Caraco Pharmaceutical Laboratories, Ltd. reported revenues of $78.4 million in the second fiscal quarter of 2010 ended September, 30, 2009, down from $122.8 million in the same quarter last year.
Caraco Pharmaceutical Laboratories, Ltd had net income of $6.6 million, or $0.17 per diluted share, in the second quarter. The company earned $8.4 million, or $0.21 per diluted share, in the same quarter last year.
Caraco Pharmaceutical Laboratories, Ltd. said that sales of distributed products were down due to lower shipments of its Paragraph IV products and “price erosion” on those products. Distributed products refer to products that the company markets for other companies.
Sales of products made by Caraco Pharmaceutical Laboratories, Ltd. were also down due to a voluntary recall by the company, and actions taken by the Food and Drug Administration (FDA) that resulted in an interruption of manufacturing.
In June 2009, the FDA closed three manufacturing facilities run by the company, and seized inventory worth $24 million. The FDA said that Caraco Pharmaceutical Laboratories, Ltd. did not “manufacture drugs in accordance with our good manufacturing practice requirements.”
Caraco Pharmaceutical Laboratories, Ltd. signed a consent decree with the FDA on September 29, 2009 in an attempt to resolve the issues with the agency and resume manufacturing.