Another step against secondary distributors

Earlier this month, Cardinal Health announced it would stop trading in the secondary market for drugs. Its trading activities had been criticized because of the potential to let counterfeit drugs into the supply chain. (See Cardinal takes another step away from the trading business.)

Now, according to the Boston Globe, CVS has announced it will stop buying drugs from wholesalers who use secondary distributors. It’s really not that impressive that CVS is taking this step now. After all, with the major wholesalers stepping away from the trading business, CVS now doesn’t have to worry anymore that it will be at a disadvantage to competitors.

Three years ago a 16 year old liver transplant patient died after taking fake Epogen bought at CVS. Why didn’t CVS step up then and make the announcement? It could have forced the big wholesalers to act.

May 26, 2005

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