Five State Agencies Recover 100% of the Purchase Price of Adulterated Prescription Drugs
SALEM—The Oregon Department of Justice today filed in court a $2.3 million court settlement with the Indian generic drug manufacturer Ranbaxy Laboratories and two affiliated U.S. companies. The settlement resolves allegations that Ranbaxy sold prescription drugs in Oregon that were not manufactured properly. As part of the settlement, five Oregon state agencies that purchased the allegedly adulterated drugs will receive a full refund.
“Fortunately, no Oregonians are known to have been harmed from these common generic drugs, and all of the products are now off the market,” said Oregon Attorney General Ellen Rosenblum. “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.”
The state agencies and amounts included in the settlement are: Public Employees Benefits Board ($150,163), Oregon Department of Corrections ($142,234), State Accident Insurance Fund Corporation ($65,459), Oregon Youth Authority ($26,966) and Oregon Health Authority ($1,398).
The Assurance of Voluntary Compliance (AVC) filed in Multnomah County Circuit Court resolves allegations that Ranbaxy violated Oregon consumer protection and pharmacy laws when it failed to comply with good manufacturing practices required by the Food and Drug Administration (FDA) to ensure that prescription drugs sold in the United Sates are safe and effective.
“Oregonians deserve to know that the pharmaceuticals they receive are of the best quality and were manufactured with the highest standards. Today’s settlement helps ensure that future pharmaceutical companies will think twice before cutting corners in the manufacturing process,” said Marcus Watt, Executive Director of the Oregon Board of Pharmacy.
In addition to the settlement with the five agencies, Ranbaxy must also make a $1.4 million payment to the Department of Justice’s consumer protection fund, and a $540,000 payment to the Board of Pharmacy. Ranbaxy is also required to comply with relevant pharmacy rules and is prohibited from misrepresenting the characteristics of its products, or distributing drugs in Oregon that are adulterated or misbranded in the future.
Oregon’s settlement follows a 2013 federal and state government settlement with Ranbaxy for $500,000,000 that cited similar conduct, and the Oregon Department of Justice was the lead state in the settlement. Under the federal and state settlement, the Oregon Medicaid program received approximately $611,000.
Attorney General Rosenblum commended the work of Assistant Attorney General David Hart and his DOJ team who handled the case for the Oregon Department of Justice. In June, Hart handled a $105 million dollar multistate settlement with GlaxoSmithKline, and in July Hart handled a $4 million settlement with DePuy. In total, $10 million has been recovered for Oregon since June 2014.
Kristina Edmunson, Department of Justice, Kristina.Edmunson@doj.state.or.us, 503-378-6002