The once up and coming Drug Distributor Xanodyne is being pushed to the brink of economic disaster due to the upsurge of Darvon Darvocet Lawsuit that have been filed since the US Food and Drug Administration’s ban of Darvon and Darvocet last November 2010.
Xanodyne had claimed that the recall came to no surprise. However, two months before the recall over 60% of the drug distributor’s 200 employees were laid off. This could be seen as a preemptive measure by Xanodyne seeing how about one-third (or $26 million dollars) of its $74 million dollar 2007 revenue came from the sales of Darvon and Darvocet. Also it was the independent study done by Xanodyne, which showed results of Darvon causing heart abnormalities in patients with no known heart problems, that ultimately caused the FDA to ban the drug.
The rights to Darvon and Darvocet has changed hands several times before Xanodyne acquired them in 2005 for $209 million dollars from AAIPharma Inc. of Wilmington, N.C. after AAI declared bankruptcy. AAI itself had bought Darvon and Darvocet from the original patent holder, Eli Lilly and Company, in 2002 for just over $210 million.
The good news for Xanodyne is that since they just sell and market drugs, such as Darvon and Darvocet, and do not manufacture any drugs they are able to keep costs, such as expensive equipment and highly skilled workers, as low as possible according to Brad Mitchell, a Cincinnati-based consultant to pharmaceutical companies.
Mitchell states that: “When a company is faced with a significant issue like this, they’ve really got to evaluate their strategy. There are certainly instances where companies have had to fold because the cost of liability and the cost of litigation and settling claims were in excess of their asset base.”
A Judicial Panel on Multidistrict Litigation is set to meet in San Diego later this month where the arguments aboutwhether all federal propoxyphene cases should be consolidated under a single judge for pretrial matters. The panel has been called because many of the cases filed again Xanodyne state that the drug distributor knew about the severe heart side effects that their product can cause.
Will the panel’s decision cause Xanodyne to go out of business? For more information on the Multidistrict Litigation and for any questions you may have on your potential Darvon Lawsuit, you may visit the Darvon/Darvocet main site.
Xanodyne had claimed that the recall came to no surprise. However, two months before the recall over 60% of the drug distributor’s 200 employees were laid off. This could be seen as a preemptive measure by Xanodyne seeing how about one-third (or $26 million dollars) of its $74 million dollar 2007 revenue came from the sales of Darvon and Darvocet. Also it was the independent study done by Xanodyne, which showed results of Darvon causing heart abnormalities in patients with no known heart problems, that ultimately caused the FDA to ban the drug.
The rights to Darvon and Darvocet has changed hands several times before Xanodyne acquired them in 2005 for $209 million dollars from AAIPharma Inc. of Wilmington, N.C. after AAI declared bankruptcy. AAI itself had bought Darvon and Darvocet from the original patent holder, Eli Lilly and Company, in 2002 for just over $210 million.
The good news for Xanodyne is that since they just sell and market drugs, such as Darvon and Darvocet, and do not manufacture any drugs they are able to keep costs, such as expensive equipment and highly skilled workers, as low as possible according to Brad Mitchell, a Cincinnati-based consultant to pharmaceutical companies.
Mitchell states that: “When a company is faced with a significant issue like this, they’ve really got to evaluate their strategy. There are certainly instances where companies have had to fold because the cost of liability and the cost of litigation and settling claims were in excess of their asset base.”
A Judicial Panel on Multidistrict Litigation is set to meet in San Diego later this month where the arguments aboutwhether all federal propoxyphene cases should be consolidated under a single judge for pretrial matters. The panel has been called because many of the cases filed again Xanodyne state that the drug distributor knew about the severe heart side effects that their product can cause.
Will the panel’s decision cause Xanodyne to go out of business? For more information on the Multidistrict Litigation and for any questions you may have on your potential Darvon Lawsuit, you may visit the Darvon/Darvocet main site.
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