10-000042 Life Worth Living Foundation, Inc. vs. Department Of Health
 Status: Closed
Recommended Order on Wednesday, September 1, 2010.


View Dockets  
Summary: Petitioner failed to prove entitlement to a Retail Pharmacy Drug Wholesaler Distribution Permit. Petitioner's pharmacy had serious violations sufficient to deny the license.

1STATE OF FLORIDA

4DIVISION OF ADMINISTRATIVE HEARINGS

8LIFE WORTH LIVING FOUNDATION, )

13INC., )

15)

16Petitioner, )

18)

19vs. ) Case No. 10-0042

24)

25DEPARTMENT OF HEALTH, )

29)

30Respondent. )

32)

33RECOMMENDED ORDER

35Pursuant to notice, a formal hearing was held before

44Daniel M. Kilbride, Administrative Law Judge of the Division of

54Administrative Hearings, on March 18, 2010, by video

62teleconference between Orlando, Florida, and Tallahassee,

68Florida.

69APPEARANCES

70For Petitioner: Dean F. Mosley, Esquire

76Law Office of Dean F. Mosley

82250 North Orange Avenue, Suite 550

88Orlando, Florida 32801

91For Respondent: Robert F. Jernigan, Esquire

97Gary Asbell, Esquire

100Department of Health

1034052 Bald Cypress Way, Bin A02

109Tallahassee, Florida 32399-1703

112STATEMENT OF THE ISSUE

116Whether Petitioner should be granted a Retail Pharmacy Drug

125Wholesale Distribution Permit, pursuant to Subsection

131499.01(2)(f), Florida Statutes (2009). 1

136PRELIMINARY STATEMENT

138On July 27, 2009, Respondent, Department of Health,

146received an application from Petitioner, Life Worth Living

154Foundation, Inc., for a Retail Pharmacy Drug Wholesale

162Distributor Permit. On November 13, 2009, Respondent issued its

171notice of intent to deny the permit. Petitioner challenged the

181notice and filed a petition with Respondent on December 2, 2009.

192Thereafter, the petition, along with a Motion to Dismiss

201Petition, was filed with the Division of Administrative Hearings

210on January 6, 2010. Following a hearing on the motion, the

221motion to dismiss was granted with leave to amend. Petitioner

231amended its petition, and this matter proceeded to hearing.

240At the hearing, Respondent called three witnesses: Tram Vu

249and David Lavea, both of whom the attorney for Petitioner cross-

260examined, and Michael Ayotunde, whom Respondent called as an

269adverse witness, after which, Petitioner’s counsel examined him.

277Petitioner offered three exhibits, which were admitted into

285evidence. Respondent offered Exhibits 1 through 15, which were

294also admitted.

296The Transcript of the final hearing was filed on April 20,

3072010. At the conclusion of the hearing, the undersigned

316Administrative Law Judge directed the parties to file their

325proposed findings of fact and conclusions of law within ten days

336of the filing of the Transcript. Petitioner filed a document

346titled “Proposed Ruling and Order” on March 26, 2010.

355Respondent filed its Proposed Recommended Order on April 30,

3642010. Petitioner then filed a Proposed Recommended Order on

373May 10, 2010, to which Respondent filed a motion to strike as

385untimely. Thereafter, Petitioner filed a Motion for Enlargement

393of Time to file its proposals, to which it attached the two

405documents it had previously filed. Finding no prejudice to

414Respondent, the motion to strike is denied.

421FINDINGS OF FACT

424I. Background

4261. Petitioner holds Florida Community Pharmacy License

433No. PH23699 (the “pharmacy license”), pursuant to Chapter 499,

442Florida Statutes. The establishment is located at 1507 Park

451Center Drive, Suite 1L, Orlando, Florida 32835

458(“establishment”), where Petitioner’s records are stored.

4642. On or about July 29, 2009, Petitioner submitted the

474first portions an application to Respondent for a Retail

483Pharmacy Wholesaler Distributor Permit, pursuant to Subsection

490499.01(2)(f), Florida Statutes (“application”).

4943. On September 16, 2009, Respondent's drug agents

502conducted an onsite inspection of the establishment

509(“inspection”) for purposes of assisting in Respondent’s

516determination of whether to issue the permit to Petitioner.

