Are GSK Breaking Bad?

Recent revelations arising from a whistleblower sent to GSK and the Reuters news service has alleged that GSK were embroiled in a smuggling scheme to ship the drug component pseudoephedrine to Iran from Syria via Iraq. 

GlaxoSmithKline manufacture and market Sudafed, a drug used to treat Bronchospasm, Nasal congestion, Rhinitis and Upper respiratory tract infections. The composition of Sudafed is pseudoephedrine, the same compound GSK have been accused of smuggling, or scheming to smuggle, to Iran.

What is a "Sudafed Smurf"?

According to Bob Cooke, a retired special agent-in-charge, California Department of Justice, Bureau of Narcotic Enforcement, organized crime members are part of a network that go from store to store buying PSE (pseudoephedrine). In some cases, they are addicts. They shred the pills/tablets from the blister packs and sell them in bulk to a wholesaler that will furnish them to a methamphetamine lab operator. [1]

Last year a letter appeared on the National Center for Biotechnology Information website. The letter, written by Zahra Alam Mehrjerdi, was titled, "Crystal in Iran: methamphetamine or heroin kerack". [2]

He writes...

Using opiates has a long history in Iran . Opium and its pharmacological and psychotropic effects were known for several thousand years among Iranians especially for managing general medical conditions such as pain, colic problems, headaches, and implementing anesthesia but methamphetamine (MA) is a new psychostimulant drug and its abuse has recently surged in popularity especially among young individuals in Iran. Methamphetamine is available in different forms such as pure crystalline hydrochloride salt. The main routes of methamphetamine administration include smoking, sniffing, injection and ingestion.

If the allegations against GSK are true then are we to believe that they merely schemed to ship Sudafed to Iran to treat people with nasal congestion problems or were their motives more sinister?

According to a 2013 study by the United Nations [3], the first report of the manufacture of methamphetamine in Tehran, Iran's capital, was in 2008 when authorities seized four mom-and-pop labs operating in the city. By 2012, Iran was the world's fourth biggest importer of pseudoephedrine, the main precursor chemical used in crystal meth production. More than half a million Iranians have used the drug at least once.

Although the recent GSK/Syria allegations may only seem mild in comparison to the allegations they are currently facing in China, if one digs deeper into the alleged smuggling scheme then one may just find that GSK were illegally exporting... or had plans to illegally export a compound used in crystal meth production.

If true then GlaxoSmithKline have stooped to a new level.

Back in 2010 GSK's Cidra plant in Puerto Rico came under the spotlight. Part of the complaint filed alleged that employees of GlaxoSmithKline diverted reject drug product from the Cidra plant to black markets in Latin America. This, however, was never proven... or it was, more than likely dropped as part of the settlement agreement made with whistleblower Cheryl Eckard [4]

Now, I'm a blogger and researcher. I don't have the money or means at my disposal to look into the pseudoephedrine smuggling allegations.

Plenty of media outlets out there that do though.

Food for thought, huh?

Some good resources for journalists

From the French Monitoring Centre for Drugs and Drug Addiction -  The drug market in Iran

From  the National Center for Biotechnology Information website - Methamphetamin abuse a new concern in Iran

From  the National Center for Biotechnology Information website - Emergence of a methamphetamine crisis in Iran

Finally, if allegations are proven to be true what does the future hold for GlaxoSmithKline's partnership with the Save The Children charity organisation?

There is a critical drug abuse crisis among Iranian high school students, street children and generally Iranian youth and adolescents. [5]

If allegations are proven then it could be argued that GSK have been part of the drug problem in Iran rather than the solution.

Glaxo's alleged violations in Syria is just one country where they are currently under investigation for similar incidents, others include Bahrain, China, Iraq, Jordan, Kuwait, Lebanon, Oman, Poland, Qatar, UK, United Arab Emirates, USA.





Bob Fiddaman.


[1] What is a "Sudafed Smurf"?
[2] Crystal in Iran: methamphetamine or heroin kerack
[3] United Nations World Drug Report 2013
[4] GlaxoSmithKline - Filthy, Disgusting, Abhorrent...and that's Just the Plant! Read the Charges!
[5] Substance abuse among Iranian high school students

GSK: This Time It's Syria!

Welcome to the world of GlaxoSmithKline, a world where allegations of bribery and corruption are commonplace.

Reuters have just broke the news that British pharmaceutical giant GlaxoSmithKline are under investigation for bribery in Syria.

Add this to the following:

USA
UK
CHINA
IRAQ
POLAND
BAHRAIN
JORDAN
KUWAIT
LEBANON
OMAN
QATAR
UNITED ARAB EMIRATES


Reuters, in an exclusive, claim to have received an email from a person familiar with GSK's Syrian operations alleging bribes in the form of cash, speakers’ fees, trips and free samples.

