PetMed gets "slap on wrist"

Tampa, Fla.- As the Florida Board of Pharmacy hits PetMed Express and its pharmacists with roughly $70,000 in fines, the online drug retailer faces public scrutiny along with charges from several other states that it dispenses prescription pet medications illegally.

Dr. John Owens, practitioner from Cleveland, Tenn., tells board members, "I could've filed 100 complaints, to be honest with you. I get three faxes a day from PetMed Express."

In what some veterinarians call a "slap on the wrist," the Florida pharmacy board disciplined PetMed Express, its counterpart, Savemax, Inc., and staff at an April 16 hearing regarding the companies' "alternative veterinarian program," whereby contracted DVMs prescribe when local veterinarians refuse to authorize a client's Internet order.

Chief Executive Officer Menderes Akdag and his attorney Gregory Chaires addressed the board, declaring the alternative program's termination while ensuring future compliance with pharmacy laws and regulations.

"They have cleaned up their act, so to speak," Chaires spoke of the company. "PetMed Express has come a long way."

"We're committed to 100 percent compliance," Akdag adds.

"Domino effect"

PetMed Express' in-house scripting is the basis of 36 counts of alleged illegal drug sales against the company, marking its second appearance for disciplinary action before the Florida board. In 1999, it was fined $30,000 on charges of selling drugs without any DVM authorization.

This latest stipulation, drawn up by company attorneys and health department prosecutor David Herman, charges PetMed Express $27,799 in investigative costs and a $40,000 fine - just $10,000 more than the 1999 penalty. It mandates unannounced state inspections and three years probation. Employees, including Akdag, must complete pharmacy laws and training classes.

Despite punishment, the company has never been forced to admit any official guilt. Nevertheless, this case, according to Herman, could set a precedent as state agencies across the country survey its upshot, preparing to take similar action against the nation's largest Internet/mail-order pet pharmacy and others like it.

Stern words

Initially critical of the deal, board members such Dr. Michael Stamitoles, who ruled in the 1999 case, voiced concern as to whether the company takes its punishments seriously.

"I've never seen so many cases against one company," Stamitoles says. "We sat here and heard this same thing three years ago. If those promises were kept, we wouldn't have 50 pounds of paper in front of us today."

Board Chairwoman Dr. Helen Fong offered similar sentiment: "I was a bit disappointed to see these cases. I thought (PetMed Express) understood us the first time around and wouldn't try to circumvent our laws by hiring in-house vets to generate a profit."

Defending the stipulation, Assistant Attorney General Edwin Bayo pointed out that because PetMed Express is licensed in almost every state, other agencies likely will follow suit, using Florida's action as a blueprint for their own (see related story, this page).

Edwin Bayo

"You can bet there will be a domino effect," he says. "This discipline is significant."

Costs of doing business

Still, the punishment, namely its $40,000 fine, is too lenient, critics contend, as the stipulation's approval dismisses all pending cases against the company, the majority of which are filed by veterinarians whose prescription refusals were ignored.

Dr. John Owens, a practitioner from Cleveland, Tenn., was the only veterinarian to be heard before the board. He's hesitant to believe any penalty short of stripping PetMed Express of its pharmacy license will alter the company's business practices.

Pharmacy board smackdown

"I feel like the lawyers are running things through a little bit," he tells board members. "I believe a $40,000 fine is just the cost of doing business for them. They're filling 1,200 prescriptions a day; you can bet they're making a killing.

"(PetMed Express) is going to be up here jumping through hoops in another three years, and I think you know that."

Bygones

However, Herman says PetMed Express deserves a "fresh chance."

"This stipulation is much more stringent than the previous one," he says. "This is a one-shot deal. If they spit on the sidewalk, they can be brought again before the board."