[Ip-health] NHS hits Ranbaxy, Norton, Regent, Kent and DDSA over price fixing

[James Love]

http://news.bbc.co.uk/2/hi/health/3339409.stm

NHS to sue over 'drugs price fix'

Generic medicines account for two out of every three NHS prescriptions
The NHS is suing seven drug companies claiming they colluded to fix the
price of common prescription medicines.

It alleges that the NHS was forced to pay over the odds for these drugs
and is seeking =A330m compensation.

However, the claims have been strenuously denied by the companies, which
have vowed to fight the case.

The case is part of a massive investigation into alleged price fixing,
which the NHS says may lead to further court action.

The firms being sued though the High Court in London are Norton
Healthcare, Norton Pharmaceuticals, Regent-GM, Kent Pharmaceuticals,
Generics UK, Ranbaxy UK and DDSA Pharmaceuticals.

The companies all make generic medicines by copying formulas no longer
protected by patent laws, which account for two out of every three NHS
prescriptions.

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We do not believe that we have behaved in an improper way and will
defend the legal proceedings vigorously
Ranbaxy UK spokesman
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Companies reject claims

The companies say strong competition between them has resulted in the
lowest prices in Europe.

The Serious Fraud Office is also investigating allegations of drug
pricing fraud, but the NHS says its action is being taken independently.

The organisation pursuing the claim for the NHS is its Counter Fraud and
Security Management Service, led by chief executive Jim Gee.

He said all the civil claims being 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".

Further investigations

He said investigations into the anti-competitive supply of over 30 other
generic drugs were continuing.

"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," Mr Gee added.

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Nobody should be in any doubt about the NHS's determination to defend itsel=
f
Jim Gee,
NHS Counter Fraud and Security Management Service
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The companies being sued by the NHS have strenuously denied claims they
colluded to fix the price of drugs.

They have also vowed to vigorously defend themselves when the case comes
to court.

A spokesman for Ranbaxy UK said: "We do not believe that we have behaved
in an improper way and will defend the legal proceedings vigorously."