Subsidiary of Indian drug maker agrees to pay record $500 million US penalty for impure drugs

WASHINGTON – A subsidiary of an Indian pharmaceutical company has agreed to pay $500 million in fines and civil penalties as part of a plea deal with federal prosecutors.

Ranbaxy USA Inc. has admitted to making and selling adulterated generic drugs at two manufacturing sites in India.

The U.S. Justice Department said Monday that it’s the largest financial penalty paid by a generic drug company for violations of the Federal Food, Drug and Cosmetic Act.

Prosecutors say the batches of adulterated drugs included generic versions of an antibiotic and other medications used to treat severe acne, epilepsy and nerve pain.

The company also admitted making false statements to the Food and Drug Administration.