Drug Recalls Spike in 2009

Prescription and OTC drugs were recalled 1,742 times in 2009. That's  up significantly from the 426 recalls the industry saw in 2008.

Our Take:  The recalls stem primarily from manufacturing facility and raw material quality concerns. Currently, legislation expanding FDA recall authority is under consideration and a bill promoting the importation of low cost drugs from other nations is being pondered. The issue is complex with some experts supporting expanded recall powers for the FDA as a step in the right direction. Meanwhile, according to the Wall Street Journal issues with the 2008 heparin contamination incident linger as Baxter hopes to avoid disclosure of some documents. The tainted drug was reportedly imported from China but information has been limited.