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OHIO STATE BOARD OF PHARMACY77 South High Street, Room 1702; Columbus, OH 43215-6126

-Equal Opportunity Employer and Service Provider-

TEL: 614/466-4143 E-MAIL: exec@bop.state.oh.us FAX: 614/752-4836TTY/TDD: Use the Ohio Relay Service: 1-800/750-0750 URL: http://www.pharmacy.ohio.gov

NOTICE OF OPPORTUNITY FOR HEARING

May 6, 2010

Grund Drug Co.c/o Jeffrey Allen Osborne, R.Ph.227 S. Front StreetFremont, Ohio 43420

Re: Ohio Terminal DistributorLicense No. 02-0146200

Dear Mr. Osborne:

YOU ARE HEREBY NOTIFIED that, in accordance with the provisions of Chapters 119. and4729. of the Ohio Revised Code, the Ohio State Board of Pharmacy will determine whetheror not to take action against its license. Prior to any such action, you are entitled to ahearing before the State Board of Pharmacy on the basis of the following allegations:

(1) Records of the Board of Pharmacy indicate that Grund Drug Co. is licensed with theState Board of Pharmacy as a Terminal Distributor of Dangerous Drugs and JeffreyAllen Osborne is the Responsible Pharmacist pursuant to Rule 4729-5-11 of the OhioAdministrative Code and Sections 4729.27 and 4729.55 of the Ohio Revised Code.

(2) Grund Drug did, on or about August 22, 2008, misbrand a drug, to wit: when thepharmacy received a request to refill a prescription for Synthroid 0.1 mg, RX#6297421, a pharmacist dispensed warfarin 10 mg, which had not been specificallyprescribed by the physician. The patient subsequently was harmed. Such conductis in violation of Section 3715.52(A)(2) of the Ohio Revised Code, and if provenconstitutes violating a provision of Chapter 3715. of the Ohio Revised Code withinthe meaning of Section 4729.57 of the Ohio Revised Code.

(3) Grund Drug did, on or about August 22, 2008, misbrand a drug, to wit: when thepharmacy received a request to refill a prescription for Coumadin 10 mg, RX#6314727, a pharmacist dispensed levothyroxine 0.1 mg, which had not been

specifically prescribed by the physician. Such conduct is in violation of Section3715.52(A)(2) of the Ohio Revised Code, and if proven constitutes violating aprovision of Chapter 3715. of the Ohio Revised Code within the meaning of Section4729.57 of the Ohio Revised Code.

(4) Grund Drug did, on or about August 22, 2008, fail to have a system in place toensure positive identification of the pharmacist or pharmacists responsible forperforming all activities relating to the practice of pharmacy including, but notlimited to: prescription information entered into the record keeping system; and/ordispensing. Such conduct is in violation of Rule 4729-5-27(A) of the Ohio

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Administrative Code, and if proven constitutes violating a rule of the Board withinthe meaning of Section 4729.57 of the Ohio Revised Code.

For these reasons, the State Board of Pharmacy will determine whether to take actionpursuant to Section 4729.57 of the Ohio Revised Code.

YOU ARE HEREBY ADVISED that Section 4729.57 of the Ohio Revised Code provides inpertinent part:

(A) The State Board of Pharmacy may suspend, revoke, or refuse to renew any licenseissued to a terminal distributor of dangerous drugs pursuant to section 4729.54 ofthe Revised Code, or may impose a monetary penalty or forfeiture not to exceed inseverity any fine designated under the Ohio Revised Code for a similar offense orone thousand dollars if the acts committed have not been classified as an offenseby the Revised Code, for any of the following causes:

(1) Making any false material statements in an application for a licenseas a terminal distributor of dangerous drugs;

(2) Violating any rule of the board;

(3) Violating any provision of this chapter;

(4) Violating any provision of the "Federal Food, Drug, and CosmeticAct," 52 Stat. 1040 (1938), 21 U.S.C.A. 301, or Chapter 3715. of theRevised Code;

(5) Violating any provision of the federal drug abuse control laws orChapter 2925. or 3719. of the Revised Code;

(6) Falsely or fraudulently promoting to the public a dangerous drug,except that nothing in this division prohibits a terminal distributorof dangerous drugs from furnishing information concerning a

dangerous drug to a health care provider or another licensedterminal distributor;

(7) Ceasing to satisfy the qualifications of a terminal distributor ofdangerous drugs set forth in Section 4729.55 of the Revised Code.

(8) Except as provided in division (B) of this section:

(a) Waiving the payment of all or any part of a deductible orcopayment that an individual, pursuant to a healthinsurance or health care policy, contract, or plan thatcovers the services provided by a terminal distributor of

dangerous drugs, would otherwise be required to pay forthe services if the waiver is used as an enticement to apatient or group of patients to receive pharmacy servicesfrom that terminal distributor;

(b) Advertising that the terminal distributor will waive thepayment of all or any part of a deductible or copaymentthat an individual, pursuant to a health insurance or healthcare policy, contract, or plan that covers the

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pharmaceutical services would otherwise be required topay for the services.

YOU ARE FURTHER NOTIFIED, in accordance with the provisions of Chapters 119. and 4729.of the Ohio Revised Code, that you are entitled to a hearing before the Ohio State Board ofPharmacy, if you request such a hearing within thirty (30) days of the time of the mailing ofthis notice.

IF YOUR FACILITY DESIRES A HEARING, such request shall be mailed to the State Board ofPharmacy, 77 South High Street, Room 1702, Columbus, Ohio 43215-6126. YOURREQUEST MUST BE IN WRITING, AND MUST BE RECEIVED IN THE OFFICE OF THE OHIOSTATE BOARD OF PHARMACY ON OR PRIOR TO THE THIRTIETH (30TH) DAY FOLLOWING THEMAILING DATE OF THIS NOTICE. You may appear at such hearing in person, by or with yourattorney, or you may present the facility's position, arguments or contentions in writing;and, at this hearing, you may also present evidence and examine any witnesses appearingfor and against the facility.

YOU ARE FURTHER ADVISED that if there is no request for such a hearing received by theBoard on or prior to the thirtieth (30th) day following the mailing of this notice, the OhioState Board of Pharmacy, upon consideration of the aforementioned allegations against

your facility, may take action without such a hearing.

BY ORDER OF THE STATE BOARD OFPHARMACY

William T. Winsley, R.Ph., M.S.Executive Director

WTW:vf (D-100506-112)

Registered Mail / Return ReceiptRE 663 137 063 US

c: Tracy M. Greuel, Assistant Attorney General