Indian regulators have launched a formal probe into Abbott Healthcare’s distribution network for Phensedyl, a codeine-based cough syrup previously manufactured by the company. Production of Phensedyl was discontinued in December 2024 following reports of widespread misuse. During an inspection of Abbott’s Himachal Pradesh facility on January 14, officials obtained detailed manufacturing and distribution records to trace the movement of existing stock.

A report from the Uttar Pradesh state government reveals that approximately 22 million bottles of Phensedyl, valued at about $55 million, were supplied to wholesalers and vendors in the state between April 2024 and March 2025. Regulators noted that these volumes far exceed typical therapeutic requirements, suggesting significant diversion into non-medical channels. In one operation, enforcement officers intercepted nearly 30,000 bottles concealed in rice sacks within transport trucks, underscoring the scale of illegal distribution.

Phensedyl has a history of cross-border smuggling, particularly into neighboring Bangladesh, where the syrup is banned. Authorities fear that leftover stocks from official channels are feeding both domestic abuse networks and international smuggling rings. Investigators are analyzing seized records to identify patterns of sale exceeding legitimate prescriptions, with the goal of mapping parallel supply chains that have persisted despite the production halt.

Abbott Healthcare has not been formally accused of wrongdoing in the current investigation. Company representatives are cooperating with regulators and have pledged full transparency in providing requested documentation. Authorities are now reviewing sales invoices, shipment logs and vendor contracts to determine whether any third-party distributors violated narcotics regulations. Findings from this inquiry could prompt tighter controls on codeine-based pharmaceuticals nationwide.