Allion Healthcare

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Allion Healthcare Inc.
Industry Specialized Health Services[1]
Founded 1983 (The Care Group)
1999 (Allion)
Headquarters Melville, New York, United States of America
Area served New York, California, Florida, New Jersey, and Washington
Key people Michael P. Moran (Chairman, President, CEO)
Revenue Increase US$341 Million (FY 2009)[2]
Operating income Increase US$15.7 Million (FY 2009)[2]
Net income Increase US$7.52 Million (FY 2009)[2]
Total assets Increase US$271 Million (FY 2009)[3]
Total equity Increase US$169 Million (FY 2009)[3]
Employees 190[4]

Allion Healthcare (NASDAQALLI) is the parent company of MOMSpharmacy based in Melville, New York primarily known for providing mail order HIV medications to patients who are primarily on Medicaid or the AIDS Drug Assistance Program (ADAP).

Among the offerings is the MOMSPak in which the drugs are packed together in dated individual packages to make the multi-drug regimen easier.[5]

The company reported having 15,610 patients in 2007.

The company has distribution centers in New York, California, Florida, New Jersey, and Washington.


The company was founded in 1983 as The Care Group and changed its name to Allion in 1999 after emerging from bankruptcy.[6][7]

The company has an agreement with Roche Laboratories for pricing discounts in exchange for providing blind patient data on Fuzeon medication. In November 2007 Company signed an exclusive distribution agreement with Galea Life Sciences for Nutraplete, the first therapeutic dietary supplement designed specifically for people living with HIV/AIDS.[8]

The company was listed on NASDAQ on the ticker symbol ALLI. On January 13, 2010 the company closed on being acquired by HIG Capital for $6.60/share in a deal valued at $278 million.[9][10]

2012 indictment[edit]

On April 4, 2012, the New York Attorney General Eric T. Schneiderman charged four people associated with the company in a Money Laundering & Bribery Scheme in which the company sold blackmarket drugs "of unknown origin and potency, and in some cases, drugs that were mislabeled or potentially expired." According the complaint:[11][12]

In September 2008, Glenn Schabel, the supervising pharmacist and compliance officer for MOMS pharmacy, accepted bribes to purchase in excess of $274 million worth of black market HIV medications from a web of shell companies. The prescription drugs were obtained by various illegal means and the batches may have included unused pills that had previously been dispensed to individuals, medications stolen from manufacturers, or drugs that had expired. The shell companies were controlled by Stephen Manuel Costa, a 27-year-old Florida resident who incorporated four separate entities as “wholesale” distributors in order to disguise the sale of the diverted medications. Costa furnished millions of the black market HIV medications, and dispensed the prescriptions to MOMS patients, many of whom were Medicaid recipients. Allion, under the direction of Schabel, continued to bill Medicaid, knowing the drugs were purchased illegally.[11][12]
Attorney General Schneiderman’s investigation also revealed that Ira Gross, another licensed pharmacist, brokered the sale of the illegally diverted drugs between Schabel and Costa. The fourth defendant, Harry Abolafia, created false invoices for Costa’s companies—SMC Distributors, Fidelity Wholesale, Optimus Wholesale, and Nuline Pharmaceuticals—in order to make the transactions appear to be legitimate. In total, on behalf of Allion, Schabel purchased $274 million worth of black market HIV medications from Costa. For their efforts, Schabel, Gross and Abolafia were all paid a portion of Costa’s profit: $5,336,465, $21,165,374 and $1,429,612, respectively.[11][12]

The indictment said at least $155 million in false claims were associated with the charge.[11][12]


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