5254. On or about November 13, 2009, Respondent notified

534Petitioner that Respondent intended to deny the application

542(“notice”), and Petitioner filed a petition for administrative

550review, raising disputes of material fact (“petition”).

557II. Prescription Drug Inventory and

562Petition as a “Retail Pharmacy”

5675. To qualify as a retail pharmacy, Petitioner must have

577adequate inventory on hand that would be required by the general

588public for a variety of medical conditions.

5956. On the date of inspection, there was inadequate

604inventory on hand. There were only 18 commercially-available

612prescription drugs. Many of the drugs were injectables, which

621would only fill the needs of a very specific and limited patient

633population.

6347. At the time of inspection, Petitioner’s on-hand

642inventory of prescription drugs lacked any opiate painkillers

650and any drugs indicated for treatment or maintenance of (i) high

661blood cholesterol levels, (ii) systemic bacterial infections

668(oral antibiotics), (iii) osteoporosis, (iv) cough (syrups),

675(v) viral infections, (vi) depression, and (vii) asthma. These

684are some of the most commonly-required drugs in the

693pharmacological arsenal.

6958. Petitioner’s specialization in the area of compounded

703prescription drugs is evidenced by Petitioner’s prescription

710drug inventory and the nature of the prescriptions Petitioner

719filled in the months leading up to inspection. Most of

729Petitioner’s on-hand prescription drug inventory was composed of

737compounded prescription drugs or ingredients to be used in

746compounding prescription drugs. Less than eight percent of

754Petitioner's prescription drugs, or about 18 items, consisted of

763commercially-available prescription drugs in finished dosage

769forms.

7709. In the two-month period before September 29, 2009,

779Petitioner did not dispense a single dose of commercially-

788available, finished-form prescription drugs. All were

794specially-prepared or “compounded” products tailored to the

801specific needs of individual patients.

80610. Petitioner, as a result of an inability to meet the

817most basic and commonplace prescription drug needs of the

826general public, lacked adequate inventory required by the

834general public.

83611. Petitioner served a specific and limited patient

844population: i.e. , those patients requiring specially-compounded

850prescription drugs and those rare patients whose needs could not

860be met by commercially-available products.

86512. Petitioner's explanation as to the reason for having

874only 18 commercially-available prescription drugs available at

881the time of inspection is not persuasive; Petitioner, therefore,

890was not a retail pharmacy.

895III. Life Specialty Pharmacy Medical Equipment

901and Supplies, Inc.: Petitioner’s Unauthorized

906Source for Prescription Drugs

91013. Life Specialty Pharmacy Medical Equipment and

917Supplies, Inc. (“Life Specialty”), a separate entity from

925Petitioner, is under common control with Petitioner. It has the

935same owners, principals, and pharmacy department manager. Life

943Specialty holds Community and Special Parenteral/Enteral

949Pharmacy License No. PH22346 for an establishment located at

9581507 Park Center Drive, Suite 1L, Orlando, Florida 32835. It is

969not authorized under Florida law to purchase, receive, own, or

979distribute prescription drugs.

98214. Petitioner’s prescription drug inventory at the time

990of inspection included certain quantities of Sarapin, a

998prescription drug. Life Specialty acquired and received Sarapin

1006from a Kmart pharmacy that is no longer in business. At the

1018time Life Specialty acquired and received the Sarapin from Kmart

1028pharmacy, that drug was readily available from Life Specialty’s

1037prescription drug wholesale suppliers. Life Specialty later

1044transferred the Sarapin to Petitioner. Life Specialty lacks any

1053permit or authorization under Part I of the Florida Drug and

1064Cosmetic Act, Chapter 499, Florida Statutes (Act), to engage in

1074the wholesale distribution of prescription drugs.

108015. Petitioner, nevertheless, received prescription drugs

1086from Life Specialty, and many of these drugs were in

1096Petitioner’s prescription drug inventory at the time of

1104inspection, including prescription drugs compounded by Life

1111Specialty. Those drugs included:

1115(i) Sarapin

1117(ii) Ketamine Hydrochorlide USP

1121(iii) Progesterone Micro USP

1125(iv) Chloral Hydrate (CIV), Crystal USP

1131100% 125gm

1133(v) Testosterone Propionate Micro USP

1138(vi) Ketamine Hydrochloride USP 100%

1143Powder 25mg

1145(vii) Amphotericin B USP 100% Powder 1gm

1152(viii) Cyclobenzaprine HCl USP

1156IV. Recordkeeping and Pedigree Papers

116116. During the course of the inspection, Respondent

1169requested the opportunity to review pedigree papers and other

1178source-related records for the prescription drugs Petitioner

1185received from Life Specialty. Specifically, Petitioner could

1192not produce any pedigree papers for prescription drugs received

1201from Life Specialty.

