Medical Device Recalls at Eight-Month High

By Trey Thoelcke Published Aug 21, 10:56AM EDT

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The quarterly ExpertRECALL Index released today indicates that more than 123 million medical device units were recalled during the second quarter of 2012, an eight-quarter high. The medical device category includes such products as knee replacements, syringes, gels used in ultrasound procedures, dental implants, and products used in heart surgery.

The number of medical device recalls governed by the U.S. Food and Drug Administration (FDA) declined 13% compared with the previous quarter, but the number of products affected by such announcements broke 100 million units for the first time since the third quarter of 2010.

“The fact that more than 120 million medical device units were affected by recalls last quarter cannot be ignored, particularly because it comes during a time when America’s 50 million aging Baby Boomers are placing increasingly high demand on life-saving medical devices,” said a representative of Stericycle ExpertRECALL.

Companies affected by recent recalls include Coviden PLC (NYSE: COV), which this week announced a voluntary recall of some DGPHP RFA high-power single use grounding pads and Cool-tip RFA electrode kits that contain those pads. It also recently announced a voluntary global recall of some adult tracheostomy tubes.

CareFusion Corp. (NYSE: CFN) in June initated a recall of its EnVe ventilator due to potential risks they could compromise patient ventilation. The company also announced a voluntary recall of its AirLife Infant Breathing Circuit in May.

Abbott Laboratories (NYSE: ABT) in July recalled certain Architect Toco IGG Reagent kits. And General Electric Co.’s (NYSE: GE) medical systems unit recalled certain X-ray machines due to faulty wheels and casters.

And Johnson & Johnson (NYSE: JNJ) this week recalled certain Hemorrhoidal circular staplers and accessories for potential risks of a misfire. Ouch.

All these stocks are up less than 1% in morning trading. Coviden is near $57.08 in a 52-week range of $41.35 to $57.86. CareFusion is near $27.14 in a 52-week range of $22.55 to $27.29. Abbott Labs is near $65.91 in a 52-week range of $48.63 to $67.45. And Johnson & Johnson is near $68.06 in a 52-week range of $60.83 to $69.75.

Trey Thoelcke

About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.