Regent-GM Laboratories Ltd
In 2003, former Conservative Health Minister, Gerry Malone, is reported to be the chairman of Regent-GM Laboratories Ltd[1]
NHS £400m Rip Off?
After initial enquiries carried out by the Counter Fraud Directorate of the Department of Health, The Serious Fraud Office (SFO) began an investigation 'into a suspected conspiracy to defraud the NHS in relation to prices charged by suppliers for prescribed penicillin based antibiotics and warfarin between 1st January 1996 and 31st December 2000'[2].
The six pharmaceutical companies being investigated were[3]:
- Generics UK Ltd.
- Kent Pharmaceuticals Ltd.
- Regent-GM Laboratories Ltd.
- Goldshield Group Plc.
- Norton Healthcare Ltd - a subsidiary of Ivax Corporation
- Ranbaxy (UK) Ltd - a subsidiary of Ranbaxy Laboratories Ltd
The Daily Mail reports[4] that 'NHS investigators claim that in 1997 and 1998 senior representatives from the seven firms met near Heathrow and agreed to act together'. According to the NHS's Claim Form, 'A series of meetings followed at which the defendants negotiated a sophisticated scheme by means of which the prices and supply of penicillins in the UK market could be controlled and manipulated'. It is alleged that this involved 'raising prices and restricting supply' in order to 'almost quadruple the cost of the common antibiotic amoxicillin'. The allegations also relate to the price fixing of over 30 other drugs.
The SFO later (27th April 2006) reported[5] that nine persons appeared in court on 'charges of conspiracy to defraud the National Health Service' along with 5 Companies 'on conspiracy to defraud charges'. The 'persons' were Jonathan Raymond Close and Nicholas Mark Foster (both formerly of Norton Healthcare Limited) alongside Denis William O’Neill and John Stephen Clark (of Kent Pharmaceuticals Limited), Luma Auchi (formerly of Regent-GM Laboratories), Michael John Frederick Sparrow (formerly of Generics (UK) Limited), Anil Kumar Sharma (formerly of Ranbaxy (UK) Limited), Ajit Ramanlal Patel and Kirti Vinubhai Patel (of Goldshield Group Plc).
According to the Mail on Sunday 'Iraqi-born Nadhmi Auchi', who is reported to have controlled Regent GM, 'is close to senior New Labour figures'[6]. The report continued by adding that 'Disgraced former Europe Minister Keith Vaz once worked as a political fixer for him' and that Auchi 'boasted about giving money to Labour' (although a spokesman for Labour stated that they 'could find no record of any donations').
References
- ↑ The Times 'The week that was Britain'. 27th December 2003
- ↑ Serious Fraud Office Suspected fraud on the National Health Service Press release 10th April 2002. Accessed 4th April 2008
- ↑ Serious Fraud Office Suspected fraud on the National Health Service Press release 10th April 2002. Accessed 4th April 2008
- ↑ NEWLING, D. (2003) Drug firms 'in price-fix scam'. The Daily Mail. 22nd December 2003
- ↑ Serious Fraud Office Fraud on the National Health Service. Appearance at Magistrates Court Accessed 4th April 2008
- ↑ Oliver, J. (2002) 'Blair backer faces probe over NHS 'price fixing'; Labour benefactor was boss of drugs company under investigation by Fraud Office'. Mail on Sunday. 21st April 2002
