Novartis Fires Senior Managers For Ethical Misconduct
36 CommentsBy Ed Silverman // May 9th, 2011 // 12:58 pm
As Joe Jimenez knows, no company is immune from ethical misconduct, including Novartis. And so the Novartis ceo has informed employees that “we have recently had to let some senior managers go for not upholding values,” according to an internal communication.
We were unable to learn further details immediately, such as the number of people involved, the countries in which the terminations occurred or the circumstances, but Jimenez (pictured to the left) notes that the managers were let go made after he recently spent “more time in local markets.”
“Although it was hard for everyone involved, we simply will not tolerate behavior that is inconsistent with our values and societal norms. We aspire to be the most respected and successful healthcare company in the world. Our Code of Conduct is in place so that everyone is treated with respect, and we conduct business in a fair and transparent way. That is why we will not tolerate misconduct and sometimes have to terminate those who breach our well-known rules,” writes the Novartis ceo about his decisions.
Jimenez goes on to add that Andrew Jackson, the global head of corporate security, has reviewed trends across the cases seen at Novartis and “it turns out that most aren’t from a lack of understanding of our values, but are the poor choices of a few individuals.” And so chief compliance officer Peter Kornicker is leading a new “prevention effort” to train managers, he writes (read the communication here).
The move, by the way, comes as more drugmakers are cited for off-label marketing violations and scrutinized for running afoul of the Foreign Corrupt Practices Act (see here and here). Johnson & Johnson is a recent example. We await word from Novartis and will update you accordingly. UPDATE: A spokeswoman writes us to say: “As a matter of company policy, we do not comment on the specifics of disciplinary actions related to current or former employees.”
MsPiggy
This is pretty funny stuff…headline should read something to the order of “devil cast subordinates into unemployment hell”.
Some nice boardroom deflection by termination being played here.
Christopher
File under “Damned if you do…” Even when a company acts to clean up a mess, it’s inadequate; when they don’t act quickly enough, it’s sinful.
industry insider
Take any European based pharma company. Trust me, I’ve worked with them all. It’s a male-dominated culture. Even worse with a Japanese company. Any woman that I cared about I would strongly suggest researching the culture at a Euro based company, and to definitely stay away from the Japanese companies.
Mish
Novartis continues to be creative in its list of reasons for thier high attrition rate of qualified hires in the industry.
…good one…here they dont have to pay severance..
Curious...
COVERUP
Insider
SOunds like the CEO did the right thing. Why doies everyone consider it a joke? If you look at Pfizer they promoted many of the individulas invovled inthe off-label training. they certainly did not reprimand many if any.
THis is a move in the right direction. Employees might pay attention to the companyrules and regulations if they are enforced on everyone.
Curious...
THEY HAD NO CHOICE
ALL THESE MGRS ARE SACRIFICIAL LAMBS
THIS IS NOT THE END OF THE STORY, MORE LIKE THE BEGINNING
pharma gal
Ditto on Japanese and European companies having an resistant glass ceiling for women. Having acknowledged that point, what does discrimination against women have to do with ethical violations (if that was truly the reason they fired these Novartis execs). Country and marketing managers are under pressure to deliver sales curves that might have been achievable under pre-pharma conditions but not achievable in a post-pharma climate. Hence the temptation to fall back on pre-pharma ethics. So I don’t think this has anything to do with male or female gender.
Charlie Crist
Jose` had a flinger with another retired senior district manager in the Tampa market.
Jose` knows how to fling off those DMs.
khawar
Step in right direction for sure. But hard to believe that Div Heads and CEO didn’t know about it.
More heads should roll
Doc
CEO is doing the classic CYA so he doesn’t get what Forest CEO got and loses his massive pay and compensation package. Everyone is great until the Corp needs some sacrifices for political sake.
Basel lair
This is typical Novartis’ cover up and making someone pay for NOT DOING IT RIGHT WHEN MISCONDUCT WAS USED AS PART OF THEIR BUSINESS APPROACH. You see the misconduct in this co is part of their business approach and culture.Yes they have their codes of conduct that specify misconduct of any type is not acceptable and one must report if to the Co’s BPO(their security bunker)by whistleblowing. Once the miscnduct is exposed internally as codes require, the big cover up takes place and someone gets fired. First the WBer is out for sure. Secondly someone involved in misconduct (as this manager) gets fired while others are kept, retrained to never again allow anyone to collect the evidence of misconduct and possibly take it outside the Co. That is their worse nightmare especially in USA because of your FCA and qui-tam.In other countries they don’t wory so much if at all.The press release is for PR purposes. How can a company that has recently paid $422 million in fines for illegal handling of several drugs claim that they are honest and best? They just ignore that and feed us with their ^&&%$ from their BPO which is dedicated to protect the Co at any cost.We know Andrew and his crew in Basel, what they do and how. It is scary stuff.
