The Mylan Exec And The MBA Scandal
25 CommentsBy Ed Silverman // April 28th, 2008 // 4:05 pm
The fallout has begun. West Virginia University says Provost Gerald Lang and Stephen Sears, the dean of its business school, will resign on June 30 in the wake of an investigation that found the an MBA was improperly awarded to Heather Bresch, the drugmaker’s chief operating officer, The Pittsburgh Post-Gazette reports.
The announcement comes less than a week after an independent panel released a scathing assessment of WVU’s’s decision to retroactively award an executive MBA to Bresch, who is the daughter of West Virginia Governor Joe Manchin and a long-time friend and former business associate of WVU President Michael Garrison. Mylan chairman Milan Puskar, is WVU’s biggest benefactor.
The report found that the school’s administrators used “severely flawed” judgment in awarding Bresch’s degree; they falsified Bresch’s transcript by adding courses to her record that she didn’t take and by entering grades “simply pulled from thin air.” The actions reflected “failures of process and failures of leadership” at the state’s flagship university, according to the report.
Last week, Bresch issued a statement to the Associated Press saying that, while she continues to believe she did what was required to earn her degree, she will accept the panel’s conclusion out of respect for her alma mater. Previously, Bresch told other news media she finished her degree by making arrangements with the former head of the MBA program to substitute work experience for actual course work. But the former director told the panel that was not true.
The panel concluded that Bresch’s explanation of how she completed her degree was not credible. Given the ongoing drama, we asked a Mylan spokesman today what, if any action the drugmaker would be taking. The answer - none. He read us this statement: “Mylan’s board of directors, in unanimity, has never wavered in its confidence in and commitment to Heather. There is nothing in the report that changes our opinion. She has been, and will continue to be, a pillar of management strength within our company. We consider this matter closed.”
Justice in Michigan
Coinicidence, of course, but happened to pick up on another source today that a generic Digoxin made by a company overseen by Mylan has been making tablets with 2X digitalis as labelled. There’s a heart-stopper.
Justice in Michigan
Relating the two stories, perhaps it could be argued that the degree was bioequivalent to an actual MBA.
But seriously … to me, the cover-up is the story (if there is one here). It is not unusual in professonal schools for students to get credit for “work experience” if it is related and they do a little related reading/writing/rithmetic. There was probably a way that all this could have worked out without subterfuge and “networking.”
Jack2
It still seems strange to me that 2 guys at the school who helped make this happen got canned, but the beneficiary of all this cheating seems none the worse for wear.
Insider
She might be able to get them jobs at Mylan, perhaps?
C. Pharma Researcher
I don’t know I am pretty pleased at least to see some accountability at least on the University side. What happened was wrong and a good institution will need to regain credibility. But it is comforting to see that some people at the top are prepared to make the difficult decisions and force those responsible to accept the consequences. So often in corporate america that never happens. So many people at the top operate in a manner that is beyond accountability. But here at least we are seeing some people take responsibility. Personally I am encouraged. Certainly neither Mylan nro its leader are going to do the same and the company will continue to get exactly what it deserves, but at least we are seeing seome genuine leadership from the University. I mean assuming that these are the guys responsible and not just scape goats then I think it’s a giant step forward down the long path to integrity.
University Update - West Virginia University - The Mylan Exec And The MBA Scandal
[...] University The Mylan Exec And The MBA Scandal » This Summary is from an article posted at Pharmalot » News, Comment and Conversation on Monday, [...]
Paul
So why is it that even this they blame on the drug company?
This is nothing more than a pure ethics violation by the university in cahoots with the Governor. The company had nothing to do with it. Seems like it was taken for a ride based on a breach by the university. Call the OIG, the Prescription project, JAMA, and everyone else!
M Helm, MD
Paul, I see it as more of a comment on the ethics of the industry.
Did Bresch really need an MBA? Her board doesn’t think so, even though I thought it was posted earlier that this was a job requirement. She knew she hadn’t done the work, but with a little greasing of the skids and a few closed door meetings, somehow, someone “made it happen.” She chose not to come clean to her board when it would have been appropriate to discuss her academic credentials. How often do we suspect the same sorts of ommisions of material facts occur between executives and the FDA for example.
Sleazy is as sleazy does, but then again all’s fair in business and war.
It does make one wonder the real value of an MBA anymore from any number of schools. Certainly there are many schools offering them, including online from the University of Phoenix or what-have-you. What is the academic rigor? What analytical tools does one gain if the degree should actually read “Master’s of Business Administration (or equivalent work experience)”?
Chris
Dr H, I see it as absolutely unrelated to the ethics of THE industry but perhaps to ethics of some IN industry. We have seen this recently in other industries; surely we can’t be linking this individual case with implied endorsement of the pharmaceutical industry?
How often do we see similar omissions of material facts to FDA? I don’t know; do you, or is this just rhetorical? Is there any evidence behind this?
