THE Department of Health has won £12 million compensation from a generic drug maker, marking a breakthrough in a long-running civil action against copycat drug suppliers.

Generics UK, a subsidiary of Merck, the German pharmaceutical company, has agreed to pay the money in respect of generic drugs covering antibiotics and Zantac, the anti-ulcer pill. The company, which did not admit liability, said that it would co-operate with an ongoing investigation into alleged price-fixing arrangements.

The Department of Health took civil action against Generics UK for alleged anti-competitive cartel conduct in connection with the supply of generic drugs to the NHS.

Generics UK is the second company to agree a settlement with the NHS. In April, Ranbaxy, the Indian generic medicine maker, agreed to pay £4.5 million in compensation to the Department of Health.

The Department of Health is pursuing three separate sets of civil proceedings against up to ten generic drug suppliers. The first involves allegations that six companies illegally restricted the supply of warfarin, a blood-thinning medicine used to treat stroke victims.

The second case involves the supply of common antibiotics including penicillin. The third seeks unspecified damages against five companies over the supply of Zantac.

Companies involved include Norton Healthcare, Regent-GM Laboratories, Goldshield Group, Kent Pharmaceuticals and DDSA Pharmaceuticals.

The NHS launched an investigation three years ago when short supplies of warfarin and penicillin caused prices to jump. A number of drug makers are also facing criminal proceedings for alleged involvement in price fixing. In March, two senior executives of Goldshield Group were arrested as part of an investigation by the Serious Fraud Office.

Explore Health

• Expert Advice

• Health Features

• Mental Health

• Alternative Medicine

• Child Health

• Health Club