Pfizer, the world's biggest drug company, appeared Wednesday to have escaped negative investor reaction after announcing a recall of birth-control pills, with stock prices fluctuating throughout the trading session before closing up 13 cents to $21.31.
Pfizer Inc. (NYSE:PFE) issued a recall on one million birth control pills in the U.S. due to uncertainty about the number of pills containing the active ingredient in each package. A faulty number of active pills could lead to unplanned pregnancy.
As a result of this packaging error, the daily regimen for these oral contraceptives may be incorrect and could leave women without adequate contraception, and at risk for unintended pregnancy, said Pfizer, in a statement on the U.S. Food and Drug Administration Web site.
The drug was produced and packaged by Pfizer but sold under Akrimax Pharmaceuticals. The recall includes 14 lots of Lo-Obral-28 tablets and 14 lots of Norgestrel/Ethinyl Estradiol tables.
The low volume of recalled tablets will spare the company a significant hit to its top line, said Damien Conover, an analyst for Morningstar.
From an earning perspective this really shouldn't have much of an impact because it's a relatively small recall, he said, adding there should be no concerns about a flood of lawsuits.