Johnson & Johnson (J&J) has agreed to work with the Indian government to offer compensation to patients who were affected by faulty hip implants.
DePuy International, a unit of J&J, sold the implant known as DePuy ASR in India before it was recalled in 2010 after data indicated they failed at a higher-than-expected rate.
Last month the Central Drugs Standard Control Organization (CDSCO) asked the company to compensate all the patients who were fitted with articular surface replacement (ASR) implant.
The government -appointed committee recommended a base compensation of Rs2m ($27842) to each patient.
It is estimated that nearly 4,500 patients were fitted with the recalled device before they were recalled.
A Johnson & Johnson spokeswoman in a statement emailed to Reuters said: “We have always been and continue to be fully committed to supporting all ASR patients in India, and the rest of the world.
“In light of the recent committee report, we are seeking to work with the Indian government to develop an appropriate process for providing further support and compensation for patients in need,” she added.
However, there is no confirmation on whether the company will pay the recommended compensation to each patient or is in plans to negotiate the amount with the government, reported the news agency.
In 2013, Johnson & Johnson agreed to pay nearly $2.5bn in the US to settle thousands of lawsuits from patients who complained that they were affected by the implants.