Daiichi Sankyo-controlled Indian drug major Ranbaxy Laboratories Ltd, which awaits a regulatory clearance to go ahead with a proposed merger with Sun Pharma, has decided to settled the litigation concerning its participation in the Texas Medicaid Program by paying $39.75 million in a series of tranches through August 2015 to the state of Texas (US), as per a company statement.
“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. As has been widely reported, the State of Texas has brought nearly identical claims against virtually every other major pharmaceutical manufacturer in the US,” it stated.
Ranbaxy settled the matter to avoid any further distraction and uncertainty of continued litigation.
Besides this, it also stated that it is terminating its GDR programme.
(Edited by Joby Puthuparampil Johnson)