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Editorial
See other Editorial Articles

Title: How to sell drugs to children (From the "Ethical " Drug Sellers)
Source: [None]
URL Source: http://www.marketwatch.com/story/ho ... ldren-2012-07-05?siteid=yhoof2
Published: Jul 5, 2012
Author: MarketWatch) —
Post Date: 2012-07-05 08:51:13 by tom007
Keywords: None
Views: 92
Comments: 3

How to sell drugs to children Commentary: First, dazzle the doctors with shiny objects... 1 Comments Share new Portfolio Relevance LEARN MORE

By Al Lewis

DENVER (MarketWatch) — America’s children were depressed. They needed antidepressants. It was GlaxoSmithKline to the rescue.

Paxil was never approved for use by anyone under 18, but GlaxoSmithKline GSK -0.67% had 1,900 sales reps visiting doctor’s offices, and pushing the drug for kids.

The international pharmaceutical giant took top-prescribing psychiatrists to pricey resorts in Bermuda, Jamaica, Hawaii and other exotic locales where, in between spa services, they could hear speeches from fellow shrinks that the company paid to dither on about how kids should pop its pills.

Reuters GlaxoSmithKline will pay $3 billion to make its legal troubles go away.

According to a criminal complaint filed in U.S. District Court in Massachusetts, the company “engaged in a fraudulent scheme to deceive and defraud physicians, patients, regulators, and federal health-care programs.” The complaint, alleging the company misbranded drugs and failed to report safety data, was filed under seal in October.

On Monday, the international pharmaceutical giant said it agreed to settle this case as well as a civil case for $3 billion. This the largest health-care fraud settlement in U.S. history, involving Paxil and some of its other drugs.

GlaxoSmithKline said it will plead guilty to the criminal charges, which are misdemeanors, but it will not admit any wrongdoing on the civil charges, which allege potentially deadly behaviors that I think should be considered felonious.

I guess this is why corporate lawyers make the big bucks: To go to court and say, “Yes, we did it —but not if anyone else is trying to sue us.” It’s also worth noting that no single individual has been named as a defendant in the criminal complaint. It’s just another one of those unfortunate corporate things that nobody ever got caught doing.

The U.S. Justice Department’s complaint said the alleged offenses occurred between 1999 and 2010. The company’s chief executive, Sir Andrew Witty, reiterated that this was the behavior of the old company, not the one he is currently running. Click to Play Ex-Barclays CEO grilled by lawmakers

U.K. lawmakers grilled former Barclays CEO Robert Diamond for three hours about what he knew about the rating-fixing scandal that led to his resignation earlier this week. Sara Schaefer Munoz watched his performance. Photo: Reuters

“I want to express our regret and reiterate that we have learnt from the mistakes that were made,” Witty said in a statement released Monday. “Since I became CEO, we have had a clear priority to ingrain a culture of putting patients first, acting transparently, respecting people inside and outside the organization and displaying integrity in everything we do.”

Yes, you spotted it. It’s the old “mistakes were made” strategy from the PR playbook. The company’s mantra is “Do more, feel better, live longer.” But it might as well have been, “Prescribe Paxil to children. Win a free trip!”

GlaxoSmithKline’s Paxil push occurred between 1999 and 2003, the government alleged, and soon “Paxil became one of the top-selling drugs in the United States.”

Have you ever sat in doctor’s waiting room when an exceptionally well-dressed woman, looking like she could be a fashion model, struts through the door? That was the pharmaceutical rep. Or sometimes it’s a handsome guy who looks right out of GQ. This is how drugs, including Paxil, are sold. Beautiful people handing out free drug samples so doctors will prescribe them. Just look at me, and never mind, all that fine print on the side effects.

Central to GlaxoSmithKline’s marketing effort for Paxil was an article published in Journal of the American Academy of Child and Adolescent Psychiatry that the government convincingly argues is “false and misleading.” GlaxoSmithKline reps touted this allegedly bogus research. GlaxoSmithKline also paid shrinks to give speeches in which they referenced it.

