The AstraZeneca Scandal Continues: Investigation Into Marketing Is Under Way

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In response to repeated requests for comment - any comment - in the wake of the newsletter scandal, AstraZeneca just sent a statement. This is an abbreviated version:

“AstraZeneca is presently the focus of news stories that began when senior management became aware of the contents of an unauthorized newsletter. The company acted immediately to dismiss the person responsible because his comments and the direction he gave to his team violated the core purpose of the company…

We are looking into this incident to fully understand what happened with the goal of understanding all of the details, strengthening our processes, and helping our employees do their jobs in a way that is effective and in keeping with AstraZeneca’s core beliefs.

Recently, there have been blog postings questioning sales practices and compliance issues. The company takes claims of misconduct very seriously and investigates these in a timely and effective manner. Investigations concerning the specific claims referenced were initiated. Some claims reported prior to this incident were investigated and concluded with appropriate corrective action being taken. More recent claims are actively being investigated.

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AstraZeneca investigates all claims when we learn about them, whether through our hotline or through other means, as long as enough detailed information around the claim exists. We are particularly determined to address claims of retaliation—these claims are considered a priority in our investigative process.

In fact, our U.S. Code of Conduct makes it clear to all employees that “raising a legitimate issue – in good faith – of a possible violation by others will not adversely impact [the employee]. Any act or threat of retaliation by an employee against another in response to the disclosure of a potential policy violation will be considered a serious violation of the Code.”

In each instance, AstraZeneca acted in a manner consistent with its compliance program requirements and its obligations under the Corporate Integrity Agreement (CIA). Responding to complaints is a fundamental element of our compliance program, and is consistent with the ethical values that underpin our business.”

As an addendum, Pharmalot was reminded by PharmaGossip that AstraZeneca pled guilty four years ago to a health care fraud and paid a $355 million fine to settle criminal and civil charges of off-label marketing of a drug. In other words, the drugmaker has an unfortunate history. To what extent an investigation is actually occuring is hard to know. Statements are, relatively speaking, easy to issue.

[tags]AstraZeneca, Mike Zubillaga[/tags]

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  1. From the NYT June 2003:

    AstraZeneca, the large pharmaceutical company, pleaded guilty today to a felony charge of health care fraud and agreed to pay $355 million to settle criminal and civil accusations that it engaged in a nationwide scheme to illegally market a prostate cancer drug.

    The government said the company’s employees had given illegal financial inducements to as many as 400 doctors across the country to persuade them to prescribe the drug, Zoladex. Those inducements included thousands of free samples of Zoladex, worth hundreds of dollars each, which the physicians then billed to Medicare and other federal health care programs, prosecutors said. The company also gave doctors financial grants, paid them as consultants and provided free travel and entertainment, the government said.

    The $355 million that AstraZeneca, a British company, agreed to pay is among the largest settlements in a heath care fraud case. Of that amount, about $64 million is a criminal fine. The company will pay about $266 million to the federal government to settle most of the civil accusations. An additional $25 million will go to settle accusations that it defrauded the Medicaid programs, which are partly financed by the states.

    Have a great weekend!

    Jack

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