Monday, Jun. 02, 1986

Business Notes Drugs

After an ingredient used in rat poison turned up in some of its pills, SmithKline Beckman last March recalled all its Contac cold-remedy capsules (1985 sales: $55 million). The episode came soon after a Peekskill, N.Y., woman died from taking a cyanide-laced Tylenol capsule. The decision to remove Contac from the market cost SmithKline $8 million.

Now the company says that Contac will be back on the market this fall. The new capsules will have a transparent coat and will be sealed with red gelatin, which will make it more difficult for anyone to tamper with them. For those who are still wary, Contac will also be available for the first time in elongated tablets called caplets.