Originally published September 29 2005
British-based drug companies face charges of price fixing
by Mike Adams, the Health Ranger, NaturalNews Editor
Six drug companies based in Britain face charges of conspiring to defraud the National Health Service after the companies allegedly agreed to fix prices on certain commonly prescribed drugs, forcing the National Health Service to pay greatly inflated prices.
UP TO a dozen senior executives with six British-based drug companies are likely to face trial on charges of conspiring to defraud the National Health Service of more than �100 million by rigging the prices for some of the most commonly used drugs.
The six companies involved in manufacturing the generic drugs are also expected to face charges in what would be an unprecedented prosecution.
Evidence, including material from boardroom meetings, that allegedly shows how the companies agreed to fix the prices and divide the profits has been provided by 16 company insiders.
They agreed to co-operate with the prosecution under a novel "witness accomplice" programme, the first such strategy in a large-scale fraud investigation.
The companies are Kent Pharmaceuticals, Norton Healthcare, the Goldshield Group, Generics UK, Ranbaxy Laboratories UK Unit and Regent-GM Laboratories Ltd.
The allegation is that they conspired from 1996 to 2001 to fix the prices paid for some of the most commonly prescribed NHS drugs, chiefly penicillin-based antibiotics and warfarin, the anticoagulant used by heart disease and stroke victims, forcing the health service to pay hugely inflated prices.
The Department of Health has simultaneously been pursuing civil claims for compensation against the companies, with claims for more than �150 million lodged.
Generics UK, part of the German drug group Merck, announced in June that it had agreed to compensate the NHS by paying �12 million, although there is no admission of liability.
The Enterprise Act 2002 introduced statutory offences for price-fixing but the alleged offences date back before that Act and so the common law offence will be used.
The Serious Fraud Office has used the "accomplice witness" programme before in isolated cases as part of an investigative strategy that could pave the way for future large-scale fraud prosecutions of this type.
All content posted on this site is commentary or opinion and is protected under Free Speech. Truth Publishing LLC takes sole responsibility for all content. Truth Publishing sells no hard products and earns no money from the recommendation of products. NaturalNews.com is presented for educational and commentary purposes only and should not be construed as professional advice from any licensed practitioner. Truth Publishing assumes no responsibility for the use or misuse of this material. For the full terms of usage of this material, visit www.NaturalNews.com/terms.shtml