The Unacceptable Face of Capitalism?

  oresome 11:57 16 Dec 2016
Locked

Pharmaceutical firm challenged over rise in cost of hydrocortisone tablets from 70p to £88 per tablet, costing NHS tens of millions extra each year.

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click here

  bumpkin 15:00 16 Dec 2016

If it is generic and out of patent can it not be bought elsewhere?

  morddwyd 19:53 16 Dec 2016

It's called "market forces".

  Forum Editor 17:44 17 Dec 2016

This is greed, pure and simple.

  morddwyd 18:43 17 Dec 2016

No, it's business, pure and simple.

I have a product and I will sell it to you.

If you don't like my price, go elsewhere.

If there is no elsewhere, then develop and alternative, and pay the cost of doing so.

  Forum Editor 23:29 17 Dec 2016

morddwyd

"No, it's business, pure and simple."

Any company that ramps up the price of a product from 77p to £88 without any justification - and I can see none - when it knows that the NHS has no alternative means of supply is being greedy, pure and simple.

It has absolutely nothing to do with normal business practices. It is illegal in this country to charge an excessive and unfair price for an item that cannot be obtained from another source. The NHS was hardly in a position to 'go elsewhere' when until 2015 there was no 'elsewhere' to go.

Pure greed, as I said.

  morddwyd 07:37 18 Dec 2016

"without any justification "

The justification is market forces. We live in a capitalost society and that means a free market.

We may not like it, but that's the way it is.

If it is illegal the police should take action, or even the EU, of which we are still a fully paid up member.

  bumpkin 10:35 18 Dec 2016

* until 2015 there was no 'elsewhere' to go.*

Greed to my mind also. If there now is an "elsewhere" why is that not being pursued. That is business.

  oresome 11:13 18 Dec 2016

Nobody likes to feel they are being ripped off.

If you want to retain customers and get repeat business, this is certainly not the way to go about it.

This company may have got a short term gain, but I hope the NHS has a long term memory when it comes to spending our money.

  bumpkin 11:20 18 Dec 2016

Incentives spring to my suspicious mind.

  Forum Editor 12:37 18 Dec 2016

morddwyd

**"The justification is market forces. We live in a capitalost society and that means a free market. We may not like it, but that's the way it is."**

No, it isn't. A free market doesn't mean freedom to charge whatever you like.

Market forces don't come into this. Market forces mean that as the demand for a commodity rise, so will prices, and conversely prices will fall when demand falls.

In the UK we have the Competition and markets Authority (CMA) which is the regulatory body responsible for enforcing the competition laws. Chapter ll of the Competition Act 1998 makes it illegal for a company to use its dominant position in a market sector to charge excessive prices in order to maximise profit.

These cases are investigated by the CMA, which has the power to levy fines of up to 10% of annual UK turnover for every year that the practice occurred, up to a maximum of three years retrospectively.

Such an investigation is currently ongoing in this case.

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