When large amounts of money are involved, companies have been shown to do what it takes to protect their profits, even if unethical and illegal. The pharmaceutical industry is no stranger to illegal practices and scandals involving shady businesses, leading to more money. Some of the largest pharmaceutical companies have been exposed to backlashes for price increases that are lying to the public and the FDA, tasteless business practice and misleading data. Here are ten of the largest pharmaceutical scandals.
Related: 10 business scandals so large that they shook the economy
10 Pfizer Celebrex Scandal
In 2012, pharmaceutical giant Pfizer was cherry -picking security data for Celebrex. A lawsuit against the company revealed that research leaders mistakenly represented data to trick the medical community about how effective the anti-arthritis medicine was. The one -year study showed that Celebrex was not more secure than other anti -inflammatory drugs. Still, the six -month data from the same study showed that the drug was safer on the stomach. Researchers promoted the six -month data to claim that the drug was superior to others, such as ibuprofen.
Documents revealed E emails between researchers and leaders who prove that Pfizer officials used strategic decisions to make the data work better. Celebrex was one of the most profitable substances from Pfizer, but the company was forced to pay more than $ 164 million to conduct a trial of investor class. The company still refused any offense.[1]
9 Epipen Scandal
The epip has literally been a lifeguard for many people suffering from a deadly allergic reaction. The product only cost Mylan around $ 1 to manufacture an epipen two-pack, but the company took advantage of the vital product. They decided to raise the price from $ 100 to more than $ 600 for consumers.
In their first five years of owning the epipen, Mylan spent nearly $ 8 million in lobbying to make their product mandatory in schools, and soon it was allowed or required in most states. Then they lobbed to give a law that gave financial incentives to states that required the epip. When the government was on the hook, Mylan continued to raise the price until it overturned $ 600.
A study was launched in the large price increase, but Mylan defended the increase due to improvements to the product. Mylan agreed to pay $ 465 million to resolve claims that the company avoided paying discounts that are primarily due to Medicaid by mislassing the epip as a generic drug.[2]
8 Merck Vioxx Scandal
VIOXX was a popular drug used to reduce pain and inflammation, and Merck, its producer, had hoped to prove that the anti -inflammatory drug would rule superior to other similar drugs. The drug seemed to perform its intended job, but studies revealed that it was linked to an increase in stroke and heart attack. The studies eventually led to a voluntary revocation of the drug.
The FDA approved the drug in 1999 after data showed a low risk of heart -vessel disease. Studies then began to show the risks that VIOXX had on patients, but Merck continued to claim the studies were deficient. The FDA could not act after seeing evidence of the dangers caused by the drug, which led to rumors that Merck and the FDA covered potential health concerns. The disaster eventually led to fines and litigation.[3]
7 Rochester Drug Cooperatives Opioid Scandal
The opioid epidemic centers on the rapid increase in abuse and overdose deaths attributed to drugs classified as opioids. Opioids are extremely effective in treating pain, but they pose a risk of being addictive and can lead to overdose deaths. More than 600,000 Americans died of opioid use from 1999 to 2021. Pharmaceutical producers and distributors were blamed by the government for their role in fuel for the epidemic and soon they would pay for their roles.
Rochester Drug Cooperative (RDC), a pharmaceutical wholesale distributor, was the first to be accused of drug trafficking as part of the opioid crisis. They were accused of having sent huge amounts of very addictive substances to pharmacies, which they knew they were illegally handing them over. RDC admitted drug trafficking and was soon shut down and declared bankruptcy.
Laurence Doud, CEO of RDC, was later sentenced to 27 months in prison for his role in the crisis. The US lawyer claimed that Doud was interested in his paycheck than preventing opioids from coming to people who are struggling with addiction.[4]
6 Valean Scandal
Valeans rightly received anger from all over the dramatic drug riser from his companies, and this led to a federal prosecutor’s investigation into the way the company priced and distributed its drugs. The price of medicines such as Isuprel, Isoprenaline and Nitropress increased before Valant bought them, but they then increased Isuprel by six times and nitropress four times after acquiring them.
