The Oregon Department of Justice has also settled a case with Ranbaxy Laboratories Ltd. and two affiliated American companies. Pursuant to the settlement, $2.3 million will be paid to the state. It was contended that Ranbaxy, a drug manufacturer based in India, sold generic prescription drugs in Oregon that were not safe for consumers. Ranbaxy’s conduct came to the attention of Oregon officials in 2013. A whistleblower case in federal court revealed that the company had been shipping substandard generic drugs to the United States, some of which were distributed in Oregon. While that case settled for $500 million, the money allocated to Oregon’s Medicaid program did not cover the full cost of drugs purchased from Ranbaxy.
Pursuant to the settlement in the state court case, all of the Oregon state agencies that purchased Ranbaxy drugs will be reimbursed 100 percent of their costs. By failing to comply with safe manufacturing practices required by the U.S. Food and Drug Administration (FDA), Ranbaxy violated Oregon consumer protection and pharmacy laws.
The Ranbaxy-manufactured drugs in question include amoxicillin, a widely prescribed antibiotic; clavulanate potassium, used in combination with antibiotics to treat drug-resistant bacteria; and sotret, an acne medication. Medications manufactured by Ranbaxy have been subject to safety concerns outside of Oregon. In January, the FDA prohibited Ranbaxy’s site in Toansa, India, from manufacturing active pharmaceutical ingredients for FDA-regulated products. That came after officials uncovered “significant” violations of U.S.-promulgated manufacturing practices meant to ensure drug safety.
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