Makers of Gaviscon accused of cheating NHS out of millions by 'monopolising the market'

Even though other companies have been able to copy Gaviscon and sell it at a lower price for almost a decade, it still dominates the NHS market.

The BBC last night revealed documents which allegedly show executives from Hull-based manufacturer Reckitt Benckiser blocked rivals from selling cheaper versions of the remedy.

One former boss told the BBC2 programme Newsnight Reckitt "cheated the NHS" and could have saved it "millions of pounds".

The programme was told Reckitt had sold Gaviscon to the NHS for three times the cost of the generic versions.

Gaviscon is prescribed in large quantities to people with heartburn. Company data shows it costs only 74p to produce a bottle of Gaviscon but is sold to the NHS for £2.70 and sold over the counter for £7.50.

Executives also boasted that they had influenced regulatory bodies to delay the introduction of a generic name for Gaviscon by objecting between 2000 and 2006 on health and safety grounds.

One Reckitt executive allegedly wrote: "Should we not drag it out as long as possible ... nine million pounds of business is at stake."

In a statement announcing an internal investigation into the allegations, the company said: "We are shocked by the allegations made in the press today, and by the inappropriate sentiment expressed in some of the internal correspondence of 2003.

"Reckitt Benckiser is a responsible company in the way it conducts its business, and we have therefore instigated an immediate internal investigation, and will take action.

"However, we do not accept much of what has been alleged, which implies a power or patient access we simply do not possess."

The British Pharmacopoeia Commission said the creation of the particular stomach medicine formulation was a complex and lengthy process, and was "aware of the market position that Reckitt Benckiser held and that the company would want to protect its market".

"When Reckitt Benckiser sought to prevent the monograph being published with a legal challenge, the BPC rejected this request and proceeded with its publication," a commission spokesman added.

"This clearly demonstrates the determination of the BPC to act appropriately and independently to publish quality standards for medicines in the UK, therefore any allegations to the contrary would be inappropriate and misleading."

A monograph establishes conditions under which drugs are recognised as safe and effective.

According to the commission, two monographs detailing the make-up of "raft-forming" formulations were finally published in August 2006 to come into force on January 1, 2007.