UK government settles out of court with DDSA Pharma

In a joint statement, the UK Department of Health and London-based DDSA Pharmaceuticals said they had agreed an out of court settlement relating to the claims brought against DDSA for an alleged anti-competitive cartel conduct in connection with the supply to the National Health Service of generic drugs.

Under the terms of the settlement DDSA have agreed, on a full and final basis and without admission of liability, to pay the NHS the sum of £120,000 ($198,000) and to provide cooperation in connection with the continuing civil claims regarding the alleged price fixing arrangements.

Both DDSA and the Department say they look forward to a strong working relationship in the future and the continued support for the NHS of Montague Solomon, the founder and managing director of DDSA

The case goes back as far as 1999, and to 2004 when the UK government and the 28 English Strategic Health Authorities issued further proceedings in the High Court against seven drugmakers, including DDSA, claiming that they agreed anti-competitive deals which led to the National Health Service being overcharged for amoxycillin. The suit sought £30.4 million ($45.1 million) in damages, plus interest and costs. So far, the government has netted £34.1 million in out-of-court settlements, a DoH spokeswoman said.