Ranbaxy Laboratories has indicated that its US unit will pay a record $500 million to settle charges of non-compliance with the American regulator's drug manufacturing quality norms and providing false data in the filings made to the US Food and Drug Administration six months earlier.

The company had said in December that it would set aside $500 million for covering costs related to a settlement of investigations by authorities. India's leading drug-maker, which is controlled by Japan's Daiichi Sankyo, said in February its core business is expected to grow by 10 per cent during 2013. Experts have said that as the lawsuit is now over, the company can move on focus on improving its profitability.

The US Justice Department said in a statement: "In the largest drug safety settlement to date with a generic drug manufacturer, Ranbaxy USA, a subsidiary of Indian generic pharmaceutical manufacturer Ranbaxy Laboratories, pleaded guilty today to felony charges relating to manufacture and distribution of certain adulterated drugs made at two of Ranbaxy's manufacturing facilities in India."

The shares of the company were trading 1.89 per cent higher at Rs. 448 on the Bombay Stock Exchange (BSE). The benchmark Sensex was trading 0.47 per cent at 19,784.87 points.