Japanese executives sanctioned by Novartis

Japanese executives sanctioned by Novartis-Novartis AG has hit sanctions on some executives of the company’s Japanese unit. In the meantime, it has completely revamped the local management team. These efforts were to help limit the fallout from a scandal that involves Japanese research on its blockbuster heart medicine Diovan.

The drug maker’s second largest market is located in Japan. However, the executives do not expect to see a significant impact on the company’s overall sales totals because of declines in Diovan sales that have already been noticed. Japan’s health ministry commissioned a panel of experts have found out that Novartis possibly violated Japanese laws in promotions for Diovan by citing flawed research, which if confirmed, a breach could result in serious penalties for the Swiss company.

According to reports, the research regarding the heart medication was not accurate. If the company uses inaccurate data to promote a medication, they can suffer severe and extensive penalties. However, Novartis argues that the problem was a conflict of interest involving a former employee.

Previously, Novartis indicated that there was a conflict of interest in the Japanese studies since it knew one of its former employees took part in all of the studies carried out by Japanese universities, yet that individual was only identified as a lecturer from a university in published articles. Novartis has said that the previous head of its Japanese unit left the firm effective Monday.

Eric Corncut, global chief commercial officer, will be appointed as chairman of the Japanese operations. It has been reported that Japanese officials will take a 30% cut in pay until the issues are resolved. In November, a compliance advisory board will be formed. Members of the board will consist of medical, legal and ethics experts to strengthen its government structure.

This is not the first pharmaceutical company to face woes this year. There have been ongoing issues in China, which have resulted in ongoing investigations and criminal charges against some executives. In China, the allegations revolved around the companies offering illegal bribes to doctors and medical centers in order to increase business for the company.

It has been said that in many countries illegal activities are not uncommon for pharmaceutical companies in order to increase business. The pharmaceutical companies have said they are cracking down on in appropriate behaviors in order to make sure the business ethics remain intact globally.

For comments and suggestions, leave a message in the comments section below. Like and Follow our Facebook page for more stories and to stay up-to-date with the latest happenings.

About the author

Rob is a analyst and reporter covering stocks and business news.