Dental Insider Blog

Observation and Commentary On the Dental Industry

Henry Schein Named In Lawsuit…

Posted by dentalinsider on September 17, 2007

Henry Schein Inc. and 4 others have been name in a lawsuit alleging that they were diverting drugs to the gray market.

This action alleges that the Big Three Wholesalers, Henry Schein, and Does 1- 1000 (collectively “defendants”) knowingly diverted or caused the diversion of pharmaceuticals and vaccines into the uncontrollable gray market, rendering such drugs unsafe, adulterated, and non-reimbursable by government health care programs.

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7 Responses to “Henry Schein Named In Lawsuit…”

  1. Associate Q said

    Who would have ever guessed Schein, an upstanding and people friendly company, would ever do such a thing?

    “Among the sources of diverted drugs are institutional purchasers that are eligible to purchase deeply discounted drugs, buy more than they need, and clandestinely sell the remainder to wholesalers at a profit.”

    “Schein was one of the companies that diverted Merck’s drugs and sold them to wholesalers.”

    Seems like a pretty twisted little situation. How concerned is Schein about the health and safety of end users? When a company does these types of things knowingly, they are doing it for nothing but a profit. Although this case has not been prosecuted yet, so these charges are all alleged.

    I think someone asked a while back about Becker and their “gray market” or other similar activities and whether Schein would continue them. I think this answers that question. Anything for a profit. Isn’t Corporate America great?


  2. Reeeeeeealy said

    Grey Marketing of dental products is legal in the US but NOT pharmaceuticals. Im sure somehow someway Scheins lawyers will make this go away. After all there were quite a few lawsuits against F*** S*****n & he has a lot less money then the Schein family & his lawyers made them go away. The rich very rarley get punished. I mean look at OJ!!!!!!

  3. jd said

    Here we go again with the claim that selling grey market product in the U.S. is legal. Check your statues again, paying careful attention to the patent and copyright laws. I get a kick out of those who claim that the selling of product not intended for sale in the U.S. is legal.
    As far as Schein goes, if they did do what they are accused of, then they should be taken to task for it.

  4. kp said

    Wall Street apparently doesn’t really care b/c the stock went up yesterday and only down .19 today.

  5. Reeeeeeealy said

    OK JD then alot of the manufacturers should have lawsuits against them because they sell their own products grey market. If you think I dont know what Im talking about I know first hand. There is a lot of fine prints that you are obviously not aware of. I get a kick out of those who are so naive.

  6. Back to the topic at hand though. This case will get dragged through the courts for many years. There is still a lawsuit against Dentsply from 2000 that is still in the court systems with no end to come of it anytime soon. Yes what Schein did was probably illegal and immoral but the only people that Schein has to answer to is their stockholders and as long as profits are up then the stockholders are happy.

  7. Reeeeeeealy said

    Shawn I couldn’t have said it better. That is always the bottom line.

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