Monday, December 17, 2007

Cardinal Health Gets Controlled-Substance Suspension

Drug wholesaler Cardinal Health Inc. (CAH) has notified customers that the U.S. Drug Enforcement Agency suspended the company's license to distribute controlled substances from a third distribution center.

The Dublin, Ohio, company wrote to customers of its Swedesboro, N.J., pharmaceutical-distribution center last week that the DEA would suspend the license to distribute controlled substances from that facility effective Dec. 13.

Cardinal didn't issue a news release about the latest suspension, which followed its recent announcements that the DEA was suspending its licenses to distribute controlled substances from centers in Auburn, Wash., and Lakeland, Fla.

The company operates a network of 25 pharmaceutical-distribution centers.

The DEA, in an order to Cardinal suspending the Auburn license, said the company had failed to maintain effective controls against the diversion of a particular controlled substance, and cited the sale of hydrocodone to a pharmacy that allegedly dispensed excessive amounts of the drug based on illegitimate Internet prescriptions.

An updated version of Cardinal's letter to its Auburn customers says the company cannot distribute any products containing ephedrine, pseudoephedrine or iodine from that center.

In its recent letter to Swedesboro center customers, Cardinal said: "We are cooperating fully with the DEA in an effort to address the DEA's concerns and resolve the suspension. Cardinal Health also is implementing near- and long-term enhancements in our controls that guard against theft and distribution to pharmacies engaged in diversion."

Cardinal said it was making arrangements to fill customer orders for controlled substances from some of its other distribution centers.

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