120417. Petitioner received from Life Specialty, without a

1212valid pedigree paper, the following:

1217(i) Sarapin

1219(ii) Ketamine Hydrochorlide USP

1223(iii) Progesterone Micro USP

1227(iv) Testosterone Propionate Micro USP

1232(v) Cyclobenzaprine HCl USP

1236V. Recordkeeping

123818. Petitioner did not acquire all of its pedigree papers

1248contemporaneously with the underlying transactions. Petitioner

1254acquired many of the pedigree papers for the prescription drugs

1264in its inventory after the Respondent's inspection.

127119. Petitioner's explanation for these failures was not

1279credible.

1280CONCLUSIONS OF LAW

128320. The Division of Administrative Hearings has

1290jurisdiction over the parties to and the subject matter of this

1301proceeding pursuant to Section 120.569 and Subsection 120.57(1),

1309Florida Statutes.

131121. This permit application case arises under Part I of

1321the Act and the rules promulgated thereunder, Florida

1329Administrative Code Chapter 64F-12.

133322. Petitioner, therefore, is subject to Respondent,

1340pursuant to its grant of authority under the Act, which

1350regulates, among other things, the preparation, manufacturing,

1357repackaging, and distribution of prescription drugs in and into

1366this state. See generally §§ 499.002(2) and 499.003(15), Fla.

1375Stat.

137623. The Legislature intended that the Act should allow

1385Respondent to regulate the prescription drug industry: the

1393business of or trade in prescription drugs, as opposed to the

1404practice of a health care practitioner, such as medicine or

1414VI. The Permit and Qualifications

141924. The permit sought is a Retail Pharmacy Drug Wholesale

1429Distributor Permit created by Subsection 499.01(1)(f), Florida

1436Statutes. Only a “retail pharmacy” may receive the permit.

1445§ 499.01(2)(f), Fla. Stat. This term is defined by statute to

1456include, among other qualifications, a pharmacy “that purchases

1464prescription drugs at fair market prices and provides

147225. Providing prescription drugs to the public is defined

1481by rule: “holding the pharmacy out to the public through

1491prominently displayed pharmacy signs on the exterior of the

1500building and adequate inventory on-hand to fill a variety of

1510prescriptions for a variety of medical conditions that would be

1520required by the public generally.” Fla. Admin. Code R. 64F-

153012.001(2)(f).

153126. The permit would authorize Respondent to engage in a

1541certain amount of the “wholesale distribution” activity with

1549regard to prescription drugs activity that, in the absence of

1559the permit, would generally be prohibited under Florida law.

1568prescription drugs means “to sell; offer to sell; give away;

1578transfer, whether by passage of title, physical movement, or

1587both, deliver; or offer to deliver. The term does not mean to

1599administer or dispense.” § 499.003(17), Fla. Stat. The

1607“wholesale distribution” of prescription drugs refers to the

1615“distribution of prescription drugs to persons other than a

1624consumer or patient. . . .” § 499.003(53), Fla. Stat. Unless

1635specifically exempted from the definition, any business

1642transaction in prescription drugs not involving a patient, or in

1652the case of veterinary prescription drugs, an ultimate consumer

1661Stat.

166227. Retail pharmacies in Florida may engage in limited

1671prescription drug wholesale distribution activity under certain

1678circumstances, only (i) after first having obtained a Retail

1687Pharmacy Drug Wholesale Distributor Permit and (ii) with respect

1696to certain specified customers: another retail pharmacy, a

1704Modified Class II institutional pharmacy or a health care

1713practitioner authorized by state law to prescribe prescription

1721drugs. See §§ 499.01(1)(f) and 499.01(2)(f)1. and (2)(f)4.,

1729Fla. Stat.

