Ranbaxy wins another UK court battle with SFO

The UK's Serious Fraud Office has suffered yet another setback in its efforts to prosecute generic drugmakers for alleged price fixing, prompting further doubts about the agency's viability. According to the Daily Telegraph, the SFO has never won a criminal law suit against a company.

The Southwark Crown Court in London rejected an attempt to amend the SFO's indictment against the UK unit of India-based Ranbaxy, after the collapse of charges brought under the common law against five companies: Generics UK (a unit of Germany's Merck KGaA); Goldshield Group; Kent Pharmaceuticals; Norton Healthcare; and Ranbaxy (Marketletter July 21). These indictments were brought because an earlier attempt to prosecute failed because the allegations related to activities which preceded the 2003 Enterprise Act, which outlaws price fixing by firms.

The Court also rejected the SFO's application for an appeal, although the agency may apply directly to the Court of Appeal. The news was welcomed by Ranbaxy, which is embroiled in a separate controversy over fraud allegations in the USA (see page 13).