After Fed Seizure, Caraco Axes 350 Employees
July 6, 2009 at 10:54 am EST | Tags: Collapses & Setbacks, Economy & Layoffs, FDA
Just a little over one week since U.S. Marshals seized
drug products at Caraco Pharmaceutical Laboratories, the
company has axed half of its workforce or about 350 employees.
On June 26, the FDA asked U.S. Marshalls to seize all of the firm’s products after its continued failure to to meet the FDA’s current Good Manufacturing Practice (cGMP) requirements, which assure the quality of manufactured drugs.
The axes today come as the result of JPMorgan Chase Bank telling Caraco that its $10 million line of credit was not available to be drawn down upon until the regulatory matter was resolved.
Ouch!!!
Caraco says that despite all this, the company’s financial position will not be “materially impacted.”
Looks like 350 employees’ lives were “materially impacted.”
Lawsuit anyone?
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