Teva Pharmaceuticals (TEVA) - Get Teva Pharmaceutical Industries Limited Sponsored ADR Report shares are falling Monday afternoon after the company announced that it has stopped production at one of its facilities after recalling more than 2.5 million vials of drugs that it says may not be sterile.
The Israel-based company says the drug vials may have contained mold contamination stemming from water leaks. U.S. inspectors discovered the issue at the company's production plant in Irvine, Calif.
The company has temporarily stopped drug production at the facility and says that it is reviewing the concerns raised by the Food and Drug Administration, according to the company's response to Bloomberg.
Teva said the plant received an FDA Form 483, which lists the issues that could lead to potential Food and Drug Administration rule violations.
"We have carefully reviewed the 483 and are taking extensive actions to ensure the agency’s observations are fully addressed," Teva told Reuters. "As a precautionary measure, we temporarily stopped the manufacture of products from the Irvine facility while we conduct a thorough review."
Shares of Teva on Monday fell 0.8% to close at $9.62.
Earlier this year, Teva reportedly stopped a search for partners to produce a COVID-19 vaccine.
CEO Kare Schultz had said in February that Teva was in discussions with top-tier shot makers about helping with production and distribution.
The talks ended after the companies clinched other manufacturing agreements and determined they had sufficient capacity to meet targets.