Second company halts business with Chemi after licence suspension

Chemi loses its second client after a licence suspension the company blames on one employee who falsified tests.

Cambridge-based Bimeda-MTC Animal Health Inc. has withdrawn its business from Mississauga testing lab Chemi Pharmaceutical Inc. after its licence was suspended by Health Canada for falsified tests.

“At this point and time we have ceased our business relationship with Chemi Pharmaceutical,” human resources manager Jim Estok told YourMississaugaBiz.com. “And we will not be pursuing a relationship going forward.”

The veterinary pharmaceutical company also issued a statement on their website, indicating they had “never used Chemi Pharmeceutical Inc. to test any finished products for Canadian or international materials.”

Bimeda is the second Chemi client to sever their business ties after the federal government agency announced on Tuesday it had uncovered falsified test results on 53 products or ingredients during the course of a surprise audit. Chemi had been licensed by Health Canada since 2003 and passed three previous inspections.

Mississauga drug firm Septa Pharmaceutical Inc. was the first client to issue a statement on Wednesday saying it had ceased doing business with Chemi. They are currently looking for a new testing laboratory.

Chemi’s president Mariana Stavrikov said Wednesday the company has hired a well-known industry consultant from Quality and Complicance Services Inc. to improve its internal audits.

The regulation, auditing and quality control company’s Canadian offices are located in Mississauga on Meadowvale Town Centre Circle.

Stavrikov said Chemi is also hiring additional assurance managers, more auditors, and reviewers as well as revising its procedures and training. The company linked the false tests to one of its 24 employees, who has been fired.

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