Novartis Worries Its Reputation Will Sink Over Diovan Scandal

To what extent the Diovan scandal in Japan will hurt Novartis remains unclear, but one executive concedes that the mess is not going to burnish the corporate reputation. The acknowledgment comes after a government panel earlier this week found the drugmaker may have violated Japanese law by using faulty data to promote its widely used heart drug, an offense that could lead to various penalties (here is the report). In his second set of public remarks in the past week, David Epstein, who heads the Novartis pharmaceutical business, again apologized and also noted Diovan sales have fallen in Japan. But he insisted he is more concerned with image. “Clearly, if something happens in one market, it impacts our reputation and that’s something that we feel acutely all around the world,” he said at a Tokyo news conference, according to The Wall Street Journal. “I’m much more worried about reputation.” He should be concerned, given the events that led to this point. The episode may be confined to research conducted for just one drug in one market, but the circumstances raise questions about Novartis practices that could be asked about other research work that is conducted elsewhere. And this is, of course, the threat that Epstein (pictured at left) hopes to blunt. [UPDATE: As part of the plan, Novartis chief operating officer Eric Cornut has cut the pay of the top two Novartis execs in Japan by 30 percent and will now chair of the Japan business and a compliance advisory boa...
Source: Pharmalot - Category: Pharma Commentators Authors: Source Type: blogs