Tuesday, December 11, 2007

More Monkey Business From Cardinal

Believe it or not, the U.S. Drug Enforcement Administration (DEA) has again suspended Cardinal Health’s (CAH) license to distribute controlled substances from its Lakeland, FL, distribution center. This suspension follows close on the heels of the November 29 DEA suspension at the company’s Auburn, WA, distribution center.

Two down; 26 warehouses to go?

Lakeland is midway between Tampa and Orlando, placing it smack dab in the heart of America’s Diversion Heartland™ in the state with the country’s first pedigree laws. Hmmm...

Cardinal’s press release states that the company is “reviewing its controlled substance procedures.” I guess another review can’t hurt. In its 10-K filed last August, Cardinal claims to have already “adopted policies and procedures designed to prevent the diversion of pharmaceutical products” in response to the Assurance of Discontinuance signed in December 2006 with the New York State Attorney’s office.

So far, Wall Street seems unconcerned because the suspensions will have no material financial impact. But doesn’t anyone else wonder if the DEA now has a dedicated Task Force examining every Cardinal facility?

In the meantime, perhaps Mr. Clark should lead a field trip to the new Good Medicine, Bad Behavior: Drug Diversion in America exhibit at the DEA Museum & Visitors Center in Arlington, Virginia. Looks fun to me.

1 comment:

  1. Adam, as always a timely and insightful post. If the FDA does have a target on Cardinal it is a reminder of the addage that where there is smoke there is fire.

    Mark Parrish was a public supporter of strong controls/pedigree types of programs. Wonder what the Cardinal stance is now that he is gone?

    Thanks, too, for the note on the IntegriChain white paper. Good reading especially in light of this posting! :)

    All the best to you and yours in the holiday season and all year.