Novartis sales rep says ordered to pay kickbacks to Chinese doctors: report
(Ref: Bloomberg, China.org.cn)
August 14th, 2013
By: Matthew Dennis
Tags: Top Story Sandostatin LAR GSK Novartis Sanofi Corporate Affairs Marketing & Sales
A former Novartis sales representative claims she was ordered by her manager to secure sales of the company's cancer drug Sandostatin LAR (octreotide) by providing 50,000 yuan ($8170) of kickbacks to physicians in China, according to the 21st Century Business Herald. The saleswoman also alleges that she was asked to persuade doctors to prescribe the product for off-label uses.
The latest claims follow recent reports that officials in China are investigating bribes totalling about 1.7 million Chinese yuan ($277,800) paid by Sanofi to doctors in the country as grants for research programmes. Last month, GlaxoSmithKline disclosed that some of its senior executives may have violated Chinese law amid claims the drugmaker was involved in bribery in the country.
According to the 21st Century Business Herald, the Novartis sales representative was told to pay kickbacks to sell 50 doses of Sandostatin LAR and secure revenue of 650,000 yuan ($106,200). The newspaper, citing the saleswoman, said her targets were hard to meet under "ordinary practices." Novartis confirmed that the saleswoman had started work in its oncology unit in January and was in charge of sales to major hospitals in north-eastern China.
The company noted that the sales representative had asked the drugmaker for a payment of 5 million yuan ($817,100) in July, saying she’d take unspecified actions if the money wasn’t received, the 21st Century Business Herald reported. Novartis said it was dealing with the resignation according to China's labour laws and company regulations, adding it would take disciplinary action if there was any misconduct or infringement of its own regulations and Chinese law.
(Ref: Bloomberg, China.org.cn)
August 14th, 2013
By: Matthew Dennis
Tags: Top Story Sandostatin LAR GSK Novartis Sanofi Corporate Affairs Marketing & Sales
A former Novartis sales representative claims she was ordered by her manager to secure sales of the company's cancer drug Sandostatin LAR (octreotide) by providing 50,000 yuan ($8170) of kickbacks to physicians in China, according to the 21st Century Business Herald. The saleswoman also alleges that she was asked to persuade doctors to prescribe the product for off-label uses.
The latest claims follow recent reports that officials in China are investigating bribes totalling about 1.7 million Chinese yuan ($277,800) paid by Sanofi to doctors in the country as grants for research programmes. Last month, GlaxoSmithKline disclosed that some of its senior executives may have violated Chinese law amid claims the drugmaker was involved in bribery in the country.
According to the 21st Century Business Herald, the Novartis sales representative was told to pay kickbacks to sell 50 doses of Sandostatin LAR and secure revenue of 650,000 yuan ($106,200). The newspaper, citing the saleswoman, said her targets were hard to meet under "ordinary practices." Novartis confirmed that the saleswoman had started work in its oncology unit in January and was in charge of sales to major hospitals in north-eastern China.
The company noted that the sales representative had asked the drugmaker for a payment of 5 million yuan ($817,100) in July, saying she’d take unspecified actions if the money wasn’t received, the 21st Century Business Herald reported. Novartis said it was dealing with the resignation according to China's labour laws and company regulations, adding it would take disciplinary action if there was any misconduct or infringement of its own regulations and Chinese law.