FDA Warning Letter to OraLabs Inc. for CGMP Violations at OTC Drug Manufacturing Facility
Summary
FDA issued Warning Letter 320-26-50 to OraLabs Inc. (FEI 3001237145) following an inspection from September 22–26, 2025 at the firm's Parker, Colorado OTC drug manufacturing facility. Investigators found that OraLabs released multiple batches of OTC drug products without performing required microbiological release testing, and failed to conduct thorough root-cause investigations for microbiological testing failures. The firm confirmed it only performs microbiological testing at customer request, and invalidated OOS results for Bacillus cereus contamination without adequate scientific rationale. OraLabs must provide a comprehensive independent assessment of its laboratory and manufacturing systems, a detailed risk assessment for distributed products, and complete investigations into all batches with potential objectionable contamination.
“Your firm released multiple batches of OTC drug products without performing appropriate microbiological release testing.”
Contract drug manufacturers operating as both own-label and third-party producers should audit their microbiological release testing practices and OOS investigation procedures against the specific deficiencies cited here: batch release without required testing and invalidation of contamination findings without adequate scientific justification. The FDA's explicit reference to recalls for microbial contamination in low-water-activity OTC drug products signals heightened scrutiny of firms relying on water-activity arguments to skip microbiological testing.
About this source
FDA Warning Letters are public notifications to firms the agency believes are significantly violating FDA regulations. Common triggers include Current Good Manufacturing Practice violations, unauthorized drug claims, substandard clinical trial conduct, unapproved marketing, and tobacco sales to minors. Letters require a written response within 15 working days. Around 75 letters land each month across drug manufacturers, medical device makers, tobacco retailers, and dietary supplement companies. Watch this if you run a regulated manufacturing operation, advise on FDA compliance, defend companies in enforcement matters, or track quality-system failures that precede recall events. GovPing publishes each letter with the recipient, agency division, and cited violations.
What changed
FDA cited OraLabs Inc. for two significant CGMP violations at its Parker, Colorado OTC drug manufacturing facility. First, the firm failed to conduct appropriate laboratory testing for each batch of drug product, releasing multiple batches—including a February 4, 2025 lot of OTC drug product—without microbiological release testing. The firm's internal justification memo claiming 'no testing required' based on low water activity was deemed unacceptable, as FDA has documented recalls for microbial contamination in similar products. Second, the firm failed to thoroughly investigate unexplained discrepancies, frequently invalidating OOS microbiological results (including a Bacillus cereus excursion) without adequate scientific rationale, inconsistent approaches, and inadequate manufacturing investigations.\n\nContract manufacturers of OTC drugs should review this warning letter carefully. OraLabs is reminded that as a contractor, it bears responsibility for drug quality regardless of agreements with product owners, and must ensure compliance with Section 501(a)(2)(B) of the FD&C Act. Any firm operating as a contract drug manufacturer should audit its microbiological release testing practices, OOS investigation procedures, and root-cause analysis documentation to identify gaps analogous to those identified at OraLabs.
What to do next
- Provide a comprehensive independent assessment of laboratory practices, procedures, methods, equipment, documentation, and analyst competencies with a detailed plan to remediate and evaluate effectiveness
- Provide a detailed risk assessment addressing hazards posed by distributing drug products with potentially objectionable contamination, specifying actions including customer notifications and product recalls
- Complete investigations into all batches with potential objectionable microbial contamination or microbial excursion, detailing root causes of contamination
Archived snapshot
Mar 18, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Delivery Method: Via Electronic Mail - Return Receipt Requested Reference #: 320-26-50 Product: Drugs
Over-the-Counter Drugs Recipient: Recipient Name Mr. Gary Schlatter Recipient Title CEO OraLabs, Inc. 18685 East Plaza Drive
Parker, CO 80134-9061
United States
gschlatter@oralabs.com Issuing Office: Center for Drug Evaluation and Research (CDER) United States
Warning Letter 320-26-50
March 11, 2026
Dear Mr. Schlatter:
The United States Food and Drug Administration (FDA) inspected your drug manufacturing facility, OraLabs Inc., FEI 3001237145, at 18685 East Plaza Drive, Parker, from September 22 to 26, 2025.
This warning letter summarizes significant violations of Current Good Manufacturing Practice (CGMP) regulations for finished pharmaceuticals. See Title 21 Code of Federal Regulations (CFR), parts 210 and 211 (21 CFR parts 210 and 211).
Because your methods, facilities, or controls for manufacturing, processing, packing, or holding do not conform to CGMP, your drug products are adulterated within the meaning of section 501(a)(2)(B) of the Federal Food, Drug, and Cosmetic Act (FD&C Act), 21 U.S.C. 351(a)(2)(B).
We reviewed your October 17, 2025, response to our Form FDA 483 in detail.
During our inspection, our investigators observed specific violations including, but not limited to, the following.
1. Your firm failed to conduct, for each batch of drug product, appropriate laboratory testing, as necessary, required to be free of objectionable microorganisms (21 CFR 211.165(b)).
Your firm operates as both a contract and own label manufacturer of over-the-counter (OTC) drug products, including (b)(4) marketed to (b)(4). Your firm released multiple batches of OTC drug products without performing appropriate microbiological release testing. For example, on February 4, 2025, you manufactured over (b)(4) units of (b)(4) (Lot (b)(4)) without performing microbiological testing for release. Your quality unit (QU) approved and released this lot on (b)(4), and distributed it to your customer on (b)(4).
