Showing posts with label cGMP. Show all posts
Showing posts with label cGMP. Show all posts

#USFDA Warning Letter to German Drug Firm for Baddi Plant


US health regulator USFDA has issued a warning letter to German drug firm Fresenius Kabi AG for
lapses at its drug manufacturing facility at Baddi in Himachal Pradesh.

In a letter to the company’s CEO Mats Henriksson summarising violations of current good manufacturing practice (CGMP) regulations for finished pharmaceuticals, United States Food and Drug Administration (USFDA) said it had conducted inspection of the Baddi facility from April 6 to 14, 2017.

“Your firm failed to thoroughly investigate any unexplained discrepancy or failure of a batch or any of its components to meet any of its specifications, whether or not the batch has already been distributed,” the health regulator said.

While saying that it had reviewed company’s May 10, 2017, response in detail and acknowledges receipt of its subsequent correspondence, USFDA asked the drug firm to provide plans and procedures to ensure that future sterility failure investigations included a more thorough review of long-term trends.

The regulator also asked Fresenius Kabi AG to ensure sufficient investigation of potential vulnerabilities in the manufacturing operation and potential correlations with past incidents.

The letter also said that in an inspection from May 14 to 22, 2015, FDA had cited a similar CGMP observation in which the company invalidated sterility test failures without adequately investigating the root causes, and failed to take timely and appropriate corrective actions.

“Although you proposed remediations in your responses following the 2015 inspection, and discussed these plans during a 2016 regulatory meeting with the Agency, our current inspection found that your facility’s oversight and control over the manufacture of drugs remains deficient,” it added.

Recommending engaging of CGMP Consultant, USFDA said based upon the nature of the violations it strongly recommended engaging a consultant to assist the company in meeting CGMP requirements.

The regulator said until the company corrects all violations completely and “we confirm your compliance with CGMP, FDA may withhold approval of any new applications or supplements listing your firm as a drug manufacturer.”

Failure to correct these violations may also result in FDA refusing admission of articles manufactured at Fresenius Kabi Oncology at Baddi in the United States, USFDA said.

Paragon Bioservices wins US$15m filovirus vaccine contract

Paragon Bioservices, a US contract manufacturing organisation focused on the process development and manufacturing of biologics, has won a US$15m contract from the US Department of Defense (DoD) for the development and GMP manufacture of a trivalent filovirus vaccine.

‘It doesn't get any better than this for a CMO,’ said Marco Chacon, chief executive of Baltimore-based Paragon Bioservices.

Under the contract, the firm will combine its expertise in virus and vaccine (VLP) production and purification with experts from the University of Maryland School of Medicine (Baltimore, MD) and Harrisvaccines (Ames, IA).

During the first phase of the deal, Paragon Bioservices will receive $15m and this could more than double if optional contract line item numbers are exercised.

The contract focuses on the Venezuelan equine encephalitis (VEE) replicon particle trivalent filovirus vaccine.

There are currently no licensed vaccines or treatments against filoviruses, even though there is up to a 90% fatality rate in humans.

Paragon will develop a large-scale mammalian process that is suitable for cGMP manufacturing.

The firm is already working with filovirus vaccine candidates under another contract with the DoD awarded in October 2010, which involves process development and scale-up production to support the efficacy of filovirus vaccine candidates against the Ebola and Marburg viruses.

Caraco Pharma Now Faces Class Action Lawsuits

The Detroit generic pharmaceutical maker Caraco Pharmaceutical Laboratories Ltd. (NYSE Amex: CPD) said Friday that two purported class action lawsuits had been filed against it in federal court in Detroit on July 17 and 23.

Caraco said neither the company or the executives had ot yet been served with either suit. But even without seeing them, Caraco said it believes the suits are "without merit" and that it intends to "vigorously contest the actions."

Caraco said the suits "purport to represent the class of persons who purchased or otherwise acquired the common stock of the Company generally between May 29, 2008 and June 25, 2009."

