Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Former DEA official helped pharma company get drug quota increase, says watchdog

Published 12/02/2021, 01:34 PM
Updated 12/02/2021, 01:40 PM
© Reuters. FILE PHOTO: Department of Justice Inspector General Michael Horowitz testifies during a Senate Judiciary hearing about the Inspector General's report on the FBI handling of the Larry Nassar investigation of sexual abuse of Olympic gymnasts, on Capitol Hil

By Sarah N. Lynch

WASHINGTON (Reuters) - A former senior official at the U.S. Drug Enforcement Administration improperly gave preferential treatment to a pharmaceutical company that was seeking a quota increase so it could manufacture more drugs, the Justice Department's internal watchdog said on Thursday.

In a one-page investigative summary, Inspector General Michael Horowitz said the unnamed official "misused" his or her official position by giving preferential treatment to the pharmaceutical company and pressured subordinates to approve the quota increase.

The increase was requested by a second unnamed former DEA official who worked for the company, the report said.

The former DEA official at the heart of the watchdog's internal probe also apparently planned to work for the pharmaceutical company upon retirement and "lacked candor" with the DEA's Office of Chief Counsel in disclosing those plans, Horowitz's report said.

"The senior DEA official misused the senior official's position at DEA by giving preferential treatment to a request by the pharmaceutical company that employed the former DEA official," the report says. "The senior DEA official pressured and directed subordinates to approve the request."

A spokesperson for the DEA did not have any immediate comment on the findings.

The inspector general's report does not identify the company at issue, or whether the former senior official ultimately went to work there.

Because the Justice Department's inspector general only has the legal authority to compel testimony from current employees, the official was able to retire and declined to voluntarily appear for questioning.

The department also declined to prosecute the official who gave preferential treatment to the drugmaker.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The DEA has come under scrutiny in recent years for its role in helping to exacerbate the ongoing U.S. opioid crisis.

The agency uses a quota system that is designed to ensure that drug manufacturers are able to produce enough drugs for medical, scientific, research and industrial needs.

The quotas apply to drugs that are deemed to be addictive, and fall into schedules I and II.

Critics have accused the DEA of failing to proactively cut the supply of painkillers manufactured in the United States by simply limiting the annual quota.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.