Leiner Health Products
Encyclopedia
Leiner Health Products is a company based in Carson, California
, and is one of America's largest manufacturers of vitamin
s, minerals, herbal nutritional supplements, and generic medications. It was founded in 1973, and is owned by North Castle Partners, a private investment firm from Connecticut.
by Hoffmann–La Roche and BASF
, in what the United States Department of Justice
termed the largest criminal antitrust conspiracy ever uncovered.
On March 10, 2003, Leiner entered into a business relationship with Dr. Reddy's Laboratories
, the third-largest drug company in India. Under the terms of the agreement, Dr. Reddy would provide generic medications and components, which would in return be packaged and marketed by Leiner.
Leiner filed for bankruptcy again on March 10, 2008, citing difficulties related to poor results on a FDA inspection of the company's Fort Mill plant during an inspection in 2007. Leiner indicated that it plans to explore debt restructuring and a sale of the company, and will continue normal operations while doing so.
Leiner was sold to NBTY
(Nature's Bounty) in June 2008 for over $400MM.
damaged a Leiner pharmaceutical plant in the Lakemont Business Park of Fort Mill, South Carolina
. Fire chief David Jennings estimated damages to the plant at $1.1 million, and two of the plant's 600 workers were hospitalized with burns. The fire started in a mixing room, where the workers were blending components for a batch of ibuprofen
, and evidence indicates that a spark from the mixing machine ignited a dust explosion
.
filed a complaint against Leiner for deceptive labeling practices in some of its products containing acetaminophen. It cited numerous examples of Leiner products of this nature labeled with "Made in the U.S.A." statements and American flags, where the acetaminophen used in the manufacture was derived from foreign sources.
On several occasions, Leiner has been forced to recall vitamins or supplements containing iron, which were not packaged in child-proof containers as required by the Poison Prevention Packaging Act. On March 12, 2002, they recalled 14,000 bottles of "Nature's Valley Women's Formula Multivitamin", and on January 28, 2005, they recalled 13,000 bottles of "Long’s Central-Vite Multivitamins".
, was murdered during a traffic stop in December 2003. The killer, Ricky Ray Malone, was allegedly in a drug-induced haze from methamphetamine
use at the time he shot Green, and his car contained a mobile meth lab.
Green's widow, Linda Green, subsequently filed a lawsuit against several US drug manufacturers and retailers, including Leiner. In the suit, she claimed that the companies deliberately turned a blind eye toward the purchase of their products containing pseudoephedrine
by criminals engaged in the manufacture of illegal drugs. She also claimed that the companies were negligent in deciding not to use a known manufacturing technique which would have rendered their drugs useless to meth cooks.
Carson, California
Carson is a city in Los Angeles County, California. As of the 2010 census, Carson had a total population of 91,714. Located south of downtown Los Angeles and approximately 14 miles away from the Los Angeles International Airport, it is known as a suburb of the city....
, and is one of America's largest manufacturers of vitamin
Vitamin
A vitamin is an organic compound required as a nutrient in tiny amounts by an organism. In other words, an organic chemical compound is called a vitamin when it cannot be synthesized in sufficient quantities by an organism, and must be obtained from the diet. Thus, the term is conditional both on...
s, minerals, herbal nutritional supplements, and generic medications. It was founded in 1973, and is owned by North Castle Partners, a private investment firm from Connecticut.
Business deals
Leiner declared Chapter 11 bankruptcy in February 2002, blaming a sudden drop in the price of raw materials for the pharmaceutical industry, which in turn lowered industry prices for the products they manufacture. Surprised by the shift, Leiner was caught with a great deal of now-overpriced material on hand, and they elected to sell their products at a loss in order to maintain market position. They emerged from bankruptcy 42 days later, having paid 25 cents on the dollar for $80 million in debt, while deciding to re-focus their efforts on marketing to large chains. The price drop was later determined to have been caused by collusive price fixingPrice fixing
Price fixing is an agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given level by controlling supply and demand...
by Hoffmann–La Roche and BASF
BASF
BASF SE is the largest chemical company in the world and is headquartered in Germany. BASF originally stood for Badische Anilin- und Soda-Fabrik . Today, the four letters are a registered trademark and the company is listed on the Frankfurt Stock Exchange, London Stock Exchange, and Zurich Stock...
, in what the United States Department of Justice
United States Department of Justice
The United States Department of Justice , is the United States federal executive department responsible for the enforcement of the law and administration of justice, equivalent to the justice or interior ministries of other countries.The Department is led by the Attorney General, who is nominated...
termed the largest criminal antitrust conspiracy ever uncovered.
