Novartis Whisteblower: The Departing E-mail
34 CommentsBy Ed Silverman // July 23rd, 2007 // 4:23 pm
During his last months at Novartis, David Olagunju alleged in a lawsuit that he suffered retaliation because he persisted in reporting systemic problems with the drugmaker’s procedures for managing clinical trial data, such as for the Tasigna cancer med that was recently delayed approval by the FDA. Olagunju was a global director of oncology statistical and standards Reporting. (See ‘Cancerous Data? Novartis Statistics Whiz Blows Whistle On Data Reporting System).
In his lawsuit, Olagunju claims his recently hired supervisor, Kannan Natarajan, threatened him with termination if he didn’t ‘keep quiet’ and ’stop complaining,’ and that he later received a December 2006 performance evaluation that contradicted an earlier, mid-year assessments as well as one from the previous year by a different supervisor.
Ultimately, Olagunju was let go in January. But, he charged in his lawsuit, “while the severance package he was handed was still being discussed, (his former supervisor) sent out e-mail to the global organization, misrepresenting to (his) co-workers that he had decided to take another opportunity outside of Novartis, and that in light of this decision, he was no longer with the organization.” In other words, Olagunju claims, his boss didn’t want other employees to know what was really going on.
Last week, Novartis issued a statement saying Olagunju was, indeed, terminated, but declined to comment when shown this e-mail, which Olagunju alleges is what was distributed companywide:
From: Kannan Natarajan
Sent: 01/22/2007 04:57 PM
To: _PH.O.DEV.ONCBU.B&SR.BS; _PH.O.DEV.ONCBU.B&SR.BS.CONTRACTORS;
_PH.O.DEV.ONCBU.B&SR.INDIA; _PH.O.DEV.ONCBU.B&SR.JAPAN;
_PH.O.DEV.ONCBU.B&SR.US; _PH.O.DEV.ONCBU.B&SR.US.CONTRACTORS
Cc: _PH.O.Dev.Global.CDMA.CIS
Subject: B&SR Organization Announcement
Dear All:
David Olagunju, Global Head of Statistical Reporting in Oncology, has
decided to take another opportunity outside of Novartis. In lieu of this
decision, he is no longer with our organization…”
Chris
Aside from the alleged cover-up of wrong-doings Mr Olagunju’s departure seems to have been handled in a standard way. Performance review shows deterioration, decision to let him go, and then gone. Once he is let go he may still be employed, depending on his period of notice, if any. Not agreeing to the terms of a severance package does not extend employment, and his company is entitled to, and expected to, announce his departure. Very difficult to know what really went on but the company’s actions surrounding his departure are par for the course in New Jersey and elsewhere and not indicative that his boss was on a cover-up mission.
Ed Silverman
Hi Chris,
Mmm… You could be right. As you note, it’s difficult to know everything that went on. The lawsuit contains allegations, so…
But the e-mail doesn’t jive with termination, in so far as Olagunju didn’t leave to take another opportunity. And this was one of the allegations in the lawsuit, hence, this latest posting.
We would’ve liked to have heard more from Novartis, but they’ve clammed up again.
Thanks for stopping by.
ed
John Mack
Isn’t it standard operating procedure to claim that someone left the organization for other opportunities? Especially if the terminated person expects to get a generous severance pkg? The employee is usually required to sign some kind of statement agreeing to the terms of termination, one of which concerns how the termination will be explained. This could be done either to protect the company or to protect the employee — so that his former employer is not on record for saying he was terminated for cause. That would not look good on your resume.
Ed Silverman
Hi John,
I hear what you’re saying. And I would generally agree. For whatever reason, Olagunju has been insisting otherwise, which he’s free to do, of course. It’s his lawsuit and, therefore, his allegation. So in the interest of trying to follow the threads….I picked this one up. Of course, this is only the start of his litigation, so who knows what else will turn up to flesh all this out.
Cheers
ed
Hypocrisy rules
First hypocrisy, cynicism and lying in business and this co. is as common as saying Hi to anyone and everyone. This guy was terminated and they announced it using these approaches. Sometimes they have a code words from which employees can figure out what happened. In this case it is obvious he was fired. One true story from Novartis not in US.
