Caraco Pharma (CPD) Provides Update Following FDA Action
Caraco Pharmaceutical Laboratories, Ltd. (Amex: CPD), in an effort to update our shareholders, is providing additional information in regards to our financial position in light of the recent FDA action. The products in our inventory related to the FDA action are currently being identified. The early estimated value of this inventory is in the range of $15 to $20 million.
The products subject to seizure do not impact products on hand manufactured by third parties under their own label or manufactured for Caraco under the Caraco label. It also does not impact products recently sold into the market manufactured by Caraco.
Based on the estimated sales of distributed products and Caraco products manufactured by third parties, we believe that the profit generated from those products will cover our estimated ongoing expenses. Further, our cash balance as of June 25, 2009 is approximately $64 million which includes a loan of $18 million. Accordingly, we expect that our financial position will allow the Company the time to resolve its pending FDA issues.
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