The Drug Enforcement Administration has alleged that the online pharmacy Truepill misplaced thousands of prescriptions for stimulants used to treat Attention Deficit/Hyperactivity Disorder.
The San Mateo, California-based company, which had previously prescribed the drug to struggling mental health digital healthcare company Cerebral, was served with a request to report the cause on Thursday.
This order is an administrative action to determine whether the DEA registration certificate should be revoked.
The agency said its investigation found some prescribers did not have the appropriate state licensing while others exceeded the 90-day supply limit. It said it found more than 60% of the 72,000 controlled prescriptions Truepill was prescribed between September 2020 and September 2022 for stimulants, including generic forms of Adderall.
“In many cases, Truepill dispensed prescription controlled substances that were not issued for lawful medical purposes in the course of ordinary practice,” the DEA alleges in a press release.
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In an emailed statement, the company confirmed it had received the order and is cooperating fully with the order. “We are confident that we will be able to demonstrate that there was no wrongdoing,” a spokesman wrote.
Ronald Chapman II, an attorney who has represented clients in such lawsuits, said in an email: “The chance of a successful defense case in a DEA registration hearing is very low. “If, in fact, the prescriptions exceed the supply limit and lack state authority, I believe the DEA administrator will revoke TruePill’s DEA subscription. This will be an end of business event for TruePill.”
In May, the Wall Street Journal reported that Truepill was suspending prescriptions for Schedule II substances, which account for less than 1% of all prescriptions. The report says Truepill is Cerebral’s preferred pharmacy.
In an emailed statement, a Truepill spokesperson said the company “discontinued distribution of controlled substance II drugs prescribed via telehealth in April.”
The company laid off 150 employees, or about 15% of its employees, at the beginning of June. At the time, Sid Viswanathan, CEO of Truepill, said the company was adjusting its financial strategy to address the broader economic situation. In October 2021, Truepill received a $142 million Series D funding round, bringing its valuation to $1.6 billion.
This story first appeared in Digital Health Business & Technology.
