Pharma giant Pfizer insists it followed all appropriate guidelines after it was revealed the company didn’t pay any tax to the Government last year.

A Public Accounts Committee (PAC) investigation into tax affairs found that despite a turnover of £1.8bn on its UK sales last year the company reported operating losses – allowing it to avoid paying corporation tax.

A statement by Pfizer said the company “complies with the appropriate rules and regulations” in the UK and in all other countries it operates within.

Globally the company made $12.7bn last year. In the UK, it has offices in Surrey, Maidenhead and Berkshire. It also has manufacturing and distributing plants in Hampshire, as well as an R&D centre in Cambridge and Kent. It is one of the major suppliers to the NHS and has the best selling drug on the UK market in Lipitor.

But the company said it made operating losses of £46m in 2010 and of £59m last year. “Due to a number of factors including the level of investment Pfizer makes into the UK and restructuring costs, Pfizer actually generated losses in the UK in 2011,” a spokesperson said. “Under UK tax law, corporation tax is calculated on profits not turnover.”

Pfizer has previously been quizzed over its tax affairs in the US and in Germany. Regulators in the US wrote to the company earlier this year asking how it recorded profits overseas yet losses in America when 40% of its sales were in the States.

Critics have pointed towards similar operating losses by other multi-national organisations that allow them to legally avoid paying tax by paying in high tax jurisdictions, whilst reporting profits in low tax ‘havens’.

Charlie Elphicke, a former tax lawyer and now a Conservative MP, called for HMRC to be more firm in its approach to tax-avoiding companies. “What concerns me is that you have a company like Pfizer which has such a large presence in the UK not paying any tax at all,” he said. “That raises serious questions. We need to have an aggressive approach to tax like they have in America where those that evade taxes are prosecuted and those that avoid it face heavy scrutiny.”

A leading researcher for the Cochrane Collaboration has called for doctors to boycott Roche over its failure to release clinical trial data on Tamiflu.

Peter Gøtzsche, head of the Nordic Cochrane Centre in Copenhagen, also argued that European governments should sue Roche for the funds spent on the drug.

His comment was made in response to an open letter from BMJ editor Fiona Godlee, accusing Roche of stepping “outside the circle of responsible pharmaceutical companies”.

The Cochrane Collaboration is the leading global authority for medical drug evaluation, known for its emphasis on randomised controlled trials.

Roche claims that it was unable to supply the Cochrane group with certain clinical data because its members refused to sign a confidentiality agreement.

However, the Collaboration insists that no such confidentiality agreement was offered to them at the time.

The antiviral Tamiflu (oseltamivir) was heavily stockpiled by European governments during the ‘swine flu’ crisis, on the basis of assurances from Roche that clinical data proving its efficacy existed and would be supplied.

Gøtzsche commented: “Roche has withheld data that purports to show that Tamiflu has dramatic effects. We all wonder why it is so difficult to get these data from Roche and why Roche has not published them if it is really true that they show these effects.”

He recommended: “European governments should sue Roche, which might have the effect that the hidden trial results come out in the open. Furthermore, I suggest we boycott Roche’s products until they publish missing Tamiflu data.”

A host of NHS trusts across south east London have launched a new medicines management campaign to combat widespread drug waste and treatments being misused or taken incorrectly.

The campaign, called ‘Get the best from your medicines’, will provide tips on how to help patients use and gain the most from their medication with the aim to save up to £2 million.

Vanessa Burgess, Chief Pharmacist for NHS Lambeth, said reducing the amount of wasted medicines was “very important” to help save millions of pounds’ worth of drugs.

New measures to cut waste include residents across the region being advised to check what medicines they have at home before ordering repeat prescriptions.

During visits to hospital residents are advised to take their medication with them and take any unwanted drugs to a pharmacy for safe disposal. Residents are also urged against stockpiling any medication.

Additionally, patients taking medicines for a long-term illness can now receive a free review via an appointment with their pharmacist.

“We know from talking to people that there are many reasons why people don’t take their medicines properly,” said Vanessa Burgess. “They may have too many different medicines to take, or be confused about why they are taking them. By getting a medicines check up from their pharmacist, they can talk through any issues and make sure that they are taking the appropriate medication in the right quantities, at the right times, and in the right way.”

NHS Lambeth, Bromley, Greenwich and Lewisham are all involved in the campaign.

Christopher Viehbacher, Sanofi’s CEO, has been selected by the European Federation of Pharmaceutical Industries and Associations (EFPIA) as its new president elect.

He will replace the outgoing Sir Andrew Witty in June 2013 and serve a two-year term.

Mr Viehbacher said he was “extremely honoured” by the designation which comes during the “midst of a crisis” in Europe.

The trade body’s new president has served as CEO of Sanofi since 2008 and also chairman of Genzyme since it was acquired by the French pharmaceutical company in 2011. He also served in a similar role as chair of the Pharmaceutical Research and Manufacturers of America (PhRMA) between December 2010 and April 2012.

“There’s a virtuous economic cycle of investing in education and then research and innovation,” said Mr Viehbacher. “The challenge Europe is currently facing is about managing to reduce government deficits and debt without smothering the opportunity for growth; to make sure that relevant pro-growth, pro-innovation strategies can be activated.”

Richard Bergström, EFPIA’s Director General, said the new president is “well placed” to take over the leadership of the group. “At this time, it is important to remind ourselves and others what is needed to sustain research based pharmaceuticals in Europe,” he said. “Chris was involved in the high-level group G10 Medicines and has shown his ability to engage with policy-makers world-wide. I look forward to working with him.”

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Teva has launched its Prednisolone enteric-coated (EC) tablets, a generic version of Alliance Pharma’s branded drug Deltacortril.

