Pharmacies solicit DVMs in 'backdoor deals'

Washington-As private veterinary pharmaceutical distributors petition veterinarians to buy mass drug quantities for resale, state regulators warn dealing with these companies could be illegal if not unethical.

In recent months, companies such as such as International VeterinaryExports (IVE) and Far East Pet Exports have employed FAX campaigns solicitingDVMs to buy popular veterinary-distributed flea and tick products in largequantities for resale back to the company.

In return, IVE, for example, promises annual compensation or a minimum$1,000 commission per order placed, a company letter says.

Illegal issues

To the DVM working 60 hours a week for so-so pay, this might sound likea great deal. But Dr. Dirk Hanson, executive director of the Kansas Boardof Veterinary Examiners, warns the practice isn't legal in most states,including his.

"The bottom line is you must have a doctor-patient relationshipto prescribe any medication, and you have to be licensed to distribute medicationsin most states, including Kansas," Hanson says. "I asked (IVE)to stop FAXing our veterinarians these letters, but it's still going on."

When contacted by DVM Newsmagazine regarding business practices,IVE President Jeff Cohen refused to speak on the issue and abruptly hungup. Representatives from Far East Pet Exports, claiming to have a clientbase in "East Asian markets," never returned phone calls seekingcomment.

A rogue business?

What these distribution companies claim is that product manufacturerssuch as Merial or Bayer restrict the amount of drugs their staff veterinarianscan purchase monthly, "therefore limiting the company's sales."

To offset those limits, IVE, for example, claims to have a "network"of more than 200 veterinarians supplying their stock of drugs.

Thwarting this type of resale is exactly why pharmaceutical companiescap the quantity of monthly orders - a regulation designed to "protectveterinarians and consumers" by keeping drug distribution between DVMsand clients. "We don't know or deal with any of these companies,"a spokeswoman for Merial says, "but we know they exist."

Calling on DVMs

Veterinarians such as Bill Swartz in Herndon, Va., and Eddie Garcia inTampa, Fla., receive FAXes a couple times a week.

"I just throw them out," Garcia says.

Swartz, on the other hand, even spotted them at the latest American AnimalHospital Association meeting.

"They're in the bathrooms, on the sink," he says. "I'vegone in, seen them there and dumped the whole stack in the trash. I don'tknow how illegal the whole deal is, but I look at it as horrible for theprofession."

Ties to PetMed Express?

Veterinarians might act hostile toward these companies because at leastone, IVE, is rumored to be linked to PetMed Express - an online/mail-orderpet pharmacy repeatedly penalized for selling prescription drugs to consumerswithout valid prescriptions, thereby circumventing business with the DVM.

"I think most states are looking at the PetMed Express issue, andI think they know a connection between the companies exists," Hansonsays. "I think this is how PetMed Express gets its drugs."

Although IVE and PetMed Express are based in Pomona Beach, Fla., ChiefExecutive Officer Menderes Akdag vehemently denies his company's involvementwith IVE.

"I can't disclose my sources on how we get our products," Akdagsays. "But the bottom line is this: Consumers are the ones feedingthis business; they like the alternative distribution channels. If the consumerwants it, they get it. They're the ones paying the bills.

"As for PetMed Express, all the allegations against us have takenplace in the past and are not reccurring. We're in full compliance withstate and federal laws."

Calling on the government

The Environmental Protection Agency, which regulates flea and tick products,and the U.S. Food and Drug Administration, which covers heartworm medications,claim to know little about these companies' practices.

Although both agencies refuse to discuss, confirm or deny any "ongoinginvestigations," FDA spokeswoman Linda Grassie, says she's "notsure (the companies) are not legit."

"Even if we did investigate, it's much easier to get at these companiesthrough their licensing boards," she says. "FDA has to jump througha lot of hoops to get at these companies."

EPA, on the other hand, routinely fines companies for selling drugs overseaswithout the proper instructions or information. PetMed Express, for example,recently was fined $100,000 for selling drugs in the United States thatused the metric system.

"I'm not sure what these companies are doing exactly or if theiractions constitute a violation of our law," says spokeswoman Mary McDonnell."There is no distribution license by the federal government; that'sa state issue. I can't say whether or not we're investigating, but I shouldmention we're not finished with this issue."

Hanson still believes reselling drugs in this fashion must be violatingsome federal regulations. Beyond that, it's simply unethical, he says.

"You just can't buy and transfer drugs to non end users; that violatesthe doctor-patient relationship," he says. "Sure these companiesare offering veterinarians big dollars. But whether you're a high-paid prostituteor an average prostitute, you're still a prostitute."