Baxter recall bottom line
This article was originally published in The Gray Sheet
Executive Summary
Baxter retroactively recorded a charge of $588 million for the first quarter of 2010 to account for an FDA-mandated recall of all Colleague infusion pumps, the firm disclosed in a May 10 filing with the Securities and Exchange Commission. The charge includes $213 million in lost sales and $375 million in "cost of sales," contributing to a net loss of $63 million for the quarter. The company is removing about 200,000 pumps from the domestic market after receiving orders from FDA April 30 to recall and destroy the devices due to Baxter's "longstanding failure to correct many serious problems" (1"The Gray Sheet" May 10, 2010)