Nelle
This CEO let go unsanctioned:
2 First-Time Clinical Protocols NOT filed with the FDA as required.
In addition, at least 5 Clinical Trial Extensions NOT filed, either.
16% of Protocol Amendments NOT filed…. that’s 219 Amendments.
10% of all Investigators were not checked - that’s 1041 investigators and 70% of ALL Transfer Obligations were not filed.
The above is only in the US.
Now in trouble with the FDA he needs to make a good impression and sacrifices some middle managers.
Ex-Novartian
Novartis is having their sales reps sign severance agreements that wave the rep’s right to become a whistleblower.
The agreement ACTUALLY states,” no whistleblower lawsuits!”
Is that legal?
Even a better question, Why? Why do they feel the need to address this? Is it because they have dozens of wbs in the process right now?
Novartis, you can kill a few scape goats, but this will not stop the light of justice from shining on your misdeeds.
Insider
Ex-Novatian, I doubt if that would hold up in court. You can contact Tax payers against fraud and they would probably know.
Insider
THe other proboem is that most cases do not go to court. So they would have to pay unless the feds did not say they have to in an agreement. Chances are the feds would never do that since all of their cases are dependent on whistle blowers. THe fact they add tht to the severence makes it look like the corporation already knows they are guilty.
TinTin
Joe is really creative, I witnessed how people in the Middle East Executive levels are enjoying the isolation they created as their own empire. There is no single misconduct ever followed or responded out of many. The region is their Kingdom to enjoy and tell lies on behalf of many. They easilly formed a group of misconductors to ease the operation. Listen to them when presenting, laughing and having fun on the lowest rank their employees voted for them!
Basel lair
You know that Vasella knows all about this and approves it 110%.I saw the proof.
industry insider
This behavior goes all the way up to the top. To wit, read and learn the story of one Mr. Lars Bildman, former CEO of Astra USA:
http://www.brandweeknrx.com/2007/08/most-popular—.html
TinTin
Accidents happens, these are all very few bad staff who made more than a Billion USD of charges, Ok a part is by federal courts and some parts are Cash. No one up there new anything!
Beer Goggles
Biggest problem here is that they won’t disclose what they did, or who they did it to.
Open it up for the public to determine what bar of ethical standards this company strives to reach.
You see this happen with politicians every single day.
Batman
Wow? :-)
A. H.
I have been working for Novartis for 3 years and believe me, I would not have stayed for a second if I thought the Company was unethical. In a company of > 100.000 people, you would expect a few rotten apples. I am in favour of not disclosing the identity of the people who were dismissed as they have their own lives, families, future etc.
catnmouse
ditto re: comments about japanese/euro pharma culture….no doubt there is more to this story - Raj Rajaratnam, hedge-fund crook was convicted today - pharma is not immune and their time is up
Aboutdamntime
This company needs another lawsuit for the poor prople it fired for no reason due to coverups!!!!!!!!!!!!!!!!
Basel lair
To H.A. First you are too new to know what is going on or simply are looking the other way. The misconduct is used not by rogue employees as you suggest (there are individuals that do steal, cheat etc for themselves)but by the whole management food chain as part of their MO. This is so true as Monday is to be true on Monday for instance. The cover up of any and every incident is the way it is handled internally when misciduct is “uncovered” internally.What that means not all 100.000 employees are in on it but only those who are in on it and those are selective good few thousands worldwide, mainly management while you as say sales rep are the one who implements the misconduct. For instance when Diovan was sold off-label it was the management who designed the fake detail aids, trials etc and it was the sales reps who called on doctors and did the off-label promotion. Most reps, like you, did not even know it was illegal promotion.They were given the marching orders, fake literature, samples etc and off they went to lie to doctors. The off-lable promo is the mother of all misconduct but it is also the simplest and most often used.Other types could be so complicated and secretive that very few actually know it is illegal. Like in your case you have seen nothing, heard nothing,did nothing and yet it may be right in front of your nose and you don’t see it. Of course the Novartis as corporation will not make it public because they don’t have to as it is inside job. The few were fired for already mentioned resons and the rest will continue their “art” but in new and improved form.Go to cafepharma Novartis board and read 2 threads: Whistleblowers and BPO, just search it and read. Then tell us you don’t believe yours is a crooked Co even if only %5 of comments are true, as most if not all of them. Corps. as individuals take full advantage of “Innocent till proven guilty”.
