Generic Drug Maker Pays $500 Million in Fines

Ranbaxy, a generic drug maker, pleaded guilty to federal drug safety violations on Monday and agreed to pay $500 million in fines to resolve claims that it sold subpar drugs and made false statements to the Food and Drug Administration regarding its manufacturing processes.

Ranbaxy acknowledged that it failed to conduct proper safety and quality tests of several drugs manufactured at its plants in India. The drugs included several common types of medicines like Gabapentin, a drug used to treat epilepsy, and the antibiotic ciproflaxacin.

The company admitted that in 2007 it had known that certain batches had “unknown impurities” and unreliable shelf lives, but delayed the recall for at least a month which involved more than 73 million pills.

Ranbaxy will pay $150 million in a criminal fine and the remainder will go to settle civil claims brought by the federal government and all 50 states.

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