173128. Closed pharmacies and other health care entities may

1740not engage in the wholesale distribution of prescription drugs.

1749§ 499.005(21)(a), Fla. Stat. (prohibiting the wholesale

1756distribution of a prescription drug purchased by a health care

1766permit before operating as a retail pharmacy drug wholesale

1775distributor); § 499.012(1)(d), Fla. Stat. (prohibiting the

1782issuance of the permit to the address of a health care entity or

1795to a pharmacy, other than a community (retail) pharmacy);

1804§ 499.03(1)(f), Fla. Stat. (prohibiting the unlicensed

1811possession of prescription drugs).

181529. Engaging in the wholesale distribution of prescription

1823drugs in or into Florida without a permit, if a permit is

1835required under the Act for such activity, is prohibited.

1844§ 499.005(22), Fla. Stat. Likewise, purchasing or receiving

1852prescription drugs from a person not authorized under the Act to

1863distribute prescription drugs is also prohibited.

1869§ 499.005(15), Fla. Stat.

187330. The permit does not authorize the manufacturing of

1882prescription drugs. § 499.01(1)(f) and (2)(f), Fla. Stat.; see

1891also § 499.01(1)(a) and (2)(a), Fla. Stat. (requiring a

1900Prescription Drug Manufacturer Permit before engaging in the

1908manufacturing and subsequent distribution of prescription

1914drugs). Prescription drug manufacturers must also register with

1922the U.S. Food and Drug Administration, pursuant to

193021 U.S.C. Section 360.

1934VII. Pedigrees and Adulterated

1938Prescription Drugs

194031. A “pedigree paper” is a “document in writing or

1950electronic form approved by the department which contains

1958information required by Section 499.01212, Florida Statutes,

1965regarding the sale and distribution of any given prescription

1974drug.” § 499.003(36), Fla. Stat. Therefore, a pedigree paper

1983documents each step in the sometimes separate ownership and

1992possession histories of a given prescription drug, beginning

2000with the manufacturer and ending just short of the transfer to

2011the patient or ultimate consumer. See generally § 499.01212,

2020Fla. Stat.; Fla. Admin. Code R. 64F-12.012(3).

202732. Pursuant to Subsection 499.01212(1), Florida Statutes,

2034“[e]ach person who is engaged in the wholesale distribution of a

2045prescription drug must, prior to or simultaneous with each

2054wholesale distribution, provide a pedigree paper to the person

2063who receives the drug.” If a pedigree paper for a particular

2074prescription drug is “nonexistent, fraudulent, or incomplete

2081under the requirements of [the Act or the rules], or that has

2093been . . . sold or distributed at any time by a person not

2107authorized under federal or state law to do so,” then that

2119prescription drug is “adulterated.” Further, a prescription

2126§ 499.006(10), Fla. Stat.

2130VIII. Recordkeeping

213233. The failure to keep records as required under the Act

2143is prohibited by Subsection 499.005(18), Florida Statutes. All

2151recipients of pedigree papers, including pharmacies, must

2158receive, keep and maintain copies of pedigree papers for all

2168prescription drugs received via wholesale distribution.

2174§ 499.121(6)(e), Fla. Stat.; Fla. Admin. Code R. 64F-

218312.012(3)(a)2. and (3)(d).

218634. Subsection 499.0121(6)(c), Florida Statutes,

2191concerning the general requirements for adequate prescription

2198drug recordkeeping, provides in pertinent part:

2204Records described in this section that are

2211kept at the inspection site or that can be

2220immediately retrieved by computer or other

2226electronic means must be readily available

2232for authorized inspection during the

2237retention period. Records that are kept at

2244a central location outside of this state and

2252that are not electronically retrievable must

2258be made available for inspection within 2

2265working days after a request by an

2272authorized official of a federal, state, or

2279local law enforcement agency. Records that

2285are maintained at a central location within

2292this state must be maintained at an

2299establishment that is permitted pursuant to

2305this part and must be readily available.

2312IX. Basis for Denial

231635. Subsection 499.067(1)(a), Florida Statutes, provides

2322in pertinent part:

2325The department may deny, suspend, or revoke

2332a permit if it finds that there has been a

2342substantial failure to comply with this part

2349or chapter 465, chapter 501, or chapter 893,

2357the rules adopted under this part or those

2365chapters, any final order of the department,

2372or applicable federal laws or regulations or

2379other state laws or rules governing drugs,

2386devices, or cosmetics.