When the launch of Diovan did not meet the expectation they needed a scapegoat. The director of marketing was targeted. He got fired in a very cruel way. Met by security in paring lot escorted to his office to pick up his personal things and sent home.
The announcement said that Mr. X decided to retire and they thanked him for his contribution over the years and wished him well in his “well deserved retirement”. The man just turned 55 and did not intend to retire before 60-65. He was a personal frind.
Unless one knew the background or the person they would believe what they said. To be fair, he did get a full package so was not motivated to sue. Many do not get such golden shake especially lately.
Espy Evil
Pharmalot,
Chris must work in HR for a major corporation!!
Unfortunately, what was done to David Olagunju happens all to often in big corporations, especially when they have something to hide. It may be considered SOP in certain industries, but in pharmaceuticals it can be a crime. If an individual has the moral fiber and ethics to object to potentially harmful wrongdoing, then he/she is viewed as a ‘whistleblower” and a traitor and dispensed with. I hope that David wins his suit, but the chances are that he won’t.
I’ve known so many people that have had this happen. All good honest people and most of the time in their 50s. Damn Big Pharma to the burning hell they deserve!! There’s hardly an honest company left!!!! I hope that government goes after them.
Professional Guest
The Novartis/Olagunju vignette encapsulates a disturbing trend: leaders in the pharma business have established a culture of disrespect for ethical boundaries in dealing with patients, providers, and employees.
There is plenty of evidence that insiders who call attention to policy violations will endure serious consequences. Isn’t it interesting, though, that the whistleblowing population includes people from an increasingly broad array of functions within the corporations? Research, administrative functions, sales…and the list will get longer.
Chris
Chris doesn’t work in HR for Big Pharma nor any other company. I have been involved in redundancies (in both directions) and realize the harsh realities of today’s workplace. Unfortunately the previous two posts, although no doubt genuine, ignore the rules of employment today whether in pharmaceuticals. telecomms, finance, fashion etc etc etc. It’s not just pharma and it’s nothing new either, by the way.
Anonymous
I agree with Chris. Maintaining share price at the expense of social responsibility is not new.
Good call on highlighting this story, Ed.
Dr. I. M. Madd
Unfortunately, the pharmaceutical industry needs to be considered as a separate entity and held accountable for its’ actions. Either that or it should be handled in the same way as any other individual or corporation that is responsible for the healthcare of patients. The difference is that they deal with the health of patients and frequently are promoting drugs for off-label use that has not been proven or are not forthcoming with safety information for practicing physicians to know.
When doctors commit fraud, they lose their license and go to jail. When doctors commit malpractice, they get sued. When pharma companies commit fraud, they admit no wrongdoing and pay a fine. When pharma companies commit wrongful acts, pariticularly against scientists and physicians who are following their conscience and trying to do the right thing, they need to be held accountable by the government. They should not be able to hide under the ‘employ at will” rock. Their HR and legal people “create files” full of lies just to cover their butts. The honest individual ends up with his.her career ruined.
Just look at the pharma companies that have recently paid huge fines because their marketing and sales people couldn’t keep their hands clean - Purdue, Pfizer (latest one due to the former Pharmacia regime), Schering-Plough (3-4x and now run by the former pharmacia regime), etc. The Purdue case is extremely outrageous. We also know their will be more to come - at least AstraZeneca and Novartis are under the gun. What the public hears about is only the tip of the iceberg.
When a former employee sues a pharma company for wrongful termination and the reason appears to be because they brought genuine concerns forward and were then labelled by the company as an “inside whistleblower”, the OAG, FDA and other governmental agencies should be all over it. I hope they go into Novartis and tear them apart for hiding information. Only then will they get their just due and the former employee will be vindicated and awarded for doing the right thing.
It’s high time that Big Pharma straightens up their act!!!!!
