Cantrell Drug Co. Files Chapter 11 Bankruptcy

by Mark Friedman  on Tuesday, Nov. 7, 2017 3:26 pm   2 min read

The namesake facility operated by Cantrell Drug Company, owned by Dr. James L. "Dell" McCarley Jr. (inset) and his wife Lynn.

Cantrell Drug Co. of North Little Rock filed for Chapter 11 bankruptcy reorganization Tuesday, listing $7.46 million in debts.

The firm, which sells sterile injectable drugs mainly used in hospitals, reported $15.1 million in assets in its filing in U.S. Bankruptcy Court in the Eastern District of Arkansas.

Dr. James L. McCarley Jr., chairman and CEO of Cantrell Drug, said in a news release that the financial problems were linked to two recent Food and Drug Administration inspections that resulted in a temporary suspension of manufacturing and shipping.

"Our deficiencies were regulatory in nature and not in response to any product problem or patient illness," he said in the news release. "Out of an abundance of caution, we ceased production two times in the last eight months."

McCarley said he and his wife, Lynn, own Cantrell Drug, and "we just don't have the resources of a big publicly traded pharmaceutical company to weather the economic consequences of a shutdown."

In 2015, Cantrell Drug generated $18.5 million in gross revenue; the next year the amount grew to $23 million.

But so far this year revenue plummeted to $10 million, according to the filing.

The creditors who have the largest unsecured claims include Pharmax Services Inc. of San Juan, Puerto Rico, which is owed $1 million for services it provided, and Aramark Cleanroom Services of Chicago, which is owed $322,600.

"Above all I want to make it clear to everyone that our intent is to pay one hundred cents on the dollar to all our creditors," James McCarley said in the news release. "We have no intention of any sort of liquidation, cram down or write off. I've asked our vendors to work with us, to give us time to get back on our feet. So far, I've been very pleased with the understanding and support we've received from the trade."

 

 

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