Ranbaxy in Trouble on Falsified Results

| About: Ranbaxy Labs (RBXLF)

There are reports that the FDA is halting further review of drug applications from one of the largest generic drug manufacturers, India's Ranbaxy (OTC:RBXLF). It appears that some test results submitted to the agency have been found to be falsified.

I'm not seeing any details on what sorts of numbers look to have been cooked, or how the FDA caught on - more may come to light later. But it's for sure that this is trouble no company needs, and behavior no company should engage in. It's going to be especially hard in this case, because Ranbaxy (and India) have been trying to prove themselves as major, trustworthy players in the industry. I would have put the company in that category already, unfortunately, until this.

But it's important to remember that US companies have had their own compliance issues with manufacturing over the years - ask Schering-Plough (SGP) about that, among others. Until we have more details about what's going on, I think it would be prudent to hold off on the "see what those cheap foreign plants will try to get away with" rhetoric. Who knows, that may come later.