editorial comment Well, it's not our fault if "pharming" is illegal. And big pills company do directly target consumers (Vioxx anyone?), while the feds prosecure doctors that are "over prescribing". Confused? Pop a xanax! At least you'll chill....

On a Sunday afternoon last May, two Schering-Plough employees went to the drug maker's Kenilworth warehouse and took $3.4 million worth of an allergy medication.

One of the men drove away in a van filled with Clarinex and stopped in a nearby parking lot, where he was confronted by undercover law-enforcement agents. He admitted this was his third such theft from the facility in two years, according to court documents.

This was just one of several such heists that prompted federal authorities earlier this month to charge 17 people in New Jersey and three other states with involvement in a widespread ring that was trafficking in stolen prescription drugs.

The episode reflects burgeoning criminal interest in pharmaceuticals -- genuine and counterfeit -- and coincides with rising prescription-drug prices, law-enforcement officials say. And as Americans spend more to relieve their ailments, the problem is expected to grow.

"It's huge," said Mike Mordaga, Bergen County's chief of detectives, who earlier this year oversaw the arrest of several people for allegedly stealing prescription drugs and selling them on the black market. "There's big money involved."

To fight back, legislation is being introduced in Trenton this fall to crack down on pharmaceutical wholesalers and also to increase penalties for anyone who possesses large quantities of medicine without proper documentation. Drug makers support both bills.

"The black market for these items has been steadily increasing and it's very prevalent right here in New Jersey, where many pharmaceutical companies have facilities," said Sen. Paul Sarlo (D-Bergen), who initiated the legislation.

The bill to stiffen fines for illegally possessing prescription drugs with the intent to distribute is winding its way through the legislature. For instance, anyone caught with 100 or more dosages of a prescription drug -- a pill or an injectable -- may face a fine up to $300,000 and imprisonment. Currently, the penalty is only a $1,000 fine.

As Sarlo explained, a person who is found with 400 vials of a prescription diabetes pill in their car trunk would have to prove they have a prescription for personal use, or they are a physician, pharmacist or drug company sales rep. Another exemption would apply to a wholesaler with legitimate paperwork.

Separate legislation designed to toughen state oversight of prescription-drug wholesalers is slated to be introduced in the fall, he added. The purpose is to make it more difficult to distribute genuine and counterfeit medicines through legitimate channels to pharmacies.

Last year, counterfeit prescription-drugs made national headlines after an unprecedented amount of fake Lipitor cholesterol pills turned up in pharmacies and warehouses in several states. A series of high- profile arrests soon followed.

The episode prompted regulators and drug makers to argue against the reimportation of medicines from Canada, citing safety concerns. Industry critics counter that the argument is a smoke screen to maintain current pricing levels.

Beyond the pricing debate, the Lipitor incident did expose shortcomings in the nation's distribution system. The Food and Drug Administration regulates drug makers, but monitoring of wholesalers is left to individual states in a patchwork fashion.

"You can get counterfeits in and out of the system quickly and make a lot of money," said Marv Shepherd, a pharmacoeconomics professor at the University of Texas in Austin. "And I don't see a decrease in activity going forward."

An investigation last fall by The Star-Ledger found New Jersey's registration process is riddled with holes -- licensing fees are as little as $200; renewals require only an annual fee; inspections are rarely conducted; and distributor activity can't be tracked.

Earlier this year, the state health department said it was close to embracing several steps that would tighten oversight, including background checks on prospective wholesalers, seeking increases in civil and criminal penalties, raising fees and instituting audits and spot checks.

So far, the state hasn't taken any steps. Recently, Jim Blumenstock, the health department's acting deputy commissioner, indicated steps would be taken during the next few months. But Sarlo expressed impatience.

"The state health department hasn't done anything to crack down," he said. "They have the ability to do a lot just by power of regulation."

A spokeswoman for the health department said oversight regulations are being reformed, but that Blumenstock was unavailable for comment.



Ed Silverman

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