[Ip-health] FT: Clouds gather over Novartis as it battles series of setbacks

Thiru Balasubramaniam thiru at keionline.org
Wed Apr 20 05:47:41 PDT 2016


https://next.ft.com/content/494863e0-03b7-11e6-a70d-4e39ac32c284

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Further uncertainty comes from the series of investigations facing Novartis
over suspected marketing abuses in the US, Turkey and South Korea. That is
on top of a $25m settlement paid to the US Securities and Exchange
Commission last month for bribery in China and a suspension of its business
in Japan last year as punishment for manipulating clinical trial data.

By far the biggest peril is from a lawsuit being pursued by Preet Bharara,
the formidable US attorney-general for the southern district of New York.
He has accused Novartis of funnelling kickbacks to prescribers through as
many as 80,0000 “sham” educational meetings where doctors were wined and
dined.

Mr Bharara, has already secured a $390m settlement from Novartis in a
separate case last year, and Andrew Baum, analyst at Citigroup, says there
is a “high probability” of another fine that could be similar in scale to
the record $3bn paid by GlaxoSmithKline to the US justice department in
2012.



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