Comments on: Former Bristol-Myers CFO Faces Fewer Charges

By: Disgusted

Disgusted — Tue, 25 Mar 2008 03:40:52 +0000

What about the bigger, more-digusting BMS fish, Mr. Richard Lane himself? When will he be righly brought to trial for his directions to do the deeds?

By: Former BMSer who blew the whistle

Former BMSer who blew the whistle — Mon, 24 Mar 2008 16:49:49 +0000

Defense attorneys do have to make one laugh…it was over two+ years worth of inventory at numerous drug wholesalers for Pravachol alone (other branded and generic drugs had the same stocking levels until the wholesalers ran out of physical space then BMS billed but held the inventory in their own warehouses) with a 2% per month incentive paid to the wholesalers for carrying the inventory and no payment required until the wholesalers sold the drug, but BMS billed and recognized the sale as revenue….I guess that is now called selling ahead of demand…” Defense attorneys plan to argue that this is not “channel-stuffing,” but rather a business strategy for “selling ahead of demand,” and that this is common in pharmaceuticals”

By: Former pharma Marketing Exec

Former pharma Marketing Exec — Mon, 24 Mar 2008 16:34:47 +0000

Important paragraph: “His attorneys plan to argue that this is not “channel-stuffing,” but rather a business strategy for “selling ahead of demand,” and that this is common in the pharmaceutical industry, according to a person familiar with the defense’s case, Financial Week reports.”

This is so true and so rampant in the industry. However, they better go after the drug distributors too! It takes two to tango.

Drug distributors have all sorts of incentive programs for this kind of thing. The problem is that the major drug distributors have become the “gate keeper”. Drugs do not make it to hospitals and pharmacy’s without going through Distributors who exert “extortionists” prices and fees which artificially inflates the cost of the drug to the end consumer.

In my opinion it is another form of racketeering.