And the suits allege that Caraco and executives "violated federal securities laws, primarily related to public statements on FDA compliance."

A Los Angeles, Calif. law firm, Glancy Binkow & Goldberg LLP, also announced last week that it had filed one of the suits on behalf of those who bought Caraco pharmaceutical sbetween May 29, 2008 and June 25, 2009.

The firm said that suit "alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning Caraco’s business, operations, and prospects were materially false and misleading."

Specifically, that means failure to disclose that it had failed to meet the United States Food and Drug Administration's current Good Manufacturing Practice (“cGMP”) requirements; that the company failed to take corrective measures in order to have its manufacturing facilities comply with the FDA’s cGMP requirements; that the company had failed to remedy repeat violations of FDA regulations previously observed and documented by the FDA; yhat the foregoing significantly jeopardized the Company’s ability to gain FDA approval of pending new drug applications; and as a result, that the company would have to recall certain products.

On June 25, the FDA announced that U.S. Marshals had seized drug products manufactured by Caraco from the company’s plants. According to the FDA, this action followed Caraco’s continued failure to meet the FDA’s cGMP requirements, which assure the quality of manufactured drugs. The FDA stated that through the seizure it sought to immediately stop the vompany from further distributing drugs until there is assurance that Caraco complies with good manufacturing requirements. On this news, shares of Caraco declined $1.79 per share, or approximately 43 percent, to close on June 25 at $2.39 per share, on unusually heavy volume.

Plaintiff seeks to recover damages on behalf of class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.

Contract Pharmaceutical Packaging Company Offers ISO Class 8 Capabilities for Potent Compounds

Compass Pharma Services today announced that it has completed a capital investment project to upgrade its contract pharmaceutical packaging capabilities to include “ISO Class 8” specifications

CLIFTON, N.J.-To provide contract pharmaceutical packaging services for certain high-potency pharmaceutical products, Compass Pharma Services, LLC today announced that it has completed a capital investment project to upgrade its production capabilities to include “ISO Class 8” (ISO 14644) specifications.

“These capital improvements now allow us to provide cGMP contract packaging services for select potent pharmaceutical compounds such as enzymes, antibiotics, antifolates, antimetabolites and some hormones,” said Tony Fenno, Chief Operating Officer. “Compass Pharma investments continue to position the company as a responsive contract pharmaceutical packaging partner for sophisticated, high-demand contract packaging services for the pharmaceutical industry.”

In February 2009, Compass Pharma added Micro and Nanofill packaging capabilities to its growing list of cGMP contract packaging capabilities. Micro and Nanofill technologies allow filling small volumes (less than one gram) of powders into blister packaging, vials or pouches.

The capital improvements for ISO-Class 8 certification comprise a fully integrated production suite where the primary packaging area has negative differential air pressure relative to surrounding gowning and secondary packaging areas. High-Efficiency Particulate Air (HEPA) filters are deployed in the primary packaging area.

Manufacturing Automation Corporation of Princeton, NJ assisted Compass Pharma with the engineering/design and validation of the ISO Class 8 area. Whitehouse Analytical Laboratories, Inc. (Whitehouse, NJ) has been retained to provide Compass Pharma with ongoing analytical services.

St hammers Sun Pharma as USFDA seizes 33 drugs of arm

Mumbai, India: US authorities seized drugs made by Sun Pharmaceuticals’ US subsidiary for violation of manufacturing standards, pushing down share

prices of India’s biggest drug company by market value by 12%. US Marshals on Thursday seized nearly 33 drug products, including generic versions of heart, pain and psychiatric medicines, manufactured at three units of Sun Pharma’s US subsidiary, Caraco Pharmaceuticals in Detroit, Farmington Hills and Wixom.

The seizure, which was carried out at the request of the US Food and Drug Administration (USFDA), put immediate halt to the US firm distributing drugs until there is assurance that it complies with the FDA’s current good manufacturing practices (cGMP).

