation.
The insulin market has faced significant disruptions in recent years, primarily due to evolving policies globally, including the Inflation Reduction Act and the Affordable Insulin Now Act in the United States. These legislative measures aim to reduce the out-of-pocket costs for insulin for American consumers, propelled by activism from lawmakers advocating for lower prices in the United States.
This investigation follows the Commission’s recent fine issued to Google, amounting to $30 million annually over the next five years, which highlights its commitment to scrutinizing corporate practices impacting South African consumers. The Commission is also investigating other tech giants like Meta and X for anticompetitive behavior.
In response to market pressures, Eli Lilly announced a 70% reduction in its insulin prices in March 2023, while capping out-of-pocket costs at $35 monthly, prompting Novo and Sanofi to implement similar price cuts shortly after. However, despite attempts to enhance market accessibility, Novo has decided to discontinue Levemir, its long-acting insulin product, by the end of 2024, raising concerns about the availability of certain insulin types.
Additional changes occurred as Sanofi halted the production of its pre-mixed insulin product Insuman, primarily impacting the UK market. BMO Capital Markets analyst Evan Seigerman noted that Novo must make prudent decisions regarding products they cannot profit from. Despite the challenges, both Lilly and Novo continue to innovate within the insulin sector, with Eli Lilly advancing a once-weekly insulin injection and Novo developing a similar long-acting product, although regulatory challenges have emerged in the approval process.
In conclusion, the South African government’s investigation into Novo Nordisk and Sanofi highlights the growing scrutiny on the insulin market amid ongoing price pressures and competitive practices. Legislative actions in the U.S. have led to significant price reductions, impacting corporate strategies. As these companies navigate market challenges and innovate their insulin offerings, the outcome of this investigation may have broader implications for industry practices and consumer access.
Original Source: www.biospace.com
