DRUGS & MEDICAL DEVICES: FRAUD AND ABUSE IN SALES AND MARKETING
R&C: To what extent is the drug and medical device industry susceptible to fraud in the sales and marketing process? How prevalent is this risk?
Partridge: Many drug and medical device companies have devoted significant resources over the years to developing sophisticated compliance programmes to reduce the risk of fraud and abuse in their sales and marketing processes – and have made great strides in doing so. But US enforcement agencies and regulators, as well as putative whistleblowers, would beg to differ. Because of the sheer amount of governmental spending on healthcare – and particularly on prescription drugs – there is tremendous scrutiny of sales and marketing practices, including any that could be perceived as corrupting independent medical decision making. This scrutiny and scepticism extends beyond US borders, with regulators in many other jurisdictions, such as China, having prioritised efforts to clamp down on fraud and corruption in the drug and device markets.
Sikellis: The drug and medical device industry is managing a complex global marketplace which includes vast economic challenges arising in supply chains, as well as political windstorms with legislative pressures impact pricing of goods. In tandem with this, companies are emerging from a pandemic that changed the way we engage with each other. We have had to adapt the frequency of face-to-face interactions, in an accelerated fashion, and develop new ways of working. We have moved swiftly to develop alternative marketing platforms to successfully market lifesaving products.
Apr-Jun 2023 Issue
Gibson, Dunn & Crutcher LLP
Medtronic
Novartis
Skadden, Arps, Slate, Meagher & Flom LLP