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Idaho shares in national settlement over inferior generic drugs made in India

Idaho will recover nearly $420,000 from an Indian generic drug manufacturer who admitted selling drugs of inferior strength, purity or quality in the United States, including through Idaho's Medicaid program. It's part of a $350 million national settlement between the federal government, the states and the company, which also pleaded guilty to seven felony counts and will pay $150 million in criminal fines and forfeitures. “Taxpayers expect their tax dollars to be used to pay for a legitimate service,” Idaho Attorney General Lawrence Wasden said.  “This settlement reflects our resolve to address losses to the Idaho Medicaid program caused by individuals and companies.” Click below for Wasden's full announcement; Idaho's share includes just under $210,000 to reimburse its Medicaid program, and just over $218,000 for the state's general fund.


STATE OF IDAHO

OFFICE OF THE ATTORNEY GENERAL

LAWRENCE WASDEN


For Immediate Release

July 8, 2013


Attorney General recovers $400,000 for Idaho in adulterated drug settlement

(Boise) - Idaho has recovered nearly $420,000 in a legal settlement with pharmaceutical manufacturer Ranbaxy, Attorney General Lawrence Wasden said today.  Wasden’s Medicaid Fraud Control Unit joined other states and the federal government in a $500 million settlement with the Gorgon, India, based generic drug manufacturer.  The settlement resolves civil and criminal allegations that Ranbaxy introduced adulterated drugs into interstate commerce, and, as a result, false or fraudulent claims were submitted to Idaho Medicaid.

The states and federal government alleged that Ranbaxy knowingly manufactured, distributed and sold generic pharmaceutical products whose strength, purity and/or quality fell below FDA standards.  The products at issue consisted of 26 generic pharmaceutical products manufactured at its facilities in Aponte Sahib and Dews, India, at various times between April 1, 2003 and September 16, 2010.

“Taxpayers expect their tax dollars to be used to pay for a legitimate service,” Attorney General Wasden said.  “This settlement reflects our resolve to address losses to the Idaho Medicaid program caused by individuals and companies.”

Ranbaxy has agreed to pay the states and the federal government $350 million in civil damages and penalties. $266,729,715.10 of this amount will go to the Medicaid programs, which are funded jointly by the states and the federal government. The remaining $83,270,284.86 is designated for other federal healthcare programs affected by Ranbaxy’s conduct. 

Idaho’s share of the settlement is $419,914.45.  Of that amount, $209,957.22 is restitution, which will be returned to Idaho Medicaid.  The additional recoveries and interest, totaling $218,462.37, will go to Idaho’s general fund.  The general fund is the pool of money the legislature uses to fund the state’s share of Idaho Medicaid as well as other programs.

Additionally, Ranbaxy USA, a subsidiary, pleaded guilty to seven felony counts alleging violations of the U.S. Food, Drug, and Cosmetic Act, and has agreed to pay $150 million in criminal fines and forfeitures.  Ranbaxy entered into a consent decree in January 2012 with the federal government to address outstanding “current Good Manufacturing Practice” (camp) and data integrity issues in the two Indian manufacturing plants.  These provisions include actions to correct violations and ensure that the violations do not occur again. 

 

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Betsy Z. Russell covers Idaho news from The Spokesman-Review's bureau in Boise.

Named best state-based political blog in Idaho for 2013 by The Fix

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