Johnson & Johnson, a major pharmaceutical company, is currently being investigated in South Africa for charging excessively high prices for their drugs.

The antitrust regulator in South Africa is currently investigating Johnson & Johnson, a pharmaceutical company based in the United States, for potentially overcharging for an important tuberculosis medication.

South Africa’s Competition Commission has stated that Janssen Pharmaceuticals, a subsidiary of J&J based in Belgium, is currently being investigated.

The regulatory commission has initiated an investigation this week into potential exclusionary practices and excessive pricing of the tuberculosis medication bedaquiline, marketed as Sirturo, by the mentioned companies.

The Competition Commission declined to give further details of its investigation, but health advocacy groups in South Africa say the country is being charged more than twice as much for bedaquiline than other middle- and low-income countries.

In 2012, Bedaquiline received approval and is currently employed for the treatment of tuberculosis that is resistant to drugs. South Africa, where this infectious disease is the primary cause of death, urgently requires this medication. In 2021 alone, it claimed the lives of over 50,000 individuals. With a population of over 7 million people living with HIV, South Africa surpasses all other countries in this regard. The World Health Organization has reported that tuberculosis accounts for approximately one-third of deaths among individuals with HIV/AIDS.

According to the WHO, there has been a rise in tuberculosis cases worldwide in 2021, marking the first increase in several years.

J&J has been urged to lower the prices of bedaquiline in the past. However, the company recently announced that it will offer a six-month supply of the drug to a single patient through the Stop TB Partnerships Global Drug Facility. The cost for this treatment will be $130.

Professor Norbert Ndjeka, head of the national department of health’s TB control and management, stated that the South African government procures bedaquiline from J&J and Janssen without involving the Stop TB facility. The cost for a six-month treatment course for a patient was approximately $280.

According to a report on the News24 website, Ndjeka mentioned that South Africa had recently finalized a fresh two-year agreement with J&J for bedaquiline. The price for each course is slightly higher than $280.

The Competition Commission stated that it was acknowledging the investigation because of increased attention from the media. However, they declined to provide any comments or additional details regarding the probe upon request.

A week later, the Health Justice Initiative, a health advocacy group, disclosed the COVID-19 vaccine procurement agreements of South Africa with various pharmaceutical companies such as J&J and Pfizer, which were acquired through a successful freedom of information lawsuit.

The organization claims that J&J billed South Africa 15% higher per vaccine dose compared to the European Union, based on the contracts. Similarly, Pfizer charged South Africa over 30% more per vaccine compared to the African Union, despite South Africa’s challenges in obtaining doses and having the highest number of COVID-19 infections in Africa.

According to the Health Justice Initiative, South Africa had to make an upfront payment of $40 million to Pfizer as part of the contract for vaccine doses. Only $20 million of this amount would be refunded if the vaccines were not delivered. Additionally, J&J required a non-refundable downpayment of $27.5 million.

In 2022, Pfizer achieved a milestone with revenues reaching $100.3 billion, while J&J recorded sales of $94.9 billion in the previous year.