Even after paying $500 million to settle whistleblower suit for fraud in testing, Indian generic drug maker Ranbaxy’s sales skyrocket in US

Despite the fact that India’s largest drug maker, Ranbaxy, which manufactures generic drugs was caught lying to the FDA about test results and about quality control, the company’s sales appear strong here. According to analysts Ranbaxy has a solid plan to cut costs by 15 percent once it starts selling the products made in the Indian plants to its UD clients. India presently has the most number of FDA approved plants outside the U.S. and those analysts see the Ranbaxy incident as an isolated case which will not negatively affect Ranbaxy or other Indian drug manufacturers in any material way. In 2010, British drugmaker GlaxoSmithKline paid $750 million in criminal and civil fines to resolve a federal whistleblower suit that docused on problems at a factory in Puerto Rico. In the Ranbaxy case, the whistleblower was paid $50 million which, it is hoped, will cause other whistleblowers to come forward with information about other drug manufacturing wrongdoing. If you are aware of such information contact attorney Jeffrey Newman, who represents whistleblowers at jeffrey.newman1@gmail.com.