“The action follows Caraco’s continued failure to meet the FDA’s cGMP requirements, which assure the quality of manufactured drugs,” the USFDA said in a media release. “The FDA is committed to taking enforcement action against firms that do not manufacture drugs in accordance with our cGMP,” Janet Woodcock, director of the FDA’s Centre for Drug Evaluation and Research, said in the statement.

Sun Pharma owns about three-fourth of Caraco. “Products manufactured at these facilities contribute around 15% to Sun Pharma’s topline and slightly more to the bottomline. So, in the short term, the impact will be around 15%. However, such issues do not get rectified quickly and I estimate that it will take around three quarters to resolve. It will be a stage by stage recovery,” said an analyst, who did not want to be named due to the sensitivity of the issue.

The Sun management, he said, may consider shifting the production base to other sites and look at other acquisitions, which is a time consuming process. “Over all, Sun’s image has been damaged and it will take Sun Pharma some time to regain it. In the meanwhile, it will lose market share that won’t be easy to recover,” he said. The market reacted sharply. The stock lost 18%, its biggest intra-day drop, during the trading hours.

However, it closed at Rs 1,140.45 on Friday, approximately 12% lower than Thursday’s close on the BSE. Caraco shares, on Thursday, plummeted 43% to an all-time low of $2.39 after the seizure. A Sun Pharma spokesperson declined to comment on the issue. However, it’s learnt that the company will host a conference call for investors on Saturday morning.

“While we have not fully determined the impact of the FDA action on our financial condition, we believe that it may have a material adverse effect on our near-term operations. We anticipate working with the FDA to resolve these concerns as effectively and expeditiously as possible. We believe that corrective actions have been made and continual improvements are in process,” Caraco said in a media statement.

Caraco filed 10 abbreviated new drug applications (ANDAs) with the FDA in FY09 and has 29 ANDAs pending approval by the FDA, which includes

four tentative approvals. The action by the FDA, however, has put all future approvals on hold for the company, casting doubt on the company’s future pipeline of products.

Caraco had earlier disappointed analyst with a drop in annual sales and income for FY09. Net sales dropped 4% to $337.2 million for FY09 as compared with $350.4 million for FY08. Net income decreased to $20.5 million during FY09 compared with $35.4 million in the previous year. Sun Pharma is not the only Indian company to be pulled up by the USFDA in recent times.

In September 2008, the FDA banned Ranbaxy from importing more than 30 generic drugs into the US because of manufacturing violations at its two Indian plants — Ponta Sahib and Dewas. In May this year, the FDA issued a warning letter to Lupin related to quality issues at a company facility in India and also sent queries to Cipla about four of its plants during routine inspections.

Caraco contributes almost 33% to Sun Pharma’s turnover. Of the 33 products manufactured by Caraco, three of its top products contribute almost one-third of its total revenue. Generic versions of Ultracet, made from the active pharmaceutical ingredient (API) Tramadol, has limited competition, as it is a difficult product to make and is likely to take the biggest hit. With the seizure of the drugs, the FDA anticipates that there may be a shortage of choline magnesium trisalicylate oral tablets, another product that is manufactured by Caraco.

This is the latest in a series of investigations against Caraco. A May 2008 inspection revealed serious deficiencies in the control of the company’s manufacturing practices. Since January 2009, Caraco has recalled a number of products due to manufacturing defects, including oversized tablets.

Seizures often lead to court orders that require companies to take steps to correct cGMP violations in their manufacturing processes. These steps may include hiring outside experts, writing new procedures and conducting extensive training to their employees.

Velesco Pharmaceutical Services Opens New Clinical Trial Materials cGMP Production Facility and Moves to Expanded Laboratory Space

PLYMOUTH, -Velesco Pharmaceutical Services, a company providing analytical method development, drug formulation, stability testing and consulting services to biotech and pharmaceutical companies, opened a manufacturing facility and office in Kalamazoo, MI and has moved its Ann Arbor, MI laboratories to the Michigan Life Science and Innovation Center (MLSIC) in Plymouth, MI.

