Dr. Reddy’s Arm Settles Case With U.S. Government For $5 Million
Dr. Reddy’s said the safety of patients and consumers is of paramount importance to the company.
Dr. Reddy’s Laboratories Ltd.’s U.S. subsidiary has reached a settlement with the U.S. government for $5 million — nearly Rs 32 crore — concerning a six-year old case involving prescription product packaging.
“The U.S. subsidiary of Dr. Reddy’s Laboratories has settled with the U.S. government, in a case that is six years old, involving packaging for five blister-packed prescription products,” the drug maker said in its stock exchange notification.
Dr. Reddy’s, however, said it firmly disagrees with the U.S. government’s allegations.
In order to avoid any unnecessary costs and the distractions of prolonged litigation, the company has chosen to settle the matter for $5 million.Dr. Reddy’s Laboratories’ Statement
The drugmaker and the U.S. Department of Justice agreed to the settlement of the action without any adjudication of any issue of fact or law. The pharmaceutical company said the safety of patients and consumers is of paramount importance to the company.
“Dr. Reddy’s is not aware of any reports that any child gained access to these products as a result of the packaging or that any of the products caused children harm as a result of the packaging,” the company maintained.
Shares of Dr. Reddy’s Laboratories extended gains for the seventh straight trading session and rose as much as 1.1 percent today to Rs 2,422. The stock has declined 20.8 percent so far this year compared to 28.2 percent advance in country's benchmark Sensex.