Ranbaxy (UK) LTD Settle NHS Claim For 'Price Fixing', UK

Main Category: Pharma Industry / Biotech Industry
Article Date: 01 Apr 2005 - 15:00 PDT


The UK Department of Health and Ranbaxy (UK) Ltd ("Ranbaxy") are pleased to jointly announce settlement of the claims brought against Ranbaxy for alleged anti-competitive cartel conduct in connection with the supply to the NHS of generic drugs between 1996 and 2000. Under the terms of the settlement Ranbaxy have agreed, on a full and final basis and without admission of liability, to compensate the NHS by payment of £4.5 million and to provide co-operation in the context of the ongoing proceedings. Both Ranbaxy and the Department of Health look forward to a strong working relationship in the future and are committed to the highest standards of health care at all levels.

Health Minister Lord Warner said:

"We are pleased that Ranbaxy - who are the first of the Defendant companies to settle with us - have recognised the public interest in doing so by paying the NHS £4.5 million and agreeing to cooperate. I hope that each of the other Defendant companies will also recognise the strength of our claims. Ranbaxy's approach is to be applauded and is a first step in the right direction."

Jim Gee, Director of Counter Fraud Services for the Department of Health said:

"We have already had an approach from a leading institutional shareholder of one of the remaining defendant companies expressing concern regarding the loss of shareholder value and uncertainty caused by the proceedings. I say to them and to the other shareholders of the companies we have sued that they should consider very carefully what course of action is in the best interests of their companies. We are pressing on with all three sets of proceedings concerning Warfarin, 'Cillins and Ranitidine. No one should doubt our determination - with all the evidence available to us - to secure and enforce multi-million pound judgments against all of those who participated."

1. On 20 December 2002, the Secretary of State for Health, the Prescription Pricing Authority and the 28 English Strategic Health Authorities issued proceedings in the High Court Chancery Division against Norton Healthcare Limited, Norton Pharmaceuticals Limited, Regent-GM Laboratories, Goldshield Group PLC, Goldshield Pharmaceuticals Limited and Forley Generics Limited, claiming damages of more than £28 million plus interest. The Secretary of State claims in these proceedings that damages of this magnitude have been suffered as a result of anti-competitive agreements between the Defendants to restrict the supply of Warfarin and to fix its price.

2. On 17 December 2003 the Secretary of State for Health, the Prescription Pricing Authority and the 28 English Strategic Health Authorities issued further proceedings in the High Court Chancery Division against Norton Healthcare Limited, Norton Pharmaceuticals Limited, Regent-GM Laboratories Limited, Kent Pharmaceuticals Limited, Generics UK Limited, Ranbaxy UK Limited and DDSA Pharmaceuticals Limited claiming damages of £30,491,602.00 plus interest and costs. These proceedings relate to the sale and supply of 'Cillins'.

3. On 2 August 2004 the Secretary of State for Health, the Prescription Pricing Authority and the 28 English Strategic Health Authorities issued further proceedings in the High Court Chancery Division against Generics UK Limited, Ranbaxy UK Limited, Norton Healthcare Limited, Norton Pharmaceuticals Limited and Kent Pharmaceuticals Limited. These proceedings relate to the sale and supply of Ranitidine, which is better known by its branded name of "Zantac".

4. For further information or interview bids please contact Darren Aldrich at the NHS Counter Fraud Service press office on 020 7895 4523/07789 653263 or by email on Darren.Aldrich@cfsms.nhs.uk or Sally Aldous at the Department of Health Media Centre on 020 7210 5230

GNNREF: 113830
Issued by : DOH Press Office (UK)

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