Velesco’s new 10,000 square foot office and manufacturing facility at the Kalamazoo Commerce Center will manufacture non-sterile cGMP clinical trial supplies for pharmaceutical companies developing new medicines. This facility will focus on providing clinical supplies for early phase trials. Product offerings include powder-in-capsule, powder-in-bottle, ointments/creams, oral and topical liquids, over-encapsulation for blinded studies and packaging.

The company move provides expanded space to accommodate the growth of its analytical and drug formulation laboratory services.

“Velesco’s addition of clinical trial material manufacturing capabilities allows us to provide a full service offering to our clients as they move from pre-clinical drug development into the clinic,” said CEO and co-founder David Barnes, Ph.D.

“The life science talent in Michigan compelled us to stay and grow here,” said Velesco Chief Operating Officer and co-founder Gerry Cox. “There’s a uniquely high concentration of the experienced pharmaceutical researchers Velesco needs to be successful in its aggressive growth plans.”

In conjunction with this expansion, Velesco was awarded a state High Tech Mega tax credit by the Michigan Economic Growth Authority. This credit will enhance Velesco’s operational capabilities.

MDRNA gets FDA nod for generic osteoporosis nasal spray

* Says partner Par Pharma has launched the product

* MDRNA shares more than double

(Adds details from Par Pharma statement, MDRNA comments; updates share movement)

BANGALORE, - Shares of MDRNA Inc (MRNA.O) more than doubled after the company said U.S. health regulators approved its generic nasal spray to treat osteoporosis, adding that its partner Par Pharmaceutical Cos Inc (PRX.N) had launched the product.

The calcitonin-salmon nasal spray is the copycat version of Miacalcin nasal spray that is marketed by Novartis (NOVN.VX) in the United States.

The nasal spray is indicated for the treatment of osteoporosis in females who have low bone mass, after five years or more of menopause, relative to healthy premenopausal females, Par Pharma said in a statement.

U.S. sales of Miacalcin were about $112 million in 2008, the company said, citing IMS Health data.

In March, Par agreed to buy MDRNA's abbreviated new drug application for the generic nasal spray and its cGMP manufacturing facility in Hauppauge, New York, for an upfront cash payment and profit sharing on sales of the drug for five years.

"Any revenue generated from that product will go into our RNA interference research programmes," MDRNA's spokesman Matthew Haines said.

However, Haines declined to give more details about the nuances of the profit-sharing agreement.

RNAi or gene silencing as a way to fight disease, is one of the hottest areas of biotechnology research and has attracted investment from a range of major drugmakers.

MDRNA currently has a liver cancer programme in preclinical stage development.

MDRNA shares touched a high of $3.55 before paring some gains to trade up about 90 percent at $2.94 Tuesday morning on Nasdaq. Shares of Par Pharma were up 1 percent at $14.70 on the New York Stock Exchange.

ENCO Pharmaceutical Development Announces Addition of Keith Hurley as Vice-President of Sales and Marketing

Jacksonville, FL, - Mr. Hurley joins the growing pharmaceutical contract organization as the company continues its expansion plans. “We are delighted to have someone with Keith’s background in the pharmaceutical and medical device industries join our team”, said Mr. Rick Camp, President of Enco Pharmaceutical Development, Inc. “He brings a wealth of knowledge and has already proven to be a great asset to the company.”

Mr. Hurley has 25 years of experience in the field of science, including 14 years directly in the pharmaceutical industry. He has extensive experience in both laboratory and business operations. “Keith’s broad exposure to so many disciplines within the pharmaceutical industry gives us a multi-faceted resource for our company. We are leveraging these resources not just in business but also in the technical and regulatory areas as well”, said Mr. Camp.

