News & Updates

DYK: Medical device recalls can cost a pretty penny

According to a McKinsey Report, non-routine quality events - such as major observations, recalls, warning letters, and consent decrees, along with warranties and lawsuits - cost the medical device industry on average $2.5-$5 billion per year.  Costs of a single non-routine quality event, like a major recall, have been as high as $600 million in medical device companies.  And, in the past 10 years, there was an average of one major quality event per year that resulted in a 13% stock price drop across the industry.