IT failings cause recall, production shutdown at Stallergenes Greer

The introduction of a new IT system has caused problems for Stallergenes Greer. Having set up the system at an allergy immunotherapy manufacturing plant in August, Stallergenes Greer has suffered from technical problems that have now led to the recall of products and shutdown of the site.

Stallergenes Greer is recalling every product released from the site since August 13, the month in which it introduced the new IT system. And, with French regulators raising concerns about the site, the allergy immunotherapy specialist has stopped production. The facility is set to resume operations once Stallergenes Greer has fixed the IT issues and resolved all of the observations made by the French drug regulator, which prompted the shutdown when it notified the company of its concerns earlier this month.

The introduction of the IT system was intended to improve the production plant in Antony, France, specifically by providing upgraded supply and delivery of the treatments it manufactures. However, the months following the implementation of the IT system have been characterized by operational disruptions and incorrect product deliveries. The setbacks have tarnished investor sentiment toward Stallergenes Greer. Shares have fallen 20% in value since the company revealed the French regulator had flagged concerns about the plant earlier this month.

While the problems, which highlight the central role IT plays at modern production plants, are a blow to the business of Stallergenes Greer, the French regulator thinks patients can come through the supply disruption unscathed. Stallergenes Greer produces allergy immunotherapies with mid- to long-term effects. And, as such, any interruptions to treatment caused by the shutdown and recall are unlikely to prove detrimental to the health of patients.

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