Draper-based Meds In Motion won a no-bid state contract worth $800,000 before the state killed the deal.
The owner of a Utah pharmacy that was poised to sell millions of dollars worth of hydroxychloroquine to the state is now accused of receiving the controversial coronavirus drug from an unregistered manufacturer in China, in shipments that were labeled as an herbal supplement.
Dan Richards, who is the CEO of Draper-based Meds In Motion, was charged Monday in U.S. District Court in Salt Lake City with a misdemeanor for allegedly receiving bulk amounts of chloroquine and hydroxychloroquine that were falsely labeled as Boswellila serrata extract.
The herbal extract, otherwise known as Indian frankincense, is used to reduce inflammation and to treat arthritis, asthma and inflammatory bowel disease.
The charge is the latest mark on the state’s efforts to respond to the pandemic and its attempt to procure the anti-malarial drugs touted by President Donald Trump last year as the coronavirus spread across the country.
Richards did not respond to a call or text seeking comment. His company won a no-bid state contract worth $800,000 in early April to compound the medication before the state killed the deal and Meds In Motion returned the money.
Utah Department of Health spokesman Tom Hudachko declined to comment on the charge.
The Tribune will update this developing story.