Generics UK Limited
NHS £400m rip-off?
In 2002, The Serious Fraud Office began investigations in relation to allegations of price fixing by 6 pharmaceutical companies. The six companies were[1]:
- 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[2] 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 Independent also adds the claims that, at the Heathrow meeting, the senior representatives of the firms 'considered the possibility of arrangements designed to reduce competition in the UK..' and agreed to 'refuse to sell the drugs to the NHS below an agreed price'[3]. The Sunday Times reported in 2002 that 'Executives are said to have held a secret meeting in offices in Kensington High Street, London, in July 1998 to review their plot and extend it to overseas markets. It is claimed the groups lied about supplies of warfarin to force the price up'[4]. The report continues by stating that the 'Government alleges' that...
- 'In 11 months in 1997 Regent increased revenue on sales of warfarin by 140% though the volume of its supplies remained mostly the same. This gave the company Pounds 750,000 in extra revenue. Goldshield increased the price of one pack of drugs from Pounds 6.94 to Pounds 20.82 at around the same time'.
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).
references
- ↑ 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
- ↑ Burleigh, J. (2003) 'NHS TO SUE SEVEN DRUG FIRMS FOR FIXING PRICE' OF MEDICINES'. The Independent. 22nd December 2003
- ↑ Calvert, J. (2002) 'Government sues drug giants for 'cheating' NHS'. Sunday Times. 22nd December 2002
- ↑ Serious Fraud Office Fraud on the National Health Service. Appearance at Magistrates Court Accessed 4th April 2008