Prior to joining ENCO, Mr. Hurley founded Aspire Pharmaceutical Consulting, Inc., a successful consulting firm where he serves as President. He also has held key positions at Cardinal Health, where he was Global Head of Marketing for the Inhalation Division and at other contract organizations where he has held a variety of positions from Director to Vice-President. Mr. Hurley has also worked at Aradigm, Novartis and Proctor and Gamble. Mr. Hurley has been actively involved in a wide variety of pharmaceutical conferences around the world where he has either presented, chaired or led discussion forums. He is also a member of AAPS.

ENCO Pharmaceutical Development, Inc. provides technical outsourcing assistance to the pharmaceutical industry, including analytical product development with services that range from raw materials testing to full Phase III stability studies following cGMP standards. The company also provides comprehensive testing on medical devices. ENCO is FDA registered, an ISO accredited analytical laboratory and holds registration with the DEA to handle the development of controlled drug substance for pharmaceutical use. ENCO Pharmaceutical Development, Inc. operates two locations – the corporate headquarters at 4810 Executive Park Ct., Suite 110, Jacksonville, FL and a second location at 102-E Woodwinds Industrial Ct, Cary, NC 27511

SAFC(R) & Cherokee Pharmaceuticals(TM) Pool Expertise and Resources With Strategic Partnership For U.S. Market

Collaboration Delivers Cost and Quality Benefits for Widespread cGMP Distribution

ST. LOUIS and PHILADELPHIA, - SAFC(R), a member of the Sigma-Aldrich(R) group (Nasdaq: SIAL) and Cherokee Pharmaceuticals(TM), a PRWT Services, Inc. company and minority owned business, today announced an exclusive strategic partnership that encompasses the sourcing, analytical testing, warehousing, packaging and distribution of large-scale raw materials for pharmaceutical manufacturing meeting cGMP quality standards.

The collaboration to co-market and co-sell raw materials for pharmaceutical customers will draw upon SAFC's global sourcing and production capabilities and combine these with Cherokee's world-class analytical laboratories, large-scale cGMP manufacturing, warehousing and distribution facilities. Under the agreement, SAFC will be responsible for all product sourcing including processing reagents and excipients from its network of over 10,000 active suppliers while Cherokee Pharmaceuticals will conduct analytical testing, storage, packaging and distribution services.

Located in Riverside, PA, Cherokee Pharmaceuticals features significant storage and expansion capabilities and has its own dedicated rail link to potentially serve the Northeast United States corridor where many of the world's leading pharmaceutical companies are located. SAFC will utilize Cherokee's fully cGMP validated site, which can house cooled, frozen and hazardous substances and serve as a key East Coast analytical, warehousing and distribution hub for large-scale raw materials towards the pharmaceutical industry.

Commenting on the strategic partnership Gilles Cottier, President of SAFC said: "This agreement is a win-win situation, not only for SAFC and Cherokee Pharmaceuticals, but also for our respective customers. In marrying SAFC's sourcing capabilities, which bring significant cost and quality benefits to the table, with Cherokee Pharmaceuticals expertise in analytical testing and cGMP manufacture and storage, we are providing top level, high-quality resourcing that will support our US customers throughout their respective supply chains, enabling them to both streamline and improve their risk mitigation strategies."

Murvin Lackey, President of Distribution for Cherokee Pharmaceuticals added, "The core competencies of both companies present a competitive advantage for us and our customers. This strategic partnership allows us to provide an integrated sourcing, distribution process to our customers who seek a secure supply chain.

Pharmaceutical firms treat inefficiencies

Wyeth Pharmaceuticals is one of the world’s largest pharmaceutical companies, with a host of products in such areas as women’s healthcare, infectious diseases, gastrointestinal health, hemophilia, oncology, vaccines and more. Knowledge management solutions are critical to the firm’s success in several different parts of the complex process of researching, manufacturing and delivering those diverse products to market.

In order to meet current Good Manufacturing Practice (cGMP) guidelines, the company must produce validation documentation for its manufacturing equipment that details temperatures, tolerances and other specifications about certain machine and process operations. cGMP guidelines call for standard manufacturing controls and quality as determined by the FDA and other regulators.

