Phikon Biotech Pvt Ltd is found to be violating various sections of the Drugs and Cosmetics Act. The company is also suspected to have manufactured and sold spurious drugs by way of fictitious brands, labels and expiry dates.

A series of prosecutions are expected to be filed by various state governments including that of Karnataka, stated sources who did not wish to be named as investigations are still on.

The Bangalore-based company has been engaged in the production of anti cancer and cardiology drugs which include Streptokinase using labels of different pharma companies in the country. The company's concerned chairman DJ Vaidya is absconding and its managing director, Dr MR Srinivasa Prasad has been taken into custody for further investigation by the Maharashtra police.

The original manufacturers of these drugs namely Chennai-based Caplin Point Laboratory and Gujarat's Gufic Biosciences have denied that they have manufactured for Phikon Biotech. Further, it was also found that the seized drugs were manufactured by companies in Maharashtra which included Chandrabhagat Pharma Pvt Ltd. These companies have also filed complaints with their respective state government authorities.

The Bangalore-based Phikon incepted in 2001 has been portrayed as global innovative biotech company with diversified interests in biopharmaceuticals, diagnostic reagents, biochemical enzymes and proteins, according to its chairman Vaidya and Dr Prasad, managing director. Biosena Life Sciences is the sister concern of Phikon Biotech.

All the drugs are marketed through distributors and not supplied through hospital tenders. Karnataka government is expected to complete its investigation within a few days.

The company was known to manufacture 17 products which included injectables lyophilized and liquid stable formulations of non recombinant biotech active pharmaceutical ingredients for cancer, cardiovascular, fertility management and ophthalmics. All the products have been withdrawn from the stockists and distributors in the country.

In Oct 2008, Pharmabiz had reported that Karnataka Udyog Mitra had cleared the investment of Phikon Biotech which plans to set up a formulation unit in Neelamangala on Karnataka Industrial Area Development Board land which is expected to be completed in August 2009.