Seven generics companies sued by NHS over allegation of price-fixing cartel for penicillins
Seven generics manufacturers are being sued by the National Health Service in England over allegations that the companies organised a cartel to fix the prices of penicillin-based medicines in 1998 and 1999.
Proceedings were issued in the High Court last month against Norton Healthcare,
Norton Pharmaceuticals, Regent-GM Laboratories, Kent Pharmaceuticals,
Generics (UK), Ranbaxy UK and DDSA Pharmaceuticals. The case has been
brought by the Secretary of State for Health, the Prescription Pricing
Authority and the 28 strategic health authorities. Damages of £30.5m
plus interest and costs are being sought in respect of anticompetitive
actions to restrict supplies and fix prices which the companies are said
to have colluded in.
Documents presented to the court allege that the companies held meetings
to discuss fixing prices and maximum volumes of specific products and
that some companies were paid to stay out of the market for penicillin-based
products. The action comes a year after a £28m-claim against Norton,
Regent-GM and Goldshield Group in relation to warfarin by the NHS. This
has not yet been resolved.
Companies The Journal spoke to denied the allegations. Norton said that
it made a loss on some of the products in question. |
