) has been facing manufacturing issues over the past few
quarters. In Nov 2012, the U.S. Food and Drug Administration
(FDA) issued a directive prohibiting Hospira from importing its
Symbiq medication infusion pumps, manufactured in Costa Rica, to
the U.S. The directive is a setback for the company. The facility
at Costa Rica makes most of Hospira's infusion devices and sets
(Symbiq, Plum etc.).
The import ban was expanded by the FDA in Feb 2013. Following
the fresh directive, Hospira is also prohibited from importing
Plum, GemStar and LifeCare PCA infusion pumps, manufactured in
Costa Rica, to the U.S. Hospira expects the expansion of the
import ban to adversely impact its 2013 net sales by $50-$100
million. Moreover, manufacturing issues at the company's other
facilities, such as the Boulder active pharmaceutical ingredient
plant, Rocky Mountain, Lake Forest and IKKT are further
challenges for the company.
In another development, Hospira initiated a voluntary
nationwide recall of a couple of its injectable drugs- a lot of
Reglan (metoclopramide) and two lots of Zofran (ondansetron).
Hospira initiated the move due to vial defects. The FDA stated
that glass strand particulates due to a defect on the part of the
glass supplier were the reason behind this voluntary move by
Though Hospira has not received reports pertaining to any
adverse events associated with these lots, we believe further
slipups will impact the drugs' supplies. This will create another
challenge for the company to overcome.
Hospira carries a Zacks Rank #2 (Buy). Companies like
Boston Scientific Corporation
Alexion Pharmaceuticals, Inc.
) too are Zacks #2 Ranked stocks.
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