DEA Reinstates License for Pharma Giant Implicated in Opioid Crisis

2 min readPublished On: February 11th, 2024By

LOS ANGELES- In a controversial decision, the Drug Enforcement Administration (DEA) has reinstated the operational license of Morris & Dickson, a pharmaceutical company previously implicated in the opioid crisis. This move comes less than a year after the company’s license was revoked due to its role in distributing suspicious shipments of opioids, marking a significant reversal in the DEA’s stance.

Morris & Dickson, a company with a storied history dating back to 1841, faced accusations of contributing to the opioid epidemic through negligent distribution practices. An administrative law judge for the DEA previously described the company’s violations as “the most blatant and egregious” he had encountered, citing a “cavalier disregard” for controlled substance laws and a failure to report thousands of shipments of hydrocodone and oxycodone.

Despite these serious charges, the DEA has allowed the company to resume operations following a settlement. Under the terms of the agreement, Morris & Dickson will pay a $19 million fine and adhere to enhanced reporting requirements for the next five years. Additionally, the company will relinquish one of its two DEA Certificates of Registration but will retain the ability to produce controlled substances ranging from schedule two to five of the Controlled Substances Act. In a notable concession, Morris & Dickson has admitted to all wrongdoing related to its past actions.

The DEA’s decision has raised concerns about the agency’s regulatory efficacy and its potential susceptibility to influence from the pharmaceutical industry. This case highlights the so-called “revolving door” phenomenon, where former government employees transition to roles within the industries they once regulated. Louis Milione, a former DEA official, notably became a consultant for Morris & Dickson, advocating on their behalf despite the judge’s recommendation to revoke their license.

Critics argue that the delay in enforcing the judge’s recommendation until after an Associated Press investigation suggests potential conflicts of interest at play, casting doubt on the DEA’s commitment to holding pharmaceutical companies accountable. The settlement with Morris & Dickson, while imposing financial and operational penalties, allows the company to continue its operations, sparking debate over the adequacy of such measures in preventing future misconduct.

This development underscores the complex challenges facing regulatory bodies in balancing industry oversight with the realities of legal and ethical considerations. As the opioid crisis continues to affect communities across the nation, the effectiveness of regulatory actions against key players in the pharmaceutical industry remains a subject of intense scrutiny and debate.

About the Author: HCN News Team

The News Team at Highly Capitalized are some of the most experienced writers in cannabis and psychedelics business & finance. We cover capital markets, finance, branding, marketing and everything important in between. Most of all, we follow the money.

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