Clarification on ‘fraud’ investigation sends Generics’ shares north
Technology development group, Generics has been moved to announce to the London Stock Exchange that it is not under investigation by the Serious Fraud Office.Technology development group, Generics has been moved to announce to the London Stock Exchange that it is not under investigation by the Serious Fraud Office.
The Harston, Cambridge based company issued a “clarification” statement to the market in the wake of an announcement from the SFO earlier in the month that Generics UK Ltd was one of five companies being investigated for fixing the price of drugs.
The statement read: “The Generics Group AG notes the continued press coverage regarding the Serious Fraud Office's investigation into suspected fraud by Generics UK Ltd.
“The board of The Generics Group AG emphasises that Generics UK has no connection whatsoever with The Generics Group AG or any of its subsidiaries or related companies.”
While the matter has not up to now had any material effect on Generics’ share price, the market clearly appreciated being set straight, pushing Generics’ price up over 12 per cent to 13.75, its highest for a matter of months.
At the beginning of May the SFO said it had started criminal proceedings against five companies and nine men as a result of a probe into price fixing in the pharmaceutical industry.
Generics, which is well known as a technology and management consultancy and also for spinning out tech ventures, has staged something of a revival in recent months. It has now moved into profitability, mostly as a result of a cost-cutting programme.