Cardinal Cited for Narcotic Distribution

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

In all three cases, the DEA cited problems with the centers' distribution of the narcotic pain reliever hydrocodone, known commonly as Vicodin, a Cardinal spokesman said. The suspensions prohibit the distribution of any controlled substances from the three centers, the spokesman said.

Cardinal, based in Dublin, Ohio, 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 for its centers in Auburn, Wash., and Lakeland, Fla.

The company operates 25 pharmaceutical-distribution centers.

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

The DEA alleged in a news release last month that Cardinal, through its Auburn facility, sold large quantities of hydrocodone to a Burlington, Wash., drugstore that was engaged in schemes to dispense controlled substances based on illegitimate prescriptions.

In spite of a DEA warning about rogue Internet pharmacies, Cardinal's Auburn branch distributed nearly 18 million dosage units of hydrocodone to retail pharmacies in the first nine months of this year, including 605,000 units to the Burlington drugstore, which also received a suspension of its DEA certificate of registration, the agency 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 in its recent letter to its Swedesboro customers, which is posted on its Web site.

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

"Cardinal Health is committed to providing a safe and secure pharmaceutical supply chain. We take these responsibilities very seriously, and work diligently to comply with all applicable laws and regulations governing distribution," the letter said.

Cardinal spokesman Jim Mazzola said that in all three instances, the DEA cited the distribution of hydrocodone to retail pharmacies allegedly engaged in diversion of the drug. "We're reviewing our controls across all of our distribution centers and ... we are taking some steps to enhance the controls that we already have in place," Mazzola said.

In the short term, Cardinal is engaging in more stringent manual reviews of large orders hydrocodone, he said. The company is also starting to implement an information-technology system this month to provide more control around orders for controlled substances, according to Mazzola.