NINE drug industry executives and five companies are being charged over an alleged conspiracy to defraud the NHS of £100 million by fixing the prices of two of the country’s most commonly used medicines.

The Serious Fraud Office (SFO) said yesterday that it had begun criminal proceedings in relation to the pricing and supply of the blood-thinner warfarin, several antibiotics and other drugs. The charges, which The Times disclosed last year were pending, come after a four-year investigation.

The SFO said that the allegations concerned pricing and supply of warfarin, the branded drug Marevan and penicillin-based antibiotics between January 1996 and December 2000. A wider, parallel inquiry by NHS investigators has also led to three multimillion-pound lawsuits against alleged cartel participants.

The criminal proceedings stem from an investigation into alleged price fixing and market sharing by suppliers of generic drugs, specifically warfarin and penicillin-based antibiotics.

The SFO raided the homes and offices of suspects four years ago, focusing on six businesses. The case against the nine executives is understood to be partly based on detailed information from a whistleblower, a former sales and marketing manager of the drugs maker Regent-GM, who is said to have attended meetings at which details of the alleged conspiracy were thrashed out.

The SFO said that the nine people would be charged over the next three days. Summonses issued by Bow Street magistrates on Monday were served on Kent Pharmaceuticals, Norton Healthcare, Generics UK (a part of Merck), Ranbaxy UK and Goldshield Group, which is listed on the London Stock Exchange.

Eight of the individuals work or used to work for the five companies. The ninth used to work for Regent-GM laboratories, now in liquidation.

The individuals are expected to be bailed to attend Bow Street Magistrates’ Court on April 27 when the companies will also be represented. Goldshield said that neither it nor its two directors named had acted illegally or improperly. Ranbaxy UK, a unit of India’s top drugmaker, Ranbaxy Laboratories, said that it was co-operating with the investigation. The other companies involved have also denied wrongdoing.

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