Trainer Nicky Henderson has been fined £3,500 and his runner Heather Royal disqualified after the horse tested positive for a banned substance.
A urine sample revealed the presence of dexamethasone after the horse finished sixth at Huntingdon on 10 February.
This subsequently led to Binocular's withdrawal from his defence of the Champion Hurdle at Cheltenham.
Binocular had been receiving treatment for a rash with the same drug and was likely to also test positive.
A British Horseracing Authority disciplinary panel accepted an admission from Henderson that he was in breach of the rule over positive drug tests and imposed upon him a fine of £2,000. He was also ordered to pay £500 towards the cost of the analysis of the 'B' sample.
Henderson also admitted he was in breach of the rule regarding keeping complete medication records and fined him a further £1,000.
Both fines reflected it was Henderson's second offence within the previous two years.
Henderson won the Cheltenham Gold Cup for the first time with Long Run in March. In 2009, he was fined a record £40,000 and banned from racing horses for three months.
He was found to have breached the rules after Moonlit Path, which he trains for the Queen, failed a drugs test. Henderson insisted he had not sought to boost performance.