Regulatory bodies in India have launched a detailed examination of the distribution network related to Abbott Healthcare India’s codeine-containing cough syrup, Phensedyl, as part of a larger investigation targeting the substance's alleged diversion and misuse. This heightened scrutiny comes following Abbott Healthcare’s decision to halt Phensedyl production in December 2024, a move attributed to continued abuse of the medication despite regulatory safeguards designed to limit such activity.
Phensedyl, a cough suppressant with codeine as an active ingredient, holds a dual status as both a legitimate medicinal product and a substance with a known potential for abuse. The narcotic component codeine is commonly prescribed in various cough remedies but can be misused due to its psychoactive effects. The regional concerns extend beyond India’s borders, as Phensedyl has a documented history of being illicitly transported into Bangladesh, where it is prohibited, exacerbating cross-border regulatory challenges.
A governmental document issued by the Uttar Pradesh state authorities underscores the scale of distribution, reporting approximately 22 million units of Phensedyl supplied to wholesalers and vendors across the state between April 2024 and March 2025. This timeframe notably encompasses months after Abbott’s production cessation, highlighting discrepancies between manufacturing stoppage and market supply continuity. Valued at nearly $55 million, this volume suggests a significant ongoing presence of the drug in the marketplace.
Investigations by law enforcement officials have further revealed clandestine activities implicating illicit distribution. Approximately 30,000 bottles of Phensedyl were confiscated, concealed inside sacks of rice within transport vehicles, pointing to efforts to bypass official supply chains. Investigators have identified the existence of parallel networks responsible for channeling these substances into the market, diverging from legitimate medical supply routes.
Analysis conducted by the investigative team has noted a marked disparity between the volume of addictive cough syrups sold within Uttar Pradesh and the estimated legitimate medical requirements. This incongruity supports the conclusion that a significant portion of these products is diverted for non-therapeutic purposes. Officials underscore that the pattern of excess sales implicates a wholesale diversion, suggesting that these syrups are being funneled toward abuse rather than sanctioned medical use.
Despite the intensity of the inquiry, Abbott Healthcare India has not been formally accused or implicated as directly responsible for the diversion. Officials from the state drug department conducted an inspection visit to Abbott's manufacturing facility in Himachal Pradesh on January 14. Documentation reviewed during this visit included pertinent manufacturing and distribution records, which have been procured to advance the regulatory investigation.
On the financial front, Abbott Healthcare India operates as a subsidiary of the global healthcare company Abbott Laboratories, publicly traded on the New York Stock Exchange under the ticker ABT. Market data from Benzinga Pro, recorded on a recent Friday, shows ABT stock modestly down by 0.95%, trading at approximately $107.58. Additional metrics and analysis tools from market intelligence rankings provide various aspects of the stock’s momentum, quality, and value, though these do not directly relate to the ongoing regulatory investigation.
Moving forward, the evolving situation necessitates careful monitoring due to the serious public health implications associated with codeine-based cough syrups and the complexities surrounding their supply chains. Regulatory authorities remain focused on identifying the full scope of diversion activities and ensuring that legal frameworks and distribution oversight prevent further misuse while accommodating legitimate therapeutic needs.