FDA Raid Leads to Firings at Schein

Schein Pharmaceutical Inc. said it will fire about 350 workers at its Steris Laboratories unit shut down by U.S. regulators. The Steris plant in Phoenix has been closed since Food and Drug Administration agents raided it earlier this month in response to what the agency said were long-standing violations of drug manufacturing rules. The Steris unit, which employs about 700 workers, supplies products that account for about 40% of the company’s sales and 50% of its profit, Schein said. Shares in the Florham Park, N.J.-based generic drug maker plunged $3.50 to close at $8.69 on the NYSE. The company’s shares lost about half their value after the initial raid.