Ouch! McKesson Hit With $13 Million Fine

McKesson Corp., one of the country's largest pharmaceutical drug distributors, took some strong medicine from the federal government today. It agreed to pay more than $13 million to settle claims from six U.S. attorneys offices that it filled hundreds of suspicious online prescriptions for the painkiller Vicodin, and looked the other way.

McKesson operates 30 Drug Enforcement Administration-registered distribution facilities, which are required to report suspicious sales of controlled substance pharmaceuticals under the Controlled Substances Act. The Act provides for a civil penalty of up to $10,000 for each violation of the reporting requirement.

Three of McKesson's facilities "filled hundreds of suspicious orders" — even after a Sept. 1, 2005, meeting at which D.E.A. officials warned McKesson about excessive sales to pharmacies filling illegal online prescriptions.

The U.S. attorneys called the orders "unusually large, unusually frequent," resulting in "millions of dosage units" diverted from legitimate channels of distribution. Deputy Attorney General Mark Filip said today's youth have the "erroneous perception" that "recreational use of these powerful medications is somehow safer than illegal drugs such as cocaine, meth and heroin."

In a statement, McKesson denied any wrongdoing in connection with the settlement of claims for what it called the "distribution of so-called 'lifestyle drugs.'" The settlement calls for a "temporary suspension" of hydrocodone and alprazolam at two of McKesson's distribution centers.

U.S. attorney's offices in six districts will split the $13.5 million payment. The Middle District of Florida will get $7.46 million — the largest share of the pie. Apparently, Vicodin is popular with pill poppers in central Florida.

by Karen Donovan