Validation process

To meet those cGMP requirements, Wyeth has historically developed validation documents for each specific piece of equipment. But the process was inefficient, according to George Skillin, senior director in Wyeth’s Central Engineering and Packaging Services organization.

The company would start each validation document, nearly from scratch, with initial material containing some of the necessary information, then would add more information and develop a document that covered the intricacies of many different models of the equipment. The final validation documents would run 100 to 150 pages, and require certain sections to be lined out based on the equipment being validated. That would often lead to execution errors in the documents, causing rework and additional reviews.

"It’s a huge amount of documentation," Skillin says. Company users knew the documentation was necessary to meet regulatory requirements, but also knew that the legacy process was cumbersome and expensive in terms of time and manpower.

So Wyeth wanted a more efficient way to handle the documentation. The firm looked at a few different solutions before running a pilot using Virtify’s Enterprise Structured Content Management suite. "It had the broadest features of all of them," Skillin says.

Resourceful reuseThe Virtify application breaks documents down into separate components, which allows users to assemble documents in a dynamic way based on certain business rules, and to make them specific to the piece of equipment being validated. Wyeth employees can then utilize those small elements of reusable content to build new content, much like software developers can use components to build new applications rather than starting from scratch every time.

The company took some example legacy documents and fed them into the Virtify application. The new validation documentation is about 30 percent shorter than typical validation documents, and reduces the actual document production time significantly, according to Skillin. After the successful pilot, the company is examining using the application across other areas of the organization.

"We’re projecting a 40 percent reduction in the time it takes to assemble this type of documentation, and we see many other potential uses for this application," Skillin says.

Analyzing legal bills

As a large, worldwide pharmaceutical company, Wyeth works with some 350 law firms to meet its complex legal needs. For several years, the company had separate systems for legal management and for electronic billing.

While those systems provided some efficiency because they eliminated much of the paper of older systems, as separate applications, they didn’t provide the easy analysis needed for the company to manage its legal costs, according to Dexter Carpenter, Wyeth’s director of law financial operations and systems.

"We were looking for an integrated package that would provide management and e-billing," Carpenter says. "With the different applications, we couldn’t drill down into the related matter information during bill review. It required going between two separate applications when reviewing bills."

Consistent billing

So when it was time to upgrade its legal management system last August, Wyeth chose TeamConnect with Collaborati Spend Management, an integrated electronic matter and billing management system from Mitratech.

By being able to review the bills and legal issue management in a single application, Wyeth can easily compare billing from different firms to help ensure that similar matters are billed at similar rates. Claudio Crisafulli, Wyeth associate director, information systems, says, "This way we can see what is reasonable and customary."

The system automatically flags and returns non-compliant invoices. If a bill appears to be outside the norm, Wyeth has a basis for renegotiating the bill without the time and expense of a human reviewer. Carpenter says, "We let the system handle the flagging for us."

TeamConnect can also accept a wide variety of bills, saving the law firms the time and expense of converting the bills into specific formats, which will help companies bill Wyeth electronically.


IP invoicing

"Our legacy e-billing vendor had a cost structure that made it difficult or impractical for the smaller firms that we do business with to submit invoices electronically," Crisafulli says. So, the company still had a large number of paper invoices.

Generic Drugs Eat Away at Big Pharma - Caraco Pharmaceuticals (CPD) Well Positioned!

spoke with the investor relations representative for Caraco Pharma (CPD) earlier this week and received some clarity on the expected timeline for resolving the major overhang on the stock price related to the FDA warning letter over Form 483 concerns by the agency stemming from quality control issues raised during an inspection of manufacturing facilities last year.

Caraco has responded in full to the warning letter and the FDA will evaluate the corrective actions taken by the Company at its next scheduled inspection, which is expected to occur some time in May. Caraco believes it is compliant with the FDA's cGMP regulations related to manufacturing and quality control and the issue remains the top focus at the Company, reflected by investments in personnel and facility upgrades. The Company expects the FDA inspection in May to be the final step in resolving the warning letter issues as the agency will evaluate Caraco's upgrades in manufacturing and quality control at the Detroit facility to determine if these actions satisfy the agency's Form 483 concerns.