238936. The Act and the rules do not explicitly identify which

2400failures to comply with the Act and the rules are “substantial”

2411within the meaning of Subsection 499.067(1)(a), Florida

2418Statutes, but the Act does impose significant criminal penalties

2427for many pertinent failures to comply therewith: (i) a

2436wholesale distributor failing to deliver a complete and accurate

2445pedigree paper, if and when required under the Act, concerning a

2456prescription drug wholesale distribution commits a third-degree

2463felony, Subsection 499.0051(1)(a), Florida Statutes ; (ii) a

2470purchaser or recipient failing to acquire a complete and

2479accurate pedigree paper, if and when required under the Act, for

2490a prescription drug in a wholesale distribution commits a third-

2500degree felony, Subsection 499.0051(1)(b), Florida Statutes;

2506(iii) a purchaser or recipient failing to authenticate the

2515matters contained in a pedigree paper, if and when required

2525under the Act, concerning a prescription drug wholesale

2533distribution, before further distribution of those drugs commits

2541a third-degree felony, Subsection 499.0051(2)(a), Florida

2547Statutes; (iv) a purchaser or recipient who knowingly takes

2556title or possession of prescription drugs from a person not

2566authorized to engage in wholesale distribution under the Act

2575commits a second-degree felony, Subsection 499.0051(4), Florida

2582Statutes; (v) a person knowingly in possession of contraband

2591prescription drugs who sells, delivers, or intends to sell or

2601deliver those drugs commits a second-degree felony, Subsection

2609499.0051(6), Florida Statutes. Possession, sale, or

2615distribution of adulterated or misbranded prescription drugs has

2623criminal consequences (second-degree misdemeanor). See

2628§ 499.0051(12), Fla. Stat.

263237. Pursuant to Subsection 499.067(1)(b), Florida

2638Statutes, Respondent may also:

2642. . . [D]eny an application for a permit or

2652certification, or suspend or revoke a permit

2659or certification, if the department finds

2665that:

26661. The applicant is not of good moral

2674character or that it would be a danger or

2683not in the best interest of the public

2691health, safety, and welfare if the applicant

2698were issued a permit or certification.

27042. The applicant has not met the

2711requirements for the permit or

2716certification.

27173. The applicant is not eligible for a

2725permit or certification for any of the

2732reasons enumerated in s. 499.012.

27374. The applicant, permittee, or person

2743certified under s. 499.012(16) demonstrates

2748any of the conditions enumerated in s.

2755499.012.

27565. The applicant, permittee, or person

2762certified under s. 499.012(16) has committed

2768any violation of ss. 499.005-499.0054.

2773X. Petitioner's Failure to meet the Minimum Permit

2781Requirements for Receiving the Permit

278638. The minimum requirements for receiving the permit

2794include the applicant qualifying as a “retail pharmacy.” See

2803§ 499.01(2)(f), Fla. Stat. Petitioner, due to its scarce on-

2813hand prescription drug inventory, lacked the capacity to fill

2822some of the most common prescriptions for some of the most

2833common medical conditions afflicting the public generally,

2840including, without limitation, cholesterol-reducing medication,

2845oral antibiotics or drugs for the treatment or maintenance of

2855diabetes. Petitioner also served a limited patient population,

2863as evidenced by its narrowly-focused history of dispensing only

2872to patients requiring specially-compounded drugs and by its

2880limited on-hand inventory of prescription drugs suitable for

2888serving only this population.

289239. Accordingly, Petitioner failed to meet the

2899definitional qualifications as a “retail pharmacy”: Petitioner

2906did not provide prescription services to the general public, in

2916that Petitioner lacked any record of having met the prescription

2926drug needs of the public generally, or any capacity to do so.

2938Therefore Petitioner was not a “retail pharmacy” as defined in

2948Subsection 499.003(50), Florida Statutes. Petitioner did not

2955meet the minimum requirements for receiving the permit set forth

2965in Subsection 499.01(2)(f), Florida Statutes.

