- FiercePharma reports that Novartis (NVS +0.2%) has appointed the former chief of its Asia Pacific operations, Joshi Venugopal, as interim CEO of its Korea business replacing another interim CEO, Klaus Ribbe, who plans to retire next month.
- The unit has been rocked by allegations of a kickback scheme to doctors aimed at driving prescriptions. Former CEO Moon Hak-sun took a leave of absence in 2016 and was indicted a short time later along with five other senior executives.
- The criminal case is ongoing. The prosecution claims that the Novartis Korea used academic events sponsored by medical journals to funnel ~$2.3M (NYSE:MMM) in illegal payments to doctors. The Korean Ministry of Health and Welfare fined Novartis ~$50M and suspended reimbursement of Exelon (NYSE:EXC) and Zometa for three months. Additional penalties have been meted out from the Ministry of Food and Drug Safety and the Fair Trade Commission.
- A similar scandal surfaced in Greece. The SEC and U.S. Department of Justice are investigating.
- Now read: Merck (NYSE:MRK) Obtains Earlier FDA Approval For Expanded Label Of Keytruda In Front-Line Lung Cancer
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