07 April 2006
NHS counter-fraud officers claimed a significant victory this week as a drugs company settled a civil claim for alleged anti-competitive conduct.
Norton Healthcare and Norton Pharmaceuticals agreed to pay the Department of Health £13.5m compensation without admitting liability. It has agreed to co-operate with ongoing investigations into alleged price-fixing in the supply of generic drugs to the NHS.
Although the company has settled the civil case, Norton and two of its former executives face criminal proceedings following a Serious Fraud Office investigation.
A further four companies and seven current and former members of their staff are to be prosecuted by the SFO. All are due to appear before Bow Street Magistrates Court on April 27.
As well as Norton, Kent Pharmaceuticals, Generics (UK), Ranbaxy (UK) and Goldshield Group, formerly known as Goldshield Pharmaceuticals (Europe), face allegations of conspiracy to defraud in relation to the pricing and supply of warfarin, the branded drug Marevan and penicillin-based antibiotics between January 1996 and December 2000. The companies deny any wrongdoing.
Ranbaxy and Generics settled civil claims from the department without admitting liability last year for £4.5m and £12m respectively. Civil claims are outstanding against four other companies, including Kent and Goldshield.
Jim Gee, director of the NHS counter-fraud service, said that Norton had acted in the public interest by settling. 'The remaining defendant companies should recognise our resolve to press on with the continuing civil proceedings against all of those allegedly concerned in the price fixing arrangements,' he added.
PFapr2006
