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Saturday, August 28, 2004

'Pedigree' violations trip up RxBazaar


Drug distributor failed to provide prior sales, sellers

By James McNair
Enquirer staff writer

RxBazaar, a pharmaceuticals distributor in Forest Park, pleaded guilty Friday to two violations of federal drug-marketing laws.

U.S. Magistrate Judge Timothy Black ordered RxBazaar and its subsidiary FPP Distribution to pay fines of $100,000 each and put them on probation for five years. The companies also agreed to run notices about the criminal case in trade publications.

RxBazaar CEO Robert Cusick, who entered the pleas for the companies, did not return a phone call Friday. The U.S. Attorney's office said the company's future is "uncertain." On Aug. 10, the company said it was winding down operations and that it had laid off 40 of its 70 employees. Its Web site, www.rxbazaar.com, wasn't operational Friday afternoon.

The government said the RxBazaar Web site brought together buyers and sellers of brand-name prescription drugs and other products. Its Superior Pharmaceutical unit sold products by telemarketing and other means, the government said, while FPP Distribution provided delivery for RxBazaar and Superior.

But the U.S. Food and Drug Administration cited the companies for failing to list prior sales and sellers of the drugs, a certification known as a pedigree. The pedigrees were required by the Prescription Drug Marketing Act to prevent counterfeiting, misbranding and adulteration of drugs. RxBazaar's violations were booked as misdemeanors.

"There is no higher priority than ensuring the safety and efficacy of prescription brand and generic drugs," said Gregory Lockhart, U.S. attorney for the Southern District of Ohio. "We will prosecute violators of the pedigree requirement ... to the fullest extent of the law."

RxBazaar's common stock is publicly traded, but has fallen from a high of $3.25 on June 7 to a bid price of 1.5 cents Friday.

---

E-mail jmcnair@enquirer.com




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