Impax Laboratories Inc. (IPXL) received a U.S. Food and Drug Administration warning letter related to its Hayward, Calif., manufacturing facility that led to the voluntary recall of its generic cholesterol drug, fenofibrate.

The pharmaceutical company said the inspection, conducted between Dec. 13 and Jan. 21, cited issues related to sampling and testing of in-process materials and drug products, production record review and the process for investigating the failure of certain manufacturing batches.

Because of the FDA's initial inspection results, the company said it conducted a voluntary recall in March of five lots of 200-milligram fenofibrate capsules at the wholesale level.

Impax said the Hayward facility's production level was reduced during the past three months to implement several changes in its quality system. The site is now producing product at a normal pace and Impax doesn't plan to reduce its product manufacturing or hold shipments of finished product.

The company has 15 business days to respond to the FDA's May 31 warning letter, which was received Friday.

"We intend to promptly respond to the FDA's letter, and have already begun to implement changes and establish procedures that address the observations cited during the inspection," said President and Chief Executive Larry Hsu. "We will work diligently to remedy any outstanding issues in a timely manner."

The company reported in May its first-quarter profit dropped 89% as revenue fell 66%, due in part to an insufficient supply of generic Adderall XR, an attention deficit and hyperactivity disorder drug.

Shares closed at $25.65 on Friday and were inactive premarket. The stock has risen 26% over the past year.

-By Melodie Warner, Dow Jones Newswires; 212-416-2283; melodie.warner@dowjones.com

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