In 2016, former leaders Gary Tanner and Andrew Davenport were accused of running kickback schemes and they were accused of having the conspiracy of creating Philidor as a place to distribute their drugs. Former CEO Michael Pearson was investigated for possible fraud earlier this year. Valeant has always run business in a shady way, and the price that measures their customers was only a piece of the cake.[5]
5 Questcor Price Hike Scandal
Questcor Pharmaceuticals is responsible for one of the largest drug price increases in American history. Two warners from the company claimed that Questcor bribed doctors to increase the sale of its drugs. The strategy was to help increase the sale of HP ACTHAR GEL, a drug known for treating a rare infant seizure disorder. The $ 40 vial of the medicine in 2000 rose to about $ 39,000 in less than 10 years, almost an increase of 97,000%.
The whistles revealed that the company did everything from lying to Food and Drug Administration to offering bribes if it led to more sales. The price increase led to more than $ 1 billion in annual sales for Questcor. About 25% of the ACTHAR sales went through Medicare and revenue from Medicare went from about $ 50 million in 2011 to $ 725 million in 2018. Not only did they walk the price of individuals, but they also robbed the government.[6]
4 Merck MMR scandal
The MMR vaccine protects against measles, mumps and red dogs and is usually administered in two doses for infants and young children in America. The MMR vaccine of Merck has also calmly been part of a scandal in the last 25 years. Merck was facing a potential product recall of the vaccine in 1999 because the product might be deficient. The problem arose when the FDA found a strength problem with the vaccine. The living virus in the vaccine that makes the shot work was dying due to the vaccine sitting on the shelves for too long.
Merck started “overfilling” by putting more of the virus into the vaccine to hope it would last longer, but the virus still died too quickly. The FDA hit Merck with two warnings not to report vaccine doses that may not meet the strength.
Lab workers for the company said they were told to change the date for it to look better. They ultimately filed a whistleblower case case for taxpayer’s fraud. The case pulled on for years, but was later rejected before the trial. Merck has denied any wrongdoing, but questions have been raised as to whether the strength of the vaccine has led to outbreaks among vaccinated people.[7]
3 Roche fraud scandal
Roche Pharmaceutical Group could not report thousands of potential side effects correctly that led to illness and death. The Europe Commission investigated claims that the drug company could not provide accurate details about the side effects of 19 medications. The initial reports showed that Roche could have been a fine of around $ 685 million for failure to report.
After years of inspections, the Europe Commission closed the case after Roche worked extensively to remedy the shortcomings quickly and improve their medical compliance. Although the result was expected to be worse for the company, thousands of deaths may still be linked to the company to hide their side effects.[8]
2 Abilify scandal
Bristol-Myers Squibb Company and Otsuka Pharmaceutical Company were partners in the development and commercialization of Abilify, an antipsychotic medication used to treat conditions such as schizophrenia, bipolar disorder and depression. A study from 43 states was launched to investigate the marketing of Abilify for off-label uses. They claimed that Bristol-Myers Squibb alien the drug for non-approved applications, especially for elderly patients with dementia.
A Medicing guide from Otsuka stated that the medicine could cause an increased risk of death in the elderly with dementia. Bristol-Myers Squibb refused any wrongdoing, but they agreed on marketing restrictions. The company also paid $ 19.5 million to settle the allegations that the stranger Abilify for non -approved uses and mislead doctors about the potential dangers of antipsychotic medication.[9]
1 Pharma Bro Scandal
One of the best known pharmaceutical scandals involves the notorious and hated “Pharma Bro.” Martin Shkreli, former CEO of Turing Pharmaceuticals, was nicknamed after blaming the price of medicine. Daraprim was a medication that treated a rare parasitic disease that attacked cancer patients, AIDS patients and pregnant women. The price of Daraprim rose from $ 13.50 a pill to about $ 750.
Shkreli said his decision to collect the award was capitalism at work. Still, his choices triggered indignation throughout America. In 2015, he was arrested on charges of securities fraud in connection with hedge funds he was involved in, and the next day he resigned as CEO of the company. He was convicted of the crime and received a seven-year prison sentence. Shkreli was also ordered to return $ 64.6 million in profits that his former company achieved by raising the price of Daraprim.[10]
