Clients in the News: Able Laboratories recalled its entire line of generic drugs in 2005. Seven years later, Novartis recalled over 1,600 lots of Excedrin, NoDoz, Bufferin, and Gas-X. Just last year, RB recalled 1.5 million bottles of its congestion and cold medicine, Mucinex. These types of recalls can have massive and devastating impacts on company profits. It has been shown that any recall will negatively impact share price and brand perception, especially with consumer over-the-counter products with lowered switching costs. The immediate costs involved to investigate, retrieve, and destroy flawed products are significant, but the corresponding future costs on lost revenue and market share are felt on the bottom line. These manufacturers can also face consumer litigation and damages to brand reputation that negatively affect business long after the recall occurs. In a worst case scenario, like in Able Laboratories’ case, a recall can lead to a company shutting its doors for good. Read more: