Settlement reached with drugs company
4 Mar 08
Pharmaceutical business does not admit liability, but pays up for price fixing
An international pharmaceutical compnay has agreed to pay £750,000 in compensation to Scotland's health boards, without admitting liability for allegedly working in a cartel to fix the price of drugs supplied to the NHS.
The agreement has been made between Scottish ministers and health boards, and Goldshield Group plc, Goldshield Pharmaceuticals Ltd and Forley Generics Ltd. The company has agreed on a full and final basis to pay the money in compensation and to co-operate with ongoing civil claims against a number of other companies also accused of working in the cartel to fix the price of certain generic drugs.
In February 2005, Scottish ministers and health boards lodged claims in the 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.
Goldshield Group plc, Goldshield Pharmaceuticals Ltd and Forley Generics Ltd have already settled, on a full and final basis and without admission of liability, a similar claim with the Department of Health in England.
The chairman of Goldshield Group plc, Keith Hellawell, said the company viewed the NHS as a valued customer and were pleased with the settlement.
Cabinet Secretary for Health and Wellbeing, Nicola Sturgeon, said: "I am delighted that we have managed to reach a settlement agreement with Goldshield. This is a satisfactory conclusion to our negotiations."