California issues cease-and-desist order to subsidiary of AmerisourceBergen: 6 things to know

California issued a cease-and-desist order to Pharmedium Services, a compounding business owned by wholesaler AmerisourceBergen, according to STAT.

Here are six things to know.

1. California regulators issued the order Feb. 28 after an inspection by the state pharmacy board found multiple violations of federal law, including failing to test the components of each medication and improperly labeling drugs. In addition, the inspection found Pharmedium Services didn't use "sound scientific support" to assign expiration dates for compounded medicine, according to STAT.

2. A cease-and-desist order is rare in California for pharmaceutical companies, according to the report. It is handed down by a government agency or court and forces a person or entity to stop what they are doing immediately.

3. According to the order, the compounder was given numerous opportunities to fix the problems, but the violations persisted.

4. The infractions may jeopardize a key license the company holds in Texas that allows it to ship drugs from a facility in Texas to California. The license to ship to California is held by its outsourcing facility in Texas that makes bulk supplies. 

5. The cease-and-desist order expires after 30 days; however, this key license that allows it to ship items to California expires on March 31 and it is unclear when the issue will be resolved.

6. A spokesperson for AmerisourceBergen told STAT, "Pharmedium is actively evaluating our position with the California State Board of Pharmacy. We remain committed to promptly resolving this issue."

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