Citius Pharmaceuticals (CIV) stock dropped nearly 10% on Wednesday after the company announced it was recalling all its products from shelves and will be reducing its workforce by 10% in order to reduce the risk of product recalls.
The company said in a statement on Wednesday that it has been working with regulators in the U.S. and Europe to determine how to best reduce the potential risk of recalls.
Citius said it has received FDA approval for its second-generation epinephrine auto-injector in the last month, and it expects to receive a third-generation product in the fourth quarter of next year.
Janssen said in the statement that it will begin taking its remaining inventory of EpiPen 2 and EpiPod 2, the epinephleptic that’s been on shelves since March, and will reduce the number of employees at its Jansens unit by approximately 15% to reduce potential exposure to product recalls or other adverse events.
Jansen said it expects the second- and third-gen EpiPens to be available for purchase from the end of October.
A number of companies are looking to grow in the epi-pens market, including generics maker Johnson & Johnson (JNJ) and the maker of the generic version of the drug.
In a filing with the Securities and Exchange Commission (SEC), Janssens’ parent company, the company said it anticipates a potential third-party buyer for the generic Epi-Pen.
The filing did not disclose the buyer.
Jansssen said the EpiPro, which is a generic version, will be available to purchase through its online store and the company is not aware of any additional purchasers interested in the generic product.
According to the filing, Jansson expects to release a statement about the recall on October 10, and the filing said it would provide further information to the SEC and regulatory authorities at a later date.
More from Recode:Jansson has been the target of multiple recalls since it recalled Epi Pen 2 in February for possible side effects and safety concerns.
Jonssen is also the subject of a lawsuit filed by the FDA last month alleging that Jansdsens epinephelenate, the injectable epinepeptide that’s in the Epinone, is adulterated.
Jannsen said it will not comment further on the pending litigation, but has said it plans to file for an extension of time to address its concerns with regulators.
Jannsen has said the recall is a matter of routine safety monitoring and safety compliance, which means the company will not make any changes to its product to increase the risk for product recalls, or other potential adverse events, and that it is continuing to monitor and assess the Epinephrine Auto-Injector and other products for potential risks.