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Perrigo Co. Initiates Massive Recall

The L. Perrigo Company is the largest manufacturer of private label over-the-counter pharmaceuticals in the US. The company was founded in 1887 in Allegan, Michigan Luther Perrigo. The company manufactures acetaminophen also known as Paracetamol, a common analgesic and antipyretic drug that is used for the relief of fever, headaches, and other minor aches and pains. This isn`t the biggest drug recall in history many readers may remember other highly publicized examples such as the diet drug Fen-Phen, the cholesterol combating Baycol, the diabetes drug Rezulin and the pain reliever Vioxx.

Lately the company found that 11 million bottles of 500-milligram caplets of acetaminophen that have been distributed to such stores as Wal-Mart and CVS are potentially defected and has decided to announce a recall of the product. The FDA has stated that the probability of serious harm is not likely yet costumers using the recalled caplets should persist immediately. The FDA warned that if any of the drug`s users feel their health has been effected a doctor should be seen immediately.

The company`s shares dropped 4% on the morning of the recall on the NASDAQ. This is due to expectations of loss in profitability due to recall costs. The company has stated that the recall`s expected cost is $2.9 million, or 1 cent a share after-tax, thus reducing the company`s profit to 18 cents a share. Yet the company remains optimistic regarding future results, reaffirming its full-year earnings outlook. Looking back at the history of drug recalls it can be seen that in the long run the company is not affected.