2970XI. Petitioner’s Deficient Recordkeeping

297440. Subsection 499.005(18), Florida Statutes, prohibits

2980the failure to maintain records as required under the Act and

2991the rules. Prescription drug records, including pedigree

2998papers, kept at the inspection site or that can be immediately

3009retrieved by computer or other electronic means must be readily

3019available for authorized inspection during the retention period.

3027§ 499.0121(6)(c), Fla. Stat.; see also Fla. Admin. Code

3036all such records, in pharmacies, wholesale distributors and

3044otherwise. “Readily Available” means that individual records

3051can be produced within minutes of Respondent's inspectors’

3059request, unless stored outside the state. Fla. Admin. Code

3068R. 64F-12.001(2)(t). All of Petitioner’s records are stored at

3077the establishment located in Florida. In response to the

3086Respondent’s request for pedigree papers for drugs Petitioner

3094received from Life Specialty, Petitioner required, in at least

3103five instances, approximately two weeks to obtain the pedigree

3112papers from Life Specialty's upstream sources. Accordingly,

3119Petitioner violated Subsection 499.005(18), Florida Statutes,

3125and denial of the permit is therefore appropriate, pursuant to

3135Subsection 499.067(1)(b)5., Florida Statutes.

3139XII. Petitioner received and trafficked

3144in Adulterated Prescription Drugs

314841. Petitioner received prescription drugs from an

3155unauthorized source, thereby adulterating prescription drugs.

3161A. Subsection 499.005(14), Florida Statutes, prohibits the

3168purchase or receipt of a prescription drug from a person that is

3180not authorized under the Act to distribute prescription drugs to

3190that purchaser or recipient. Life Specialty was not authorized

3199under the Act to distribute prescription drugs to Petitioner.

3208Petitioner nevertheless purchased or received prescription drugs

3215from Life Specialty, in violation of Subsection 499.005(14),

3223Florida Statutes, and those drugs were in Petitioner’s

3231prescription drug inventory at the time of inspection.

323942. The transfer of these prescription drugs from Life

3248Specialty, an unauthorized source, to Petitioner rendered those

3256drugs “adulterated.”

3258B. Petitioner received prescription drugs without valid

3265pedigree papers, resulting in the adulteration of prescription

3273drugs.

327443. Section 499.01212, Florida Statutes, the section of

3282the Act principally governing pedigree papers, provides:

3289(1) APPLICATION.--Each person who is

3294engaged in the wholesale distribution of a

3301prescription drug must, prior to or

3307simultaneous with each wholesale

3311distribution, provide a pedigree paper to

3317the person who receives the drug.

3323(2) FORMAT.--A pedigree paper must contain

3329the following information:

3332(a) For the wholesale distribution of a

3339prescription drug within the normal

3344distribution chain:

33461. The following statement: “This wholesale

3352distributor purchased the specific unit of

3358the prescription drug directly from the

3364manufacturer.”

33652. The manufacturer’s national drug code

3371identifier and the name and address of the

3379wholesale distributor and the purchaser of

3385the prescription drug.

33883. The name of the prescription drug as it

3397appears on the label.

34014. The quantity, dosage form, and strength

3408of the prescription drug.

341244. Pedigree requirements are not limited to prescription

3420drug suppliers: Florida law imposes an affirmative obligation

3428on a prescription drug recipient, a pharmacy or otherwise, to

3438acquire a valid pedigree paper before or concurrently with the

3448receipt of prescription drugs. Further, such recipients must

3456maintain pedigree papers in their records. Fla. Admin. Code

3465R. 64F-12.012(3)(a)2. and (3)(d).

346945. Petitioner failed to acquire timely pedigree papers

3477and failed to maintain those records as required under the

3487rules. On at least five occasions, Petitioner acquired pedigree

3496papers, however incomplete and otherwise invalid, two weeks

3504after inspection and well after receiving the prescription drugs

3513in question.

351546. Petitioner's explanation for the delay in acquiring

3523valid pedigree papers is not persuasive. Thus, Petitioner

3531violated Subsections 499.005(28) and (29), Florida Statutes, by

3539failing to acquire pedigree papers in a timely fashion, and

3549Subsection 499.005(18), Florida Statutes, by failing to maintain

3557prescription drug records as required under the Act and the

3567rules.

356847. Petitioner received or purchased prescription drugs

3575from, among others, Life Specialty. Many of Petitioner’s

3583pedigree papers for prescription drugs were incomplete, in that

3592the pedigree papers failed to set forth the comprehensive

3601information required for a complete and accurate pedigree paper.

