Caraco To Lose $15-$20 Million From Seized Generic Drugs

Christina Rogers
The Detroit News

Generic drugs seized by federal authorities Thursday could cost Detroit-based Caraco Pharmaceuticals Ltd. an estimated $15 million to $20 million in lost inventory, according to a statement released by the company this morning.

Federal authorities shut down all of Caraco's Michigan facilities Thursday after an inspection revealed the company had failed to adequately respond to manufacturing violations discovered last October. The plants affected were Detroit, Farmington Hills and Wixom, where drugs and raw materials were seized to stop the company from distributing its products until federal manufacturing requirements are met, according to a release by the U.S. Food and Drug Administration. The FDA requested the seizure following the conclusion of its inspection in May. Caraco didn't immediately return calls for comment Friday morning.

Among the drugs seized were generic tablets for pain, heart problems and psychiatric conditions. The FDA said the seizure could lead to a shortage of at least one generic drug used to treat pain, choline magnesium trisalicylate, and could overall affect 33 generic drugs made by the company in various dosages. Since January, Caraco has initiated voluntary recalls for drugs to protect the public from defective pills. The recalls involved manufacturing problems, such as oversize pills.

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