Able Laboratories’ share price slumped again yesterday after the company announced that it had suspended its manufacturing operations and recalled its product line.
The news comes just days after the US company 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 [[20/05/05g]]. The firm, which is conducting an investigation into the matter together with internal management, outside consultants and the US Food and Drug Administration, says that it suspended the manufacture and distribution of its products until it can assure itself that its products meet compliance standards and good manufacturing practices. The company is also planning to withdraw seven drug applications filed with the FDA, and added that other previously approved and pending applications could be withdrawn in the future.
Able said that it did not know what further actions might have to be taken, but explained that disruption in business would likely have a material adverse effect on its business and results.
- Meanwhile, one law firm has been quick out of the starting blocks and has already filed a class action lawsuit on behalf of Able’s shareholders claiming that the firm was aware of the problems and “recklessly disregarded” them.