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DEA suspends pharmaceutical company’s registration

The United States Drug Enforcement Administration (DEA) recently suspended the license of a pharmaceutical company amidst allegations of suspicious orders for controlled substances. The DEA stated that the suspension was due to a determination that continued operation of the business would “constitute a substantial likelihood of imminent danger to public health and safety.”

The agency has accused the company of illegal distribution of Oxycodone and Hydrocodone. Attorney General Jeff Sessions stated the pharmaceutical company provided pills that fueled the current opioid drug crisis.

What led to the allegations? The DEA states the pharmaceutical company should have identified suspicious orders for controlled substances. The DEA flagged these orders as suspicious because the ordering pharmaceutical companies alleged purchased as much as six times the amount needed for a comparable company.

Authorities require companies that distribute these medications to “identify, recognize and report suspicious order to the DEA.” A failure to do so can result in liability. This generally entails filing out a suspicious order report with the DEA.

What is the impact of these allegations? These types of accusations can cripple a business. The pharmaceutical company that is the subject of these allegations has an opportunity to defend itself in an administrative hearing. Upon conclusion of the hearing the DEA makes a final decision on whether the suspension is removed or the pharmaceutical company’s registration is permanently revoked.

Businesses that are the subject of this type of suspension can build a defense against the DEA’s allegations. Legal counsel experienced in health care law can help preserve your business interests.

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