Posted on 08/14/2002 1:27:38 PM PDT by krodriguesdc
TB jab recall sparks slump
Aug 13 2002
By Louise Davies Business Staff, Daily Post
SHARES in pharmaceutical group Powderject slumped 23 pc yesterday as investors reacted to a profits warning following the firm's recall of a TB vaccine made at its plant in Liverpool.
The fall saw £90m wiped from its market value after warning that recalling its tuberculosis vaccine would knock £5m from profits.
The BCG tuberculosis vaccine is made at the Speke Evans Vaccines plant.
Powderject said it had recalled BCG in the UK as a precaution after "testing revealed a small number of batches did not meet the endofshelf-life specification" with an interim suspension of its BCG licence in Ireland.
The recall will not affect Powderject's sales targets for the year of £160m. But the company admitted one-off costs would cut predicted pretax profits by £5m from its original forecast of £25m for the year to March 31.
Shares in Powderject fluctuated throughout the day to close at 324.5p.
Powderject, the sole licensed supplier of the BCG vaccine in the UK, said it was being "extra cautious" in withdrawing the BCG vaccine, although it assured that it was not unsafe.
Evans Vaccines makes jabs at Speke from flu to yellow fever, tetanus and TB.
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