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Updated: July 9, 2013 12:44 IST

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

IANS
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Ranbaxy drugs on sale at a medical shop in Hyderabad . The Director General of Health Services in Andhra Pradesh said in June that the drugs were safe to use in India, despite a US regulator pointing out to lacunae in the process of manufcturing . Photo P V Sivakumar
Ranbaxy drugs on sale at a medical shop in Hyderabad . The Director General of Health Services in Andhra Pradesh said in June that the drugs were safe to use in India, despite a US regulator pointing out to lacunae in the process of manufcturing . Photo P V Sivakumar

Indian 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.

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Was Ranbaxy trying to establish the so called Indian Legacy in the United States also, by re-enacting such misdemenors of sub-standard quality products in all they what do in the Indian soil usually? Oh ! Good GOD ! What a Shame!

from:  Haja Abu Bucker
Posted on: Jul 9, 2013 at 15:02 IST

This shows how strong is USA laws and let the errand firm to pay the penalty without going appeal and wasting time in leagal process. India could not able to resolve the issue quickly and speedly similar happened here and violated firm is MNC’s. Country should have such speedy delivery of justice in such incidents without letting peole to escape from us and strengthen our regulatory systems. Spirited citizens shouls approach apext court to get compensation to here local who consumed durgs which have been penalized in USA.

from:  RAGHAVENDRA R PAWAR
Posted on: Jul 9, 2013 at 15:00 IST
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