Product Recall Woes for CareFusion - Analyst Blog

By
A A A

Recently, CareFusion ( CFN ), a medical technology company, announced the voluntary recall of its Alaris Pump Module, Model 8100. The recalled lot was manufactured between October 2011 and February 2012.

The product recall was issued due to a latent risk which might cause the door keypad overlay of the pump module to separate from the keypad assembly. It was seen to be a flaw which could lead to detrimental and fatal consequences.

As per the U.S. Food and Drug Association (FDA), this voluntary product recall is a Class 1 recall. A Class 1 recall is specified as the recall of a product having a considerable probability of serious adverse health or fatal consequences associated with the use of defective units.  

The company notified that the door assembly of the related pump modules will be substituted within a period of 60 days. Meanwhile, consumers have been advised to visually monitor the pump module keypad overlay for any explicit indication of overlay separation.

Product recall woes at CareFusion continue. Earlier this year, the company initiated a voluntary recall of its EnVe ventilators and AirLife Infant Breathing Circuit in July and May, respectively. The voluntary recall of EnVe ventilators applies to those manufactured between December 2010 and January 2012.

With regard to AifLife Infant Breathing Circuit, the company found that the equipment sub-part known as an adapter manufactured between June 1, 2010, and February 3, 2012, had on occasion developed a crack during patient use. It had resulted in leakage and loss in the intended tidal volume.

Amidst safety concerns and manufacturing defects associated with its products, concerns about CareFusion's production capabilities have also grown.  It has to be accepted that this could lead to a loss in consumer confidence and trust. The costs associated with the recalls and remediation plans is also a matter of concern for the company.

CareFusion is a medical technology company with a global presence. It also plans to extend its international footprint. The company is committed to boosting its bottom-line on the back of portfolio innovation and enhancement and operational efficiencies. Helped by a diversified revenue base of industry leading offerings, the company is well poised to accelerate growth. 

It competes with Baxter International Inc. ( BAX ), Becton, Dickinson and Company ( BDX ) and Omnicell Inc . ( OMCL ) in certain niches.

CareFusion currently retains a Zacks #2 Rank, which translates into a short-term Buy rating.


 
BAXTER INTL (BAX): Free Stock Analysis Report
 
BECTON DICKINSO (BDX): Free Stock Analysis Report
 
CAREFUSION CORP (CFN): Free Stock Analysis Report
 
OMNICELL INC (OMCL): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: BAX , BDX , CFN , OMCL

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Can You Trust CarFax?
Can You Trust CarFax?               

Stocks

Referenced

Most Active by Volume

57,523,627
  • $15.85 ▲ 2.13%
34,839,895
  • $55.95 ▲ 4.78%
23,589,296
  • $36.92 ▲ 5.13%
19,111,217
  • $30.08 ▼ 0.82%
17,353,706
  • $100.39 ▼ 0.18%
16,717,727
  • $8.24 ▲ 1.35%
14,712,622
  • $10.85 ▲ 18.32%
14,449,148
  • $34.84 ▲ 0.99%
As of 8/21/2014, 12:35 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com