RANBAXY SETTLES NHS CLAIM FOR 'PRICE FIXING'
(1 April 2005)

The 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.

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."

On 20 December 2002, the Secretary of State for Health, the Prescription Pricing Authority and the 28 English Strategic Health Authorities issued proceedings in the High Court Chancery Division against Norton Healthcare Limited, Norton Pharmaceuticals Limited, Regent-GM Laboratories, Goldshield Group PLC, Goldshield Pharmaceuticals Limited and Forley Generics Limited, claiming damages of more than £28 million plus interest. The Secretary of State claims in these proceedings that damages of this magnitude have been suffered as a result of anti-competitive agreements between the Defendants to restrict the supply of Warfarin and to fix its price.

On 17 December 2003 there were further claims for damages of £30,491,602.00 plus interest and costs for the sale and supply of 'Cillins'. On 2 August 2004 , the same authorities started proceedings relating to the sale and supply of Ranitidine, which is better known by its branded name of "Zantac".

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."