US regulator alleges Dr Reddy's breached packaging rules

Tags: Companies
Export-focused drugmaker Dr Reddy's Laboratories Ltd said it was in talks with a US regulator over allegations it violated packaging rules for some prescription drugs sold there between 2008 and 2012.

The allegations by the U.S. government's Consumer Product Safety Commission (CPSC) are the latest in a series of regulatory troubles facing Indian pharmaceutical firms in their biggest export market, the United States.

In a U.S. stock exchange filing this week, Dr Reddy's said the CPSC planned to seek civil penalties against the company for allegedly violating rules intended to prevent children from ingesting harmful substances.

The company said any unfavourable outcome could result in "significant liabilities" and added that it disagreed with the allegations.

Indian drugmakers have suffered a string of drug recalls and manufacturing quality-related issues that have hurt the reputation of the $15 billion-a-year industry as a supplier of cheap generic drugs, and led to increased scrutiny from regulators.

EDITORIAL OF THE DAY

  • Reservations, along with economic subsidies, must go to get India moving

    A young man, in his early twenties, starts an agitation demanding reservation for the community he represents.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Urs Schoettli

The China story isn’t over yet

China’s financial markets are currently in the eye of a ...

Anuja Sharma

Love yourself to love others

“There are two basic motivating forces: fear and love. When ...

Gautam Gupta

It's a 'blog eat blog' world out there

Let me tell you, fashion journalism has truly taken the ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture