Press Release issued by DOJ: U.S. Files Criminal Charges Against Dallas Company in Connection with Misbranded Drug Shipment That Led to Three Deaths

Department of Justice

Office of Public Affairs

FOR IMMEDIATE RELEASE

Friday, February 10, 2012

U.S. Files Criminal Charges Against Dallas Company in Connection with Misbranded Drug Shipment That Led to Three Deaths

The Justice Department, at the request of the Food and Drug Administration’s Office of Criminal Investigations (FDA-OCI), has charged Gary D. Osborn and his corporation,  ApothéCure Inc., with two misdemeanor criminal violations of the Federal Food, Drug and Cosmetic Act (FDCA) in connection with their interstate shipment of two lots of misbranded colchicine injectable solution that led to the deaths of three people in the Pacific Northwest.  The United States filed the criminal information in the U.S. District Court for the Northern District of Texas.  ApothéCure is a compounding pharmacy.  The company, founded in 1991, is located in Dallas.


Colchicine is used to prevent gout attacks (sudden, severe pain in one or more joints caused by abnormally high levels of a substance called uric acid in the blood) in adults, and to relieve the pain of gout attacks when they occur.


The government’s charges are based on ApothéCure’s February 2007 shipment of 72 vials of compounded colchicine to a now-defunct medical center in Portland, Ore.  On March 19, 2007, a patient in Yakima, Wash., received colchicine from this shipment.  That patient died after receiving the infusion.  The medical examiner there determined that the cause of death was multiple organ failure and acute colchicine toxicity.  On March 30, 2007, colchicine from ApothéCure was administered to two other patients who were suffering from back pain.  Within hours of receiving the colchicine injections, both patients became seriously ill and were taken to local hospitals.  Both patients died shortly thereafter.  The medical examiner in Oregon determined colchicine toxicity to be the cause of death for both patients.


FDA testing of vials selected from the lethal shipment revealed that some of the vials were super-potent, containing 640 percent of the level of colchicine declared on the label.  Other vials were determined to be sub-potent, and contained less than 62 percent of the declared levels on the labels.

“The criminal charges we are filing today allege that the drugs mixed by Mr. Osborn’s company were misbranded which led to the tragic deaths of three people,” said Tony West, Assistant Attorney General of the Civil Division of the Department of Justice.  “We can’t allow those who fail to take care that their products are safe to escape accountability, and today's enforcement action demonstrates we won’t.”


The criminal information filed today charges that ApothéCure committed two prohibited acts under the FDCA by shipping misbranded drugs in interstate commerce.  Mr. Osborn, as the person with responsibility over the firm’s operations, is strictly liable under the FDCA for the firm’s failure to follow federal law.  In addition to the federal government’s criminal charges, Attorneys General have pursued civil actions in Texas and Oregon against Mr. Osborn and ApothéCure.


Assistant Attorney General West acknowledged the close partnership with the FDA and OCI, which referred this matter to the Justice Department.  The case is being prosecuted by Trial Attorneys John Claud and Patrick Runkle of the Civil Division’s Consumer Protection Branch.

A criminal misdemeanor information is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.