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Covidien sees no impact from FDA call to cap acetaminophen levels in pain relieve drugs

Covidien (NYSE: COV), a maker of acetaminophen, a pain reliever found in Tylenol, said Wednesday its 2011 results will be little affected by the FDA’s move to limit the amount of acetaminophen in pain reliever drugs.
Covidien sees no impact from FDA call to cap acetaminophen levels in pain relieve drugs

Covidien (NYSE: COV), a maker of acetaminophen, a pain reliever found in Tylenol, said Wednesday its 2011 results will be little affected by the FDA’s move to limit the amount of acetaminophen in pain reliever drugs.


This morning, the FDA said it will cap the amount of acetaminophen in pain reliever drugs to 325 milligrams per capsule as it has been linked to cases of liver damage.  Manufacturers of the compound will be given three years to comply with the new rule.   

 
The new rule’s impact on its 2011 operating income and margin, and drug sales will be immaterial, the company said. 


The company also manufactures drugs that combine acetaminophen with other pain relievers such as hydrocodone and oxycodone. 


Covidien is scheduled to report its first quarter results on February 1.  Analysts polled by Thomson Reuters expect the company to earn earnings per share of 81 cents on revenues of $2.72 billion.   


For fiscal 2010, the company earned profits of $1.6 billion on revenues of $10.4 billion. 


Covidien, based in Dublin, Ireland, operates in three segments: Medical Devices, Pharmaceuticals and Medical Supplies.  The company employs about 42,000 people.


As of 11:45 am EST, the company’s shares are up slightly by 0.2% to trade at $46.97.

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