Company expects to resume shipments of controlled substances from its
Auburn, Wash., Lakeland, Fla. and Swedesboro, N.J. distribution facilities
by end of November
DUBLIN, Ohio, Oct. 2 /PRNewswire-FirstCall/ -- Cardinal Health, a
global provider of products and services that improve the safety and
productivity of health care, today announced agreements with the U.S. Drug
Enforcement Administration (DEA) and seven U.S. Attorneys' Offices that
will result in reinstated licenses to distribute controlled substances from
the company's Auburn, Wash., Lakeland, Fla. and Swedesboro, N.J.
distribution centers.
The administrative and civil settlement agreements also resolve all DEA
claims related to the company's controls against the diversion of
controlled substances. Without admitting any wrongdoing, Cardinal Health
also agreed to pay a $34 million settlement payment, an amount the company
fully reserved during fiscal 2008.
"Protecting the integrity of the pharmaceutical supply chain is a
responsibility we take very seriously, and preventing prescription drug
abuse is a public policy goal that Cardinal Health fully supports," said R.
Kerry Clark, chairman and CEO. "We settled this matter so that we could
quickly resume the distribution of these vital medicines to our valued
customers, and we will continue to work with the DEA and other supply chain
partners to take all necessary steps to keep these powerful drugs out of
the wrong hands."
Since November 2007, Cardinal Health has invested more than $20 million
to significantly enhance its controls across its network to prevent the
diversion of controlled substances and has worked diligently with the DEA
to resolve the suspensions.
Specifically, the company has expanded its training, implemented new
processes, introduced an electronic system that identifies and blocks
potentially suspicious orders pending further investigation, and enhanced
the expertise and overall staffing of its pharmaceutical distribution
compliance team. In addition, to strengthen its overall compliance
practices, the company hired former Acting Deputy U.S. Attorney General
Craig Morford to an expanded role as its chief compliance officer,
reporting directly to Clark and to the audit committee of the company's
board of directors. Morford is responsible for regulatory, environmental
health and safety compliance, as well as ethics and enterprise risk
management.
Cardinal Health is currently replenishing its controlled substance
inventories in its Auburn, Lakeland and Swedesboro facilities and will take
a phased approach to restoring controlled substance shipments from each
facility. The company expects to fully resume shipments of controlled
substances from all three facilities by the end of November. Customers
served by these distribution facilities will be notified by Cardinal Health
when they can begin ordering and receiving controlled substance shipments.
In addition, on Sept. 29, the company lifted a voluntary suspension for
its Stafford, Texas facility and resumed shipping controlled products to
customers from that location.
About Cardinal Health
Headquartered in Dublin, Ohio, Cardinal Health, Inc. (NYSE: CAH) is a
$91 billion, global company serving the health care industry with products
and services that help hospitals, physician offices and pharmacies reduce
costs, improve safety, productivity and profitability, and deliver better
care to patients. With a focus on making supply chains more efficient,
reducing hospital-acquired infections and breaking the cycle of harmful
medication errors, Cardinal Health develops market-leading technologies,
including Alaris(R) IV pumps, Pyxis(R) automated dispensing systems,
MedMined(TM) electronic infection surveillance service, VIASYS(R)
respiratory care products and the CareFusion(TM) patient identification
system. The company also manufactures medical and surgical products and is
one of the largest distributors of pharmaceuticals and medical supplies
worldwide. Ranked No. 19 on the Fortune 500, Cardinal Health employs more
than 40,000 people on five continents. More information about the company
may be found at http://www.cardinalhealth.com
Cautions Concerning Forward-Looking Statements
This news release contains forward-looking statements addressing
expectations, prospects, estimates and other matters that are dependent
upon future events or developments. These matters are subject to risks and
uncertainties that could cause actual results to differ materially from
those projected, anticipated or implied. The most significant of these
uncertainties are described in Cardinal Health's Form 10-K, Form 10-Q and
Form 8-K reports (including all amendments to those reports) and exhibits
to those reports, and include (but are not limited to) the following:
uncertainties regarding the decision to spin off Cardinal Health's clinical
and medical products businesses and regarding the impacts of such decision
if the spin-off is accomplished; competitive pressures in Cardinal Health's
various lines of business; the loss of one or more key customer or supplier
relationships or changes to the terms of those relationships; uncertainties
relating to timing of generic and branded pharmaceutical introductions and
the frequency or rate of branded pharmaceutical price appreciation or
generic pharmaceutical price deflation; changes in the distribution
patterns or reimbursement rates for health-care products and/or services;
the results, consequences, effects or timing of any inquiry or
investigation by any regulatory authority or any legal or administrative
proceedings; future actions of regulatory bodies or government authorities
relating to Cardinal Health's manufacturing or sale of products and other
costs or claims that could arise from its manufacturing, compounding or
repackaging operations or from its other services; difficulties and
uncertainties related to the integration of acquired businesses; and
conditions in the pharmaceutical market and general economic and market
conditions. This news release reflects management's views as of Oct. 2,
2008. Except to the extent required by applicable law, Cardinal Health
undertakes no obligation to update or revise any forward-looking statement.
SOURCE Cardinal Health, Inc.
 back to top
Related links:
http://www.cardinalhealth.com
CONTACT:
Media, Troy Kirkpatrick, +1-614-757-6225,
troy.kirkpatrick@cardinalhealth.com, or Investors, Jon Lyons,
+1-614-757-3996, jon.lyons@cardinalhealth.com, both for Cardinal
Health, Inc.
|
