Drugs firm in £1m deal on price fix allegations

Published on Monday 22 December 2008 21:02

THE Scottish Government has reached a £1 million settlement with a drugs company over the alleged price fixing of medicines.

Ministers and health boards reached the agreement with Ranbaxy (UK) after allegations against the company for anti-competitive conduct.

The agreement comes after other deals with Generics UK, Norton, Goldshield and Clonmell Healthcare totalling about 5.9 million. Nicola Sturgeon, the health secretary, said yesterday: "The settlement with Ranbaxy is very welcome. I am particularly pleased that they have agreed to provide co-operation in respect of our continuing civil claims."

The Department of Health in England reached a deal with Ranbaxy in 2005 over antibiotics supplied to the NHS between 1996 and 2000.

The company has also agreed to pay 1 million in compensation in settlement of civil claims relating to the supply of Ranitidine and the penicillin-based drugs known as cillins.

Scottish ministers and health boards lodged claims in the civil courts in England in February 2005 against a number of companies, in connection with forming alleged price-fixing cartels in respect of the generic drugs warfarin, ranitidine and penicillin-based drugs.

Criminal charges were brought against Ranbaxy and four other drugs firms by the Serious Fraud Office in 2006 for conspiracy to defraud in relation to price fixing, but they were dismissed this month after lengthy legal argument.