Ranbaxy to pay further $420,000 in US for selling sub-standard medicines
Moneylife Digital Team 09 July 2013

Earlier in May, Ranbaxy the unit of Japanese Daiichi Sankyo, paid $500 million to settle similar charges relate with manufacture and distribution of certain adulterated drugs made at Paonta Sahib and Dewas in India

Ranbaxy Laboratories has agreed to pay about $420,000 to settle civil and criminal complaints of selling drugs of inferior strength, purity or quality Idaho state in north-western US.

 

Earlier in May, the US subsidiary of Ranbaxy agreed to pay $500 million—the largest settlement with a generic medicine maker till date, while pleading guilty to “felony charges” relating to manufacture and distribution of certain adulterated drugs made at two Indian units.

 

The alleged 26 sub-standard generic drugs were made at Ranbaxy's factories in Paonta Sahib and Dewas in India.

 

Idaho had joined several states and the US government in alleging that Ranbaxy products manufactured between April 2003 and September 2010 did not meet US Food and Drug Administration (US FDA) standards and caused Medicaid to pay fraudulent claims. Medicaid is a US health programme for families and individuals with low income and resources.

 

Idaho's share of the settlement is $419,914. About half of that will go to Idaho Medicaid as restitution, and about half will go to Idaho's general fund.

 

Ranbaxy also pleaded guilty to seven felony counts of violating the US Food, Drug and Cosmetic Act and agreed to pay $150 million in criminal fines and forfeitures.

 

Even last month, the European Commission (EU) imposed a fine of 10.32 euros on Ranbaxy.

 

In afternoon trades on Tuesday, Ranbaxy shares were trading marginally higher at Rs343.5 on the BSE, while the benchmark Sensex was also up 0.6% at 19.433.

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