Major drug company agrees to settlement

Published: Saturday, May 3 2008 12:19 a.m. MDT

Pharmaceutical giant McKesson Corp., agreed to pay $13.25 million to six U.S. Attorney's Offices on Friday to settle allegations that it violated federal drug reporting provisions. The Utah District Office will receive a little more than $500,000 as part of the agreement.

According to the U.S. Department of Justice, McKesson failed to report to the Drug Enforcement Administration suspicious sales of controlled substance pharmaceuticals it made to pharmacies that filled orders from illegal "Internet pharmacies" that sell drugs online to customers who do not have a legal prescription. It also failed to report unusually large orders of controlled substances it made to other pharmacies. The company is required by DEA regulations to report any suspicious orders.

Deputy U.S. Attorney General Mark Filip said in a released statement that his agency is working to dispel the notion that prescription drug abuse is less dangerous than the use of illegal substances.

"The abuse of prescription medications is a significant and growing problem, and there is an erroneous perception among our youth that the recreational use of these powerful medications is somehow safer than the abuse of illegal drugs such as cocaine, meth and heroin," Filip said. "Today's settlement makes clear the Department of Justice is committed to doing its part to curtail illegal access to these dangerous drugs."

The settlement, in which McKesson made no admission of liability, will be split with Utah and U.S. Attorney's offices from California, Colorado, Florida, Maryland and Texas. The McKesson Corp. is listed as the 18th largest company in the U.S. by Forbes Magazine.

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