Boston, MA 11/05/2013 (wallstreetpr) – The S&P 500 index drug maker Perrigo Co. (NYSE:PRGO), first quarter result announcement was announced on October 31. This was largely over shadowed by its November 1 announcement – recall of its infant drug ‘Acetaminophen Infant Suspension Liquid’. The company attributed this as a voluntary action it was compelled to adopt. The reason was a defective oral syringe that goes pre-packaged with this drug.
The issue revolves around a small possibility that few of the syringes which have been shipped out with the drug might have measurement markings missing in them. The company has clarified that the drug is completely safe, and the recall, is not related to the drug.
Indicating the seriousness with which the $13.53 billion market capped drug maker has taken up this product recall, Joseph Papa who is the Chairman, President and Chief Executive Officer has been seen in the forefront of the damage control exercise.
He has reiterated that, there are no issues concerning the safety of the drug. There can be no doubts about the efficacy too, he predicted. The CEO was quick to add that, their internal adherence to ‘highest possible product quality standards’ prompted the company to conduct the recall. The ‘unmarked dosing devices’ are a cause for concern as they may led to wrong dose administration by retail consumers.
In spite of the product recall making it to the news headlines the markets seem to have completely discounted the possibility of any negative impact on the drug maker. The stock was trading at $143.73 per share as of close of business on November 4, up close to 1% from its previous day close.
In the previous week, the stock had appreciated by 9.88% on the back of strong 3Q revenue report. Perrigo’s quick action has not remained unnoticed and investors have chosen to back to choose.
