FDA’s warning letter to Medline’s Waukegan drug plant, issued May 28, 2026, documents a contamination problem management has had three years to solve. Between June 2023 and August 2025, the Waukegan, Illinois facility isolated objectionable microorganisms from finished drug product samples on about nine occasions. FDA recovered Bacillus cereus — a bacterium that causes food poisoning — in at least five environmental samples taken since January 2025.

The agency had already signaled the problem. A Form 483 in January 2025, then a meeting with Medline last May, both put management on notice. Inspectors found Medline failed to adequately determine root cause and prevent recurrence. When Medline’s own investigations expanded the scope, they found B. cereus at a second facility in Hartland, Wisconsin, which supplies a bulk product whose identity the agency redacted. Medline suspended production of a drug product in October 2025, but FDA still found the response inadequate: the company couldn’t explain why earlier corrective actions kept failing.

This is Medline’s second warning letter in quick succession. FDA published a letter to a Medline medical device facility in March 2026. Both land against a company that completed the biggest IPO of 2025: a $6.3 billion initial raise in December, upsized with full overallotment exercised. Regulatory pressure now sits on top of public-company disclosure obligations.

FDA’s language in the letter is blunt: repeated failures at multiple sites “demonstrate that management oversight and control over the manufacture of drugs is inadequate.” A cover letter citing “we are assessing the root cause” won’t close this one. The remediation plan Medline submits in response will be read by investors as much as inspectors.

— Rebecca Lauren