Anonymous MD
You’re absolutely right about the Big Pharma companies - and you can add at least GSK and Lilly to the list for their recent deeds. The senior management teams believe that they will never be vulnerable, so they push and push the envelope just to generate more sales at the risk of the health of patients. The stockholders should realize that when these companies get big fines, it comes out of their pockets as well as the hard-working employees in the company. The highly-overpaid executives sit on their millions and laugh all the way to the bank!!!!!
Chris
There seem to be rather a lot of points made in the above comment, some of which address the topic and others more generally in the ‘industry is evil’ mode. Whether OAG, FDA should be tearing apart companies because of supposed wrongful dismissal suits is one thing (provided of course it is proven and also that the cause falls withing their realm of responsibility). It’s another matter altogether to demand that ‘the industry’ needs to be treated in the same way as a physician or other healthcare provider. It is a different thing altogether. The ‘industry’ is just that - an commercial concern made up of thousands of companies that manufacture products, devices, services that enter the chain and ultimately are used to treat patients. ‘It’ isn’t a doctor but a heavily regulated and monitored industry subject to many more mandated and voluntary codes of practice than most other industries I could think of. It’s plain wrong to assume that ‘it’ is corrupt and out to mislead patients, regulators and payers and frankly, as one involved in the pharma industry I’m getting a little tired of seeing repeated sweeping and poorly substantiated accusations aimed at hundreds and thousands of employees in a generally reputabe industry. Admittedly some of the cases highlighted here are serious. But they are just that - cases. They do not form a pattern or widespread behavior nor do they prove that other companies must be doing the same, but I suppose it’s all good stuff for keeping alive the debate.
(ps my 401k from a past pharma industry employer got toasted too, but that’s the way it works out sometimes. It doesn’t mean they are all evil, just that you wouldn’t necessarily want to work for that company again.)
Anonymous patient
I am a patient and new to this site. I am a leukemia patient and have been in clinical trials. The story about Tasigna is therefore particularly scary and if indeed true (which I sadly feel is likely) I hope Novartis will be made accountable and be used as an example for all Pharma… I sadly am not terribly confident that will happen despite any proof Mr.Olagunju may have. It’s tough to have faith in the justice system given the size and power that pharma’s have acquired. It is mind-bogglingly tough to have faith in the drugs I need to manage this disease at the best of times due to all the stories about pharma.
What amazes me is that stockbrokers, pharma employees and shareholders are people too…do they not get sick and want safe effective drugs? I never expected to be diagnosed with leukemia. Does no one in Daniel Vasella or his pharma pals’ families ever get cancer? Their feelings of “immortality’ (”not going to happen to me or mine so might as well profit from other people’s misfortune….”) must be very strong. Or do they just have no compassion in them?
Chris
Sorry - I intended to say comments, not comment. I wouldn’t want to miss addressing both of the preceding ones…
Chris
Anonymous
Indeed!
Unfortunately, the institutional investors who drive demand for corporate stock are not bothered in the least by the unethical behavior we see in the pharma sector. Pirhanas don’t attack each other until the carcass is - well - gone.
I’ll say it again: Pharma is incapable of policing itself and is now ripe for government regulation.
Melody
I believe that corporations fought hard to acquire the rights of personhood, and should therefore be held accountable–as a person–in our courts of law in the same manner as a person.. True, we cannot put a corporation in jail . . . so who SHOULD be punished when wrongdoing is exposed? The employees, whose hard work contribute to the product or service that profits the corporation? The shareholders, whose capital investment provides continued resources for driving the company? The Board of Directors, who supposedly make “corporate decision” but who primarily function to support and enable the chief executives? OR . . . the chief executives, with their MBAs or JDs, who view the corporation as a vehicle for their own enrichment and have the final authority to make decisions, harmful or otherwise?
Let’s put a body behind these ‘faceless’ corporations–someone who can stand proxy in a criminal court for bad corporate behavior.
