The Drug Enforcement Administration issued a final decision on October 17, 2025, revoking the DEA Certificate of Registration for Hovic Pharmacy in Houston, Texas. The agency determined that the pharmacy's continued registration was inconsistent with the public interest under the Controlled Substances Act, citing multiple instances where pharmacists filled prescriptions for controlled substances without resolving clear indicators of abuse and diversion. This action stemmed from an Order to Show Cause issued in October 2021, amended in January 2022, and adjudicated without a hearing after the pharmacy waived its request days before the scheduled proceedings. The revocation underscores ongoing efforts to curb the diversion of highly abused drugs like hydrocodone and promethazine with codeine, which the pharmacy released into the community in significant quantities over an 18-month period from December 2018 to March 2021.
Background and Investigation
The DEA's investigation into Hovic Pharmacy revealed a pattern of dispensing controlled substances in violation of federal and Texas laws. The Order to Show Cause alleged that pharmacists filled prescriptions outside the usual course of professional practice, contravening their 'corresponding responsibility' under 21 CFR 1306.04(a) and Texas regulations. An independent pharmacy expert, Dr. Diane Ginsburg, reviewed prescription data and identified unresolved 'red flags' such as cocktail combinations, pattern prescribing, and pharmacy shopping. These red flags indicated a high risk of diversion, yet the pharmacy's records showed no documentation of efforts to resolve them, as required by 22 Texas Administrative Code Section 291.33(c)(2)(A)(iv).
Key evidence included declarations from a DEA Diversion Investigator and a recruiter involved in the scheme, who admitted to obtaining illegitimate prescriptions for resale. The recruiter, serving a 60-month sentence for conspiracy to distribute hydrocodone, described a relationship with pharmacy staff that facilitated the operation. Pharmacy logs and dispensed drug reports corroborated these accounts, showing the recruiter signing for and picking up prescriptions issued to others, often forging signatures.
Key Violations and Legal Analysis
The DEA found that Hovic Pharmacy violated the Controlled Substances Act by distributing rather than dispensing controlled substances, as the prescriptions were not issued for legitimate medical purposes (21 U.S.C. 802(10) and 841(a)(1)). Texas law similarly prohibits dispensing controlled substances except under valid prescriptions in the course of professional practice (Texas Health and Safety Code Section 481.074(a)). The agency's expert analysis highlighted specific red flags under Texas rules (22 Texas Administrative Code Section 291.29(f)), including repeated prescriptions for highly abused drugs without individualized therapy.
For instance, the pharmacy filled approximately 138 'cocktail' prescriptions for five individuals from July 2019 to July 2020, involving combinations of hydrocodone-acetaminophen, carisoprodol, alprazolam, and promethazine with codeine. These combinations are recognized as high-risk for overdose and diversion, yet no resolution was documented. Similarly, pattern prescribing by two practitioners—issuing nearly identical prescriptions to multiple patients—was evident in fills for at least seven individuals from March 2019 to July 2020, releasing thousands of tablets without addressing the lack of individualized care.
Additional violations included monthly fills of promethazine with codeine for three individuals over extended periods, far exceeding typical short-term use, and instances of pharmacy shopping where patients filled parts of prescriptions at different locations. In total, the pharmacy unlawfully released about 13,135 tablets and a 3,478 days' supply of promethazine with codeine.
The decision referenced Supreme Court precedents like Gonzales v. Raich (545 U.S. 1, 2005), emphasizing the CSA's goal of preventing diversion through a closed regulatory system. The agency noted that pharmacists must resolve red flags before dispensing, and Hovic's failure to do so constituted substantial evidence of misconduct under 21 U.S.C. 877.
Implications and Perspectives
The revocation reflects broader DEA enforcement priorities amid the opioid crisis, where pharmacies serve as gatekeepers against diversion. Short-term implications include the immediate cessation of Hovic's controlled substance handling, potentially disrupting local access but prioritizing public safety. Long-term, it may encourage other pharmacies to enhance compliance protocols, such as better documentation and use of prescription monitoring programs.
From a legal perspective, the case aligns with precedents like Jones Total Health Care Pharmacy v. DEA (881 F.3d 823, 2018), where egregious misconduct justified revocation without explicit findings on all public interest factors. Critics of strict enforcement argue it could limit access to necessary medications, while supporters emphasize deterrence. Policymakers might view this as a call for updated training on red flags, balancing enforcement with therapeutic needs.
In conclusion, the DEA's action against Hovic Pharmacy highlights critical failures in oversight that enabled diversion. Key takeaways include the pharmacy's release of vast quantities of abused drugs without resolving red flags and its knowing participation in a resale scheme. Potential next steps involve appeals or reapplications, though the decision stresses the need for unequivocal acceptance of responsibility. Ongoing debates may focus on refining regulations to prevent similar lapses while ensuring legitimate access, with challenges in enforcement consistency across jurisdictions. (Word count: 912)