J&J Avoids South African Antitrust Action by Cutting TB Drug Price

South Africa's Competition Commission has chosen not to pursue legal action against Johnson & Johnson and its subsidiary, Janssen, over allegations of anticompetitive behavior, following the company's agreement to lower the price of its tuberculosis (TB) medication, Sirturo (bedaquiline), by around 40% in the country. The investigation, initiated last September, focused on claims that Johnson & Johnson had secured a secondary patent for Sirturo, which could potentially delay generic alternatives until 2027 and allow the company to impose "excessive" pricing on South Africa's National Department of Health.

According to a statement by the Competition Commission, "The decision to non-refer the complaint of alleged anti-competitive conduct... to the Competition Tribunal for prosecution, follows extensive engagements with the two companies." The companies, in response, have agreed to relinquish the enforcement of the bedaquiline patent in 134 low- and middle-income nations, including South Africa.

Johnson & Johnson's move comes after considerable pushback from advocacy organizations against the enforcement of patents on Sirturo in various markets. Last year, the pharmaceutical giant announced its plan to waive these patents in the affected countries. South Africa's Competition Commission highlighted that the adjusted price is in line with the rates Johnson & Johnson provides to the Global Drug Facility, the leading buyer of TB medications and diagnostics globally.

This decision aligns with a couple of significant regulatory achievements for Sirturo. Earlier this month, the medication attained full approval in both the United States and the European Union for treating multidrug-resistant pulmonary tuberculosis in adults and children aged five and older.