Dr Reddy's Laboratories' US subsidiary has reached a settlement with the US government for $5 million -- nearly Rs 32 crore -- in relation to a six- year old case involving prescription product packaging.
Dr Reddy’s Laboratories’ US subsidiary has reached a settlement with the US government for $5 million — nearly Rs 32 crore — in relation to a six- year old case involving prescription product packaging. “The US subsidiary of Dr Reddy’s Laboratories… has reached settlement with the US government, in a case that is six years old, involving packaging for five blister-packed prescription products,” Dr Reddy’s Laboratories said in a BSE filing today. Dr Reddy’s, however, said it firmly disagrees with the US government’s allegations. “However, in order to avoid any unnecessary costs and the distractions of prolonged litigation, the company has chosen to settle the matter for $5 million,” it added. The drugmaker and the US Department of Justice agreed to the settlement of the action without any adjudication of any issue of fact or law.
Dr Reddy’s 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. The stock was trading 1.06 per cent up at Rs 2,419.95 on the BSE.