Counterfeit drugs hit pharmacies Organized criminals peddle fake medicines

San Francisco Chronicle ^ | August 3, 2003 | Victoria Colliver

[sarcasm]

Marilyn Arons had been taking cholesterol-lowering Lipitor pills for 2 1/2 months before she made an unnerving discovery.

They were bogus.

She found out only after hearing about a recall of millions of counterfeit tablets of the nation's most popular prescription drug. "It bothered me that the pharmacist said, 'If you weren't harmed by it, it doesn't make a difference.' It makes a big difference," Arons said.

[ex-Texan]

* BUMP * !!

[sharktrager]

The pharmacies will buy from anyone who calls them or sends them a fax showing a price lower than what their regular distributor charges.

Funny thing is, they know what the manufacturer's wholesale prices is. That is how almost all pricing is calculated. And what they pay the large distributors is already below that price. They know those prices are too good to be true.

[Vesuvian]

They're worried about the dangers of foreign medications when there's home grown bootlegs? I bet drugs from overseas are safer.

[The Raven]

Oh my!!! Somebody wake up the Democrats!!! Their government-run protection of us isn't working !!!!

[The Great RJ]

I have to agree with the FDA, consumers will be even more at risk when they will be getting their drugs from a pharmacy Timbuktu to save a buck.

[TomGuy]

But that is the reason the FDA would not allow drugs to be imported from Canada and elsewhere....

So much for that theory, Uncle Sam...they fakes are ALREADY here!!!!

Some how this will result in significant drug price increases "for our benefit and protection."

[GovernmentShrinker]

Why on earth are suits against the drug manufacturers being alowed to proceed? Attorneys and clients filing such nuisance suits should be jailed, and in the case of the attorneys, disbarred. There is not even the slightest allegation that the drug manufacturers had anything to do with the counterfeit drugs.

[jammer]

Funny thing is, they know what the manufacturer's wholesale prices is. That is how almost all pricing is calculated.

The Average Wholesale Price IS used as a neutral price to determine what the patient or third-party payer pays. Otherwise, the AWP is meaningless. Your simplistic analysis is wrong. There is a structured system of group purchasing organizations that leverage themselves for volume discounts--sometimes very deep. For example, based upon percentage use of Vioxx, our price last year was below $ 4.00 for 30 tablets. This year, because the percentage rose, it is $ 65.00. The AWP is a little over $ 107.00

Doesn't anybody here see that this is a publicity stunt by the FDA to get more regulatory power? The conclusion should be, but isn't, that Canadian drugs are just as safe as US drugs. But the FDA wants you to draw the conclusion that it needs more funding, more power. I say all this against self-interest--the widespread use of Canadian drugs will cost me money.

[sharktrager]

Actually, they con't use AWP much. They use cont minus for most customers.

I was credit manager for Cardinal, and I handled a lot of pricing analysis.

[jammer]

According to what you're talking about. If you are from Cardinal, then you know that cost minus crap is another misdirection--no one can do that. It's like buying cars at "invoice" price. I've said that since I saw the first one in the mid-80's (I opened Owen's second pharmacy, so I've been around a loooong time). And, sure enough, Bergen, who used to be excellent, went down the tubes (but for a myriad of reasons, this being a minor one). But, I only said that in response to the post that AWP was how things were calculated--and I suppose you are in agreement with my disagreement.

I would be interested in a private message telling me if you knew the old Owen guys. No one can argue with Cardinal's success, but I know a lot of old guys who built that part of the organization that are gone.

[sharktrager]

It is a little confusing, but I knowof no-one who doesn't understand exactly how it works. The "cost" is simply what the manufacturer is listing at that moment.

The real issue is the scheduled, usually quarterly, 15% manufacurer price hikes. Can't blame distributors for stocking up in advance.