Price Fixing Settlement
Generics UK (Merck's former British subsidiary, the global Generics business being sold on October 2, 2007) paid a £12m out-of-court settlement with the Department of Health over involvement in an alleged price and supply fixing cartel.
The NHS alleges various drugs companies exploited the oligopolistic market conditions, forcing the NHS to pay inflated prices. NHS fraud investigators believe there was a conspiracy to limit the supply of 30 of its most commonly prescribed drugs, including a class of penicillin antibiotics and to a generic version of best-selling ulcer treatment Zantac. The NHS has so far filed claims in relation to just three drugs, seeking damages of more than £150m, while the Serious Fraud Office (SFO) is conducting a parallel investigation into the price-fixing allegations limited to the supply of blood-thinning pill warfarin and penicillin-based antibiotics. Homes and offices of executives at six firms, including Ranbaxy, Generics UK, Norton Healthcare, Goldshield and Regent-GM.were raided by the SFO in May 2002.
Read more about this topic: Merck KGaA
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