Abbott’s Healthcare India’s supply chain is under scrutiny as part of a broader investigation into the alleged misuse of Phensedyl, a codeine-based cough syrup prone to abuse by addicts, according to Reuters.
Abbott halted the production of codeine-based Phensedyl in December 2024, citing continued misuse despite safeguards. However, authorities say the drug remains in circulation within existing supply channels.
An Uttar Pradesh state government document, seen by Reuters, shows that around 22 million bottles of Phensedyl, valued at $55 million, were supplied to wholesalers and other vendors in the state between April 2024 and March 2025. The document adds that the cough syrup continues to be sold despite the halt in production.
Raids and Alleged Illegal Diversion
Based on a tip-off, police conducted raids on the night of November 4 last year at a warehouse in Ghaziabad, Uttar Pradesh. Officials said individuals were seen transferring the drug between two trucks.
During the operation, police recovered 30,000 bottles of Phensedyl hidden inside rice sacks. Authorities alleged that the bottles were being illegally diverted, according to documents and police officials. The ownership of the warehouse remains unknown, but officials clarified that it was not linked to Abbott.
According to Reuters, the investigation, which also involves several other Indian cough syrup manufacturers, found that sales of addictive cough syrups such as Phensedyl in Uttar Pradesh were significantly higher than actual medical demand.
The document noted that the quantity sold “was much more than actual consumption”, suggesting diversion for illegal use.
“This clearly shows”, the document said, that drugs like Phensedyl were “not being used for therapeutic purposes and were instead being diverted for abuse via a parallel supply chain.”
Abbott’s Response and Past Measures
Responding to reports that its supply chain was under scrutiny, Abbott said it had taken “a series of actions to prevent the misuse and diversion of codeine-based Phensedyl”.
“Abbott does not condone any misuse, including diversion, of medicines,” the company said.
Abbott said the steps included “setting manufacturing and supply limits, eliminating sales incentives for trade, conducting distributor and chemist education programs, performing business inspections, and supplying only through State FDA-licensed distributors.”
However, the company said that as “misuse and diversion persisted”, it stopped manufacturing and selling codeine-based Phensedyl in December 2024.
Phensedyl contains codeine, a narcotic commonly used in cough suppressants but frequently abused by addicts. The syrup has also been smuggled into neighbouring Bangladesh, where it is banned. Abbott Healthcare, a unit of U.S.-based Abbott Laboratories (ABT.N), discontinued production of the drug in December 2024, though it remains in circulation.
Cross-Border Abuse Concerns
Last year, local media reported that India’s Border Security Force seized around 60,000 bottles of Phensedyl near the Bangladesh border.
Reuters also mentioned that in 2024, the Indian government said codeine-based cough syrups remain “a major abuse concern”, identifying West Bengal, Assam and Bihar as high-risk states “traditionally affected by codeine abuse.”
Doctors have warned that excessive use of codeine-based cough syrups can lead to sedation and behavioural changes.
According to the United Nations Office on Drugs and Crime (UNODC), Phensedyl and other cough syrups are illegally transported using forged documents and are often concealed under other goods in trucks and buses.
In a past interview with UNODC, M.K. Pal, former Deputy Drugs Controller of Tripura, said cough syrups such as Phensedyl reach Bangladesh through the state, which shares nearly two-thirds of its border with the country.
“The drug is generally sent in its original packaging. Since liquor is banned in Bangladesh, the drug became a popular alternative to alcohol,” he said.
Mr. Pal added that Phensedyl earlier contained a combination of codeine phosphate, ephedrine hydrochloride and promethazine, making it highly addictive. Although the formulation was later changed, he said the abuse trend has continued.
Abbott Healthcare has not been named as an accused in this case yet. However, on January 14, officials from Uttar Pradesh’s drug department visited the company’s manufacturing plant in Himachal Pradesh.
“Records relating to the manufacture and distribution of codeine-based cough syrup were obtained,” the state government document said.
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