Tamil Nadu agency blacklists Abbott for five years for hiding information

The Tamil Nadu Medical Services Corporation (TNMSC) has blacklisted pharma major Abbott Healthcare for five years for allegedly “hiding information” while participating in the tender process.

The company did not divulge that it was banned by central procurement agencies such as the Directorate General of Health Services (DGHS) and Employee State Insurance Corporation (ESIC) when it participated in the TN procurement agency’s tender process, TNMSC said.

Abbott Healthcare did not respond to Business Standard queries.

TNMSC Managing Director Deepak Jacob said the step was taken after a complaint from Paris Legal Cell in Chennai.

“This is not a ban by TNMSC alone. Abbott is already facing a ban from central procurement agencies. Whenever we float a tender, we ask for a self-declaration by the companies asking if they are blacklisted by any agency. They did not reveal this while participating in the tender,” Jacob said.

According to the state agency, Abbott was first blacklisted by DGHS reportedly on quality grounds for the supply of a blood thinner called Stromix and another medicine by DGHS in April 2018. Last year, ESIC blacklisted the company for not revealing about the DGHS ban while participating for a tender.

“After receiving the complaint, we conducted an investigation and found that it was blacklisted by other agencies. We had asked the company for its explanation and the ban happened because we haven't got a satisfactory reply,” Jacob added.

This is unlikely to have a huge financial impact on the company as the Tamil Nadu agency was procuring medicines on a requirement basis only. TN was procuring ibuprufin and cardiac stents from the company based on requirement.

Jacob added that the agency has alternative supplies in place and “availability will not be an issue”.

The other players blacklisted by the Tamil Nadu agency are little-known firms like Shrinivas Laboratories, Kanha Biogenetic, Captab Biotech, Zee Laboratories, Jackson Laboratories, Vijay Latex Products and Lenora Glove.