Invacare rises as FDA OKs audit of Ohio plant
NEW YORK (AP) — Shares of Invacare Corp. advanced Tuesday after the company said it is making progress in a government review of an Ohio facility. The FDA had limited production at the plant because of manufacturing problems.
THE SPARK: Invacare, which makes wheelchairs, crutches and motorized scooters, said late on Monday that the Food and Drug Administration accepted the results of the first audit of the manufacturing facility, which is in Elyria, Ohio. That means the facility can resume manufacturing and distributing parts to other Invacare plants.
Two other audits need to be completed before the facility can resume full operations.
THE BIG PICTURE: The FDA said in December that Invacare had agreed to stop making, designing and distributing manual and powered wheelchairs and wheelchair parts at two Ohio facilities due to its violations of quality systems regulations and failures to properly report problems to the agency. Production would be limited until inspectors certify that they are in compliance with FDA regulations.
SHARE ACTION: Invacare stock rose $1.21, or 8.9 percent, to close at $14.87. Shares have dropped 8.8 percent in 2013.