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UNITED STATES v. SCHLICKSUP DRUG CO.

July 30, 1962

UNITED STATES OF AMERICA
v.
SCHLICKSUP DRUG CO., INC., A CORPORATION, DEFENDANT.



The opinion of the court was delivered by: Mercer, Chief Judge.

This cause coming on to be heard on the government's petition for order to show cause why the Schlicksup Drug Company, Inc., the defendant herein, should not be punished for criminal contempt, and the Court having heard the evidence submitted thereon by the parties hereto, and having examined the written arguments and briefs of counsel, and being now fully advised in the premises, finds as follows:

1. Defendant, Schlicksup Drug Company, Inc., is a corporation under the laws of the State of Illinois, and is and has been continuously since 1951 engaged at Peoria, Illinois, in the District and Division aforesaid, in the business of manufacturing, preparing, packing, distributing, and selling drug products.

2. Defendant has been continuously since 1951 and is now introducing and delivering for introduction and causing to be introduced and delivered for introduction into interstate commerce at Peoria, Illinois, certain of said drug products.

3. On October 21, 1953, this Court entered an order for temporary injunction enjoining defendant from directly or indirectly introducing or causing to be introduced, or delivering or causing to be delivered, for introduction into interstate commerce, at and from Peoria, Illinois, in violation of Section 331(a) of Title 21 U.S.C.A., articles of drugs adulterated within the meaning of Section 351(c) of said Title, because their strength differs from that which they are represented to possess and/or misbranded within the meaning of Section 352(a) of said Title because of false and misleading statements in the labeling of said drug with respect to the quantity of ingredients contained in said article.

4. Said temporary injunction was based on the Court's findings that:

(a) Much of the equipment used by the defendant in the manufacture and preparation of drug products was inadequate, unsuitable, in a poor state of repair, and inaccurate;

(b) There was laxity in the control of the identification, analysis, and formulas in the preparation of the firm's drug products;

(c) The deficiencies found in several finished products which were shipped in interstate commerce resulted from the inadequate manufacturing methods.

5. Said temporary injunction remained in full force and effect throughout the years 1956 and 1957.

6. The president and responsible managerial personnel of the Schlicksup Drug Company, Inc., had complete knowledge of the terms of said injunction from the time of its issuance.

7. Each of the products described in government's petition for order to show cause, to wit, Dapco-S, Double Hyatal, Douchett Powder, Vee-6, and Dumate are articles intended for use in the diagnosis, cure, mitigation, treatment or prevention of diseases in man, or intended to affect the structure or function of the body of man.

8. The above-described products were introduced into interstate commerce by the defendant company between February and November of 1957.

9. The product, "Dapco-S," described in paragraph 3(a) of the government's petition, was 35 percent deficient in the amount of dextroamphetamine sulfate declared on its label when introduced into interstate commerce by defendant.

10. The label on the product, "Double Hyatal," as described in paragraph 3(b) of government's petition, states that each tablet supplies two complete doses. However, when introduced into interstate commerce by defendant, this product would release only one dose while in the human digestive system. The failure of one dose to be released is equivalent to a deficiency of 50 ...


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