Bristol-Myers Squibb Charged With Lying
2 CommentsBy Ed Silverman // May 30th, 2007 // 5:43 pm
The drugmaker was accused of fibbing to the Federal Trade Commission about its botched patent deal with Apotex over a generic version of Plavix. The two-count criminal charge was filed today in federal court in Washington. This isn’t a surprise, because Bristol-Myers earlier this month said it would plead guilty to making false statements and pay a $1 million fine.
However, it’s worth repeating here, because this is serious stuff. Not only did the drugmaker fail to tell the FTC about a secret side agreement with Apotex, Bristol-Myers execs certified there was no such agreement after they were asked, according to the criminal charge. Every Bristol-Myers exec should be made to read the Sesame Street Guide to Telling the Truth.
“BMS is charged with both lying to the federal government and with taking steps to conceal its false statement - both serious felonies,” Tom Barnett, head of the justice department’s antitrust division, said in a statement. “The seriousness of the offenses is compounded by the fact that BMS’s obstructive conduct occurred in connection with the FTC’s review of a proposed patent settlement affecting the cost of a lifesaving drug sold to tens of millions of Americans.”
Bristol-Myers and its marketing partner Sanofi-Aventis sought a settlement that would have prevented Apotex from entering the market until a few months before the patent expires in 2011. The FTC objected to certain terms, including one where Bristol-Myers and Sanofi agreed not to launch an authorized generic to undercut Apotex sales if it agreed to the date of entry.
A Bristol-Myers exec, acting on behalf of both companies, met one-on-one with an Apotex exec in May 2006 and made an oral promise about the authorized generic, according to the charge. According to court papers filed by Apotex, the talks were conducted between Apotex ceo Barry Sherman and Andrew Bodnar, then a Bristol-Myers senior executive vp.
Bristol-Myers didn’t disclose that information when it submitted the new agreement to the FTC on May 30, 2006. Apotex disclosed the pledge in a letter to the FTC on June 5, 2006. The FTC then asked for a written certification there was an agreement over the authorized generic, and the executive and outside counsel for Bristol-Myers said there was not, according to the charge.
“The filing of the information by the government with the Court is the next procedural step in completing our previously announced agreement to resolve the federal antitrust investigation,” Bristol-Myers spokesman Tony Plohoros told Bloomberg News. “There are no new facts or issues.”
Bodnar quit amid the probe and also resigned from the board of Imclone Systems, the biotech in which Bristol-Myers is the largest shareholder.
Source: Bloomberg News
sawitinaction
One really has to wonder that how come perfectly honest and decent family people at any level of big pharma food chain, can behave as they do once in the offices of big pharma?
They lie, they bribe, they order sales forces to make false claims, and the list goes on and on. They do it at every step of the way. Why? What compells them to risk their company and their personal security, especially in USA wher the authorities are willing to throw the book at them (Enron et.al.).
Many answers and none the final one. One maybe the fact that this is simply their corporate culture that allows or even requires them to do it that way. You either do it or you are out. That is it. If caught, they have enough $$ to get the best deal. Pay the fines but the protagonists get off. Only rarely they end up in the big house.
Why they don’t stop? The misconduct MO is so effective and seductive that they simply can not stop.
They have learned how to handle it and so far the benefits they harvested are in their favour. DOJ recovered 20 billion in 20 years via fines etc. Most likely a drop in the ocean of money big pharma made by their nasty ways.
The fines even when enormous by normal people’s standards are just cost of doing business for them.
Does anyone else have other answers?
Melody
Why do Barry and Andrew receive “special treatment?” I thought Martha Stewart’s punishment for “lying to the government” was to become the standard. ACLU–is this a case of discrimination; Martha goes to jail, Barry and Andrew go golfing.