US ban on Ranbaxy: company rules out sabotage

Drug-maker Ranbaxy on Tuesday ruled out the theory that disgruntled employees were behind a sabotage at its Toansa plant in Nawanshahr which led to a US ban on drugs being manufactured at the facility.

Drug manufacturer Ranbaxy on Tuesday ruled out the theory that disgruntled employees were behind a sabotage at its Toansa plant in Nawanshahr which led to a US ban on drugs being manufactured at the facility.

Last month, the US Food and Drug Administration (USFDA) had prohibited the company from producing and distributing drugs for the American market from its facility in Nawanshahr. "I do not support the sabotage theory for Toansa plant. I have never said the problem is on account of (employees being unhappy with our) voluntary retirement scheme. This is the official position that I have maintained and will continue to do so," Ranbaxy chief executive officer (CEO) and managing director (MD) Arun Sawhney told reporters here.

He said efforts were on to resolve the issue related to Toansa plant. According to media reports, the company is learnt to have indicated to the domestic drug regulator, Drug Controller General of India?, that some disgruntled employees, who were offered
voluntary retirement were behind a sabotage leading to the US ban on imports from the plant.

In its order, USFDA had prohibited Ranbaxy from distributing drugs manufactured using active pharmaceutical ingredients (API) made its Toansa plant, including drugs made by Ranbaxy's Ohm Laboratories facility in New Jersey.

In September 2013, the USFDA imposed an import alert on Ranbaxy's SAS Nagar plant for violating current good manufacturing norms. Ranbaxy's key facilities at Paonta Sahib in Himachal Pradesh and Dewas in Madhya Pradesh have been under a US import alert since 2008.