A drug company that imposed huge increases in the price of medicines for British patients has filed for debt restructuring, raising fears over its financial health.
Concordia International, which was previously called AMCo, announced yesterday that it was beginning proceedings under Canadian law in an effort to reduce its debts by more than $2 billion. It follows a catastrophic fall in its share price that has resulted in its market value declining from about $1.5 billion to $30 million since The Times published an investigation into drug pricing in June last year.
The drug company was one of several businesses exposed by this newspaper for using a loophole in NHS pricing rules to increase the cost of medicines. The pharmaceutical companies were able to circumvent profit caps by dropping brand names and relaunching products as unbranded generics. The NHS relies on market competition to keep prices down in such cases but the drugs involved often had only a single supplier.
If it’s not able to make a profit then it’s not obvious that it is overcharging, is it?