Union group blasts Wal-Mart for work with India drug firm, 2 plants failed FDA standards

http://www.nwanews.com/adg/Business/262764/

BY STEVE PAINTER

Posted on Wednesday, June 24, 2009

A union-funded group criticized Wal-Mart Stores Inc. on Tuesday for continuing to do business with India's largest drug manufacturer after two of the firm's plants failed to meet U.S. Food & Drug Administration standards last year.

Ranbaxy Laboratories Ltd. is a major global supplier of generic drugs whose customers include other large U.S. retailers such as Walgreens Co., CVS Inc., The Kroger Co. and Rite Aid Corp.

Washington-based WakeUp-WalMart.com took issue with Wal-Mart, based in Bentonville, for buying pharmaceuticals from Ranbaxy after the FDA cited the two plants for falsifying records, failure to prevent cross-contamination of drugs and other violations.

"It certainly raises questions about the type of business practices that this manufacturer uses in producing its drugs," said Meghan Scott, group spokesman. WakeUpWalMart is funded by the United Food and Commercial Workers union, which has long sought to represent Wal-Mart workers.

Christi Gallagher, a Wal-Mart spokesman, said the company works closely with its suppliers and the FDA to ensure that manufacturers comply with U.S. standards. Wal-Mart has no reason to believe any tainted products reached its store shelves, she said.

Scott said Wal-Mart is seeking to make itself a player in the national debate over changes in health care, which puts its product-sourcing practices under scrutiny.

FULL story at link.