SOURCE: Stericycle ExpertSOLUTIONS
INDIANAPOLIS, IN--(Marketwired - Sep 3, 2014) - Stericycle ExpertSOLUTIONS™ (NASDAQ: SRCL) today released the findings of its Q2 2014 Stericycle Recall Index. The report found that, though the auto industry witnessed historic recall volumes in Q2, recall rates in other sectors were relatively flat or even decreased. In fact, many industries experienced record lows throughout the quarter. The medical device sector, for example, saw the fewest number of recalls since Q2 2012. Similarly, the food industry experienced the lowest amount of recalled units tracked in two years. The number of events and amount of affected units are just two of several drivers of recall complexity. The Q2 Index documented a number of factors at play within the pharmaceutical industry throughout the quarter that underscore the challenging nature of global recall execution.
The Q2 Index highlighted that the rate of pharmaceutical recalls appears to be normalizing, following the activity spike in late 2012 and early 2013 related to compounding pharmacies. While the number of recalls did not grow significantly from Q1, the amount of companies contributing to events increased from the prior quarter. Recall execution during Q2 was further impacted by a dramatic fluctuation in the amount of affected units, which ranged from the single digits in one event to more than four million in another.
"Our Q2 Recall Index underscores that even when recall rates remain relatively flat, the challenges of global recall response are still imminent," said Mike Rozembajgier, Vice President, Stericycle. "For example, many pharmaceutical manufacturers experienced multiple events that varied significantly in size and scope. This broad scale highlights the importance of flexibility and scalability to efficiently tailor recall response based upon the circumstances at hand."
The Q2 Index found that more than half of the pharmaceutical manufacturers involved in Q2's top M&A deals experienced at least one recall during the quarter. This demonstrates the recall complexities inherent in mergers or acquisitions -- for example, combining disparate quality management systems and processes. Globalization also further complicated recall management in Q2, as 26 percent of the quarter's events affected at least two countries. There are a variety of challenges manufacturers must navigate in this environment, including translating all recall-related communications as part of their response. Global events also necessitate that companies understand the requirements of specific regulatory bodies and are prepared to manage the logistics of recall execution across international borders.
"It's evident that numerous trends converged within the pharmaceutical industry during the second quarter of the year to highlight the complexities of global recall execution," continued Rozembajgier. "These are just a few of the variables which underscore that even the most vigilant manufacturer will one day be faced with an event. As such, companies must ensure they are prepared to address all of the challenges of effective recall execution to minimize the fallout when a recall occurs."
The full Q2 2014 Stericycle Recall Index contains a detailed analysis of the pharmaceutical industry's recall drivers, as well as an examination of recall data within the medical device, food, consumer products and auto sectors. The report found that over 26.5 million NHTSA related units were recalled in Q2, nearly double the amount of units recalled in the prior quarter, which was already a record quarter for units. Cars were the main driver of this activity surge, contributing to 86 percent of the quarter's total volume. To learn more about additional NHTSA findings and key data from the other industries, please download the Q2 2014 Stericycle Recall Index in its entirety here.
About the Stericycle Recall Index
The Stericycle Recall Index is the only report that aggregates and tracks recall data to help manufacturers and other industry stakeholders navigate the regulatory environment and identify trends. Each quarter Stericycle analyzes data from the U.S. Consumer Product Safety Commission (CPSC), the National Highway Traffic Safety Administration (NHTSA), the FDA and the USDA. For more information, please visit http://recall.stericycleexpertsolutions.com/index/.
About Stericycle ExpertSOLUTIONS™
Stericycle ExpertSOLUTIONS™ is the industry leader in managing consumer product, pharmaceutical, medical device, juvenile product, and food and beverage recalls. Stericycle ExpertSOLUTIONS streamlines the entire product recall process and manages Notification & Response, Processing & Tracking, and Compliance & Reporting for a variety of companies. For more information, visit http://recall.stericycleexpertsolutions.com/en/.