The Department of Health and Goldshield Group Plc, Goldshield Pharmaceuticals Ltd and Forley Generics Limited (Goldshield) jointly announced the settlement of the claims brought against Goldshield for alleged anti-competitive cartel conduct in connection with the supply to the NHS of generic drugs.
In December 2002, the Secretary of State for Health, the Prescription Pricing Authority and the 28 English Strategic Health Authorities issued civil proceedings in the High Court Chancery Division against Norton, Regent-GM Laboratories, Goldshield Group PLC, Goldshield Pharmaceuticals Limited and Forley Generics Limited, claiming damages arising out of anti-competitive agreements between the defendants to restrict the supply of warfarin and to fix its price.
Similar actions were brought, in December 2003, against Norton, Regent-GM Laboratories Limited, Kent Pharmaceuticals Limited, Generics UK Limited, Ranbaxy UK Limited and DDSA Pharmaceuticals Limited in relation to the supply of the drug Cillins, and, in August 2004, against Generics UK Limited, Ranbaxy UK Limited, Norton and Kent Pharmaceuticals Limited for the supply of Ranitidine (or Zantac).
The Department of Health claimed that the pharmaceutical companies had engaged in price-fixing and had restricted the supply of the drugs.
On 22 June 2007, the Department of Health and Goldshield announced settlement of the claims brought against Goldshield. Goldshield, has agreed, without admission of liability, to compensate the NHS £4 million and to provide co-operation in the ongoing civil proceedings.