GSK is not the only MNC which has been found to be indulging in such
unethical and illegal activities in recent years. In mid 2011. Pfizer
agreed to pay $14.5 million to the US government to resolve False Claims
Act allegations related to its marketing of the drug, Detrol. This was
the last of the 10 whistleblower suits filed in the District of
Massachusetts and two other districts against the company beginning in
2003.
The other nine suits against Pfizer including the one on painkiller, Bextra, were settled or dismissed in 2009 as part of the US government’s global resolution with Pfizer, under which the company agreed to pay $2.3 billion to resolve civil claims and criminal charges regarding a few other drugs. Eli Lilly and Abbott were also reportedly involved in illegal marketing of certain drugs and agreed to make payments to the US government in the recent past.
Apart from the financial implications caused by the government actions, the MNCs have also suffered major dents to their credibility after these incidents. In India, a large number of essential drugs are being imported and sold by MNCs at very high prices as the country has not yet imposed any control on prices of patented drugs. Considering good track record of most MNCs in discovering modern drugs for several human ailments in the past should they adopt such a disgraceful path for maintaining high profits? This is a question to be pondered by the top managements and shareholders of these corporations.
The other nine suits against Pfizer including the one on painkiller, Bextra, were settled or dismissed in 2009 as part of the US government’s global resolution with Pfizer, under which the company agreed to pay $2.3 billion to resolve civil claims and criminal charges regarding a few other drugs. Eli Lilly and Abbott were also reportedly involved in illegal marketing of certain drugs and agreed to make payments to the US government in the recent past.
Apart from the financial implications caused by the government actions, the MNCs have also suffered major dents to their credibility after these incidents. In India, a large number of essential drugs are being imported and sold by MNCs at very high prices as the country has not yet imposed any control on prices of patented drugs. Considering good track record of most MNCs in discovering modern drugs for several human ailments in the past should they adopt such a disgraceful path for maintaining high profits? This is a question to be pondered by the top managements and shareholders of these corporations.
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