3610In the case of Sarapin, Petitioner acquired no pedigree paper

3620whatsoever. Several pedigree papers for prescription drugs in

3628Petitioner's inventory did not reference Life Specialty at all

3637and are therefore incomplete. In at least six instances,

3646Petitioner failed to acquire complete and accurate pedigree

3654papers.

365548. Petitioner, nevertheless, retained these prescription

3661drugs and held and offered them for sale, in violation of

3672Subsections 499.005(28) and (29), Florida Statutes.

367849. Subsections 499.005(28) and (29), Florida Statutes,

3685reads as follows:

3688It is unlawful for a person to perform or

3697cause the performance of any of the

3704following acts in this state:

3709* * *

3712(28) Failure to acquire or deliver a

3719pedigree paper as required under this part.

3726(29) The receipt of a prescription drug

3733pursuant to a wholesale distribution without

3739having previously received or simultaneously

3744receiving a pedigree paper that was attested

3751to as accurate and complete by the wholesale

3759distributor as required under this part.

376550. The absence of a complete and valid pedigree paper for

3776these drugs rendered those drugs “adulterated,” Subsection

3784499.006(10), Florida Statutes, resulting in additional

3790violations. See § 499.005(1), (2), (3), and (4), Fla. Stat.

380051. Petitioner committed multiple pedigree paper and

3807recordkeeping violations relative to the prescription drugs

3814received from Life Specialty and maintained adulterated

3821prescription drugs in its inventory. Each of these constitutes

3830a “substantial failure to comply” with the Act, providing

3839Respondent a valid basis for denying the permit.

3847§ 499.067(1)(a), Fla. Stat. Further, the recordkeeping and

3855pedigree paper violations, and the resulting adulteration-

3862related issues, constitute violations of Section 499.005,

3869Florida Statutes. Denial of the permit is therefore

3877appropriate, Subsection 499.067(1)(b)5., Florida Statutes.

3882RECOMMENDATION

3883Based on the Findings of Facts and the Conclusion of Law

3894cited above, it is

3898RECOMMENDED that the Department of Health enter a final

3907order, denying Petitioner's application for a permit to act as a

3918retail pharmacy drug wholesale distributor.

3923DONE AND ENTERED this 1st day of September, 2010, in

3933Tallahassee, Leon County, Florida.

3937S

3938DANIEL M. KILBRIDE

3941Administrative Law Judge

3944Division of Administrative Hearings

3948The DeSoto Building

39511230 Apalachee Parkway

3954Tallahassee, Florida 32399-3060

3957(850) 488-9675

3959Fax Filing (850) 921-6847

3963www.doah.state.fl.us

3964Filed with the Clerk of the

3970Division of Administrative Hearings

3974this 1st day of September, 2010.

3980ENDNOTE

39811/ All references to Florida Statutes are to Florida Statutes

3991(2009), unless otherwise indicated.

3995COPIES FURNISHED :

3998Robert F. Jernigan, Esquire

4002Gary Asbell, Esquire

4005Department of Health

40084052 Bald Cypress Way, Bin A02

4014Tallahassee, Florida 32399-1703

4017Dean F. Mosley, Esquire

4021Law Office of Dean F. Mosley

4027250 North Orange Avenue, Suite 550

4033Orlando, Florida 32801

4036Josefina M. Tamayo, General Counsel

4041Department of Health

40444052 Bald Cypress Way, Bin A-02

4050Tallahassee, Florida 32399-1701

4053R.S. Power, Agency Clerk

4057Department of Health

40604052 Bald Cypress Way, Bin A-02

4066Tallahassee, Florida 32399-1701

4069Dr. Ana M. Viamonte Ros, Secretary

4075State Surgeon General

4078Department of Health

40814052 Bald Cypress Way, Bin A-00

4087Tallahassee, Florida 32399-1701

4090NOTICE OF RIGHT TO SUBMIT EXCEPTIONS

4096All parties have the right to submit written exceptions within

410615 days from the date of this Recommended Order. Any exceptions

4117to this Recommended Order should be filed with the agency that

4128will issue the Final Order in this case.

