Tag Archive for ‘GlaxoSmithKline’
Big Pharma has written more than $30 billion in checks in the last 10 years to resolve government allegations of illegal marketing, according to consumer watchdog group Public Citizen. Yet those sums are essentially petty cash for the drug giants, says Public Citizen, amounting to less than 5 percent of the net profits raked in by the 11 largest global pharmaceuticals firms over a similar period.
In a major departure from industry practice, GlaxoSmithKline, the sixth-largest global drug maker, announced that it will no longer hire doctors to promote its drugs. The company also will stop tying compensation for sales representatives to the number of prescriptions written for drugs they market. The changes will be made worldwide over the next two years.
Does a commitment to corporate responsibility provide cover for bad corporate behavior? Stories about companies behaving badly make commitments to CR look hollow at best. Neil Smith argues it is not just commitments that matter, but the corporate culture set by the person at the top of the organization and internal subcultures determined by the employees and managers which are important.
GlaxoSmithKline and a subsidiary agreed to pay $750 million to settle charges that between 2001 and 2005 they distributed adulterated drugs made at GSK’s now-closed manufacturing facility in Cidra, Puerto Rico. U.S. authorities said a corporate whistleblower who had filed a lawsuit against GSK under provisions of the U.S. False Claims Act will receive approximately $96 million from the federal share of the settlement.
Drug companies say they hire the most-respected doctors in their fields for the critical task of teaching about the benefits and risks of their drugs. But an investigation by ProPublica uncovered hundreds of doctors on company payrolls who had been accused of professional misconduct, were disciplined by state boards or lacked credentials as researchers or specialists.
The Access to Medicine Index seeks to rank pharmaceutical companies based on their efforts “to enhance global access to medicines.” The report cited particular problematic medical areas including a need for new pharmaceutical products to address neglected tropical diseases and the lack of viable markets for pediatric HIV/AIDS drugs.