Ranbaxy (UK) Ltd, a subsidiary of Ranbaxy Laboratories Ltd, has been implicated by the UK's Serious Frauds Office in an anti-trust case of caretelisation and overpricing of penicillin-based antibiotics supplied to the National Health Services between 1996 and 2000.
If convicted, the company's directors face a maximum of 10 years in prison. The first hearing of the case will be on April 27 at the Bow Street Magistrates Court in London.
In a probe that started in 2002, the Serious Frauds Office has been looking at alleged price cartelisation in setting the price of blood-thinning drug Warfarin, antibiotic penicillin and branded drug Marevan between 1996 and 2000. These drugs were being supplied to the British government's health care agency, the National Health Service.
Besides Ranbaxy's UK arm, four other pharmaceuticals companies are in the investigator's loop: Goldshield Group Plc, Kent Pharmaceuticals Ltd, Norton Healthcare Ltd and Generics (UK) Ltd. As many as nine directors from these five pharmaceuticals companies will be charged and questioned for criminal conspiracy.
"Ranbaxy (UK) has not yet been informed of the substance of the allegations against it nor the evidence upon which they are based and is, therefore, not in a position to comment," said a release issued by the company.
When contacted, Malvinder M Singh, managing director, Ranbaxy Laboratories Ltd, said there was no wrong-doing on part of the company.
The UK subsidiary garnered $44 million for the parent company in the year 2005. The current probe did not prohibit the company from making open sales of the drug in the UK market, explained a Ranbaxy spokesperson.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