Pharma Employee
In response to Anonymous Patient’s post…the comment that pharma employees are people too and do they not want safe/effective treatment??? Absolutely! The reason I do my job everyday (as a contractor for several big Pharma companies) is because I work on compounds that safely control my father’s high blood pressure, my cousin’s diabetes, and my friends neck cancer. Lumping all employees into this “Big Pharma” target is simply ridiculous. It’s a few bad apples spoiling the lot. And IMO, the cheif medical officer and medical monitors are the most responsible for determining the true safety of these compounds. So, Dr. I.M. Madd and anonymous MD, the CMO and medical monitors are typically a licensed PHYSICIAN or PharmD. Your professional is just as accountable and just as mired in the garbage and as much a part of the high paid executive team as these business folks you are referring to. Additionally, there are trials where it was the physician who lied about data to get additional compensation and therefore potential affected the accurate reporting of safety/efficacy data. Big Pharma has some real problems - Novartis is potentially the latest example. But at the end of the day, there are thousands of safe drugs that these companies turn out that make them necessary. We need to focus on fixing the problem - not pointing fingers.
Anonymous
Umm…..you have to point fingers in order to identify and eradicate the source of unethical behavior.
Unless of course you want to trash the entire Pharma business model. Pick your poison, gang.
Dr. Mike
To say that what was done to Mr. Olagunju was somehow business as usual and standard practice is as telling about the lack of anything worthwhile from the author of such diatribe as much as anything else. I’ll believe the whistleblower long before I listen to any multi-national corporation. Period. They have the billions to gain or lose, not Mr. Olagunju. I applaud him for his ethical stand in an attempt to protect patients. Also, it is not surprising that he is a biostatistician. They have been some of the most ethical people that I have ever encountered in my working travels and travails.
And having worked within this industry as a physician AND having dealt with it as a practicing doc, I must say that I have seen quite a bit of immoral, unethical, and illegal behavior. So please do not try to equate thus industry with any other. Sorry excuse for the lack of ethics and a pitiful analogy.
And no, the last say on anything that comes from these companies concerning safety or anything else comes from “the shirts”, aka the business people that run them. So don’t lay this mess at the hands of physicians. Nice try but either a little naive or just plain dumb.
I.M. Annoyed
As someone wo has worked in the industry for many years, it isn’t surprising. The need and greed that is out there is out of control.
The high cost of these drugs and the outrageous profits being made off the backs of incredibly sick people (at least in the case of Tasigna) really shakes my faith in humanity.
At the end of the day, these companies are “imbued” by law to do only one thing - increase shareholder value/profits (anyone read the book the Corporation?). Knowing this then why in the world are we entrusting the lives of fellow human beings to the hands of these organizations. Being patient driven is not profitable. If they really were patient driven they wold cure these diseases instead of coming up with new ways of stringing people along on a “life time” of co dependency on their over priced drugs.
Additionally, these drugs take money away from the research that could be going on to eradicate these diseases.
I have a sick feeling this whistle blower is right. Sounds like the clinical research data base has about as much holes in it as Swiss Cheese! Hopefully the FDA will sort it out for us.
By the way has anyone noticed the irony that Switzerland has gone ahead and approved Tasinga- seems a bit hasty to me.
Thanks for bringing this up to our attention.
Chris
Dr Mike refers to earlier comments that addressed the pharma industry and suggests they include ‘pitiful’ anaolgies and high levels of dumbness or naivete. Oh to work in an industry that has no personnel issues that can’t be handled over coffee and cake; that has the highest standards of self-regulated and observed third-party compliance; that has no cases of suspect management decisions (and consequent whistleblowers) and above all is uniquely different to any other commercial concern that it requires its own set of rules. Of course I may be naive to believe that such a business exists, and almost certainly would be too dumb to be employed in it. But I suspect that most industries, even the pharma one, are as many other have said, populated by reasonably smart, dedicated, decent people trying to get things done. It’s nothing better or worse than that.
Anonymous
The “reasonably smart, dedicated, decent people” who populate the Pharma industry are participating (knowingly or not) in a system dominated by groupthink and an unprincipled drive for profit.
But pharma employees are not alone in the game. People who make decisions about patient care participate as well, which perhaps is what differentiates this industry from others. More than one beneficiary of unethical behavior is required to make a mess this big.