Once the FDA completes its inspection and is satisfied with the corrective actions, Caraco will be eligible to receive new generic drug product approvals from the Detroit facility (please note that the sale of currently marketed products was not affected by the warning letter) - removing all uncertainties currently weighing on the stock price, which has lost nearly three-quarters of market value in the past year.

CPD reported results for its fiscal 3Q09 in late January, including $55.7M in revenue and net income of $5.1M, which was down from the year-ago period revenue of $81.9M and net income of $10.8M. The year-ago period benefited substantially from the 180-day exclusivity period associated with the generic drug launch of oxcarbazepine (Trileptal) in conjunction with Sun Pharma.

Caraco noted that full-year revenue for fiscal 2009 is expected to be about the same as the previous year, reflecting uncertainty over the at-risk launch of generic Protonix (pantoprazole) and lower sales of oxcarbazepine since the exclusivity period has ended. Gross profit margin through the first nine months of FY09 declined to 21% from 36% in the year-ago period due to a higher mix of sales from distributed products, which have a much lower margin compared to manufactured products, with the latter posting 48% profit margin for the fiscal year to-date.

For the first nine months of FY09, Caraco filed six abbreviated new drug applications (ANDAs) related to five new generic drug products with a total of 25 pending ANDAs related to 21 new generic drug products. Caraco ended the calendar year with $34M in cash and $104M in working capital and expects cash flow from operations will be sufficient to fund its business plans, including the expansion of manufacturing facilities in Detroit which is nearly complete. Caraco is currently debt free and would only consider taking on debt for strategic acquisitions.

Sun Pharma is India's largest generic drug company by market cap which is a major strategic partner and holds a majority stake (around 75%) in Caraco through stock purchases and product/technology transfer agreements. Sun Pharma recently acquired Chattanooga, TN-based Chattem Chemical to strengthen its presence in the highly regulated market for controlled drug products, as Chattem is a registered with the DEA as an importer and manufacturer of active pharmaceutical ingredients (APIs) for a variety of Schedule 1-5 controlled substances.

Caraco Pharma offers U.S. investors a way to play Sun Pharma's growth through their distribution agreement and the Company believes it has addressed the issues raised in the FDA warning letter completely, which provides a potential upside catalyst upon resolution. Also, Caraco is committed to product development agreements with other companies and internal R&D efforts focused on formulations aimed at expanding its product offerings.

The following is a summary of the valuation parameters for Caraco:

1.) CPD Market Cap = $142M, stock price around 4 bucks

2.) Trailing 12-month Revenue = $478M, Net Income = $34.4M

3.) Price/Sales Ratio (PSR) = 0.31X, Trailing Price/Earnings Ratio = 4.8X

4.) Enterprise Value (EV)/EBITDA Ratio = 3.5X, EV/Sales Ratio = 0.39X

5.) Price/Book Ratio = 1.16X

Favorable growth trends for the generic drug industry include nearly $70B in brand name drug sales with patent expirations through 2012, a push to increase generic substitution rates from 65% of all prescriptions dispensed to over 70%, continued industry consolidation of small and mid-caps by industry leaders such as Teva Pharma (TEVA) and Mylan Labs (MYL), and the potential for legislation this year regarding generic versions of high-cost biological agents.

Major U.S. listed generic drug makers such as TEVA, MYL, and Watson Pharma (WPI) have posted strong operating results and stock price gains over the past three months. MYL has more than doubled from multi-year lows late last year when it was trading at similar value parameters to where Caraco currently trades.

The upcoming FDA inspection, strategic relationship with Sun Pharma, 25 pending ANDAs, and value parameters for Caraco position the stock well for long-teTrm growth and gains if you believe the Company has adequately addressed the warning letter issues through personnel and facility upgrades to satisfy the concerns of the FDA.

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