An investigation of a Long Island, N.Y., pharmaceutical distributor by the Drug Enforcement Administration apparently helped save AmerisourceBergen Corp. some $45 million in the purchase of that company.
The Chesterbrook, Pa.-based pharmaceutical services giant, which generates more than $64 billion in annual revenue, announced that it purchased Bellco Health of North Amityville, N.Y., for $190 million in cashor $45 million less than it announced it would pay in March. At that time, AmerisourceBergen said it intended to buy the distributor of branded and generic drugs for $235 million.
An Oct. 1 news release explained that the 19% drop was due to a now resolved regulatory issue and other business matters, but AmerisourceBergen spokesman Michael Kilpatric confirmed that it was the now-resolved DEA investigation of Bellcos distribution of painkiller hydrocodone to Internet pharmacies that led to the companys lower price.
Thats what it was, Kilpatric said, adding that AmerisourceBergen re-engaged with Bellco after the matter was resolved and negotiated the new $190 million figure.
A Bellco representative declined to comment, but in a July news release, the company said it admitted no wrongdoing. A DEA spokeswoman confirmed that Bellco agreed to pay a $800,000 fine and that it failed to report to the DEA suspicious orders equaling 2,288 shipments of hydrocodone between January 2005 and April 2007.
Kilpatric said the purchase by AmerisourceBergen also includes Bellcos two dialysis-related business lines as well as its Web-based clinical data collection and reporting company. -- by Andis Robeznieks
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