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Meds-Stat Surrenders Vaccine to Florida

October 28, 2004
ASAP Meds, Inc., doing business as Meds-Stat, will turn over its inventory of flu vaccines to the State of Florida and will no longer buy or sell flu vaccines under the terms of an agreement with the Florida Attorney General.

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A consent order signed by Circuit Judge Robert Andrews ends legal action seeking an injunction that would require Meds-Stat to stop selling vaccines at "unconscionable" prices. The action does not affect the ongoing lawsuit that alleges unconscionable pricing of vaccines.

Kansas and Texas also have suits pending against Meds-Stat.

The order requires Meds-Stat to surrender its remaining stock of flu vaccines to the Florida Department of Health and to cease buying or selling flu vaccines in the future.

"This Order prevents Meds Stat from price gouging consumers in the sale of the flu vaccine," said Attorney General Charlie Crist. "Our efforts will prevent Meds-Stat from buying and selling flu vaccine that would otherwise be solid at a fair price. This is an important step forward in the area of public health. Unconscionable prices for flu vaccine could prevent those at risk from obtaining the medicine they need."

On October 13, Crist sued Meds-Stat for deceptive and unfair trade practices over the pricing of flu vaccines. The company was selling vials of flu vaccine, which contained 10 doses per vial, for $900 when the normal price range was $63-$85 per vial. This amounted to a markup of more than 900% per vial.

The suit included both a request for an injunction that would prevent Meds-Stat from selling vaccines at unconscionable prices, which was concluded with today's Consent Order, and a request for damages and penalties as allowed by law.

On October 18, U.S. Health and Human Services Secretary Tommy Thompson announced that the federal government was filing a brief in support of Crist's suit.

HHS Secretary Tommy G. Thompson sent letters today to every state attorney general informing them that the HHS filed a brief in Broward County court in Florida to support the State of Florida's prosecution of price gouging by distributors of flu vaccine and offering assistance to all states as they crack down on any price gouging or other irregularities regarding flu vaccine.

"Price gouging is simply an abuse of our nation's most vulnerable citizens who need the flu vaccine the most," Secretary Thompson said. "Just as we have done with Florida, we stand ready to help any other state that prosecutes these unconscionable actors, and we will make it clear that price gougers should be punished to the full extent of the law."

In his letter, Secretary Thompson also asked each attorney general to be on guard against potential price gouging with regard to antiviral medicines that can be used to prevent and treat the flu. These medicines -- namely amantadine, rimantadine, oseltamivir/Tamiflu and zanamivir -- can effectively protect the public from the flu and its complications.

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