Anonymous
Does anyone know how many people were let go? In what markets? For what reasons? I’m surprised that there isn’t more gossip out there.
Basel lair
As of now no one knows who, why, where and when exactly.The Novartis employees everywhere but especially in US are just itching to find out but so far no details. Tha fact that the case was announced by Joe J. from the top of the co. tells you it was a big case of unethical misconduct that is absolutely also a criminal one. That you can take to the bank. Normally Novartis’ management sticks to their “no comment” and on rare occasions they would deny it, but on even more rare occasion you see this. The reason they do not give away details is simple, they don’t have to.They treat it as internal matter possibly whistleblown by someone who was not part of the scheme but did their duty to report it as requested by the Novartis codes of conduct, believed to be called NP4.Will they be able to keep it under cover after the cover up? We’ll see. What can also happen someone who could have the evidence may decide to go whistleblowing externally. That would be their worse nightmare. Knowing their BPO effectivness (CIA has nothing on them) they must have tied up all the lose ends. For those who really want or need to know, let’s wait and see. That is all you can do. One thing is 110% sure, what ever happens this Co will not stop using misconduct as part of their biz approach. It is simply too profitable to do so.
Ex-Novartian
I don’t believe there was a cover-up. I do believe there were ethical issues among individuals and not the company as a whole. Many of us have witnessed it, if you were unfortunate to be a part of one of the corrupted departments.
BUT….. I strongly believe the CEO is trying to clean things up. I just hope he realizes the job isn’t over yet. He has a long road ahead of him. Some groups are still waiting for help! Real humans with real people skills would be a great start!
Ex-Novartian #2
I find it interesting that Mr. Jimenez has decided to take these actions now. It is almost impossible to believe that these illicit behaviors are anything new but likely have just been propagated over many years since the Vasella administration. For all the good that Dan did for the shareholders, many valuable employees got screwed because of deficiencies amongst the highest levels of NVR. It’s good that Mr. Jimenez has now realized the problem he inherited but I believe there’s a lot more work for him to do. Too bad for the scapegoats along the way though.
Ex-Novartian
Agreed! There were many casualties along the way! Maybe they will continue to clean house and make the place truly a better place to be.
Basel lair
2 ex-novatian; for an ex-Novartian you make clims as you relly know this Co. If you are alredy ex, then hoe many months of years you spen there? Many of us have spent decades with, first parts of the new Co then with Novartis so we know a little more than you. Read those threads at Cafepharma novartis boards and get some education on this, once great Co but any more. They tasted the “misconduct for profit” too much to give it up. This, as many other cases before is pure cover up designed to cover the incident and give something to the public to believe in their integrity while blaming it on rogue employees who were gone. Most don’t.
Leftthatpharma
CoverUp was my first knee jerk reaction on this as well. Could this have also offered the CEO to get some publicity on reciting those “Values”? Yeah, we know that game.
Kaye
When will SWH legal mail the settlement checks? It has been 6 months since the settlement. In my opinion, The winners in this case are Novartis and SWH legal. Novartis settled for a lot less and the lawyers received millions. Most of the class are out of work and they are still waiting to receive pennies on a dollar. They could have won a lot more.
Ex-Novartian
Novartis gets hit with 72 million wb lawsuit.
This is actually old news, but I thought it might be relevent to the conversation.
Nvs aquired TOBI through it’s purchase of Chiron Pharma. This case has been brewing for a long time. Both sides must have finally agreed on the terms.
Me thinks nvs is having issues with wb’ers.
How many so far? How many more in the process?
Inquiring minds want to know…
WB#1
One wonders if tose who blew the whistle on Novartis so far, got their education and/or inspiration from thread entitled : “Whistleblowers of Novartis unite” posted on Novartis board at cafepharma blog. It is a thread with over 34.000 visits so far.Yes cafepharma may not be as reliable and truthful as Pharmalot but even if only 5% what is posted ther is true, it is enough to say bigpharma is in a mass.