US generics firm, Able Laboratories, saw its share price slump some 43% during trading on the Nasdaq Stock Exchange yesterday after the firm withdrew its financial guidance on the back of several product recalls, which came as a result of various improper laboratory practices and noncompliance with standard operating procedures.
The company says that it had notified the US Food and Drug Administration and an ongoing assessment of its practices, which aimed to identify and address any remaining issues, had flagged up “apparent departures from standard operating procedures with respect to certain laboratory testing practices.” As a result, Able will be recalling additional products in the future.
The firm’s share price hit a new year-high of $26.49 on Wednesday, the day before the announcement was made. It hit a new low yesterday of $4.75 on a day that saw more than 31 million shares traded in the company.
- Meanwhile, the company also revealed that its chairman and chief executive officer, Dhananjay Wadekar, had resigned from his positions, and that Robert Mauro, president and chief operating officer, would be assuming the role of interim chief executive officer.