Chris
Here we go again: “groupthink and an unprincipled drive for profit” - so an entire industry is full of people unable or unwilling to think for themselves, or are you saying that some form of cartel mentality overrules in the quest for more and more profits? Those would be unprincipled profits wouldn’t they? And whose principles should they be matched against?
I realize the healthcare system is imperfect, and I am no apologist for the pharma industry, but I find it difficult sometimes to find the real point in some of the sweeping anti-industry statements we occasionally see here.
Have a pleasant weekend.
Anonymous 2
Having recently left Novartis-NJ after almost a decade, and being quite familiar with the culture of other pharma companies as well, from Novartis refugee friends who left and never looked back I can tell you that this story sounds quite familiar, sadly. Among headhunters however, Novartis culture is known as quite brutal, everyone being severly overworked (in the US anyway), and even the secretaries scream for relief, and are fired if they make too much noise, or as its called there, trouble. I’ve had some headhunters tell me they will not place their persons there as full-time for that reason
But there are two pieces that are, I believe endemic to Novartis. One is that they really have little or no respect for their professional experts…particularly the statisticians and physicians, since the company is driven entirely by the Project Management organization. These experts are simply considered what we liked to call “worker bees”, there to make powerpoints, feed the Project management information which is then taken by the Project Manager to senior management meetings (clinicians are rarely asked to speak about the clinical projects!!!) and statisticians are completely overloaded with work, often “makework”. In the last 18 months, in the Oncology organization alone, something like 15 physicians, quite expensive to bring into any pharma organization, left the company. This is quite indicative of the toxic culture there. IMany of them had only been with the company 1-2 years…the culture is that brutal. Given Novartis’ generous stock options package for physicians, it must have been pretty bad for them to have left before vesting.
The other piece is that Novartis delayed its filing by 3 months. If they completely felt that the whistleblower’s claims were only those of a disgruntled employee, do we really think they would have delayed filing? Especially with BMS’ Dasatinib gaining market share daily?
Novartis makes great drugs, and probably has the smartest chemists in the industry. Its so sad to see them sink so low. But they did have their 15 minutes in the sun.
Melody
It’s plain wrong to assume that ‘it’ is corrupt and out to mislead patients, regulators and payers and frankly, as one involved in the pharma industry.
The industry insider above (Chris) obviously doesn’t believe that malice and greed exist in pharma?? Is that what he would have us believe. I just watched a Senate Judiciary hearing (re: AG Gonzalez). Toward the end of the hearing, Sen. Specter had an exchange with the AG which illustrates that not only are SOME within the ranks of pharma malicious, but they are arrogant, knowing that the current administration supports big business–Big Pharma included. The pertinent exchange involved the oxycontin settlement (by Purdue): the link to the transcript follows the text:
let me cover one more subject very briefly, and that is the issue on OxyContin.
This is a matter, Attorney General Gonzales, where your department entered into a plea agreement with the Purdue Frederick Company, where scores of people died as a result of OxyContin abuse, and even a greater number became addicted.
And the situation arose where there was an acknowledgment where there was an intense to mislead. Now, that is — that constitutes malice. Reckless disregard for the life of somebody else would support a common law prosecution for murder in second degree.
Now, the question is: Why does the Department of Justice enter into a plea agreement for a fine?
SPECTER: No jail times. The cost of doing business. The only way to deter white collar crime is if there is a penalty involved, if people go to jail who acknowledge that they deliberately misled to sell a product.
What was the reason for that?
GONZALES: Senator, it was the considered judgment of the prosecutor that it would be — he was not confident that the evidence would support the intent, the individual intent or malice of the corporate executives, and that he took advantage of the statute passed by Congress to hold these individuals liable without having to show intent. And, as a consequence, they’re paying $30 million in fines.
This was a very difficult and very complex case. And so I think that the prosecutors here looked at the evidence…
SPECTER: How many deaths were there?
GONZALES: I can’t answer that question.
SPECTER: Would you answer it? Did you review this case?
GONZALES: I did not review this case.
SPECTER: Do you know much money is involved for this corporation to sell this product?
