Surge in Product Recalls Predicted

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International business management consultancy Sedgwick says that while product recalls, including drugs and medical devices, have dropped during the pandemic, there is likely to be a surge in recalls as businesses return to more normal operating conditions. In a statement, Sedgwick says that in the first quarter of 2021, medical device recalls fell 9.8% compared to the fourth quarter of 2020, resulting in a seven-quarter low. Software issues were the leading cause for recalls for the 19th time in the last 20 quarters.

Pharmaceutical recalls dropped 25% to just 63 events in the first quarter. Sedgwick says that was despite FDA efforts to resume inspections and regulatory enforcement in late 2020 and early 2021.

The firm says the medical device industry is on the brink of a regulatory crackdown. “The scope of safety investigations will continue to broaden, accelerating innovation will reshape the regulatory framework, and lawyers will aggressively test the waters on the level of immunity the Public Readiness and Emergency Preparedness Act offers to manufacturers.

On the drug side, Sedgwick says, contamination risks have always been a long-standing risk for drug companies. “As the industry evolves,” it says, “expect heightened regulatory scrutiny, litigation, and reputational fallout as a result. Meanwhile, independent labs and safety advocates are eager to pursue products that may be placing consumers at risk, and their influence is growing.”

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