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Dollar Tree Receives FDA Warning Letter Over Foreign-Made Pharmaceuticals

Jayson Derrick

Dollar Tree, Inc. (NASDAQ: DLTR) has received a warning letter from the Food and Drug Administration related to over-the-counter drugs made by foreign manufacturers.

What Happened

The FDA's Center for Drug Evaluation and Research unit said in a letter dated Nov. 6 that an inspection of Dollar Tree's corporate headquarters raised red flags.

The regulatory body inspected Dollar Tree's head office in Chesapeake, Virginia in early January and found "violative conditions" at multiple foreign drug makers who supplied drugs to the dollar store's distribution network.

The letter went on to state it found "significant violations" of current good manufacturing practice regulations for finished pharmaceuticals.

Some of the specific alleged wrongdoings include: 

  • Failure to conduct component identity testing and failure to test each batch of acne treatment pads from Shanghai Weierya Daily Chemicals Factory.
  • Failure to test drug products from Hangzhou Zhongbo Industrial Company for conformance with specifications.

Why It's Important

Dollar Tree is responsible for making sure it doesn't sell potentially unsafe drugs to the American public, Donald Ashley, the FDA's director of the Office of Compliance, said in a Thursday press release. 

"We will remain vigilant in our efforts to protect the U.S. public from companies who put the health of Americans at risk — whether through the manufacturing and distribution of products we regulate or other means." 

What's Next

Dollar Tree will meet with the FDA soon and expects to satisfy its concerns "in all regards," Randy Guiler, Dollar Tree's vice president of investor relations, said in a statement obtained by CNN

The FDA granted the company 15 working days to respond and said failure to do so "may result in legal action without further notice including, without limitation, seizure and injunction."

The stock was down 0.28% at $108.45 at the time of publication Friday. 

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Photo by M.O. Stevens via Wikimedia. 


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