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A biter pill to swallow: How the truth 




about health products is sugar-coated






By Anna Tuson, RepRisk Insight editor Those diiculies include: the rising cost of meeing GlaxoSmithKline (GSK), Johnson & Johnson (J&J), 
new technical standards; regulators’ demands 
Astellas Pharma, Novaris, Roche, Takeda and Eli
The power that pharmaceuical companies for longer, bigger clinical trials; patents expiring, Lilly are just some of the many that have been 

have over people’s health, and in shaping their exposing companies to compeiion from generic implicated in FDA cases.
understanding of illness and treatment, is not drugs; and funders of healthcare demanding 

something that should be taken lightly. Indeed cheaper medicines.
One prominent issue that has atracted paricular 
there is increasing debate about the level of atenion recently is the pracice of providing 

responsibility that is ied to that power.
Researching and developing a new drug is a ‘incenives’ to doctors to encourage them to 
considerable undertaking - it can take years and prescribe certain drugs, from monetary bribes 

While we have come to understand and, to some cost hundreds of millions of dollars. It must be and paid vacaions to free samples of the drugs. 
extent, accept, the markeing tacics in other trialed, meet regulatory standards and then be GSK, for example, is invesigaing claims that it 

industries where companies coninually try new ways efecively marketed. The pressure of ensuring the paid bribes to doctors in Poland, Iraq, Jordan 
to promote and sell their products, when it comes vast amount of ime and resources invested do not and Lebanon to promote its medicines. In July 

to health care, public percepion is sill skewed. go to waste is signiicant.
2013, Chinese authoriies accused the company 

It’s diicult to conceive that something as vital and of paying as much as USD 483 million in bribes to 
precious as our health could be ruthlessly undermined This has resulted in companies oten skiring doctors and oicials in China.

in the pursuit of the tradiional botom line.
US Food and Drug Agency (FDA) requirements 
through of-label uses; down-playing side efects; GSK now says it will stop paying doctors to make 

There is an idealisic tendency to assume that misrepresening data; and using misleading speeches and atend conferences, and will break 
pharmaceuical companies prioriize public interest adverising, as well as direct-to-consumer the link between how much sales representaives 

and to forget that they are actually, irst and markeing to enhance the chances of success for sell and the amount they earn. In 2013, the 
foremost, proit-orientated. They have inancial their products. In addiion, there is the common company reportedly dismissed 48 employees and 

obligaions to meet, shareholders to please, and pracice of taking doctors on luxury trips, paying issued 113 writen warnings in relaion to these 
highly compeiive CEOs at their helm like any other some to write and speak favorably about drugs, issues.

corporaion.
and funding others to conduct posiive research 

aricles.
GSK CEO Andrew Wity stated in the company’s 
As the pharmaceuical sector faces increasing Ani-bribery and Corrupion Program:

diiculies, the pressure on the companies to In 2013, the the FDA sent more than 70 warning 
perform well to meet stakeholders’ expectaions leters to various pharmaceuical companies over “I know that we operate in challenging commercial 

is leading to greater exposure to environmental, malpracices1.
environments and in cultures where corrupion 
social and governance risk.
can be widespread. This can never be an excuse.
“
1 http://www.justice.gov




There is an idealisic 


tendency to assume 


that pharmaceuical


companies prioriize 


public interest, 

and to forget that 


”
they are actually, 


irst and foremost, 


proit-orientated.
mi
ma
am
mh


4 INSIGHT 


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