Gilead Sciences recently revealed a disturbing drug-counterfeiting operation that involved the tampering and unauthorized resale of its HIV medications, putting patients at risk. The operation, allegedly orchestrated by Peter Khaim, a known medical fraudster, took place at two pharmacies in New York City – 71st RX and Best Scripts. According to court documents, Khaim was identified as the mastermind behind one of the most extensive counterfeiting schemes of Gilead medications in the country.
Gilead’s lawsuit against Khaim and the pharmacies implicated in the scheme alleges that Khaim controlled the two pharmacies where the counterfeit medications were manufactured and distributed. The counterfeiters used authentic prescription bottles from Gilead but tampered with the medication inside or the associated documentation. This included emptying the original bottles, refilling them with incorrect medication, and sealing them with a different material than Gilead’s authorized tamper-evident seals. The fake bottles were then sold with counterfeit patient information, caps, and invoices.
Most of the counterfeit Gilead medications seized in the operation were Biktarvy and Descovy. The victims of this scheme included patients living with HIV who were deceived into taking counterfeit medications instead of their prescribed ones. Additionally, unsuspecting patients who received sealed bottles from their pharmacies were unknowingly given counterfeit medications. Gilead highlighted the grave risk to patients’ health and safety posed by the counterfeit drugs entering the market.
This is not the first time Gilead has taken legal action against Khaim for counterfeit HIV medications. In a previous case, Gilead obtained an injunction against Khaim for selling fake Gilead products, yet he continued his criminal operation. Khaim has a history of fraud-related offenses, including receiving lengthy prison sentences for medical and insurance fraud. Despite being under surveillance with a court-ordered GPS ankle monitor, Khaim managed to operate the counterfeit drug scheme from the two Queens pharmacies.
In response to the latest developments, Gilead reiterated its commitment to prioritizing patient safety and combating counterfeit drugs in the market. The company emphasized its collaboration with regulatory agencies and law enforcement to dismantle counterfeiting networks, deter fraudsters, and prevent illicit pharmaceutical distribution. Gilead’s proactive stance aims to protect individuals from falling victim to criminals selling counterfeit versions of their medications.
A previous investigation by CNBC shed light on the shadowy world of counterfeit drugs and Gilead’s continuous efforts to stop criminals from tampering with its products. In many cases, counterfeiters acquire medications from individuals willing to sell them for profit, leading to the alteration of packaging and resale to unsuspecting patients. The recent discovery of lighter fluid at the pharmacies during the seizures further underscores the illicit methods used by counterfeiters to repackage and sell fake medications.
The exposure of the drug-counterfeiting operation by Gilead Sciences serves as a stark reminder of the dangers posed by counterfeit medications in the healthcare industry. The case highlights the importance of vigilance, regulatory oversight, and collaborative efforts to safeguard patients from fraudulent activities that jeopardize their well-being. Gilead’s proactive stance against counterfeit drugs underscores the company’s commitment to ensuring the integrity and authenticity of its medications for the benefit of patients worldwide.