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CVS Takes Measures to Block Counterfeit Drugs

May 25, 2005
CVS says it will no longer purchase drugs from wholesalers that trade in the secondary market, a potential source of counterfeit drugs. CVS, with approximately 5,400 stores, is the nation's largest retail drugstore chain by store count, according to the National Association of Chain Drug Stores.

"We are seeing numerous state specific legislative initiatives aimed at maintaining the safety of the pharmaceutical supply chain. Many of these initiatives, while well intentioned, are not practical from an operational perspective and cannot be supported through technology currently available. Therefore, CVS is taking what we believe to be the most effective means to ensure the continued integrity and authenticity of the pharmaceutical products that CVS dispenses to its customers," said Chris Bodine, Executive Vice President of Merchandising and Marketing at CVS.

"Our approach towards preserving the integrity of the pharmaceutical supply chain is very straightforward. CVS will only purchase pharmaceuticals directly from the manufacturer, or from wholesalers who certify that they are not trading in the secondary drug market," Bodine said. "If we are unable to receive those assurances, those wholesalers' contracts will not be renewed."

There are three major drug wholesalers -- Cardinal, AmerisourceBergen Corp. and McKesson Corp. Cardinal said earlier this month that it will buy drugs only for manufacturers or manufacturer-authorized sources and the others are expected to follow suit.

CVS says its decision is unrelated to a lawsuit filed by a Long Island teenager who was sold a counterfeit drug by a CVS store after he underwent an emergency liver transplant.

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