For Sale: Able Labs
Able Laboratory’s (Cranbury, NJ) board of directors has decided to sell the company in light of the voluntary recall and suspension of manufacturing of all Able product in May.
The recall had an immediate impact on the business, as Able has not been able to generate any income since May. In addition, the company filed for Chapter 11 in July to attempt to reorganize.
FDA told Able that in order to reestablish its product line, the company would have to resubmit every product for new drug approval, which could take up to 18 months for each drug.
“Because Able’s business plan for its reorganization depended on obtaining significant external financing, which in turn was predicated on its being able to return certain products to the market in a more timely manner, it has now determined that the business plan for a reorganization is not feasible,” Able stated in a release.
To cut costs, Paul D. Cottone, the company’s chief restructuring officer, has resigned. Cottone will continue to assist the company on a consulting basis. Richard M. Shepperd, the company’s director of restructuring, will continue with the company’s efforts to reduce expenses and to market assets.