In a stunning rebuke to McKesson, investors rejected its executive compensation plan, following a campaign in which the International Brotherhood of Teamsters accused the pharmaceutical wholesaler of exacerbating the opioid epidemic.
The union argued the pay package given chief executive officer John Hammergren is “excessive,” because McKesson has been “a central figure” in the epidemic and cited a $150 million fine the distributor paid this year for failing to report suspicious orders. The U.S. Drug Enforcement Administration described it as among the “most severe sanctions” ever to involve a drug distributor.
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Apparently, in lieu of any constructive action by Congress, it is good to see at least the Teamsters understand the priorities-curtail Opioid abuse as pushed by drug distributors; hold distributors leadership personally and financially accountable.
In the case of McKesson, it is well beyond the interests of a drug distributor, as it also owns and operates the two largest proprietary operations in cancer care–US Oncology and 21st Century Oncology. Talk about market dominance.
Ironically, when Genentech moved to destroy a very competitive distribution market, McKesson was only one of three left in the grace of Genentech to trade on their market power–at the expense of community practictioners.
This is shocking information and made me feel sick to my stomach. As a registered nurse who used to work in professional relations in the pharmaceutical industry, and the daughter of an old time pharmacist who used to rely on McKesson as a supplier, I think McKesson can never do enough to repair the damage done to others if this story is true. Recently I made a presentation on the addiction related to opioids; how could McKesson miss an opportunity to investigate this situation? How tragic.