First Pharma Exec to Be Excluded by OIG Resigns

November 18, 2010
The former CEO and chairman of the board of KV Pharmaceutical has become the first pharmaceutical company executive to be excluded from participation in federal healthcare programs under a new HHS Office of Inspector General (OIG) guidance. Marc Hermelin, the son of KV’s founder, was notified that he would be excluded effective Thursday, according to the company. Hermelin, who is the largest single KV shareholder, voluntarily resigned from his position as chairman. Compliance with the agreement means the OIG will not exercise its authority to exclude KV from federal healthcare programs, which can account for about half of a drug company’s U.S. business.
Drug Industry Daily