Drug companies yesterday said they would fight a £30m lawsuit launched by the NHS, with one accusing the government of making a "sustained attack" on an industry that saved the health service billions each year.
Seven firms are accused of colluding in price-fixing by controlling and manipulating the market in penicillin-based antibiotics between 1998 and 2000.
Documents submitted to the high court include allegations that company representatives met at hotels near Heathrow to arrange and monitor agreements to limit supplies and set prices at which the NHS should buy them.
The civil claim for £30,491,602 is the second biggest legal action to be launched by the NHS. In yet another case, six drug companies are being sued for £28m over the anti-coagulant warfarin. Other legal actions are expected to follow.
NHS investigations into alleged anti-competitive behaviour over more than 30 other drugs are continuing, and the Serious Fraud Office is conducting its own inquiries into the behaviour of drug companies.
The companies involved in the new case are Norton Healthcare Ltd, Norton Pharmaceuticals Ltd, Regent-GM Laboratories Ltd, Kent Pharmaceuticals Ltd, Generics UK Ltd, Ranbaxy UK Ltd and DDSA Pharmaceuticals Ltd.
The allegations involve generic drugs, which can be made and supplied by companies after patents for treatments have expired.
John Gee, chief executive of the NHS's counter-fraud and security management services, said: "All the civil claims we have brought will be vigorously pursued to secure the maximum possible recovery by the NHS either by judgment and damages or earlier agreement with the defendant companies.
"My organisation's investigations regarding the anti-competitive supply of over 30 other generic drugs continue. Nobody should be in any doubt about the NHS's determination to defend itself against unlawful behaviour and to ensure that all its resources are pro tected and spent on the best possible patient care."
Kent Pharmaceuticals said yesterday: "The company has not acted unlawfully in any of its dealings with the NHS and will vigorously defend all of the claims."
The company argues that there had been turbulence in the market which had caused stockholders to carry abnormally high levels of stock. "It is unfortunate the government is persisting in this sustained attack on an industry that has and continues to deliver annual saving of billions of pounds to the NHS."
The company added: "The accumulation of events of the last 20 months lead Kent to consider that both the criminal investigation and the civil claim are without foundation and are motivated by political expediency."
It is taking legal action with the court of appeal and the European court of human rights over some aspects of the Serious Fraud Office actions. Other firms also said they would be fighting the case.
