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Feds: McKesson Agrees To Pay $150M In Pill Shipment Case

A major California-based drug wholesaler has agreed to pay $150m to settle allegations that it failed to detect and report pharmacies' suspicious orders of prescription pain pills, federal prosecutors said last week.

Feds: McKesson Agrees to Pay $150M in Pill Shipment Case

The settlement commits San Francisco-based McKesson Corp. to a multi-year suspension of sales of controlled substances from distribution centers in Colorado, Ohio, Michigan and Florida. It also imposes new and enhanced compliance requirements on McKesson's distribution system.

The suspensions are among the most severe sanctions ever agreed to by a Drug Enforcement Agency-registered distributor, according to a statement by the U.S. Justice Department and the U.S. attorney's office for West Virginia's northern district.

"Today's settlement sends a clear message to all distributors of pharmaceutical drugs that it is essential to dispense controlled substances in compliance with DEA's record keeping requirements," DEA Special Agent in Charge Karl C. Colder said in the statement.

In 2008, McKesson agreed to a $13.25m civil penalty for similar violations. Chairman and CEO John H. Hammergren said in a statement that McKesson is "committed to tackling this multi-faceted problem in collaboration with all parties in the (prescription drug) supply chain."

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The settlement commits San Francisco-based McKesson Corp. to a multi-year suspension of sales of controlled substances from distribution centers in Colorado, Ohio, Michigan and Florida. It also imposes new and enhanced compliance requirements on McKesson's distribution system.

The suspensions are among the most severe sanctions ever agreed to by a Drug Enforcement Agency-registered distributor, according to a statement by the U.S. Justice Department and the U.S. attorney's office for West Virginia's northern district.

"Today's settlement sends a clear message to all distributors of pharmaceutical drugs that it is essential to dispense controlled substances in compliance with DEA's record keeping requirements," DEA Special Agent in Charge Karl C. Colder said in the statement.

In 2008, McKesson agreed to a $13.25m civil penalty for similar violations. Chairman and CEO John H. Hammergren said in a statement that McKesson is "committed to tackling this multi-faceted problem in collaboration with all parties in the (prescription drug) supply chain."

Read Full Article

Feds: McKesson Agrees to Pay $150M in Pill Shipment Case