Matej Mikulic
Research expert covering health, pharma & medtech
Pharmaceutical and medical device recalls - Statistics & Facts
A product recall occurs when safety issues or defects in a product are found that might endanger consumers, or put the producer or seller at risk of legal action. In such a case the product is taken off the market resulting in financial loss for the producing company and potential damage to the company’s reputation. Product recalls in the pharmaceutical industry are not rare, and in Q1 2018 alone, for example, 84 companies in the U.S. reported at least one recall. For pharmaceutical companies, the cost of the actual recall is not even the most costly aspect of recalls. Around half of pharmaceutical product recall costs result from the subsequent interruption to business that the recall causes.
