Caraco Pharmaceutical Laboratories, Ltd. (CPD)

[mlkrborn]

CPD Reported:
POSTED: 12:23 p.m., May. 25, 2010
LAST MODIFIED: 12:24 p.m., May. 25, 2010


Caraco Pharmaceutical Laboratories reports $8.7 million loss for 2010
By Jay Greene


Detroit-based Caraco Pharmaceutical Laboratories Ltd. (NYSE Amex: CPD), citing the U.S. Food and Drug Administration’s decision last year to shut down its Detroit plant for quality problems, reported a loss of $8.7 million, or 22 cents a share, for fiscal 2010 ended March 31.

Caraco had net income of $20.5 million, or 51 cents a share, in fiscal 2009. Revenue for fiscal 2010 was $233.7 million, 30 percent lower than $337.2 million the year before.

Last June, the FDA and U.S. Marshalls raided Caraco’s Detroit plant and seized 30 generic drugs, raw materials and related ingredients worth an estimated $24 million. The raid was preceded by a number of letters from the FDA that cited Caraco for violating good manufacturing practices.

Since the plant shutdown, more than 430 of the company’s 650 employees have been laid off. At least two lawsuits have been filed against Caraco by 15 former employees, citing wrongful discharge and discrimination.

In a statement Monday, Caraco said it has submitted a remediation work plan to the FDA that has been approved. Remediation activities are under way, officials said, and some laid-off workers have been recalled.

Caraco’s 180,000-square-foot manufacturing plant is located at 1150 Elijah McCoy Drive. Three years ago, Caraco more than quadrupled its Detroit plant to 180,000 square feet and it leased a 137,500-square-foot warehouse in Wixom.