Pharma Company faces regulatory action after investigation: HP

The regulatory action has far-reaching implications for the pharma company.

November 9, 2024

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FDA State Food and Drugs Administration — FDA

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Last Updated on November 12, 2024 by The Health Master

Pharma Company

A Baddi-based Pharma company, known for manufacturing USFDA-approved drugs, has been ordered to cease production of all narcotic and psychotropic drugs.

This drastic action comes after an extensive investigation by the state’s Criminal Investigation Department (CID).

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Unauthorized Drug Sales and Tax Evasion Allegations

The CID’s probe, which has been ongoing for several months, uncovered serious irregularities.

Despite holding a valid license, the pharma company was allegedly involved in the unauthorized sale of narcotic drugs to multiple states.

This illegal activity not only undermines public health but also poses significant tax evasion risks.

Key Findings of the CID Investigation:

Production of Controlled Substances: The pharma company was producing substantial quantities of psychotropic drugs, including tramadol, nitrazepam, and alprazolam, within a short period.
Diversion of Drugs: A significant amount of tramadol was allegedly diverted by a trader based in Una, who illegally distributed it across various states, including Uttar Pradesh, Maharashtra, West Bengal, and Bihar.
Underpricing and Tax Evasion: The drugs were reportedly sold at significantly lower prices, raising concerns about potential tax evasion.

Regulatory Action Taken by the State Drug Controller

In response to these findings, the State Drug Controller, Manish Kapoor, issued a show-cause notice to the pharma company.

However, the pharma company’s response was deemed unsatisfactory, leading to the immediate halt of production and sales of the implicated drugs.

Impact on the Pharma Company’s Operations

The regulatory action has far-reaching implications for the pharma company. It could potentially lead to severe penalties, including license revocation and legal proceedings.

The pharma company’s reputation, both domestically and internationally, is also at stake.

Public Health Concerns and Regulatory Oversight

The incident highlights the critical need for stringent regulatory oversight of the Pharma industry.

It underscores the importance of effective monitoring and enforcement to prevent the misuse of controlled substances.

As the investigation progresses, it is crucial to remain vigilant and take appropriate measures to protect public health and ensure the integrity of the Pharma supply chain.

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