I think you raise a good point about the value of an MBA. (I don’t have one.) I suppose one could question the value of theoretical business knowledge gained from earning an MBA versus that won in the trenches in combination with academic learning: Obviously, the ideal is a combination of both and many MBAs do this. I wonder though whether years of practical experience combined with some classroom time might yield an even more valuable qualification than the one discussed here.
M Helm, MD
Chris, You are of course correct, and I did not mean to imply otherwise.
There are many many highly ethically balanced people in the industry, and their contributions to keeping the scales even are vital. My general sense of the “ethics quesiton” is that it often comes down to the least common denominator, and that very often the tone is established at the top.
As a general comment on what is encountered in PhRMA, I still think this is a valuable anecdote. However, it is not truly different than any other business environment or industry. Some in PhRMA (mostly the PR guys) try to hold up the industry as though the individual companies are saviors of all mankind profiting only from altruism and goodwill. This is, of course, pure hogwash - if there was no profit, there would be no PhRMA.
For another interesting read, check out the latest Bayer conversation…
To your other point, I’ve known a few MBA’s even from top tier schools (one Wharton grad stands out) who have a great degree, and not one lick of common sense. Conversely, Bill Gates is a college drop-out.
Please accept my apologies for my too general comment.
Justice in Michigan
Agreed. As above, this is mostly about politics and a university, and the way universities often hold themselves up - or are held up - as somehow above such apparent deal-making.
Also as above, my guess is that it would have been relatively easy to use work experience to get the degree legitimately. Thus, and also a guess, I imagine this had more to do with the macho (in a gender-neutral sense) of “sure, we can do this” than anything particularly important about her having the degree or not.
Paul
I am very pleased to hear this balance and informed debate on whose ethics we are talking about. There seems to be consensus that this is not about the industry, but about an individual, a university, and a government.
Just goes to show that there are three sides to every story. I am learning every day about many undisclosed conflicts-of-interest among people in JAMA, The Prescription Project, George Soros, Steve Nissen, the plaintiff’s bar, etc. I respect everyone’s opinions and they have the right to be critical, but we should hold them up to the same light and get them to fully disclose their own conflicts.
Bottom line, ethics breaches are everywhere…
C. Pharma Researcher
The question is not whether there are smart, ethical hard-working dedicated innovative people in the pharmaceutical industry, there are many of them, thousands. And fortunately they have done incredible work. But I do think that there is a genuine question about the integrity of many of the leaders in industry. And in that vein, Bresch is just the leader in question of the day. No matter how you look at it, the industry is suffering — sales, attacks on patents, public perception, politics, lower reimbursement etc etc. You can’t argue with the numbers. Sure, the blame can be cast very wide. But honestly where is the leadership.
Who are the people who we really truly believe can lead industry back to success. How many data scandals? How many CIA’s and DPA’s? How many fines? How many layoffs? How many new laws and regulations? How much lower does the public perception have to fall before some of us are willing to face reality that we are not doing so well and complaining about it and talking about how great we are isn’t going to change that. I have worked for two companies for 20 years. And I have watched the perception fall so quickly it is sad. But I have not in the last ten years seen one leader who honestly has a vision. Sure there are leaders who have a vision for how they can squeeze out some extra sales next quarter and maybe the next after that. But where are the leaders who genuinely have a vision for the future. A future where Phrma is respected again. From what I can see most of the leaders are so focused on the short-term gain that they cannot even see past a year or so. At my own company, short-term planning is the entire game. A year is “long-term”. And yet we are in an industry where planning today is about success many years down the road.
I don’t know, I am just venting. And I thank Ed for giving me the opportunity to do that. But I don’t see Bresch as much different from many of the other leaders today. We are in a great industry doing great work but it feels like we are held captive to a set of people who are so focused on taking short-term gains that we are not setting the right course for the future.
Certainly the university is at fault here. But to absolve Bresch of any wrong-doing is shocking. Like she just woke up and found the degree. Here is a leader who found a way to get a fake degree. And yet we are developing medicines and asking the government to pay for our products. What message does she send to people? We talk about the important work we do with such integrity. Why is it so wrong with some people for us to ask our leaders to act with integrity?
When it comes to Phrma, it feels like the republicans and democrats. Everyone is on one side or the other. They either hate the industry or think that industry can do no wrong. I am in the middle. I love my work and my colleagues. But I would like to come to work one day trusting my leaders and working with a sense that we are are on a path moving forward. But many days it feels like the ship is taking on water, the people are starting to jump and the captain is trying to figure out how to load the gold onto a lifeboat.
M Helm, MD
C Pharma Researcher,
My condolences, and Amen brother, preach it.
Justice in Michigan
If you can ditto and amen, from the outside, I would. As I’ve said in other contexts, it is people asking the questions that you guys are asking that is our real hope - and I mean all of us, “insiders” and “outsiders” alike.
harpy
“…it could be argued that the degree was bioequivalent to an actual MBA.”
JIM ftw!!
Chris - If an MBA could be improved by combining real-world experience with academics, wouldn’t they be doing that? Aren’t they? Doctors have to do internships and residencies along with many other professions - on top of their regular coursework. It really doesn’t matter whether she had a degree or not; what matters is that she lied about it and then tried to use her connections to cover it up.
