The Pharmaceutical Journal
Vol 275 No 7356 p5
2 July 2005

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Generics companies “likely to face charges”

Criminal charges related to price-fixing are likely to be brought against at least one generics company and some of its senior executives.

At a High Court case management conference, related to civil compensation claims being made against generics companies by the NHS, counsel for Norton Healthcare told Mr Justice Lewison that the Serious Fraud Office had completed interviews under caution and that there was nothing left to do but bring charges. Certain former Norton employees had been told to “come back in October,” he said. Charges of conspiracy to defraud were under consideration.

Although the SFO was not represented at the case management conference, a spokeswoman confirmed that criminal investigations were taking place and that charges were likely to be brought in September.

In the civil claims, the Secretary of State for Health is alleging that various combinations of companies colluded to manipulate the prices of warfarin, penicillin-based antibiotics and ranitidine. The companies involved are Generics UK, Kent Pharmaceuticals, Regent-GM Laboratories, Goldshield Pharmaceuticals, Norton Healthcare and Ranbaxy.

A spokeswoman for Norton Healthcare said that the company refutes the allegations, is co-operating fully with the investigation and believes sales have been in compliance with all applicable laws and regulations.