Stores stop filling controlled-substance prescriptions for Cerebral, Done (Updated)

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Update: CVS Health (NYSE:CVS) and Walmart (WMT) plan to stop filling prescriptions for controlled substances sent by clinicians working for virtual mental healthcare companies Cerebral Inc. and Done Health.

CVS (CVS) said it would not accept the prescriptions issued by the telehealth firms from Thursday. The decision follows a review conducted on the startups, the company added, noting it was "unable to resolve concerns we have with Cerebral and Done Health."

Confirming the move to Reuters, Walmart (WMT) said an audit and compliance process led to its decision.

Previously: In April, The Journal reported that some of the pharmacy stores had already blocked or delayed certain prescriptions issued by Cerebral and Done prescribers citing concerns over writing too many stimulant prescriptions.

Despite their benefits in treating ADHD, stimulants are classified as schedule 2 controlled substances by the government due to their potential for abuse.

Stimulant prescriptions issued without an in-person visit were not allowed before the pandemic.

The rules were relaxed in March 2020 for all schedule 2 drugs due to the COVID-19 public-health emergency, and companies such as Cerebral and Done started attracting patients through social media adverts to offer ADHD diagnoses and prescriptions.

Early this month, Cerebral disclosed that the Department of Justice had initiated a probe into its alleged violations of the Controlled Substances Act.

Read: Due to the recent issues in the virtual mental health space, Teladoc (TDOC) drew a higher price target from Piper Sandler this month.