Dallas, Texas 07/18/2014 (FINANCIALSTRENDS) – FedEx Corporation (NYSE:FDX) was officially indicted by the Food and Drug Authority for prescription drug distribution for online pharmacies.
FedEX was found to have conspired with tow online pharmacies through separate agreements to distribute controlled drugs as well as prescription drugs outside of FDA regulations.
As per FDA framework, controlled drugs can be purchased only through a valid prescription.
FedEx Corporation (NYSE:FDX) conniving to distribute controlled drugs without a valid prescription is in violation of rules and therefore punishable.
The incidents were brought out, after agents of the Office of Criminal Investigations department of the FDA worked jointly with Drug Enforcement Administration to establish the illegal distribution network.
The entire indictment refers to July 2004, when over 200 known users of FedEX were observed to be involved in transactions with online pharmacies. Eventually the number of buyers of such illegal drugs through FedEx has grown to 600 by 2010, the investigations noted.
Online Pharmacy have been around for years now, working on several loop-holes or entirely deceiving the NDA by operating as overseas traders to remain outside of FDA’s regulations. Such pharmacies have always been looking at operators like FedEx Corporation (NYSE:FDX) who offer overnight delivery of non-prescription drugs.
With this indictment the FDA has definitely reiterated that its vigilance in matter of controlled drug use is optimal. It also serves as a deterrent to others who have currently escaped legal action and are pursuing illegal ways to distribution of controlled drugs. Typically it involves prescription of several categories of controlled substances such as opioids.
FedEx is not the only shipper to be found wanting. Last year, UPS had worked out a deal which cost the shipped $40 million not to be involved in the same investigations which now hold FedEX wrong.
FedEx officials commented that, “We do not believe that we have engaged in any illegal activities and will vigorously defend ourselves in any action that may result from the investigation.”