Drug firm settles NHS price claim

A variety of penicillin drugs sold by several companies were affected

A drug company accused of fixing the price of medicines supplied to the NHS has made an agreement with the Scottish Government to pay out £750,000.

Goldshield Group said it had agreed to the terms on a "full and final basis and without admission of liability".

In 2005, Scottish ministers and health boards lodged claims against a number of companies over the alleged formation of price-fixing cartels.

Penicillin-based drugs, as well as Warfarin and Ranitidine, were affected.

Goldshield Group Plc, Goldshield Pharmaceuticals Ltd and Forley Generics Ltd also agreed to provide co-operation in connection with the continuing civil claims against a number of other companies connected with the price-fixing of generic drugs.

'Satisfactory conclusion'

Health Secretary Nicola Sturgeon said: "I am delighted that we have managed to reach a settlement agreement with Goldshield. This is a satisfactory conclusion to our negotiations."

The Chairman of Goldshield Group Plc, Keith Hellawell, said the company saw it as an important step to building strong working relationships with customers.

"We view the NHS as a valued customer and are therefore very pleased with today's settlement," he added.

Last July, Goldshield Pharmaceuticals Ltd made a similar settlement, on a full and final basis and without admission of liability, with English health authorities, paying out £4m in compensation.

The Scottish claim was supported by the NHSScotland Counter Fraud Service (CFS).