Commonwealth Government settlement with Pan Pharmaceuticals and its former Chief Executive
Media statement
14 August 2008
The Commonwealth Government today agreed to settle a civil claim which had been lodged in the Federal Court in Sydney by Pan Pharmaceuticals and its former Chief Executive.
The claim which was part heard in the Federal Court during the past month, related to the Therapeutic Goods Administration's decision in 2003 to suspend Pan's manufacturing licence and recall the medicines it manufactured.
The agreed settlement amount of $50 million plus legal costs is considerably less than the $234 million claimed. The settlement involves a judgement for the claimant, but does not involve the Commonwealth conceding any of the specific allegations in the proceedings.
Background
The TGA took regulatory action against Pan in 2003 after investigating a series of adverse drug reaction reports related to the Pan manufactured "Travacalm" medicine. Deficiencies in Pan's manufacturing of Travacalm were associated with 19 people being hospitalised for serious side effects and more than 100 reports of additional adverse reactions.
Pan Pharmaceuticals subsequently pleaded guilty to a number of criminal charges including inflicting grievous bodily harm and manufacturing counterfeit medicines, and was fined $3 million.
For further information, please contact:
Virginia Dove
Department of Health and Ageing
0411 255 229