The Canadian Press is reporting that today's product-recall announcement involving 11 million bottles of acetaminophen does not affect Canada.
Ernest Schenk, manager of investor relations at Perrigo Co. of Allegan, Michigan, tells the news service that none of the recalled pills were distributed this side of the border.
The recall was announced this morning after lots of the product were found to be contaminated with metal fragments.
Perrigo did not disclose the name of retails selling its painkillers, but it is known that the firm supplies drugs to Wal-Mart Stores Inc., CVS Corp., Walgreen Co. and Costco Wholesale Corp.
Here's the company announcement:
************************* Perrigo announces voluntary product recall and reaffirms full-year earnings
Nationwide recall of acetaminophen 500 mg caplets ALLEGAN, Mich., Nov. 9 - The Perrigo Co. (Nasdaq: PRGO; TASE) announced today that it has initiated a voluntary, nationwide product recall to the retail level of certain lots of its store brand Acetaminophen 500 mg caplets containing raw material purchased from a third-party supplier.
This over-the-counter product is indicated for pain relief and fever reduction. John Hendrickson, EVP and general manager of Perrigo Consumer Healthcare stated, "Our quality control systems noted trace amounts of metal particulate in a very small number of these caplet products. Although the frequency of occurrence is very low, the probability of health risk is remote, and there have been no reports of injuries or illness related to this incident, we are taking this measure to maintain the highest possible product quality standards for our retail customers and their store brand consumers." Perrigo is informing its customers, including distributors and retailers, about this recall today, which affects 383 batches, and has outlined steps it will take to facilitate product replacement.
Questions or concerns about this product should be directed to Perrigo's Consumer Affairs Department, toll free, 877-546-0454.
Any adverse reactions experienced with the use of this product should also be reported to the FDA MedWatch Program by phone at 800-FDA-1088, by fax at 800-FDA-0178 or on the MedWatch website at http://www.fda.gov/medwatch
Perrigo continues to proactively work with the FDA throughout this process. The operational scope and financial impact of this issue were not estimable at the time of the October 31, 2006 earnings conference call and related Form 8-K filing with the SEC.
As the company obtained more information, the decision was reached to recall these products.
The total cost of the recall for sales returns, handling of on-hand inventories and disposal is estimated to be $2.9 million.
Discussions are on-going with the raw material supplier to determine the extent to which the recall-related costs may be recoverable.
The company determined that a portion of the total cost of the recall related to the first quarter of fiscal 2007.
Therefore, the fiscal first quarter results included in the Form 10-Q filing with the SEC today will include a charge after-tax of $667 thousand or $0.01 EPS.
As a result, fiscal first quarter EPS is $0.18 versus the $0.19 previously communicated. Perrigo reaffirms its full year fiscal 2007 earnings range of $0.86 -$0.91 per share excluding restructuring costs related to the previously announced plant closures. The Perrigo Co. is a leading global healthcare supplier and the world's largest manufacturer of over-the-counter (OTC) pharmaceutical and nutritional products for the store brand market.
Store brand products are sold by food, drug, mass merchandise, dollar store and club store retailers under their own labels.
The company also develops, manufactures and markets prescription generic drugs, active pharmaceutical ingredients and consumer products, and operates manufacturing facilities in the United States, Israel, United Kingdom, Mexico, Germany and China. Visit Perrigo on the Internet (http://www.perrigo.com).
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