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Former generic drug execs Vegesna and Rivers debarred

Executive Summary

FDA permanently debars ex-CEO of American Therapeutics, Inc. Raju Vegesna and former Bolar exec VP Jack Rivers on April 12 from providing services in any capacity to a person with an approved or pending drug application. Vegesna was sentenced in July 1990 to a two year-jail term and a $50,000 fine on one count of racketeering but fled to India. In July 1992, Rivers was sentenced to four years imprisonment and fined $1 mil. for submitting false data to FDA and obstructing the agency's investigation. Former ATI VP-Operations Sanyasi Kalidindi is foregoing a hearing and requesting that his period of debarment begin immediately. An April 6 letter from his attorney says Kalidindi wants to be considered under debarment provisions that allow termination of debarment after a finding that an individual has provided "substantial assistance" in investigations and prosecutions and that allow debarment to be limited to one year. The letter notes that along with his past cooperation, Kalidini "as recently as April 6" was a witness at grand jury hearings in Baltimore.

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