For companies in the drug industry, there's one agency that they'd rather not deal with: the Drug Enforcement Administration. Those guys have guns, you know.
The licenses were revoked because Cardinal didn't report suspicious purchases of hydrocodone that it distributed to pharmacies that filled fake prescriptions from Internet pharmacies. The company has since spent $20 million to upgrade its system, in hopes of avoiding trouble with the DEA again.
Cardinal isn't the only drug distributor that's had problems with the DEA recently. Both of its main competitors, McKesson
These DEA crackdowns on the abuse of prescription drugs could help the likes of Pain Therapeutics
It's certainly good news for Cardinal and its investors that the DEA issue is behind it. Now it can focus on that spinoff it announced a short time ago.
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