Baxter’s Heparin Problems May Have Connection to China Supplier
Baxter’s (BAX) heparin product, lately in the news because of recent side-effect problems, sourced its active pharmaceutical ingredient from a US supplier who, in turn, manufactured the drug in a China subsidiary. Even worse, the FDA was supposed to inspect the subsidiary, but some snafu prevented the inspection from ever taking place.
It’s not surprising that the manufacturing plant hasn’t received an FDA visit: only 7% of overseas pharma manufacturing plants whose products end up in the US will see an FDA inspector in any given year. It would take about 14 years for each plant to be inspected – if there were no additions to the roster of overseas facilities. Given the number of additions and deletions to the list, it would take considerably longer.
So far in 2008, the FDA has received 350 reports of problems that may have been caused by Baxter’s heparin, a blood thinner that has been in use since the 1930s. Of the 350 incidents, 40% were termed serious, such as septic shock, and there are four deaths associated with the drug, though the causal link has not been definitively established.
In response to the side-effect outbreak, Baxter several weeks ago recalled nine lots of multi-dose injected heparin, but that remedy did not contain the problem. On Tuesday, the company suspended use of all its vials of multi-dose injected heparin, though the single-dose injected forms of the drug remain on the market. Baxter supplies about 50% of the heparin used in the US, making shortages a possibility.
At the moment, neither Baxter nor the FDA knows for certain that the China facility caused the problem. Baxter says it made an inspection of the plant within the last six months and found nothing amiss.
Baxter did not release the name of the owner of the facility, which was located near Shanghai.
The side effects of pharmaceuticals and active pharmaceutical ingredients imported from China was a big story in 2007. Lately, the news flow has included more items about treaties between the US and China and stationing inspectors in China (and other countries) to prevent similar problems from occurring, putting a more positive spin on the ongoing story. However, with this incident, the fears move back to the forefront.
Disclosure: none.
- Alliance Imaging, Inc. Q2 2008 Earnings Call Transcript »
- Somaxon Pharmaceuticals, Inc. Q2 2008 Earnings Call Transcript »
- Volcano Corporation Q2 2008 Earnings Call Transcript »
- Orasure Technologies, Inc. Q2 2008 Earnings Call Transcript »
- Columbia Laboratories, Inc. Q2 2008 Earnings Call Transcript »
Get Seeking Alpha Free Stock Alerts by Email!
Get Free Stock Alerts by Email!
ETFs In Focus
-
Editor's Picks
-
Most Popular
- Don't Believe the Gold Bears' Hype
- Freddie/Fannie Plans In Motion; Why Are They Being Underplayed?
- Hedge Funds Are Getting Their Butts Kicked Too
- Energy Independence: It's About Demand, Not Supply
- Housing Prices: Bottom or Temporary Bear Break?
- McCainomics: What Can He Do?
- Full list of Editor's Picks »
- Why Commodities May Be Nearing a Turning Point »
- Wall Street Breakfast: Must-Know News »
- Wall Street Breakfast: Must-Know News »
- Potash Corp. Update: Time To Buy? »
- Apple: Steve and I Have Been Wrong »
- Sarah Palin: Wall Street's Candidate »
- Precious Metals Manipulation: Lawyers Prepare for Battle »
- The Chinese Oil Problem »
- Three Reasons Solar Sell-off May Be in Early Innings »
- Gold Futures' Dirty Secret (Part II) »
- Wells Fargo Sham Revealed »
-
Long Ideas
-
Short Ideas
-
Cramer's Picks
- Global Equities Falling Through Support
- Don't Believe the Gold Bears' Hype
- Fannie & Freddie Bailout? - Fast Money Recap (9/5/08)
- Unconventional Energy Still Attractive - UBS
- Red Hat / Qumranet Deal Adds Fuel to the Virtualization Fire
- ETF Pick of the Week: iShares MSCI Netherlands
- Altria's Last Legal Hurdle Should Be Settled This Fall
- How Wal-Mart Really Beats Expectations
- Corning: Looking Very Cheap
- Leucadia's Key to Success
- Full list of Long Ideas »
- Nuance Communications: An End to Acquisitive Growth
- Short Interest Rising in Tesoro; Shorts Covering Airline Positions
- Harbinger Capital: Cut Short
- Not Much Meat on Pilgrim's Pride's Bones
- Salesforce.com: Demystifying the Force
- Should We Listen to Boone Pickens on Oil?
- Energy Conversion Devices: Ridiculously High Valuation
- Three Reasons Solar Sell-off May Be in Early Innings
- Is the Market Rolling Over?
- Solar and Oil, Part Deux
- Full list of Short Ideas »
- Fed Should Cut Rates - Cramer's Mad Money (9/5/08)
- Bullish on Wachovia - Cramer's Lightning Round (9/5/08)
- Worst Downgrades - Cramer's Stop Trading! (9/5/08)
- Pimco's Bill Gross: Jim Cramer Is 'Courageous' and 'Entertaining'
- Cramer Sees the Light - Cramer's Mad Money (9/4/08)
- Keep Buying Big Brown - Cramer's Lightning Round (9/4/08)
- Don't Buy These Bonds - Cramer's Stop Trading! (9/4/08)
- Loss of Integrity - Cramer's Mad Money Recap (9/3/08)
- Not Off the RIMM - Cramer's Lightning Round (9/3/08)
- Unbelievable Moves - Cramer's Stop Trading! (9/3/08)
- Full list of Cramers Picks »
Trading Center
Hedge Fund Jobs
Job Seekers: Search jobs by category, get job alerts by email or live feed, apply online See full list of jobs »
Employers: See all recruitment options, get applications online or by email Post a job »



This article has 1 comment: