Ranbaxy to pay $420,000 in US for selling sub-standard drugs

Washington, Jul 9 (IANS): Indian generic drug manufacturer Ranbaxy will pay Idaho state in northwestern US nearly $420,000 to settle civil and criminal complaints of selling drugs of inferior strength, purity or quality.

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 standards and caused Medicaid to pay fraudulent claims. Medicaid is a US health programme for families and individuals with low income and resources.

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

The company agreed to a $500 million settlement with the federal and state governments. About $266.7 million of that will go to Medicaid programmes that are jointly funded by federal and state taxes.

"Taxpayers expect their tax dollars to be used to pay for a legitimate service," Idaho Attorney General Lawrence Wasden said in a press release. "This settlement reflects our resolve to address losses to the Idaho Medicaid programme caused by individuals and companies."

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.

The company 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.


Top Stories

Comment on this article

  • Jossey Saldanha, Mumbai

    Tue, Jul 09 2013


    DisAgree [1] Agree Reply Report Abuse

  • Bollu, Mangalore

    Tue, Jul 09 2013

    For America whatever products from India is of sub-standard..
    Earlier..they even banned our silk items..claiming not good to wear..by making demonstration..
    Coconut earlier also banned saying it's not good for health..
    Whatever items not available in there country is considered not so good.. To export any of items..cannot go beyond on it's limit due to quota system.
    For them Junk food/Beverages is meant to be of good quality. Dual Policy..

    For Ranbaxy it's not so big issue..it will dump stock in anyof third world..!!

    DisAgree [10] Agree [11] Reply Report Abuse

  • Naveens, Mangalore

    Tue, Jul 09 2013

    You need to read about Good Manufacturing Practices (CFR 210 and CFR 211) to understand the importance of quality drugs and their effectiveness. Also search for 483 Warning letters (this will explain why FDA fined a company).

    DisAgree [1] Agree [1] Reply Report Abuse

  • RM, Dubai

    Tue, Jul 09 2013

    Union Carbide was not made to pay for blunder they made in Bhopal. Now Indian Company is made to pay. Harming human life is wrong, but this should be implemented to all International companies too. Why Indian Govt. bend to these pressures.

    DisAgree [2] Agree [22] Reply Report Abuse

  • rohan, mangalroe/oman

    Tue, Jul 09 2013

    Ranbaxy has been producing drugs to Indian markets too, if this is the case with it, the Govt has to test all its products marketed in India. Sardar of Ranbaxy seems to be in a hurry to mint fast money..

    DisAgree [2] Agree [24] Reply Report Abuse

  • Siva Avadani, Udupi/Dubai

    Tue, Jul 09 2013

    This is America, no one is spared. In India who cares for its citizens. In addition authorities in India would have taken the bribe and settle the matter.

    DisAgree [3] Agree [24] Reply Report Abuse

Leave a Comment

Title: Ranbaxy to pay $420,000 in US for selling sub-standard drugs

You have 2000 characters left.


Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.