Ranbaxy in May said, without elaborating, it had made a provision of $38.57 million in its first quarter results for “certain settlements done with the government authorities” in the United States. In September, the company said US federal authorities had sought details on how it reported pricing data for some products eligible for reimbursement under Medicaid. Analysts on Oct 17 said they did not expect any future impact on Ranbaxy’s earnings from the Texas settlement, citing the provision. The company, which is in the process of being acquired by larger rival Sun Pharmaceutical Industries said it “believes it fully complied with all the relevant laws.”
Ranbaxy’s Texas settlement comes after the company pleaded guilty last year to felony charges relating to drug safety. It agreed to pay $500 million in civil and criminal fines under a settlement agreed with the Department of Justice.