Most Americans don't want to be poisoned by medications or components used to make medications which come from overseas. Imports from China come to mind.

Over the last month, the government has disclosed that over 80 people in the US have died from tainted Heparin, a blood thinner. So far, the most likely cause is problems with a basic ingredient for the drug which is made in China.

Now word comes that for just $70 million, inspections could be much better and more widespread. That is $70 million dollars which could save lives and protect consumers from bad drugs. Only $70 million.

According to The Wall Street Journal the FDA "would need about $15 million to inspect about 700 facilities in China alone." That seems like a very modest investment.

Continue reading FDA: No money for inspections?

FDA: No money for inspections? originally appeared on BloggingStocks on Wed, 23 Apr 2008 15:10:00 EST. Please see our terms for use of feeds.

The blood thinner Heparin, used for surgery and dialysis has now killed 81 people in the US. According to The New York Times, "The F.D.A. has identified 12 Chinese companies that have supplied contaminated heparin to 11 countries." The contamination that caused the problems appears to come from manufacturers in China.

The news reopens the question of who is at fault when China ships bad products to the US. Companies like Mattel (NYSE: MAT) and Baxter (NYSE: BAX), a big heparin supplier, would like to blame the Chinese. Alternatively, they could say that the FDA does not have enough inspectors to keep up with drug components imported from the big Asian country.

But all of that is a dodge. Any company that sells a product should ultimately be responsible for that product's safety no matter what the current law says. Baxter makes the money on heparin, why should another entity be responsible for making sure its is safe?

Baxter might argue that it cannot sell heparin at a profit if all of the inspection responsibility falls to it. If so, it should exit the business and leave it to a company that can. All of those people who died would probably agree.

Douglas A. McIntyre is an editor at 247wallst.com

Baxter International (BAX) faces more heparin problems originally appeared on BloggingStocks on Tue, 22 Apr 2008 13:00:00 EST. Please see our terms for use of feeds.

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Newspaper wrap-up: American Capital Strategies tied to Baxter's Heparin generic problems originally appeared on BloggingStocks on Fri, 15 Feb 2008 08:00:00 EST. Please see our terms for use of feeds.

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Newspaper wrap-up: Investigated ingredient in Baxter's generic heparin drug made in China originally appeared on BloggingStocks on Thu, 14 Feb 2008 08:00:00 EST. Please see our terms for use of feeds.