On March 10, 2003, Leiner entered into a business relationship with Dr. Reddy's Laboratories
Dr. Reddy's Laboratories
Dr. Reddy's Laboratories Ltd. is an integrated pharmaceutical company focused on providing medicines through its three business segments: Global Generics segment, Pharmaceutical Services and Active Ingredients segment and Proprietary Products segment. The company was founded by Dr...
, the third-largest drug company in India. Under the terms of the agreement, Dr. Reddy would provide generic medications and components, which would in return be packaged and marketed by Leiner.
Leiner filed for bankruptcy again on March 10, 2008, citing difficulties related to poor results on a FDA inspection of the company's Fort Mill plant during an inspection in 2007. Leiner indicated that it plans to explore debt restructuring and a sale of the company, and will continue normal operations while doing so.
Leiner was sold to NBTY
NBTY
NBTY, Inc., formerly known as Nature's Bounty, Inc., is a manufacturer of vitamins and nutritional supplements which are distributed under many third party brands in the United States and internationally. Its name was changed from Nature's Bounty, Inc. to NBTY, Inc...
(Nature's Bounty) in June 2008 for over $400MM.
Fort Mill accident
On April 26, 2006, a flash fireFlash fire
A flash fire is a sudden, intense fire caused by ignition of a mixture of air and a dispersed flammable substance such as a solid , flammable or combustible liquid , or a flammable gas...
damaged a Leiner pharmaceutical plant in the Lakemont Business Park of Fort Mill, South Carolina
Fort Mill, South Carolina
Fort Mill is a fast-growing suburban town in both York and Lancaster counties in the U.S. state of South Carolina, and a suburb of the city of Charlotte, North Carolina, and Rock Hill...
. Fire chief David Jennings estimated damages to the plant at $1.1 million, and two of the plant's 600 workers were hospitalized with burns. The fire started in a mixing room, where the workers were blending components for a batch of ibuprofen
Ibuprofen
Ibuprofen is a nonsteroidal anti-inflammatory drug used for relief of symptoms of arthritis, fever, as an analgesic , especially where there is an inflammatory component, and dysmenorrhea....
, and evidence indicates that a spark from the mixing machine ignited a dust explosion
Flour bomb
There are two types of flour bomb:* The relatively innocuous use of flour in a fragile container, thrown at a person or object to produce an inconvenient stain....
.
Complaints over business practices
In November 2001, the Federal Trade CommissionFederal Trade Commission
The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...
filed a complaint against Leiner for deceptive labeling practices in some of its products containing acetaminophen. It cited numerous examples of Leiner products of this nature labeled with "Made in the U.S.A." statements and American flags, where the acetaminophen used in the manufacture was derived from foreign sources.
On several occasions, Leiner has been forced to recall vitamins or supplements containing iron, which were not packaged in child-proof containers as required by the Poison Prevention Packaging Act. On March 12, 2002, they recalled 14,000 bottles of "Nature's Valley Women's Formula Multivitamin", and on January 28, 2005, they recalled 13,000 bottles of "Long’s Central-Vite Multivitamins".
Methamphetamine lawsuit
Nikky Joe Green, a member of the Oklahoma Highway PatrolOklahoma Highway Patrol
The Oklahoma Highway Patrol is a major state law enforcement agency of the government of Oklahoma. It is a division of the Oklahoma Department of Public Safety. The Oklahoma Highway Patrol was legislatively created in 1937 due to the growing problem of motor vehicle accidents, the expansion of a...
, was murdered during a traffic stop in December 2003. The killer, Ricky Ray Malone, was allegedly in a drug-induced haze from methamphetamine
Methamphetamine
Methamphetamine is a psychostimulant of the phenethylamine and amphetamine class of psychoactive drugs...
use at the time he shot Green, and his car contained a mobile meth lab.
Green's widow, Linda Green, subsequently filed a lawsuit against several US drug manufacturers and retailers, including Leiner. In the suit, she claimed that the companies deliberately turned a blind eye toward the purchase of their products containing pseudoephedrine
Pseudoephedrine
Pseudoephedrine is a sympathomimetic drug of the phenethylamine and amphetamine chemical classes. It is used as a nasal/sinus decongestant and stimulant, or as a wakefulness-promoting agent....
by criminals engaged in the manufacture of illegal drugs. She also claimed that the companies were negligent in deciding not to use a known manufacturing technique which would have rendered their drugs useless to meth cooks.