Anaylize how pharmaceutical companies are able to charge ‘excessive’ prices and what justification the companies give.

The pharmaceutical company Actavis UK increased the price of 10mg hydrocortisonetablets by over 12,000% compared to the branded version of the drug which was soldby a different company prior to April 2008. For example, the amount the NHS wascharged for a 10mg pack of the drugs rose from £0.70 in April 2008 to £88 per pack byMarch 2016. The company also increased the price of 20mg hydrocortisone tablets bynearly 9,500% compared to the previous branded price, equating to charges to theNHS of £102.74 per pack by March 2016, when it had previously paid £1.07 a packet.De-branded drugs are not subject to price regulation.The competition watchdog has been clamping down on drugs companies forovercharging the NHS. Earlier in December, the CMA fined Pfizer a record £84.2m forraising the price of an anti-epilepsy treatment by up to 2,600%. It also fined FlynnPharma £5.2m for overcharging the NHS for phenytoin sodium capsules, which preventand control seizures.Source: www.bbc.co.uk/news/business-38338359 – that is the text situated with the question