"The detailed 5,000-word document, addressed to Chief Executive Andrew Witty and Judy Lewent, chair of GSK's audit committee, said incentives were paid to doctors, dentists, pharmacists and government officials to win tenders and to obtain improper business advantages.

"GSK has been engaging in multiple corrupt and illegal practices in Syria and its internal controls for its Syrian operation are virtually non-existent," the email said."

Reuters are also reporting that the email claimed that GSK "had engaged in apparent Syrian export control violations, including an alleged smuggling scheme to ship the drug component pseudoephedrine to Iran from Syria via Iraq."

Included in the email was information on alleged violation including payments of $1,500 each to two doctors to promote Panadol. Also alleged was that GSK bribes paid to pharmacists and payments for medics to visit a Mediterranean holiday resort.

These latest revelations come on the top of news earlier that GSK's shares fell by about 6%, a familiar downtrend for GSK, as the stock is now down 8% since July 10.

One word.

Karma.

Bob Fiddaman

Hat Tip - The Truthman

Glaxo to Settle With More States in $105 Million Deal

Following yesterdays news, that Glaxo had entered into an agreement with the Oregon Department of Justice, comes news of further settlement agreements being reached in the US.

It's now being reported that GSK will pay $105 million to settle claims with California, New York and more than 40 other states that it illegally promoted asthma and antidepressant drugs.

The deal isn't just a monetary one...Glaxo, however, would like the general public to think that it is.

Part of the deal is that Glaxo have to stop using paid doctors to promote its products. Glaxo, after being fined a record breaking $3 billion in 2012 for similar offences, have claimed to be doing this off their own bat...when in fact their hand has been forced by these settlement agreements.

The State of California are to receive $7.1 million, the highest payment to any of the other states mentioned in the agreement. Texas stands to get $6.2 million under the deal, while Pennsylvania and New Jersey stand to receive $4.1 million and $2.45 million

Glaxo have also recently settled many Paxil birth defect cases, a figure that is estimated at $1 billion.

Glaxo have also recently been in the news for bribing doctors in China, Iraq, Poland, United Arab Emirates, Qatar, Bahrain, Oman, Kuwait, Lebanon, Syria and Jordan - back story.

On May 27th the British Serious Fraud Office (SFO) announced that GlaxoSmithKline were being investigated by officials in Britain. I have wrote to the SFO asking them to elaborate on the investigation and also asked them if they will be investigating any bribery or fraud committed in the UK by GlaxoSmithKline. The SFO have wrote back but have, as yet, not announced if they will be investigating bribery or fraud from any of GSK's UK practices.

So, Glaxo settling claims against them left, right and centre at the moment.

They refuse, however, to settle claims brought against them by members of the British public regarding Seroxat [Paxil] and its propensity to cause withdrawal problems. A lawsuit, filed over 10 years ago, sees Glaxo refuse to compensate a number of British consumers who became addicted to Seroxat. Glaxo have refused to enter into any type of settlement agreement and have denied all allegations that Seroxat is addictive. This, despite settling with over 3,000 consumers who made claims against them in the US a number of years ago.

It seems that GlaxoSmithKline, a British company, can pay the consequences of their illegal activities in foreign countries but refuse to do so when they do the same on their own soil.

Don't you just love the British Justice system!

Bob Fiddaman.

Open Question to GlaxoSmithKline

Have your sales team, including senior management and reps, paid doctors, hospital officials and health institutions to use GSK products in the UK, resulting in the "illegal revenue" of hundreds of millions of British pounds. Or have you, as a company, ever bribed UK government officials?

Just thought I'd throw this question out seeing as you are currently under investigation by the UK authorities.

I do hope the UK authorities move quickly and subpoena your hard drives, drives that you probably started deleting the second you caught wind that the UK Serious Fraud Office would be investigating you.

Oh, and just so you know, I've wrote to the investigators and offered my services - I've told them what to request from you - told them to focus around your promotion of Seroxat and the possible incentives you paid British doctors to prescribe it to kids. That's fraud, right? That's bribery, right?

Oh, I also told them to steer clear of the MHRA, let's face it, they are just an extension of GSK anyway.

Anyway, I may be wrong, hence the question....

Have your sales team, including senior management and reps, paid doctors, hospital officials and health institutions to use GSK products in the UK, resulting in the "illegal revenue" of hundreds of millions of British pounds. Or have you, as a company, ever bribed UK government officials?

You know my email address, right?

Then again, you could just leave a message on my blog, seems like you were on here again earlier.

Bob Fiddaman

Are GSK Collecting Flags of Nations?

Fined a record-breaking $3 billion in the US for serious violations regarding the promotion of prescription medication to vulnerable patients [including children] - Excuse - "It was all part of an era"

Currently under investigation...

GSK investigated over fraud allegations in China - When the story broke GSK's Andrew Witty had this to say... "there are control mechanisms in place to prevent bribery and other forms of corruption, but that the methods these individuals used “would have been difficult to find using our controls.”

