Ranbaxy settles with Oregon for $2.3M

By Bryan Cohen | Jul 9, 2014

SALEM, Ore. (Legal Newsline) - Oregon Attorney General Ellen Rosenblum announced a $2.3 million settlement on Tuesday with an Indian generic drug manufacturer and two affiliated U.S. companies to resolve allegations they sold adulterated drugs.

Ranbaxy Laboratories allegedly violated Oregon consumer protection and pharmacy laws when it failed to comply with good manufacturing practices required by the U.S. Food and Drug Administration. Ranbaxy allegedly failed to ensure its prescription drugs were safe and effective before selling the drugs in Oregon.

"Fortunately, no Oregonians are known to have been harmed from these common generic drugs, and all of the products are now off the market," Rosenblum said. "Oregon has proven to be a leader in settlements with large pharmaceutical companies, and we will continue to do all we can to send a clear message that jeopardizing Oregonians' safety doesn't work here."

Under the terms of the agreement, five Oregon agencies that purchased the drugs will receive a full refund. The agencies include the Oregon Health Authority, Oregon Youth Authority, State Accident Insurance Fund Corporation, Oregon Department of Corrections and the Public Employees Benefits Board. Ranbaxy must also make a $1.4 million payment to Rosenblum's consumer protection fund and a $540,000 payment to the Board of Pharmacy.

As part of the agreement, Ranbaxy must also comply with relevant pharmacy rules and is prohibited from misrepresenting the characteristics of its drugs or distributing adulterated or misbranded drugs in the future.

Ranbaxy previously agreed to a $500 million federal and state settlement in 2013 that cited similar conduct. Oregon's Medicaid program received approximately $611,000 as part of the settlement.

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