In your response you confirmed that you perform microbiological testing only at your customer’s request. You also provided a justification memo which concluded “no testing required” for total aerobic microbial count, total combined yeasts/molds, and specified microorganisms based on your products being (b)(4). Your response is inadequate. FDA has encountered recalls for microbial contamination in (b)(4) drug products. Your justification memo reveals microbial growth in your drug products. While microbial proliferation risk may be lower, microorganisms can persist in your drug products. Eliminating microbial testing of your drug products is unacceptable. CGMP regulations require written procedures be established to prevent introduction of objectionable microbiological contamination in the manufacture of drug products not required to be sterile.
In response to this letter, provide:
- A comprehensive independent assessment of your laboratory practices, procedures, methods, equipment, documentation, and analyst competencies. Based on this review, provide a detailed plan to remediate and evaluate the effectiveness of your laboratory system.
- A list of chemical and microbial specifications (i.e., total counts, identification of bioburden to detect objectionable microbes), including test methods, used to analyze each lot of your drug products before a lot disposition decision. o An action plan and timelines for conducting full chemical and microbiological testing of retain samples to determine the quality of all batches of drug product distributed within the United States that are within expiry as of the date of this letter. o A summary of results from testing retain samples of all drug product batches within expiry. You should test all appropriate quality attributes including, but not limited to, identity and strength of active ingredients and microbiological quality (total counts and identification of bioburden to detect any objectionable microbes) of each batch. If testing yields an out-of-specification (OOS) result, indicate the corrective actions you will take, including notifying customers and initiating recalls. 2. Your firm failed to thoroughly investigate any unexplained discrepancy or failure of a batch or any of its components to meet any of its specifications, whether or not the batch has already been distributed (21 CFR 211.192).
Your investigations into microbiological testing failures when your customers requested such testing frequently lacked thorough root cause analysis and appropriate corrective actions and preventive actions (CAPAs). For example, you investigated total aerobic counts exceeding specification limits for (b)(4) drug product and identified the microorganism as Bacillus cereus. However, you invalidated this excursion because the specific pathogens listed on the certificate of analysis were not detected. You concluded that the “most likely source of contamination would be from environmental contamination during the manufacturing process.” You lacked adequate scientific rationale to invalidate this excursion.
Additionally, multiple investigations resulted in inconclusive root causes or were invalidated with inconsistent approaches that often lacked thorough manufacturing investigations, environmental sampling, and other potential sources of contamination. Your investigations inappropriately minimized the risk of these microbial excursions by stating that products had lower (b)(4) content and “product does not support growth.” Your conclusions contradict the microbial excursions detected in your test results, and your QU released the associated lots for distribution.
In your response, you commit to evaluating procedures and including additional documentation for OOS results, as well as training employees. Your response does not adequately demonstrate that your firm has remediated its investigational capabilities to ensure comprehensive, well-documented, and scientifically rigorous investigations to effectively identify root causes and result in appropriate CAPAs.
In response to this letter, provide:
- A comprehensive, independent assessment of the design and control of your firm’s manufacturing operations with a detailed and thorough review of all microbiological hazards.
- A detailed risk assessment addressing the hazards posed by distributing drug products with potentially objectionable contamination. Specify actions you will take in response to the risk assessment, such as customer notifications and product recalls.
- Complete investigations into all batches with potential objectionable microbial contamination or a microbial excursion (whether or not later invalidated or inconclusive). The investigations should detail your findings regarding the root causes of the contamination. Responsibilities as a Contractor
Drugs must be manufactured in conformance with CGMP. FDA is aware that many drug manufacturers use independent contractors such as production facilities, testing laboratories, packagers, and labelers. FDA regards contractors as extensions of the manufacturer.
You are responsible for the quality of drugs you produce as a contract facility regardless of agreements in place with product owners. You are required to ensure that drugs are made in accordance with section 501(a)(2)(B) of the FD&C Act for safety, identity, strength, quality, and purity. See FDA’s guidance document Contract Manufacturing Arrangements for Drugs: Quality Agreements at https://www.fda.gov/media/86193/download.
Conclusion
The violations cited in this letter are not intended to be an all-inclusive list of violations that exist at your facility. You are responsible for investigating and determining the causes of any violations and for preventing their recurrence or the occurrence of other violations.
Correct any violations promptly. Failure to promptly and adequately address this matter may result in regulatory or legal action without further notice including, without limitation, seizure and injunction. Unresolved violations may also prevent other Federal agencies from awarding contracts.
Failure to address violations may also cause FDA to withhold issuance of Export Certificates. FDA may withhold approval of new applications or supplements listing your firm as a drug manufacturer until any violations are completely addressed and we confirm your compliance with CGMP. We may re-inspect to verify that you have completed corrective actions to address any violations.
This letter notifies you of our findings and provides you an opportunity to address the above deficiencies. After you receive this letter, respond to this office in writing within 15 working days. Specify what you have done to address any violations and to prevent their recurrence. In response to this letter, you may provide additional information for our consideration as we continue to assess your activities and practices. If you cannot complete corrective actions within 15 working days, state your reasons for delay and your schedule for completion.
Send your electronic reply to CDER-OC-OMQ-Communications@fda.hhs.gov. Identify your response with FEI 3001237145 and ATTN: Bryce Hammer.
Sincerely,
/S/
Francis Godwin
Director
Office of Manufacturing Quality
Office of Compliance
Center for Drug Evaluation and Research
- ## Content current as of:
03/17/2026
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- Over-the-Counter Drugs
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