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I'm not saying I wouldn't do it, but I do have an anecdote that might explain why you should be cautious. About 15 years ago, I did some work with a guy who ra
by bradleyland 13y ago
I'm not saying I wouldn't do it, but I do have an anecdote that might explain why you should be cautious.
About 15 years ago, I did some work with a guy who ran online pharma websites. He made a mint in the business, but it wasn't without it's bumps.
This was before the online pharma boom, and before the Feds really got involved. He ran a website where users filled out questionnaires, which were then reviewed by a doctor (no really, an actual doctor), who then wrote a prescription, which was then filled by a pharmacy.
One day, the men in the black suits came knocking. Right now you're probably thinking that everything above was clearly illegal and this guy is screwed, but that turned out not to be the case. He and his partner sat in jail while the Feds figured out exactly what they were doing wrong. They had good, detailed records of every "patient", and because selling medication over the internet was so new, there weren't a lot of laws that covered exactly what the requirements were.
In the end, the two owners spent about 90 days in jail, and had millions of dollars seized by the government. The Feds dictated that they could continue to operate their business under a handful of conditions:
1) They could no longer operate their own pharmacy.
2) They could no longer directly employ the doctor reviewing prescriptions, and the doctor must be paid regardless of whether a prescription is written.
3) They could not sell any drugs of a certain classification (controlled?).
There was some specific class of controlled drugs they couldn't sell, but I can't remember what it was.
This guy, and his family, ended up in the press with their name slandered all over the place. They ended up moving out of state to escape the aftermath.
I'm sure plenty of people are lined up ready to judge the guy, but I knew him. He was the kind of guy who gets shit done, and he ran an above-board business considering what they were doing. That's the only reason he's not still rotting in a cell.
So, the moral of the story is, these kinds of businesses can be very profitable, but they're not without risks. This is an entirely different kind of risk than what an investor is willing to take on. We're not talking capital risk, we're talking criminal prosecution. Those are the risks when you operate in a legal gray area. Don't get me wrong, someone has got to do it, otherwise there will be no progress, but you should go in with eyes open.