Caraco Confident Despite FDA Raid

Having the U.S. Food and Drug Administration raid your pharmaceutical company and seize over thirty types of drugs seems like genuine cause for concern, but Caraco Pharmaceutical Laboratories Ltd. has expressed optimism instead. According to the generic drug producer, the third-party drugs that the government did not seize will generate enough profit for the company to stay afloat.
 
The FDA initiated the raid because it found that Caraco had been putting drugs with a variety of defects on the market. Although the company makes several popular medications and consumers may not even be aware if the medicine they take was made by Caraco, the FDA has confirmed that nobody needs to stop taking any medicine, even if it is made by Caraco.
 
Investors seem to share Caraco’s confidence, launching shares 31 percent to $3.14 today. However, many health officials have expressed their concern of a decline in quality in generic drugs due to careless manufacturing practices. This development only serves to bolster the accusations of those who would like to see stricter regulations on drug manufacturing.

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