Caraco Axes Workforce Following FDA Seizure

6 July 2009 (Last Updated July 6th, 2009 18:30)

Caraco Pharmaceutical Laboratories has announced that it will slash around half of its work force to realign expenses after the US Food and Drug Administration (FDA) seized up to 33 of the company's generic drugs due to manufacturing violations. In June 2009 the FDA seized drugs made at t

Caraco Pharmaceutical Laboratories has announced that it will slash around half of its work force to realign expenses after the US Food and Drug Administration (FDA) seized up to 33 of the company's generic drugs due to manufacturing violations.

In June 2009 the FDA seized drugs made at the company's Michigan facilities in Detroit, Farmington Hills and Wixom.

Among the drugs were generic versions of heart, pain and psychiatric drugs as well as the epilepsy treatment Tegretol and a generic copy of the diabetes drug Glucophage.

The company will now eliminate around 350 positions, around half of its workforce, after suspending all manufacturing until talks are concluded with the FDA.

According to the Wall Street Journal shares in Caraco have fallen 3.2% to $3.05.