An investigation of Long Island, N.Y., pharmaceutical distributor Bellco Health by the Drug Enforcement Administration apparently helped save AmerisourceBergen Corp. some $45 million in the purchase of that company.
The purchase also includes Bellco's two dialysis-related business lines as well as Clinical Outcomes Resource Application, or CORA, its Web-based clinical data collection and reporting company which aggregates data for dialysis providers.
Chesterbrook, Pa.-based AmerisourceBergen, the pharmaceutical services giant that generates more than $64 billion in annual revenue, announced that it bought 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 that it intended to buy the distributor of branded and generic drugs for $235 million, and that the deal would close by June 30.
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.