Reckitt Benckiser liability over Gaviscon 'rigging' could be tens of millions

In a statement, Reckitt Benckiser denied all charges.

The OFT acted after a accusation in 2008 revealed incriminating evidence that the makers of Gavison maintained an effective monopoly on the market.

The BBC investigation on its Newsnight programme showed that executives spent time creating 'obstacles' to block rivals from selling cheaper generic copies.

The result, allowed Reckitt Benckiser to sell the drugs for three times its value after the drugs genericity started in 2000.

For six years from 2000-2006, the company consistently prevented the generic name from being published, by citing health and safety concerns it had over it, and thereby prevented the market price from being reduced.

Generic drugs are much cheaper than the branded names and allow the public to gain better value from a drug once its license/copyright runs out usually around 16 years or so.

By releasing the drug from its licensing requirements, any drug manufacturer may produce it hence there is a drop in price eg. Panadol (trademark) vs. Paracetamol (generic) costs £2.77 vs. £0.16 from Boots.

Reckitt Benckiser whose recent full year results added 10 pct, 350 pence, to its share price now faces a growing battle to convince shareholders that it will not take a hit on 2010 profits.

Reckitt Benckiser's first quarter is due on 26th April 2010.