 "Ranbaxy may have to pay Rs 242 crore fine in US")
After the US department of justice (DoJ) imposed $500 million fine on Ranbaxy Laboratories in May 2013, the company is gearing up to pay another hefty penalty of Rs 242 crore in the US. “Ranbaxy Laboratories will have to pay a Rs 242 crore fine to the US authorities due to violations found at its Active Pharmaceutical Ingredient (API) manufacturing factory in Toansa, Punjab,” according to a Business Standard report. The facility is currently banned from supplying products to the American market.
According to the report, the latest penalty has also been imposed by the DoJ and is specifically related to the violations found at Toansa. Earlier this year, the unit was issued an administrative summons by the US attorney for the district of New Jersey. This was triggered through an investigation into alleged fraud and violation of manufacturing norms, added the report. Ranbaxy was asked to produce certain documents relating to issues previously raised by the USFDA with respect to the Toansa facility.
Apparently, Ranbaxy had made a provisioning of around Rs 237.8 crore for a possible settlement with the US government in the April-June quarter report. However, the company had not revealed the nature of the settlement at that time.
FOR COMPLETE REPORT READ: Another big blow for Ranbaxy
According to the report, the latest penalty has also been imposed by the DoJ and is specifically related to the violations found at Toansa. Earlier this year, the unit was issued an administrative summons by the US attorney for the district of New Jersey. This was triggered through an investigation into alleged fraud and violation of manufacturing norms, added the report. Ranbaxy was asked to produce certain documents relating to issues previously raised by the USFDA with respect to the Toansa facility.
Apparently, Ranbaxy had made a provisioning of around Rs 237.8 crore for a possible settlement with the US government in the April-June quarter report. However, the company had not revealed the nature of the settlement at that time.
FOR COMPLETE REPORT READ: Another big blow for Ranbaxy