When Drugs Are Promoted By Bribing In India

Novartis sales team involved in bribing stockists


Stockists of Novartis in the country’s most important regional market warned the company last year of unhealthy practices in the distribution of Galvus, a drug at the centre of a fraud committed by some salesmen in the Swiss pharma giantCapture

The  Pharma Wholesalers Association, (PWA), of the Mumbai region (which also includes Pune) asked Novartis to check certain practices such as massive discounts and freebies to distributors to sell stocks of Galvus. ET has a copy of the letter.

“We solicit this requirement to comprehend and discourage any type of unhealthy distribution practice prevailing in pharmaceutical supply chain.” said the PWA letter of the addressed to the distribution manager of  Novartis India in June 2012. Stockists told ET that Novartis sales representatives were offering 20% discount to select dealers for the purchase of Galvus.

Last week, Novartis sacked about 18 people for allegedly padding invoices and inflating sales of the drug.

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