Fwd: [SSRI-Research] NHS to Sue Drug Firms on 'Price Fix'

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JustSayNo

Wed, 24 Dec 2003 22:23:19 -0500

[sSRI-Research] NHS to Sue Drug Firms on 'Price Fix'

 

NHS to Sue Drug Firms on 'Price Fix'

 

THE National Health Service is suing seven pharmaceutical companies for £30

million over allegations that they fixed the price of common antibiotics.

 

Documents lodged with the High Court on December 17 by Health Secretary John

Reid claim that the companies agreed to artificially raise the price of a

range of penicillin-based drugs.

 

The case is part of a massive investigation into alleged drug frauds worth a

total of up to £200 million, which may lead to further court action. The

Serious Fraud Office is also looking into allegations of drug pricing fraud.

 

The antibiotics case follows a £28 million action brought last year against

six companies over alleged conspiracy to restrict the supply of the

blood-thinning agent warfarin to increase its price.

 

All those being sued are involved in the production of generic " copycat "

versions of drugs on which the original patents have run out.

 

It is alleged that they agreed to artificially inflate the price of

particular antibiotics known as cillins in 1997 and 1998 by reducing supply

and refusing to sell below an agreed price.

 

The subjects of the latest action are Norton Healthcare Ltd, Norton

Pharmaceuticals Ltd, Regent-GM Laboratories Ltd, Kent Pharmaceuticals Ltd,

Generics UK Ltd, Ranbaxy UK Ltd and DDSA Pharamceuticals Ltd.

 

Jim Gee, Chief Executive of the NHS Counter Fraud and Security Management

Service said: " The claimants' decision has been taken independently of the

Serious Fraud Office's ongoing investigation.

 

" All the civil claims we have brought will be vigorously pursued to secure

the maximum possible recovery for the NHS either by judgment and damages or

earlier agreement with the defendant companies.

 

" My organisation's investigations regarding the anti-competitive supply of

over 30 other generic drugs continue. Nobody should be in any doubt about

the NHS's determination to defend itself against unlawful behaviour and to

ensure that its resources are protected and spent on the best possible

patient care. "