Here’s how the government describes these paid-shrink performances in it’s criminal complaint:

GlaxoSmithKline “promoted Paxil for unapproved uses by bringing top-prescribing psychiatrists to lavish resorts.”

“The meetings were held at expensive resorts such as the El Conquistador Resort & Golden Door Spa in Puerto Rico, the Rio Mar Beach Resort in Hawaii, and the Renaissance Esmeralda Resort & Spa in Palm Springs, Calif. GSK paid for the psychiatrists’ lodging, air fare, and a $750 honorarium. GSK paid speakers a $2,500 honorarium. GSK also paid spouses’ airfare if two cheaper tickets were available for the cost of one full-coach fare.

“GSK hosted nice dinners...and paid for entertainment, including sailing, snorkeling, tours (e.g. the Bacardi rum distillery), golf, deep sea fishing, rafting, glass-bottomed boat rides, and balloon rides. More from Al Lewis: • Follow Al Lewis on Twitter: twitter.com/tellittoal • Visit Al's blog

“The actor/comedian GSK hired to emcee one of the meetings told the attendees ‘We have a wonderful and unforgettable night planned. Without giving it all away, I can tell you —you’ll be experiencing a taste of luxury.’

“After the May 2000 Forum meeting in Hawaii, one psychiatrist wrote: ‘A beautiful location, enjoyable and fun-filled activities, an exciting, cutting-edge informative educational program ... exhilarating!’ Another doctor wrote after the Forum 2001 meeting in Palm Springs: ‘Both my wife and I enjoyed the extra care our drug rep gave to us all weekend.’”

When the issue of certain side effects came up, the programs went something like this: “OK, so some of the kids who took Paxil had suicidal thoughts and killed themselves. Maybe it was an adverse reaction to the drug, or maybe they were just depressed. Depressed kids do depressing things, you know. It’s what we call “emotional liability.” Meantime, please, enjoy the resort, and don’t miss that Bacardi rum tour!”

Maybe the reason kids are depressed is because of the way some of the highest-paid adults in this world behave.

Al Lewis is a columnist for Dow Jones Newswires.

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Charles 1 day ago

I used to work in the drug industry as a clinical pharmacologist on Madison Avenue. The drug industry is full of criminals looking to exploit the publics ignorance about treatments. They hire a number of doctors who will say anything to promote or protect a drug product or discredit a rival drug or an alternative therapy. They are particulary aggressive about discediting the use of generics which cost pennies. Fifty percent of antibiotics are used to treat viral infections for which there is absolutely no scientific basis. Antidepressants are no more effective than going for a walk or practicing a religious ritual. Good doctors do not get their drug information from drug companies. Reply mjyung mjyung 20 hours ago

Bull, a year or so ago GlaxoSmithLine was discover selling a children cough syrup for Children lace with a substance that is basically plastic that can cause cancer and was banned in Hong Kong, when the government found out they demand the company to remove the product voluntarily, the company refused until the government threaten to kick all of its product out of the city. Six month later it was discover the company was selling the same product in China and the company again refuse to remove them off the selves until the government in China made the same threat to kick them out.

It is disgusting that the management and the people responsible mentioned in the fine for a few billions two days ago in US to escape all punishment for putting the people health at risk. The company misbehave and the shareholders suffers yet the people involve still got rich and gets away with it. Just like those big financial firms that but the whole world through hell. Just because they are protected by the congress they pay for through campaign contributions.

Why doesn’t Forbes do more investigations on these companies? Reply mjyung mjyung 20 hours ago

Here is another story of unethical behavior of pharmacutical companies just to make a few more bucks. Bayer continue to sell an older unheated plasma to Asian countries which did not destroy the HIV in the blood for a year even though they have a new product that solve the issue but made it only available to US and Europe patients. They even describe themselves as acting on humane grounds. Notice at the end of the article they only settle the lawsuits in US but ignore everywhere else. www.globalethics.org/news...d-drug-overseas-in-1980s/ Reply Jim Poorman Trenton Jim Poorman Trenton 19 minutes ago

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