Not Your Typical Product Recall

If you're looking for a story on unsafe Chinese-manufactured, radioactivity-oozing, lead-painted toys ... this isn't it. Click here for something in that genre. And know that drugmaker Shire (Nasdaq: SHPGY  ) has joined the likes of Mattel (NYSE: MAT  ) and RC2 (Nasdaq: RCRC  ) in recalling a product directed at children. But there's no reason to cry.

Shire is best known for marketing attention deficit hyperactivity disorder (ADHD) compound Adderall XR. It also sells other ADHD treatments such as the recently approved Vyvanse.

ADHD patch Daytrana -- which partner Noven Pharmaceuticals (Nasdaq: NOVN  ) developed and manufactures -- is the source of Shire's product recall. Daytrana works just like the nicotine patches you can get at the corner store, but instead delivers a dose of a potent ADHD drug.

The main ideas behind using a patch rather than a pill for some children with ADHD is that it will increase compliance and improve how much drug gets absorbed into the bloodstream.

Shire decided to initiate the recall of $4 million to $6 million worth of Daytrana patches not because of safety issues like with the toy manufacturers, but rather because of difficulty some parents and caregivers were having in unpeeling the backing from the patches.

In the scale of product recall seriousness, this is definitely at the bottom end of things and Shire and Noven have announced that they have already taken steps to "improve ease of use of the patch."

After barely more than a year on the market, Daytrana sales were $20 million in the most recent quarter. With a total of $575 million in revenue in the second quarter, Daytrana is only a small slice of Shire's financial success.

For Noven though, Daytrana represents the small drug developer's most promising compound and biggest opportunity for revenue growth. Fortunately, this product recall won't be such a big deal to the drugmaker.


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