Lifecell Recalls BTS Products After Criminal Probe
BY DAVID KRESSEL, OCTOBER 10, 2005
In the wake of an FDA, NYPD and Brooklyn district attorney's investigation into Biomedical Tissue Services, Lifecell has recalled and halted sales of all tissue from BTS. BTS's CEO is under investigation for illegally harvesting tissue from cadavers at a friend's former funeral home and then using forged documents to sell the tissue to processors. Lifecell, a public company, has withdrawn guidance for the remainder of its fiscal year, but insists the current quarter will be unaffected. If BTS cannot resolve the documentation issues, Lifecell will discard $1.5m of BTS-supplied inventory. Tutogen and Regeneration Technologies are also customers of BTS but have not changed guidance due to these events.
To date, there have been no adverse events reported.
