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Equally troublesome, almost all policies focus exclusively on payments and finances but ignore the powerful influence of careerism and other non-financial motives that may compromise objectivity far more than financial incentives. For academics, publishing and obtaining grants are key to promotion and career advancement.
initiative — prohibitions against off-label marketing under the False Claims Act — swept through the pharmaceutical industry. The most notable was Fannie Mae's $10.8 billion restatement. In another instance, a new enforcement. The largest payments were from Pfizer ($2.3 billion) and GlaxoSmithKline ($3 billion).
Among McKinsey's biggest clients in the 1990s were pharmaceuticals and financial-services companies. The strategy firms saw some of their best talent head off to startups, which promised untold riches, at least until the Dotbust of 2000, and to Wall Street or Greenwich or wherever the racier genii of modern finance ply their trade.
Imagine, for example, that you’re a pharmaceutical CEO deciding whether to recall a new drug. In these cases, running the numbers and grasping what they tell you is important, but it isn’t enough. With gray area problems, you have to look hard at the economics and look past the economics. How should you make this decision?
Darek Lenart – Senior VP HR, Finance MasterCard. Former HR director with Pepsi Central Eastern Europe, and gained HR expertise at PLIVA Pharmaceutical Company (now part of Teva Group). Sanyin Siang – Executive Director of the Duke University Fuqua/Coach K Center on Leadership & Ethics (COLE). Author: The Launch Book.
Pharmaceutical companies, buffeted by regulatory changes, new drug technologies that alter entry barriers and competition, price pressures, and an estimated 300,000 job cuts since 2000, seem to fit the popular narrative of large organizations unable to deal with disruptive forces. It’s not just products. Experimentation is vital.
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