Dean B
Ironically, one educational benefit Bresch might have gained by completing her MBA honestly is the ethics course which is typically required in MBAs. Learning ethics the hard way can be the most expensive form of education.
Chris
Harpy,
I agree. I thought I said all that but perhaps wasn’t clear enough.
Former pharma Marketing Exec
Dean B has got it right. My understanding is that if she would have been legitimately qualified for the MBA by combining work experience with past/recent educational credits then she should have received proper coaching on the areas that she was lacking in qualifications - i.e. ethics…
I look more to a persons character in a situation like this. Why didn’t she come forth and say exactly how it was that she came by her MBA? This omission (sorry for the cliche) speaks volumes. Did she feel she really wasn’t worthy, or that it was somehow fake? Yet here she was asking to be recognized as being worthy.
The truth always comes out. What is to be gained, imagined or otherwise, by not disclosing up front. Personally, if she would have told her board at the outset that she has a MBA through a mixture of work experience and academic credits, makes it relevant to the work she does.
So the issue isn’t really that it is or might be a “fake” MBA. Rather, how much value did she place in it to feel so uncomfortable, or so it seems, to address it up front.
The university should have done a better job of encouraging her to take additional courses to cover areas that are probably deficient when compared to “standard” MBA’s.
However, since the ethics issue was brought up, wouldn’t it be good to search through current leadership in the top Pharma and see where they measure up in regards to ethics. I wonder if there is any connection. Might be interesting to look at this retrospectively as well.
withheld
I do not know about Mylan, but I have heard information from some who have been to this site-this is not isolated. The adminstrators in charge of hsr at this university also run the review board along the same lines (little oversight/coverups). Be very concerned if you have human subjects research there.
Doc MBA
What an infuriating story. For those of us who work full-time and then spend hours into the night studying in order to attain a REAL MBA, characters like this are an insult. No wonder “business people” and execs have such a bad reputation.
JeanYar
Many students earn academic credit through experiential learning programs. But they apply and are approved prior to substituting the work experience for the classroom experience. There are records of all of these maintained both by their college and by university registrar’s offices. The big issue with WVA is that there were no records to validate Bresch’s assertions nor for what the university president (and personal friend) and provost tried to force through. Good job by the news reporters for uncovering this piece of corruption.
Dean B
This case gives MBA students everywhere a new poster child for learning the importance of ethics. Bresch has harmed her friends, her alma mater, her fellow alumni, and her company, not to mention herself, which is precisely what ethics courses teach can happen when poor ethics go unchecked. Shoes are dropping at WVU, as they should. Now Mylan’s own publicized Code of Ethics needs to weigh in to prove it is applicable to everyone in Mylan.
the truth
Whoever said that these people could be scape goats is exactly correct! No one has stood behind the men who were forced to make a decision. My understanding is that the Garrison told them to make a decisions which entails more than one choice. It is out of this world that he then hung his adminitrators out to dry. Garrison is the story. He has been kissing ass ever since this story came out. He contradicts himeself everytime he opens his mouth. I think it would be interesting if he was put through a lie detection screening. He seems very dishonest. He is willing to try to keep his job while two other men who really were given the decision and not even at WVU when this situation occured have been embarrassed and hurt. I think it will be interesting to see how this plays out. But I think it is sad that everyone is looking for a story at the cost of someone’s career and reputation. Besides this one decision that is up for interpretation on rather it was right or wrong, because no one probably knows the full story unless you were there 9 years ago, these men seemed to have been making huge strides with the school. Maybe people should be more open-minded insteaded of so cruel and heartless. I also find it interesting that Bresch isn’t saying anything.. and her father is up for re-election. I know who I won’t be voting for. In my opinion she and Garrison are cowards who are saving their own arses.
Voice of Truth
The way I see it, Garrison is a political hack who is all about implementing a political solution to save a job for which he is woefully unqualified. I understand Governor Joe has instructed Garrison to hold on through this storm in an attempt to minimize political fallout from landing where it belongs- in the Governor’s lap. It is worth noting that many in West Virginia have developed a high tolerance for political corruption including some I have spoken with who expect nothing less from the Manchino family. But for the Manchin’s to brazenly orchestrate this phony-MBA, followed by the phony-MBA cover-up is a disgrace more than the State can tolerate. The Post Gazette’s May 4 article detailing the known falsehoods retailed by WVU Administration during the height of the cover-up will ultimately lead to the outing of Garrison’s orchestral culpability at the eye of the conspiracy. At that point, Garrison should be prepared for the Governor and the other politicians to throw him under the bus as a final cathartic gesture for the public’s benefit geared at establishing a political firewall between the WVU scandal and the State’s Chief Executive: Governor Joe Manchin.
As an aside-
It makes sense that they would keep Sears and Lang on the WVU ranch in hopes that they would uphold their end of the cover-up cover story. A more obvious question that the Post Gazette has almost- but not quite- brushed up against is about Bresch’s fraudulent executive qualifications information being incorporated into an SEC filing. That part of the story has yet to be written.