Yahoo Finance Cardinal Health (CAH) Recalls Kits Containing Shenli's Syringes
Cardinal Health CAH recently recalled its procedure kits that contain plastic syringes manufactured by a Chinese manufacturer, Jiangsu Shenli Medical Production Co Ltd. (Jiangsu Shenli).
Cardinal Health’s Presource products are impacted by the recall. Merit Medical Systems MMSI provided some of the devices in the packs to Cardinal Health. However, the company recently recalled its kits after discovering that they contained Jiangsu Shenli syringes. Cardinal Health listed more than 500 product catalog numbers in its recall notice. The company has requested its customers to remove and discard Jiangsu Shenli syringes included in the kits.
More on the News
Cardinal Health provides specific surgical packs with all the necessary tools for physicians performing angiographies and neurointerventional surgeries. Complete kits from Merit Medical are used in parts of the company's Presource packs.
Plastic syringes manufactured by Jiangsu Shenli, which are under FDA import alert and warning letter, were provided to Merit Medical by its supplier. The FDA discovered that Jiangsu Shenli was selling syringes that were not the company's approved model. After finding out that the kits included the Jiangsu Shenli syringes that the FDA was targeting, Cardinal Health decided to recall them.
Some of the affected kits were provided by Merit Medical to Cardinal Health prior to the recall, and the latter incorporated them into its Presource packs. Now, Cardinal Health has recalled the packs that contain the affected Merit Medical kits. The recall follows an FDA warning letter focused on Cardinal Health’s distribution of Jiangsu Shenli syringes. The FDA found that Cardinal Health sold convenience kits that contained 3 mL, 10 mL and 20 mL piston syringes made by Jiangsu Shenli. The Chinese manufacturer only has 510(k) clearance for a 5 mL luer-lock piston syringe.
More on FDA’s Warning for Jiangsu Shenli
The FDA stumbled upon Jiangsu Shenli when looking into the possibility of China-made plastic syringes leaking, shattering, or having other quality issues. The officials accused Jiangsu Shenli of marketing 29 different sizes and configurations of piston syringes without clearance or approval.
The FDA has released a Field Safety Communication about syringes made by Jiangsu Shenli in China. The FDA also mentioned "growing evidence of potential harm" for Jiangsu Shenli syringes in the warning letter. FDA recommends in its Field Safety Communication that continued use of these syringes is “absolutely necessary” until alternatives are available to “closely monitor for leaks, breakage, and other problems.” Leaks or breakage may result in a delay in treatment.
Price Performance
In the past six months, CAH’s shares have lost 9.5% compared with the industry’s 0.2% decline. The S&P 500 has increased 18.1% in the same time frame.
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Zacks Rank & Stocks to Consider
CAH presently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the broader medical space that have announced quarterly results are DaVita DVA and Ecolab ECL.
DaVita, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 13.6%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 29.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DaVita’s shares have gained 44% compared with the industry’s 20.4% growth in the past year.
Ecolab, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.3%. ECL’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 1.7%.
Ecolab’s shares have gained 33.8% against the industry’s 9.3% decline in the past year.
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Ecolab Inc. (ECL): Free Stock Analysis Report
DaVita Inc. (DVA): Free Stock Analysis Report
Cardinal Health, Inc. (CAH): Free Stock Analysis Report
Merit Medical Systems, Inc. (MMSI): Free Stock Analysis Report
