Thursday, March 5, 2015

Endo says Novartis plant shutdown to affect Opana supplies

The Chadds Ford drug company said that the temporary closure of a Novartis factory in Nebraska will cause a "supply constraint" of its pain pill, Opana.

Endo says Novartis plant shutdown to affect Opana supplies

Chadds Ford-based Endo Pharmaceuticals said there will be a "short-term supply constraint" of its pain pill, Opana ER.

The cause is a temporary shutdown of a manufacturing plant run by Novartis Consumer Health in Lincoln, Neb. Endo said that production was suspended to enable Novartis to make "certain manufacturing process improvements," involving packaging.

Novartis said on Sunday that it was halting operations and shipments at the Nebraska plant, and it is recalling various products such as Excedrin, NoDoz and Bufferin. Novartis said it will take a $120 million charge in the fourth quarter in connection with the recalls and manfacturing changes.

Endo said the disruption in Opana production is "not related to the efficacy or safety" of its products. In the meantime, the company is planning to ramp up production at other manufacturing plants.

This week brings a passel of economic statistics, including the Census Bureau's take on December retail sales. That will be released Thursday morning.

On Wednesday, the Federal Reserve will issue its "beige book" report on regional economic conditions. It's an anecdotal collection of impressions from various segments of the business world, including real estate, banking and retail.

Other reports this week involve the trade balance (Friday), wholesale (Tuesday) and business (Thursday) inventories, and import and export prices (Friday).

Among local stories, Allentown-based Air Products will sell its parts of its Homecare business to Linde Group in a transaction valued at 590 million euros, or $749 million. The operations provide oxygen therapy, sleep therapy and infusion therapy in Belgium, Germany, France, Portugal and Spain.

Mike Armstrong Inquirer Columnist
About this blog
Mike Armstrong blogs about Philadelphia corporations and business-related topics. Contact him at 215-854-2980. Reach Mike at marmstrong@phillynews.com.

Mike Armstrong Inquirer Columnist
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