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An Open Letter to Our Customers

April , 2008

Thank you for your patience and understanding as we take steps to guard against the diversion of controlled substances. Diversion is an issue that has received considerable attention over the past year and is one of the top issues facing all of us in the pharmaceutical industry. As criminals have become increasingly sophisticated in their methods to illegally divert and abuse these drugs, it’s necessary for those of us in the supply chain to take a close look at our practices and determine if we are doing everything we can to stop it.

We all know that the problem is very real. As I’m sure you are well aware, there are more deaths from overdoses of prescription opioid painkillers than cocaine and heroin. Ten percent of high school seniors admit to abusing prescription painkillers, and four out of the top five most abused narcotics in high schools are prescription drugs. Just like with illegal drugs, cutting off access is the prime vehicle to curb the abuse. But unlike illegal drugs, our industry is critical to the fight.

Given the magnitude of this societal problem, it should be no surprise that the Drug Enforcement Administration (DEA) has made diversion one of its top areas of focus. All of us in the industry, from manufacturer to distributor to the pharmacist on the front line, are aligned with the DEA in this aim -- to ensure that controlled substances are getting only to those with a legitimate prescription.

Unfortunately, as the term supply "chain" implies, strengthening one link can put added stress on another, and in hindsight we did just that with some of our customers. In our zeal to do the right thing in addressing the diversion issue, we unintentionally put an undue burden on some of our legitimate and long-standing customers. This is disappointing to all of us, and we apologize to those customers who have been affected.

We will continue to improve our controls to realize our goal of balancing the legitimate orders we receive from customers with the need to protect the integrity of the supply chain. And we are committed to communicating openly with you as we continue to address this important issue.

We believe that the actions we are taking now – as an industry and as a company – will result in an even safer and more secure pharmaceutical supply chain. If you have suggestions to improve the integrity of the supply chain, please continue to share them with us. We look forward to working with you to further guard against diversion.

Sincerely,


R. Kerry Clark
Chairman and Chief Executive Officer