Indian authorities are scrutinizing the supply chain of Abbott Healthcare as part of a broader investigation into the alleged misuse and diversion of codeine-based cough syrups.
Abbott Healthcare halted production of Phensedyl in December 2024, citing persistent misuse despite safeguards. However, the drug is reportedly active within existing supply channels.
Regulators claim large volumes continue to circulate in the market, raising concerns about non-therapeutic use and possible abuse.
Phensedyl contains codeine, a narcotic commonly used in cough suppressants but also prone to misuse. The syrup has historically been smuggled into neighboring Bangladesh, where it is banned, adding to regional concerns around diversion.
A document from the Uttar Pradesh state government shows that about 22 million bottles of Phensedyl, valued at roughly $55 million, were supplied to wholesalers and vendors in the state between April 2024 and March 2025. The document notes that the product continues to be sold, even after manufacturing ceased.
According to Reuters, officers recovered about 30,000 bottles of Phensedyl hidden in rice sacks inside trucks, alleging the drugs were being illegally diverted through unofficial channels.
The wider probe found that sales volumes of addictive syrups in Uttar Pradesh significantly exceeded estimated medical demand. Officials concluded this disparity suggested the products were not primarily being used for therapeutic purposes but instead diverted for abuse through a parallel supply chain.
Abbott Healthcare has not been named as an accused party. State drug department officials visited the company's manufacturing facility in Himachal Pradesh on January 14. Government documents state that relevant manufacturing and distribution records were obtained during the visit.
Price Action: Abbott Healthcare is a unit of Abbott Laboratories (NYSE:ABT).
ABT stock is down 0.95% at $107.58 at the last check on Friday, according to Benzinga Pro data.
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