In a Feb. 13 call with investors following Hospira’s release of fourth quarter financial results, CEO Michael Ball indicated that FDA was currently inspecting the Rocky Mount plant. He noted that the company has allocated about $375 million for its remediation efforts, including covering tens of thousands of hours for consultants and has been slowly ramping up production. The remediation efforts, he said, should make its operations more efficient, ensure quality, and work to alleviate drug shortages.
In spite of the production slowdowns and remediation expenses, Ball noted the financial turnaround the company made in the fourth quarter – with net income of $5.3 million, compared with a net loss of $214 million a year earlier.
Ball commented that continued progress in sales growth for 2013 would depend in part on the FDA inspection confirming the progress the company has made on its “quality transformation.”
[See IPQ “The News in Depth” February 5, 2013 for a detailed review of the Hospira remediation efforts.][/membership]