New Delhi: Generic drugmaker Ranbaxy has been fined $500 million by the US government after its subsidiary pleaded guilty to sale of adulterated drugs manufactured in India. It is the largest settlement by a generic medicine maker till date. It includes $150 million in payments for a criminal fine and forfeiture and $350 million in payments for civil claims.
The adulterated drugs were made in Ranbaxy's plants in India and were sold in the US in 2005-2006. Ranbaxy USA also admitted to making false and fraudulent statements to the US Food and Drug Administration about the quality tests conducted on drugs.
"The financial provision Ranbaxy established in December 2011 will be sufficient to cover all material financial obligations under the agreement," the company said in a news release announcing the conclusion of the U.S. investigation.
Ranbaxy USA pleaded guilty to three felony counts related to the manufacture of drugs at two Indian locations that did not meet safety standards and to four counts of making material false statements.
In the civil settlement, Ranbaxy has agreed to pay $350 million to resolve allegations that drugs from the two Indian plants did not meet specifications and that false claims were submitted to US government healthcare programs between April 1, 2003 and September 16, 2010.
In 2008, the FDA banned the company from selling about 30 drugs in the United States after it found manufacturing deficiencies at facilities in India. In 2009, the FDA had accused the company of falsifying data and test results in drug applications and halted reviews of drugs made at a plant in northern India.
Ranbaxy fined $ 500 mn for selling adulterated drugs made in India
The adulterated drugs were made in Ranbaxy's plants in India and were sold in the US in 2005-2006. Ranbaxy USA also admitted to making false and fraudulent statements to the US Food and Drug Administration about the quality tests conducted on drugs.
"The financial provision Ranbaxy established in December 2011 will be sufficient to cover all material financial obligations under the agreement," the company said in a news release announcing the conclusion of the U.S. investigation.
Ranbaxy USA pleaded guilty to three felony counts related to the manufacture of drugs at two Indian locations that did not meet safety standards and to four counts of making material false statements.
In the civil settlement, Ranbaxy has agreed to pay $350 million to resolve allegations that drugs from the two Indian plants did not meet specifications and that false claims were submitted to US government healthcare programs between April 1, 2003 and September 16, 2010.
In 2008, the FDA banned the company from selling about 30 drugs in the United States after it found manufacturing deficiencies at facilities in India. In 2009, the FDA had accused the company of falsifying data and test results in drug applications and halted reviews of drugs made at a plant in northern India.
Ranbaxy fined $ 500 mn for selling adulterated drugs made in India
