The National Health Service in the UK has reportedly sought compensation for an unspecified sum from Ranbaxy (UK) Ltd and Generics UK, a subsidiary of Merck of Germany, for overcharging for the supply of ranitidine, an anti-ulcer drug, from 1997 to 2000.

Ranbaxy Laboratories Ltd confirmed the development that its subsidiary Ranbaxy UK had received the notice from the NHS, but said it's early to comment.

In a release the company said: "The company is not aware of any wrong doing and will defend vigorously legal proceedings (if served). "

Ranbaxy UK, a subsidiary of Ranbaxy Laboratories, reported a turnover of $30 million (around Rs 138 crore) in 2002, the last year for which information is available. Ranbaxy Laboratories had reported a profit of $159 million (around Rs 731 crore) in 2003 on global consolidated sales of $969 million (around Rs 4,457 crore).