SFO initiates criminal proceedings against five drug companies

SFO initiates criminal proceedings against five drug companies

	Published : Wed, 05 Apr 2006 16:25 By : James Rowe Print this Story

LONDON - Britain's Serious Fraud Office (SFO) has announced that nine people and five companies will be charged for defrauding the NHS over drug prices and supply. The drugs that are mainly involved are warfarin and penicillin-based generic antibiotics.

The SFO said that the price-fixing occurred between 1996 and 2000, but did not comment on the amount of money involved. The five companies that are facing charges are Kent Pharmaceuticals Limited, Norton Healthcare Limited, Generics (UK) Limited, Ranbaxy (UK) Limited and Goldshield Group PLC, formerly Goldshield Pharmaceuticals (Europe) Limited.

These charges are being brought after an investigation code-named Operation Holbein; found that the companies were involved in fixing prices for drugs supplied to the NHS. "This important case is likely to have a significant impact upon the business culture of this country", said Philip Lewis, a SFO spokesman. The nine individuals, who have been summoned to the Bow Street Magistrates' Court on April 27 are Denis O'Neill and John Clark, both of Kent Pharmaceuticals Limited, Jonathan Close and Nicholas Foster, both formerly of Norton Healthcare Limited, Luma Auchi, formerly of Regent-GM Laboratories Limited, Michael Sparrow, formerly of Generics (UK) Limited, Anil Sharma, formerly of Ranbaxy (UK) Limited, and Ajit Patel and Kirti Patel, both of Goldshield Group Plc.

The Guardian newspaper had reported last week that Merck and Ranbaxy had reached out-of-court financial settlements with the NHS. Goldshield, which is the only listed company among the five charged issued a statement saying that it's directors were not involved in any illegal practices, "Goldshield has given its full co-operation to the SFO investigation and, whilst it is disappointed by this development, it has prepared its business for the challenges ahead," the company said.

Ranbaxy UK also said that it was cooperating with the concerned authorities, "At the moment we don't have any details. We haven't been served with any summons, or any notice or any claim so far. So until we get further details, it'll be difficult for us to comment on that," a spokesperson said. The SFO said that the charges would be brought in the next three days.