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June 25, 1999

Schein Pharmaceutical Takes Further Steps at Marsam Subsidiary

Florham Park, NJ (SafetyAlerts) - Schein Pharmaceutical, Inc. (NYSE:SHP) announced today that its subsidiary, Marsam Pharmaceuticals Inc., has expanded its voluntary product recall to include all remaining Marsam products within expiry.

"We are taking this further action in part to underscore to the Food and Drug Administration (FDA) that Schein Pharmaceutical and Marsam have begun, and are fully prepared to continue, initiating and executing actions expeditiously to address the regulatory agency's concerns at the Marsam facility," noted Martin Sperber, chairman and chief executive officer of Schein Pharmaceutical. "By recalling all Marsam products, even before our review of them is completed, and submitting to the FDA a list of principal points that would be detailed in a corrective action plan, we are taking steps to actively demonstrate our commitment to compliance."

The FDA inspection is ongoing and additional actions by Marsam and the FDA are expected in connection with the inspection.

Marsam contributed approximately seven percent of the Company's revenues and a smaller percentage of its gross profits over the last four quarters.

The Company also announced that it has entered into a contract manufacturing agreement to secure for the remainder of the year supply of one of its more significant cephalosporin products manufactured by Marsam.

Schein Pharmaceutical, Inc. has a diverse portfolio of both branded and generic products. Schein Pharmaceutical integrates its product development expertise, diverse, high-volume production capacity and direct sales and marketing force to capitalize on the commercialization of products. The Company's brand products group has developed an expertise in the management of anemia in nephrology, and is looking to expand this expertise to iron management in hematology, oncology, and gastroenterology. The group's current product portfolio now consists of FerrlecitĀ®, as well as INFeDĀ®, which is currently the leading injectable iron product in the United States. In addition, the Company develops, manufactures and markets a broad generic product line including both solid and sterile dosage products. The Company has a substantial pipeline of products under development, and enhances its internal product development, manufacturing and marketing capabilities through strategic collaborations. Schein Pharmaceutical operates manufacturing facilities in Arizona, Connecticut, New Jersey, New York and Puerto Rico.

Certain of the matters discussed in this press release contain statements concerning future events or results. These "forward looking" statements involve certain significant risks and uncertainties, and actual results may differ materially from the forward looking statements. Some important factors which may cause results to differ include: the uncertainty and the difficulty of predicting FDA approvals, uncertainties associated with the implementation of the terms and conditions of the consent decree affecting the Steris facility, the uncertainty of the outcome of the ongoing inspection by the FDA at the Company's Marsam facility, the uncertainty of acceptance and demand for the Company's new products, the impact of competitive products and pricing, the availability of raw materials, uncertainties associated with litigation and regulatory matters, and fluctuations in operating results. For further details and discussion of these risks and uncertainties see Schein Pharmaceutical, Inc.'s SEC filings including, but not limited to, its annual report on Form 10-K and its quarterly report on Form 10-Q for the quarter ended March 27, 1999. The Company does not undertake to publicly update or revise any of its forward looking statements even if experience or future changes show that the indicated results or events will not be realized.

Contact: Melody A. Carey, Investor Relations
Telephone: (973) 593-5535
Fax: (973) 593-5598



The information contained herein has been obtained from sources that the Company believes to be reliable, however, the Company has not independently verified or confirmed the information and the recipient acknowledges that no representations or warranties are being made in connection with the use of the information.