�The Commonwealth Government in agreement 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 to the Therapeutic Goods Administration's conclusion in 2003 to suspend Pan's fabrication licence and recall the medicines it manufactured.
The agreed settlement amount of $50 billion plus legal costs is considerably less than the $234 meg claimed. The settlement involves a judgement for the claimant, only does not involve the Commonwealth yielding any of the specific allegations in the minutes.
Background
The TGA took regulatory action against Pan in 2003 later on investigating a series of adverse dose 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 contrary reactions.
Pan Pharmaceuticals later pleaded guilty to a number of criminal charges including inflicting grievous bodily harm and manufacturing counterfeit medicines, and was fined $3 million.
http://www.tga.gov.au
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