Indian authorities permanently scrapped Noida-based pharmaceutical firm Marion Biotech's license on Wednesday after finding that 22 of 36 syrup samples tested were "adulterated and spurious."
"Marion Biotech cannot carry out any manufacturing now," drug inspector Vaibhav Babbar told press.
The action came after Uzbekistan alleged in December that 18 children died after consuming the company's Dok 1 Max cough syrup.
What Was Wrong With Dok 1 Max Syrup?
Dok 1 Max syrups, which were unavailable in India and were manufactured for exports, were been found to contain toxic ethylene glycol and diethylene glycol.
In January, the World Health Organization (WHO) warned against Marion Biotech, calling for "immediate and concerted action" to tackle the issue.
"These contaminants (diethylene glycol & ethylene glycol) are toxic chemicals used as industrial solvents and antifreeze agents that can be fatal even if taken in small amounts, and [must] never be found in medicines," the WHO said.
Last year, in a separate incident, Gambia alleged that 66 children died after consuming cough syrups made by another Indian firm, Maiden Pharmaceutical.
India is the world's largest generic drug exporter and exports to many developing nations.
However, the Narendra Modi-led government has looked to avert a possible negative image of the Indian pharma industry from these incidents, which may damage its market role.