DETROIT (AP) -- Caraco Pharmaceutical Laboratories Ltd., which recalled its heart drug digoxin earlier this year, said Monday it is cutting its work force in half to reduce expenses.
Caraco said it is in talks with the Food and Drug Administration about resuming some or all of its manufacturing, which was stopped after recalls and a seizure of its products by federal marshals. The company had 667 workers as of March 31.
The company has issued several product recalls this year, starting in January. It recalled some lots of the heart drug digoxin in March, and in April voluntarily recalled drugs made in a Detroit facility. In June, U.S. Marshals seized products and ingredients made at Caraco's plants in Detroit, Farmington Hills, and Wixom, Mich., at the request of the FDA.
The agency said the company's manufacturing processes did not meet FDA standards. Caraco had recalled 0.125 mg and 0.25 mg digoxin tablets on March 31 because some of the tablets were the wrong size, which could have caused an overdose.
Caraco also announced that JPMorgan Chase says Caraco's $10 million line of credit is not available until the company resolves its issues with the FDA. Caraco said the move doesn't have any significant effect on its financial position.
In Monday trading, Caraco shares fell 8 cents, or 2.5 percent, to close at $3.07. In the aftermarket session, they declined another 4 cents to $3.03.