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Date
Proceedings
PDF:
Date: 10/07/2010
Proceedings: Agency Final Order
PDF:
Date: 10/07/2010
Proceedings: Agency Final Order filed.
PDF:
Date: 09/01/2010
Proceedings: Recommended Order
PDF:
Date: 09/01/2010
Proceedings: Recommended Order (hearing held March 18, 2010). CASE CLOSED.
PDF:
Date: 09/01/2010
Proceedings: Recommended Order cover letter identifying the hearing record referred to the Agency.
PDF:
Date: 05/24/2010
Proceedings: Petitioner's Motion for Enlargement of Time to File Petitioner`s Proposed Recommended Order filed.
PDF:
Date: 05/19/2010
Proceedings: Respondent's Motion to Strike Petitioner`s Proposed Recommended Order filed.
PDF:
Date: 05/10/2010
Proceedings: (Petitioner`s) Proposed Recommended Order filed.
PDF:
Date: 04/30/2010
Proceedings: Respondent`s Proposed Recommended Order filed.
PDF:
Date: 04/27/2010
Proceedings: Exhibits (exhibits not available for viewing) filed.
Date: 04/20/2010
Proceedings: Transcript (volume I-II) filed.
PDF:
Date: 03/26/2010
Proceedings: Proposed Ruling and Order filed.
PDF:
Date: 03/26/2010
Proceedings: Letter to Mr. Mosley from G. Asbell regarding copy of law sections filed.
Date: 03/18/2010
Proceedings: CASE STATUS: Hearing Held.
PDF:
Date: 03/16/2010
Proceedings: Respondent's First Amended Unilateral Pre-Hearing Statement filed.
Date: 03/16/2010
Proceedings: Petitioner's Exhibits (exhibits not available for viewing) filed.
PDF:
Date: 03/15/2010
Proceedings: Amended Notice of Hearing by Video Teleconference (hearing set for March 18, 2010; 9:30 a.m.; Orlando and Tallahassee, FL; amended as to type and location).
PDF:
Date: 03/12/2010
Proceedings: Unilateral Pre-hearing Statement filed.
PDF:
Date: 03/12/2010
Proceedings: Notice of Retaining Court Reporter filed.
PDF:
Date: 03/08/2010
Proceedings: Order Granting Motion to Amend Petition for Review of Agency Action
Date: 03/08/2010
Proceedings: CASE STATUS: Motion Hearing Held.
PDF:
Date: 03/02/2010
Proceedings: Amended Notice of Taking Deposition Duces Tecum (Petitioner Life Worth Living Foundation, Inc) filed.
PDF:
Date: 03/01/2010
Proceedings: Unopposed Amended Petition for Review of Agency Action filed.
PDF:
Date: 02/23/2010
Proceedings: Notice of Taking Deposition Duces Tecum (Petitioner Life Worth Living Foundation, Inc) filed.
PDF:
Date: 01/25/2010
Proceedings: Order of Pre-hearing Instructions.
PDF:
Date: 01/25/2010
Proceedings: Notice of Hearing (hearing set for March 18, 2010; 9:30 a.m.; Orlando, FL).
PDF:
Date: 01/25/2010
Proceedings: Order Denying Motion to Dismiss.
PDF:
Date: 01/21/2010
Proceedings: (Respondent's) Response to Initial Order filed.
PDF:
Date: 01/15/2010
Proceedings: Response to Initial Order filed.
PDF:
Date: 01/06/2010
Proceedings: Retail Pharmacy Prescription Drug Wholesale Distributor Permit Application filed.
PDF:
Date: 01/06/2010
Proceedings: Motion to Dismiss Petition filed.
PDF:
Date: 01/06/2010
Proceedings: Petition for Review of Agency Action filed.
PDF:
Date: 01/06/2010
Proceedings: Notice (of Agency referral) filed.
PDF:
Date: 01/06/2010
Proceedings: Initial Order.

Case Information

Judge:
DANIEL M. KILBRIDE
Date Filed:
01/06/2010
Date Assignment:
01/06/2010
Last Docket Entry:
10/07/2010
Location:
Orlando, Florida
District:
Middle
Agency:
ADOPTED IN TOTO
 

Counsels

Related DOAH Cases(s) (1):

Related Florida Statute(s) (13):

Related Florida Rule(s) (2):