Dollar Tree (NASDAQ:DLRT) has received a warning from the Food and Drug Administration about the importation of adulterated drugs from foreign manufacturers. The potentially over the counter drugs include Assured brand drugs and acne treatment pads.
Dollar Tree offering adulterated products
On November 6, the FDA sent a warning letter to the discount retailer regarding the drugs and other products from foreign manufacturers placed on “import alert.” The FDA is asking the Dollar Tree to come up with a plan to cease importation or delivery of the adulterated drugs. Last year the FDA had issued warning letters to suppliers and manufacturers of the drugs and products.
The letter indicates that the products have violated federal standards. The letter to the Virginia based company cites various manufacturing violations from manufacturers contracted to produce the retailer’s Assured Brand drugs. This also includes other over-the-counter drugs offered at Dollar Tree and the Family Dollar stores. The FDA claims that the manufacturers violated standards, including failing to test drugs for pathogens and quality as well as testing raw materials.
The FDA Centre for Drug Evaluation and Research Compliance Director Donald Ashley indicated that Americans expect safe and effective drugs. The drugs should meet quality standards, and therefore, importation and supply of products from manufacturing companies violating federal are unacceptable. Ashley added that it is the responsibility of Dollar Tree to ensure that it does not sell unsafe products and drugs to consumers.
Dollar Tree working with FDA to meet requirements
According to the company’s Investor Relations VP Randy Guiler, they are working with the FDA, and they expect to meet regulatory requirements. Guiler asserted that the products mentions in the FDA letter are not ingestible but topical. The VP indicated that the retailer is committed to offering consumers safe and effective products. The company has a strong testing program that ascertains that the products from third-party manufacturers are safe.
The contentious drugs came from Hangzhou Zhingbo Industrial Company and Shanghai Weierya Daily Chemicals Factory. The letter indicates that manufacturers tend to violate regulations.