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Potential Headache For Drugs Manufacturer - Nov 2011
News sources reported some packs of Neurofen Plus had contained anti-psychotic drugs. Would you buy Anadin, Paracetamol or similar instead?
In August this year a reputable company was faced with a dreadful reality. Some of its product contained a different drug to the one indicated. Four packs contained an anti-psychotic medication manufactured by a rival. A fifth packet was found to contain a medication used to treat epilepsy.
For most potential purchasers there would be minimal likelihood of harm. But, for a very small number, consequences could be significant. For Neurofen, there was only one course of action. The products manufacturer worked with the appropriate authorities to recall the product.
This will cost a lot of money. Another issue is how long it might take before people are confident to buy the product in future. Product recall and damage to reputation are still seen as "emerging risks" but both are insurable. Nevertheless, most commercial buyers of insurance continue to regard these risks as risks which they will take even though they could be catastrophic for the business.
You don't have to do anything wrong to suffer a loss of reputation; most observers believe the Neurofen incident was sabotage.