A pharmaceutical company accused of “anti-competitive cartel conduct” is to pay more than £1m in an out of court settlement.'

Ranbaxy has agreed to pay£1,057,500 “on a full and final basis” and without admitting liability, following civil claims relating to the supply of Cillins and Ranitidine, the Scottish government said today (Monday).

The company has also agreed to co-operate with continuing civil claims against a number of other companies regarding alleged price fixing arrangements for a range of generic drugs.

Cabinet secretary for health and wellbeing, Nicola Sturgeon, said "The settlement with Ranbaxy is very welcome. I am particularly pleased that they have agreed to provide co-operation in respect of our continuing civil claims."

The case was sparked in February 2005, when Scottish ministers and Scottish health boards lodged claims in the civil courts in England against a number of companies in connection with forming alleged price-fixing cartels over generic drugs called Warfarin and Ranitidine, as well as penicillin-based drugs.

Rambaxy has already settled a similar claim with the Department of Health in England.