Hamilton pharmacy charged in Ontario drug resale scheme

A Hamilton pharmacy is among several in Ontario facing criminal charges and $34 million in fines along with drug makers and wholesalers in an alleged scheme that saw them profit from reselling generic prescription drugs, health officials said today.

One pharmacy — Kohler’s Drug Store Ltd. in Hamilton — is facing $4.4 million in fines and four charges for providing false or misleading information, or obstructing an inspection.

The scheme not only endangered public safety by making it difficult to track the products, but also drove up the cost of many prescription drugs through illegal rebates, said assistant deputy health minister Helen Stevenson.

“This is a national issue, that generic prices are so high,” she said in an interview with The Canadian Press.
“The reason that we can’t get lower prices is because (drug manufacturers) are paying such huge allowances to pharmacies.”