DoJ Wants Conspiracy Charge Against KVK-Tech

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The Department of Justice (DoJ) has asked the 3rd Circuit Court of Appeals to reinstate conspiracy charges against KVK-Tech, a Newtown, PA, generic drug manufacturer. Courthouse News Service reports that in February 2022 a Pennsylvania federal court rejected the conspiracy charges, saying the government’s indictment failed to state an offense.

KVK is charged with distributing 383,000 bottles of hydroxyzine, an anxiety medication, between 2011 and 2013 that contained an active ingredient produced in a Dr. Reddy’s Laboratories facility in Mexico that was not FDA approved.

Attorneys for KVK said the company obtained the drug from an approved manufacturer with several operations in Europe that had contracted with the Mexican facility.

Government attorneys argued that FDA needs to know where a drug company is going to manufacture its ingredients and what the process is going to be. DoJ attorney Daniel Tenny said “the problem with what they did here was they got approval to do one thing, and they did a different thing.” He said that without FDA inspecting a manufacturing facility, the risk of a drug ingredient being adulterated is heightened.

The news service reports that the Dr. Reddy’s facility in Mexico was considered adulterated by FDA due to current good manufacturing practice violations. The agency had issued an alert to all the facility’s ingredient users from 7/2011 through 7/2012, it says.

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