Abbott Under Investigation in India for Cough Syrup Misuse

• Police seized 30,000 bottles of Phensedyl hidden in rice sacks during a November 2024 raid, with 22 million bottles worth $55 million supplied to Uttar Pradesh between April 2024 and March 2025
• Investigation found cough syrup quantities 'much more than actual consumption,' indicating diversion through a parallel supply chain for abuse rather than therapeutic use
• Abbott ceased manufacturing Phensedyl in December 2024 after years of attempting to prevent misuse, though the company is cooperating with authorities and is not named as an accused party

Abbott Under Investigation in India for Cough Syrup Misuse

Key Developments:

Abbott Healthcare, a unit of U.S.-based Abbott Laboratories, is facing scrutiny in India over the alleged diversion of its codeine-based cough syrup Phensedyl into illegal channels for abuse. While Abbott is not named as an accused, Indian authorities are investigating the company's supply chain as part of a broader probe into narcotic cough syrup misuse.

Critical Facts and Figures:

• 30,000 bottles of Phensedyl were seized during November 4 raids in Ghaziabad, Uttar Pradesh, hidden in rice sacks
• 22 million bottles valued at $55 million were supplied to Uttar Pradesh wholesalers between April 2024-March 2025
• 11 individuals have been arrested in connection with the case
• 62,000 Phensedyl bottles were seized near the Bangladesh border in 2024

Company Response:

Abbott discontinued Phensedyl manufacturing in December 2024 after years of persistent misuse and diversion, despite implementing preventive measures including eliminating sales incentives. The company cooperated with a January 14 inspection at its Himachal Pradesh plant, where authorities obtained manufacturing and distribution records.

Market Context:

Phensedyl contains codeine, an opium derivative prone to addiction, and is banned in Bangladesh where it has been historically smuggled from India. Indian authorities identified that quantities sold in Uttar Pradesh "far exceeded actual consumption," indicating systematic diversion through parallel supply chains. The investigation extends to several other Indian cough syrup manufacturers.

Health Implications:

Indian government officials flagged codeine-based cough syrups as a "major abuse concern" in 2024, particularly in West Bengal, Assam, and Bihar. Medical experts warn excessive use causes sedation and behavioral changes.