Ranbaxy settles NHS generic drug claim

Britain's Department of Health and Ranbaxy (UK) Ltd have jointly announced settlement of the claims brought against Ranbaxy for alleged anti-competitive cartel conduct in connection with the supply to the NHS of generic drugs between 1996 and 2000.

Under the terms of the settlement Ranbaxy have agreed, on a full and final basis and without admission of liability, to compensate the NHS by payment of £4.5 million and to provide co-operation in the context of the ongoing proceedings. Both Ranbaxy and the Department of Health look forward to a strong working relationship in the future and are committed to the highest standards of health care at all levels.

Health Minister Lord Warner said:

"We are pleased that Ranbaxy - who are the first of the Defendant companies to settle with us - have recognised the public interest in doing so by paying the NHS £4.5 million and agreeing to cooperate. I hope that each of the other Defendant companies will also recognise the strength of our claims. Ranbaxy's approach is to be applauded and is a first step in the right direction."

Jim Gee, Director of Counter Fraud Services for the Department of Health said:

"We have already had an approach from a leading institutional shareholder of one of the remaining defendant companies expressing concern regarding the loss of shareholder value and uncertainty caused by the proceedings. I say to them and to the other shareholders of the companies we have sued that they should consider very carefully what course of action is in the best interests of their companies. We are pressing on with all three sets of proceedings concerning Warfarin, 'Cillins and Ranitidine. No one should doubt our determination - with all the evidence available to us - to secure and enforce multi-million pound judgments against all of those who participated."