UPDATE: 20% of UK's BGMA members under investigation for serious fraud

Criminal proceedings are underway in the UK against five generic drug manufacturers, over allegations that they defrauded the National Health Service out of millions of pounds, by price-fixing in the supply of the warfarin, rani-tidine and certain antibiotics. Three of the companies have settled with the NHS, with payments totalling L30.0 million ($52.1 million). Three of the five charged firms are members of the British Generic Manufacturers' Asso-ciation, which has 15 members in total.

The companies affecteded are all UK-based: Kent Pharma-ceuticals, Norton Healthcare, Generics (UK) Ltd (a sub-sidiary of German drugmaker Merck KGaA), Ranbaxy (UK) Ltd (a subsidiary of India's major generic producer Ranbaxy Laboratories) and the Goldshield Group. In addi-tion, nine individuals have been charged, all of them former employees of the companies concerned, as well as a sixth firm, Regent-GM Laboratories Ltd, which was wound up in 2004.

The UK Department of Health's counter-fraud service issued a statement, which confirmed that Norton was the third company to settle a civil damages claim. Jim Gee, the service's director said: "the remaining defendant compa-nies should recognize our resolve to press on with the con-tinuing civil proceedings against all of those allegedly concerned in the price-fixing arrangements. We are deter-mined to protect the NHS so that it can properly protect the health of the public."