Ranbaxy Laboratories Ltd on Thursday agreed to pay $39.75 million to the U.S. state of Texas to settle litigations concerning its participation in the Texas Medicaid program. The Indian generic drugmaker reportedly said that the payments will be made in installments through August 2015.
The litigation was reportedly related to the manner in which Ranbaxy reported pricing data to the U.S. federal-state health care program, which is designed for people with low incomes, the company said in a filing to the Bombay Stock Exchange, or BSE. The announcement, which was reportedly made during trading hours, led to Ranbaxy shares climbing 0.6 percent in mid-morning trade.
"The claims at issue related exclusively to the manner in which Ranbaxy has historically reported pricing data to Texas Medicaid for certain of its drugs," the company reportedly said in the statement.
“Ranbaxy believes that it fully complied with all relevant laws, however, the company settled the matter to avoid any further distraction and uncertainty of continued litigation with the State of Texas,” the company, which is in the process of being acquired by Sun Pharmaceutical Industries Ltd, reportedly said.
Last year, Ranbaxy agreed to pay $500 million to U.S. authorities after pleading guilty to felony charges over violation of manufacturing norms, Reuters reported. The U.S. Food and Drug Administration also had reportedly banned the import of drugs produced at four of its plants in India.