A drugs firm is to pay the Scottish government £1 million after a legal battle over the alleged price fixing of medicines.
Ranbaxy (UK) Ltd agreed the £1.057 million compensation in settlement of civil claims relating to the supply of Ranitidine and penicillin-based drugs known as cillins.
Ministers and health boards reached an agreement with the firm after allegations against the company for anti-competitive conduct. The settlement follows other deals with Generics UK, Norton, Goldshield and Clonmell Healthcare, bringing the total amount of compensation paid to about £5.9 million.
The Department of Health in England, UK, has already reached a deal with Ranbaxy in 2005 over antibiotics supplied to the NHS between 1996 and 2000.
Health secretary Nicola Sturgeon said: “The settlement with Ranbaxy is very welcome. I am particularly pleased that they have agreed to provide co-operation in respect of our continuing civil claims.”
The firm will also co-operate in ongoing civil claims against a number of other companies regarding alleged price-fixing arrangements for a number of generic drugs.
In 2005, Scottish ministers and health boards lodged claims in civil courts in England against a number of companies in connection with forming alleged price fixing cartels in respect of the generic drugs Warfarin, Ranitidine and penicillin-based drugs.
Criminal charges were brought against Ranbaxy and four other drugs firms by the Serious Fraud Office in 2006 for conspiracy to defraud in relation to price fixing, but they were dismissed.
Copyright Press Association 2008