Almost one year later...

GSK's Mark Reilly Accused of Running a "massive bribery network" - Chinese officials investigating claims of bribery and corruption at GlaxoSmithKline's Chinese HQ have accused former head of China operations, Mark Reilly, of "personally running a "massive bribery network"."

Just before this announcement...

GSK - Latest Corruption Scandal In Iraq - The allegations cited include but are not limited to:

Hiring 16 government-employed physicians and pharmacists in Iraq as paid sales representatives for the company while they continued to work for the government.

A government-employed Iraqi emergency-room physician prescribing Glaxo products, even when they weren't in the hospital's pharmacy and a competitor's brand was in stock.

Paying expenses to government-employed doctors to attend international conferences.

Then came...

GSK accused of illegal marketing in Poland - This is what GSK had to say, “Following receipt of allegations regarding the conduct of the programme in the Lodz region, GSK has investigated the matter, using resources from both inside and outside the company. The investigation found evidence of inappropriate communication in contravention of GSK policy by a single employee. The employee concerned was reprimanded and disciplined as a result."

Before the dust could settle...

Jordan and Lebanon - The Next GSK Scandal - GSK has launched an internal investigation into its operations in the United Arab Emirates, Qatar, Bahrain, Oman, Kuwait, Lebanon, Syria, Jordan and Iraq.

"Sales representatives allegedly bribed doctors in Jordan to prescribe Glaxo drugs by issuing free samples that the doctors were then allowed to sell on, according to the emails.

"Glaxo representatives also allegedly permitted Jordanian doctors to bring their spouses on business trips that Glaxo paid for, according to the emails. Doctors were issued with business-class tickets to attend conferences but would exchange them at travel agencies for two economy-class tickets, allowing their spouses or other family members to come along free, a practice local Glaxo employees were aware of, according to the emails."


And now...

GSK faces serious fraud investigation in Britain - Britain's Serious Fraud Office (SFO) has launched a formal criminal investigation into GlaxoSmithKline Plc, posing a new challenge to the drugmaker, which already faces allegations of bribery in China and elsewhere.

Britain's biggest pharmaceuticals company said it had been informed on Tuesday that the SFO had "opened a formal criminal investigation into the group's commercial practices".

GSK said it would cooperate fully but gave no further details in a brief statement. A company spokesman declined to elaborate.

So, let's see.

GSK have issued a press release regarding the latest fraud allegations in the UK.

The company said it would "co-operate fully" with the SFO.

Um... I don't think you have much say in the matter!

GSK – one of the world’s leading research-based pharmaceutical and healthcare companies – is committed to improving the quality of human life by enabling people to do more, feel better and live longer.

It's about time they changed the company tagline, doncha think?

Bob Fiddaman

Is Witty Being Toppled in Iraq?

If a picture paints a thousand words...

An image of Glaxo Chief, Andrew Witty, being toppled in Iraq amid yet more bribery allegations against GlaxoSmithKline.

Hat Tip - Billiam James

Back story

GSK - Latest Corruption Scandal In Iraq

Bob Fiddaman

GSK - Latest Corruption Scandal In Iraq

Fined over $3 billion for violating federal law in the US, part of a corruption investigation in China - What more for British pharmaceutical giant GlaxoSmithKline?

Well, a whistleblower has come forward alleging that GlaxoSmithKline employees in Iraq are up to no good.

According to the Wall Street Journal [WSJ] "A person familiar with Glaxo's Mideast operations emailed the U.K. drug company late last year and earlier this year to report what the person said were corrupt practices in Iraq, including continuing issues and alleged misconduct dating from last year and 2012."

WSJ adds, "The emails cite behavior similar to Glaxo's alleged misconduct in China, including alleged bribery of physicians."

The allegations cited include but are not limited to:

• Hiring 16 government-employed physicians and pharmacists in Iraq as paid sales representatives for the company while they continued to work for the government.

• A government-employed Iraqi emergency-room physician prescribing Glaxo products, even when they weren't in the hospital's pharmacy and a competitor's brand was in stock.

• Paying expenses to government-employed doctors to attend international conferences.

The WSJ also writes... "In 2012 Glaxo Iraq won the contract to supply the company's Rotarix vaccine, Glaxo paid for a workshop in Lebanon for Iraqi Ministry of Health officials, the email said. That included paying for a doctor's family to travel to Lebanon "so it would be a family vacation for him at the hotel."

In 2011 Glaxo Iraq signed an agreement with Modern Drug Industries, an Iraqi company, to manufacture and package drugs in Baghdad. At the time GSK said producing drugs closer to the customer would improve their cost base and enable them to sell products on at an "access price".

Hmmmm.

GSK's company tagline is "We are a leading healthcare company that helps people to do more, feel better and live longer"

Bob Fiddaman



Hat tip - The Truthman