26 January 2012 - The US Department of Justice (DoJ) confirmed on Thursday that it had approved a proposed settlement over alleged improper manufacturing practices by India's Ranbaxy Laboratories Ltd (BOM:500359).

The Indian generic drugs group signed a deal with the US Food and Drug Administration (FDA) last month, agreeing to improve its practices and allocating USD500m (EUR381m) to cover potential liabilities from the DoJ investigation. On Wednesday, the DoJ filed a consent decree ordering Ranbaxy to implement the required changes in its manufacturing.

Ranbaxy chief executive and managing director Arun Sawhney said in a statement that the company has already made significant progress in improving the quality of its business and manufacturing processes.

(USD1 = EUR0.762)