Ex-presidents probed for pharma payments
Watchdog investigates pharmacists for receiving money from drug wholesaler
Ontario’s pharmacist watchdog is investigating two of its former presidents over questionable payments they collected from a pharmaceutical company that supplies their stores with prescription drugs.
The College of Pharmacists received complaints about Mark Scanlon and Esmail Merani after a Star investigation revealed both pharmacists took payments from drug wholesaler McKesson Canada.
“At a time when these men were entrusted to guide the profession forward they enriched themselves by ignoring the law. They must be made an example of,” pharmacist Tony Gagliese alleged in a complaint obtained by the Star.
Scanlon served as president of the Ontario College of Pharmacists from September 2014 to September 2015. He was succeeded by Merani.
Both pharmacists refused to comment on the investigation. Scanlon previously said he uses the money from McKesson to improve the services he offers his patients at his Peterborough pharmacy. The Star does not know how much money McKesson gave to the pharmacists.
A college spokesperson said it has opened separate investigations into Merani and Scanlon but “is not able to disclose any further details on the matter in order to preserve the integrity of the investigations now underway.”
The college holds all pharmacists to the same standards, regardless of any role they have had with the regulatory college, the spokesperson said.
It’s illegal in Ontario for drug companies to give cash or incentives to induce a pharmacy to stock their products. These unlawful payments are known as rebates and critics say they compromise pharmacists’ professional independence and can artificially inflate the price of generic prescriptions.
Earlier this month, two Costco pharmacy directors admitted to taking $1.2 million in rebates from a generic drug maker by demanding the company pay for advertising services such as having its logo printed in pharmacy handouts.
The college lawyer said the case sent a warning to the profession against trying to creatively exploit loopholes in the anti-rebate regulations.
McKesson said its payments to pharmacies are legal and the money is not tied to the sale of drugs.
A Star investigation found McKesson has agreements with groups of independent pharmacies guaranteeing the wholesaler will supply at least 95 per cent of the stores’ brand and generic drugs.
Under these agreements, McKesson provides “support” to the stores. Internal company documents show McKesson pays Ontario-based pharmacies for a variety of things, such as advertising, data sharing and something called a banner standards allowance.
The payments are given to pharmacies that are part of I.D.A., Guardian and Remedy’sRx chains. Scanlon’s and Merani’s pharmacies are I.D.A. stores.
McKesson said its relationship with the pharmacies is “mutually beneficial.”
“At all times, McKesson Canada fully operates within applicable laws and regulations, and does not pay rebates or professional allowances where prohibited,” the company said in a statement.
The Ontario government has received at least two complaints concerning payments made by McKesson, the Star has learned. In a statement, McKesson said it is “not being investigated by Ontario’s Ministry of Health.”
A spokesperson from Health Minister Eric Hoskins’ office said the province has been in regular contact with the college regarding the conduct of the two past presidents and has confidence the organization will handle the matter appropriately.
As of December, both Scanlon and Merani were members of the regulatory college’s committee that handles disciplinary matters.