Intellectual Property Law

McKesson Dinged in Online Pharma Flap, 'Fueled' Addiction

By Ryan Singel, Kevin Poulsen, Sarah Lai Stirland, Kim Zetter, and David Kravets

Wondering where those illegal online pharmacies get their dope?

According to the Justice Department, the answer is McKesson Corp., North America's largest pharmaceutical distributor based in San Francisco.

In a deal with six U.S. attorneys, McKesson agreed to pay $13 million to settle allegations it failed to report to the Drug Enforcement Agency "suspicious sales" of controlled substances to pharmacies, the Justice Department said Friday. Those pharmacies, the Justice Department said, filled orders from illegal, online pharmacies that doled out hardcore prescription medications without a doctor's recommendation.

The authorities claimed McKesson, even after a Sept. 1, 2005 meeting with DEA officials, continued the practice of selling massive amounts of hydrocodone, used in Vicodin, to pharmacies who placed hundreds of unusually large and frequent orders to McKesson distribution facilities.

"By failing to report suspicious orders for controlled substances that it received from rogue internet pharmacies, the McKesson Corporation fueled the explosive prescription drug abuse problem we have in this country," said Michele M. Leonhart, the DEA's acting administrator.

The settlement is with U.S. attorneys in Florida, Maryland, Colorado, Texas, Utah and California.

McKesson admitted no liability in the settlement.

Photo rodrigo senna

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Full post as published by Threat Level on May 02, 2008 (boomark / email).