Avon Lifesciences’ drugs seized, company denies any wrongdoing

Assures cooperating with FDA, investigation agencies in drug seizure case

Assures cooperating with FDA, investigation agencies in drug seizure case

Avon Lifesciences, which has recently been in the news for massive drug haul, has clarified that the drug seizure issue involving the company revolves around theft of some material. According to the company release, it is cooperating with relevant investigating authorities and the FDA to get to the facts around this incident.

In a notice issued to the Bombay Stock Exchange, the company said, “The company wants to assure all stakeholders that we have all valid licenses and statutory registrations for manufacturing, stocking and sale of all products manufactured at our Solapur site. Also all the material has been accounted for and stocked with due notice to concerned statutory authorities. The concerned matter revolves around theft of some material and we are ascertaining the same in active cooperation with the investigating authorities.”

Responding to various media reports about drug seizure at its unit located in Solapur MIDC in Maharashtra, the company mentioned that it has all the relevant licences to manufacture, hold inventory and sale of Ephedrine Hydrochloride and Pseudoephedrine Hydrochloride which are controlled substance and classified under the narcotics category.

As per media reports, the inventory of the above two controlled substance is estimated at 18,500 kg. But going by the market price of Rs 3800-4000 a kg, the overall valuation works out to Rs 7-8 crore contrary to media reports estimating it at Rs 2,000 crore, according to industry sources.

Probably, the Rs 2,000 crore value, which is believed to be the street value of 18500 kg, is arrived subject to the said material being further processed and then sold illegally in drug trade. Ephedrine, by itself, is not an API that can be abused/ misused and hence this material that has been seized along with stock at the factory is medicinal and holds zero street value, industry sources said.

And as reported by some media reports, this further process was to take place in some unit in Ahmedabad and till then the value of the material seized is insignificant, industry sources said.

EP News BureauMumbai

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First published on: 19-04-2016 at 19:00 IST