A Bad Cough: Novartis Recalls More OTC Meds

For the past two years, Novartis has had nothing but problems at a key over-the-counter plant in Lincoln, Nebraska. Manufacturing woes have led to product recalls, lost sales and a managerial shake up. Even as remediation is under way, the drugmaker is again issuing a recall. The move involves nearly 200 lots of the Triaminic and Theraflu cough, cold and flu syrups.

The reason for the voluntary recall is that the child-resistant bottle caps did not work properly and four adverse events were reported in which four children ingested medicine, including one child who required medical attention, according to the US Consumer Products Safety Safey Commission (see this). The agency received 12 reports of children unscrewing bottle caps.

The lots were produced at the Nebraska facility before operations were suspended in December 2011, and a Novartis spokeswoman tells us that nearly of the bottles have already been consumed by shoppers, returned to Novartis, or quarantined at a warehouse (here is the statement and the product list).

Specifically, of 2.3 million units of existing inventory, 1.9 million units are quarantined at a wholesaler. Of the remaining 400,000 units that were shipped prior to December 2011, approximately 345,000 are with retailers and 55,000 were sold to consumers, a Novartis spokeswoman tells us.

The recall is a reminder of the extent of the problems at the facility and the ensuing disruption. An FDA inspection found a host of embarrassing problems, including a failure to investigate numerous consumer complaints. The ongoing shutdown has hurt: the consumer health division, which includes over-the-counter and animal drugs, had an 19 percent decline in sales and a 93 percent drop in operating income in 2012 compared with a year ago (see this).

For those who may not recall, an FDA inspection revealed that Novartis (NVS) failed to investigate consumer complaints of foreign products found in its solid-dosage form meds. There were 26 such complaints in 2010 and 13 in 2009. And the drugmaker failed to investigate 166 complaints of foreign tablets in its meds since 2009. The FDA also noted that Novartis never found a root cause for the problems.

The drugmaker also failed to extend investigations into all batches of products potentially affected by any problem. One example was a mix-up involving Execedrin Migraine Tablets and Excedrin Migraine Caplets. The drugmaker did examine the incident, but the FDA maintained its conclusion that the mix-up was not within its control was not plausible, because the meds were all packaged on the same line (read more here).

In response to the turmoil, Novartis revamped management. Early last year, Naomi Kelman resigned as head of the OTC unit just one year after joining the drugmaker. And the drugmaker then created a new team to coordinate quality control upgrades among all divisions that are undergoing “committed remediation efforts” (back story).

In fact, Novartis was simultaneously experiencing manufacturing problems at other plants over the past year or so. The FDA had sent a warning letter for “significant violations” at two other US plants – Broomfield, Colorado and Wilson, North Carolina. A Sandoz plant in Quebec, Canada, meanwhile, halted some production (see here) and there were problems at a facility in Austria (see this). There were also problems at a vaccine facility in Italy that briefly prompted some governments to reject shipments of flu vaccines.

Meanwhile, back in Nebraska, Novartis is gradually resuming production of certain products on a limited basis and, otherwise, is using outside contractors to make certain products, such as Excedrin Migraine, Triaminic and Lamisil AT. Having previously spoken too soon about when full-scale production may resume (look here), the drugmaker last week would only say that "we expect to restart commercial production at Lincoln for a limited range of products in the first half of 2013."

5 Comments

Jan 31, 2013 - 5:03pm
Wow, so many transitions and recalls. Wonder where they are headed.
Feb 2, 2013 - 11:23am
Novartis is just a pale shadow of its parts; Sandoz and CibaGeigy. Yes they grew the biz a lot but at least 50% of that is due to illegal, criminal, unethical and immoral practices they built into thei biz model, big time after those two wonderful companies were murdered (oops merged). Now that the last rat responsible for what we have today, abondoned Novartenic, it actually may be saved from sinking unlike its name sake Titanic. Just like Nixon, that rat boarded his personal choper and left the Basel HQ for one of his many residences. Someone who heard it said, all he said was "I pulled it off".( no he did not say "I am not a crook") It'll take some time to fix what was left unfixed for 17 years of his regime. This Co is a good example of those companies that seemingly look in bad shape and yet they produse huge wealth for few and not so bad wages for many. The explanation is simple: when you have so much "easy" money coming in due to use of illegal etc parctices, it is easy to spread it around. If you still don't understand it or beleive it, just imagine yourself winning a lottery worth many millions.Only stolen money is as easy as that, thus easy to spend, spend, spend...
Feb 2, 2013 - 12:26pm
" Yes they grew the biz a lot but at least 50% of that is due to illegal, criminal, unethical and immoral practices they built into thei biz model"

Documentation? A detailed list of revenue sources and percent attributable to unlawful activities perhaps? Or just more unsupported ranting?

Feb 2, 2013 - 7:05pm
Anything Basel says or writes is supported by irrefutable evidence. The evidence is not on USA based Novartis thus it was not "used" yet due to lack of laws like your False Claim Act. If you want evidence of USA baseds Novartis' business practices, you don't have to go far. All you do is look up "taxpayers against fraud" and see on their website what Novartis USA has done and what kind of fines they paid for doing exactly claimed here. The total of fines already paid in USA is close or over 1/2 billion dollars. Light weight compared to some other bigpharmafia cos like Pfizer et al. Unfortunately for the people of many countries this Co as well as all others continue to do their business based on the legal/crooked biz model with impunity. It cost them billions upon billions plus other nasty effects like deaths due to wrong use of their drugs they promote offlabel etc, etc etc. It never ends for capitalism that has turned into corporatism is wired for criminal behaviour. When you promise returns they promise thesedays, they can deliver them ONLY if they also use crime as business practice. Some get caught most never. Even those that do get caught, fined etc. continue with their shady practices for it is so profitable to them that they can not stop. It is that simple.
Feb 3, 2013 - 3:35pm
@basel knows - Novartis showed its slimy moral underside with the attempt to turn their NJ Superfund sites into "organic" farms as a way to get a break in taxes and avoid a clean up. Ethically, that was insulting to the people who call the area "Home"....lost a lot of friends with that one...