GONZALES: I don’t know the answer to that question.
SPECTER: $30 million may be a cheap license.
GONZALES: Well, the $600 million for the company.
SPECTER: $600 million may be a slightly more expensive cheap license.
http://www.washingtonpost.com/wp-srv/politics/documents/gonzalez_transcript_072407.html
Chris
No Melody, I do not believe that malice and greed do not exist in pharma. I am not an insider (I think most of my comments state that), and I do believe that most people in pharma are generally OK, just like any other industry one could mention. I, you and plenty of others could probably list transcripts that counter Sen Specter’s comments in the above - so I think it is about context, perspective and balance. Some of which the Senator might wish to consider. What I said above is that I find unrelenting, agenada-driven onslaughts on the industry to be a bit tiresome. That’s all.
Melody
I can only suspect, then, that you or someone about whom you care, has not been tragically harmed or needlessly killed because they (or their doctor) had not been informed of the potential for harm. I imagine your issue of “tiresomeness” is more than offset by feelings of passion by those who have experienced such harm. And the unrelenting agenda of which you speak is oftentimes sparked by people who (1) hope to educate others to prevent repetition (2) expose individuals whose greed explains their disdain for the lives of others.
Chris
Melody, you are correct on all fronts. And the untrelenting agenda of which I speak is indeed driven by the people you mention, and I have every sympathy for them and their families if they have suffered as you describe. But what I have said more than once, is that the characterization of an entire industry as being corrupt, motivated only by profit, fraudulent and dismissive of patients’ concern is absolutely wrong and such characterization suggests lack of perspective on the part of those hammering that particlular point. For sure, “individuals whose greed explains their disdain for the lives of others” should be identified and dealth with, but surely you aren’t saying that the entire industry is guilty? Because if you are, and some of the comments I am responding to seem to go along with that, that’s what I find hard to take seriously and that’s what spoils some valid points that if made less hysterically, could be taken more seriously.
I.M. Annoyed
I think the point that Melody and others are trying to make is about the amount of competitiveness in the industry. Companies who try to do the right thing and take the time to do the right thing get left eating dust. Their stock holders see the achievements of the others and demand the same. Corners get cut, the patient suffers. The marketing department of these pharma’s have been very aggressive in their campaigns. They actually have patients think that some of their drugs are “miracles” this plays completely on the “god” issues.
Let’s face it the marketing department have done their homework, they figured out the mind sets of average patients, they have tapped into their fears and they are playing on them in some disrespectful manner all in an effort to earn their bonus, make more money, buy more toys and feel really important. In many ways their jobs are to keep the patients motivated to fight the bureaucracy for them to ensure that government, HMO and insurance companies continue to foot the bill for their expensive pills.
Patients should be treated, cared and cured in the hospital.
Product prices need to be regulated and marketing dollars spent needs to be scrutinized - graft for doctors and patients needs to be completely stopped.
When the lives of fellow human beings are at stake - we can not afford to be “business as usual”.
Melody
Chris & I.M.–
Thanks for the discussion. You hearten me because since you “get it” I can only believe that lots of others “get it.” Chris, by way of apology, I will grant you this: it is much easier (especially in the blogosphere) to paint with a broad brush. IOW, I don’t think that (most) of the employees of these corporations are evil, or even greedy. But when the ‘faces’ that represents them to the public exhibits only narcissism and greed, they DO get painted with that brush. Likewise, I recognize that there is often not much these folks can do; they are out there feeding their families and keeping a roof over their heads . . . and recognize that they ARE EXPENDABLE, too.
Kate
FYI, I worked with the man. He’s crazy.
Insurance Quotes
Insurance Quotes…
I couldn’t understand some parts of this article, but it sounds interesting…
thesasprogrammer
You have missed the best part.
Ask David for his reply to the dismissal notification….
insider
Kannan Natarajan’s firing David costed Novartis at least over 300 millions. Kannan did similar thing in BMS and costed BMS big money. He is considered un ethical by a lot of his coworkers. If they put him on stand I think David has a lot to win.