Cardinal Health, Dublin, Ohio, agreed to pay $34 million in civil penalties to settle allegations that it failed to report suspicious orders made by Internet pharmacies for the opioid hydrocodone, which were diverted for illegal use, according to a news release. The company separately announced it will spin off its clinical and medical products business into a separate, publicly traded company. Regarding the settlement, Cardinal admits no wrongdoing but will pay various sums to seven U.S. attorneys offices to settle the charges. The agreement follows the closure of three of Cardinals drug distribution centers in November 2007 and an investigation conducted by the Drug Enforcement Administration into the companys order-filling activities. The settlement will allow Cardinal to reinstate distribution from those centers. After the spinoff, Cardinal Chairman and Chief Executive Officer R. Kerry Clark, 56, will retire and be replaced by George Barrett, 53, who is currently Cardinals vice chairman and CEO of its healthcare supply-chain services. The clinical and medical products spinoff will create a $4 billion global company to be headquartered in San Diego.
Late News: Cardinal to pay $34 million to settle Net pharmacy allegations
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