Author: Maureen Shaffer
OIG/HHS announced today that the former Chairman and CEO of KV Pharmaceuticals, Marc Hermelin, has been banned from conducting business with the US Federal Government for 20 years. He resigned his position on November 10th in an effort to prevent exclusion of KV from selling drugs/medicines that are reimbursed by Medicare, Medicaid, and Tricare. HHS has been promising to pursue exclusion of executives, and we now have our first example in pharma.
All this started with failing to report manufacturing problems, resulting in:
- Guilty pleas to two felony charges by Ethex Corp, a wholly-owned subsidiary of KV
- Shutting down Ethex in an effort to prevent exclusion of KV–and, Ethex comprised more than 60% of KV revenues in FY2008
- Exclusion of the Chairman and CEO of KV Pharmaceutical
- Pharma Fraud, lies, corruption and the Executives who never get prison time: the OIG (bipolarsoupkitchen-stephany.blogspot.com)