NEW YORK (Reuters) – APP Pharmaceuticals Inc, the main supplier of the blood thinner heparin to the U.S. market in the wake of a contamination scandal, said on Thursday it was raising prices because of higher costs for raw materials, additional testing and labor.

APP also said it had completed testing on all lots of its heparin raw material dating back to January 2006 and had found all products to be contaminant-free. The U.S. Food and Drug Administration has also tested select material from APP samples and reviewed its analytical results, confirming the purity of its heparin, the company said.

An FDA probe found chemical contaminants in some batches of Baxter International Inc’s heparin, and officials said the contaminant may have caused reactions reported in the deaths of 81 patients. In February Baxter recalled most of its heparin, a vital medication used in dialysis and some surgeries to prevent blood clots.

Schaumburg, Illinois-based APP said it has worked with the FDA to increase production and ensure the availability of heparin, and it continues to manage the drug’s distribution to prevent an imbalance of supply.

“In light of the dramatic increase in raw material costs, the need to secure an uninterrupted delivery of (ingredients) and the increased costs associated with the additional required testing, as well as the hiring of additional employees, APP has communicated to its customers the need to adjust its heparin price,” the company said in a statement.

(Reporting by Lewis Krauskopf; editing by John Wallace)