Drugmaker Handling GranuFlo Lawsuit Litigation Predicts “Disappointing” Earnings for 2014
Analysts are predicting “very disappointing” earnings for the year—which has already translated to lowered shares—in a company whose dialysis medications have been blamed for life-threatening heart problems in mounting GranuFlo lawsuit litigation, the Wall Street Journal reports.
According to an article on February 25th, officials for Fresenius Medical Care say the newly-released outlook is partially based on health care budget reductions. The company says net profits for 2014 may fall between $1 billion to $1.05 billion, down from $1.1 billion in 2013. Analysts at Berenberg, who rate the company at buy, call this forecast “shocking.”
“Looking ahead we are faced with a challenging environment, in particular with structural changes due to growing pressure on reimbursement systems,” said a Chief Executive at Fresenius.
Company Predicts Profit Drop Two Years after GranuFlo Recall
These predictions may come as a surprise given the company’s 2013 fourth-quarter earnings. Helped by better product business, earnings jumped 36% to $349 million for that period, Fresenius said, after expenses the previous year resulted in a profit drop. Although the company does not specifically note the reason for this, one may speculate that it may be owed in part to costs associated with the NaturaLyte and GranuFlo recall issued that year. The medications were used in thousands of dialysis treatment centers throughout the U.S. before they were subject to a Class I recall by the U.S. Food and Drug Administration (FDA) on June 25, 2012. Following an Urgent Product Notification that March, the acid concentrates were found to be associated with sudden cardiac death, cardiovascular arrest, strokes, heart attacks and other serious heart problems.
Almost two years later, GranuFlo and NaturaLyte have since been named in 515 product liability lawsuits against Fresenius that are now pending in the U.S. District Court, District of Massachusetts. These cases were filed by dialysis patients and their families who allege that the drugs’ side effects are serious, and may lead to wrongful death. Not only did Fresenius fail to issue a public health warning prior to March 2012, according to lawsuits, they also may have had knowledge of dangers associated with the dialysis drugs that were concealed from the public. Claimants point to an internal memo sent by Fresenius in November 2011 that acknowledged 941 patient deaths that occurred after the administration of GranuFlo and/or NaturaLyte, and advised physicians operating in its clinics to adjust dosages accordingly.
File a GranuFlo Lawsuit
Contact our Firm to learn more about the 2012 GranuFlo recall, and whether you may be eligible to file a claim against Fresenius. Call us today at (877) 779-1414.