The tablets are indicated in the treatment of inflammatory and allergic conditions such as asthma, rheumatoid arthritis and colitis.

Kim Innes, Commercial Director at Teva UK Limited, said: “We are delighted to be bringing a generic version of this product to the UK market, and at the same time further broaden our portfolio, which is the widest of any UK generics supplier.”

Prednisolone is available in the UK immediately as 2.5mg and 5mg enteric-coated tablets in pots of 28 tablets.

Teva UK Limited is one of the UK's top ten pharmaceutical manufacturers, with a presence in the generics, branded respiratory and hospitals markets.

Søren Kjeld Kristensen has been appointed Vice President, Business Development and Strategic Alliances at Lundbeck.

Søren will be responsible for optimising partnerships with other pharmaceutical companies as part of the company’s business development.

Ole Vahlgren, Senior Vice President, says his colleague “masters the art of establishing relations” after playing a prominent role in Lundbeck’s collaboration with Takeda and the agreement with Mochida, and with Merck during the launch of Sycrest.

“I have had many exciting challenges at Lundbeck, and I am happy to receive yet another,” said the new VP. “Lundbeck derives great benefit from collaborating with other companies, and I hope to help ensure even greater advantages from our alliances in future.”

This is Søren’s third role within the company after being promoted from Director & Associate Director, Global Business Development.

By Industry Insider

The world has gone crazy about social networking on the internet and anything goes! What’s your personal favourite, Facebook, LinkedIn, or maybe Twitter? Or none of the above if you are, like me, until recently anyway, someone who had seen this phenomenon as just a passing fad. But wait a minute, aren’t many of these sites simply a vehicle for telling your friends, acquaintances or anyone else who cares to listen or log on, what you are doing, with whom, or what you are thinking about currently? What’s really wrong with that…nothing at all! It’s all about the here and now!

So it’s time to join the online community and embrace the zeitgeist! If you are reading this blog then, like me, you are part of the pharmaceutical community, care about our industry and are hopefully passionate about it. You can now follow Pf via Twitter and can read this blog via Pf’s newly launched website! One of my favourite quotes is “acts are sacred, opinions are free” and this encapsulates what this blog is about. I’m someone like you, who earns a good living from the UK pharmaceutical industry, selling drugs to doctors and nurses. I’ve experienced the good times and the bad and seen changes for better and worse, but one thing has remained constant. I have always been passionate about our industry and hope you are too. I will endeavour to blog on issues both meaty and mundane, using brevity and levity, but essentially write on topics which are relevant to us in our day to day jobs and hope they will generate some online dialogue. These musings are my observations and my opinions. Feel free to express yours and please, if you want to, disagree…and I really hope you do!!

 
www.mxpublishing.co.uk

This book is a true-life account of a year in the life of press photographer Keith Hern, starting with the discovery of a small and painless lump on his neck. Diagnosed with throat cancer, he experienced months of intensive treatment including radiotherapy, chemotherapy and surgery. The outcome has so far been successful.

Bangers & Mash is based on Hern's diary and illustrated with photographs taken by him and others - some dramatic photos of him being prepared for radiotherapy and recovering from surgery were taken by nurses, using his camera. The title refers to his first mouthful of solid food after months of being unable to chew or to swallow anything but liquids.

Another form of treatment he received was psychological training from an NLP coach. NLP was developed in a clinical context long before its application to business practice, and Hern pays tribute to the coach who helped him to focus on 'positive' thoughts and images. He was less impressed by the NLP books and videos she gave him, however. MX Publishing is an NLP specialist imprint, but the book praises the therapy rather than the theory.

Hern's case is a striking example of the power of early diagnosis and intervention. For anyone involved in commercialising technologies for cancer treatment, his account of the debilitating side-effects - at one point, he expresses surprise that an already sick body can endure such toxic intervention - is a valuable reminder of the patient perspective. The development of a more patient-centred healthcare culture depends on such voices being heard.

The financial aspect of his treatment is also worth noting. Hern received private treatment for his cancer thanks to medical insurance, but the company informed him that any subsequent health consequences of the cancer or its treatment would not be covered - which leaves him exposed for the future. Ironically, his year ended with a protracted argument over a travel insurance policy after his teenage daughter was taken ill on holiday. As we move towards a more finance-driven healthcare model, more and more patients will face issues of this kind.

This engaging and frank account is rich in humour and insight, and will give readers in the medtech industry some solid food for thought.

Part six: The Bribery Act

Steve Gray answers your questions about compliance with the ABHI Code of Business Practice and other industry codes that govern commercial activity.

Thank you for the suggestions we have received regarding future articles. Do please keep sending in your questions and comments.

Dear Steve:

I read something in the newspaper recently about a new Bribery Act. Is this some new European legislation that I should be worried about?

Steve says:

The Bribery Act is new legislation that is specific to the UK. It affects all business transactions that take place in the UK, and all those that a UK company or UK employee carried out while abroad. In essence, you cannot offer an inducement for someone to do something that breaks the trust associated with that person's role. The inducement does not have to be money - and it does not even have to be given directly to the person you are trying to influence. Giving a large amount of money to their favourite charity would also fall within the scope of bribery, for example.

Imagine that Lakeshore Monitoring Ltd is establishing a contract with Milton Keynes Trust for the purchase of 10 therapeutic monitoring devices for use in operating theatres. Dr Smith is on the decision-making committee.

You know that Dr Smith always enjoys the European Surgical Association events and that this coming year the congress will be held in Amsterdam. You decide to offer Dr Smith sponsorship to attend the congress in the hope that she will think favourably about your product in the forthcoming purchasing decision.

Your actions would be a breach of the Bribery Act. If it was later found out that Lakeshore Monitoring Ltd had not implemented any training on the Bribery Act for its employees, the company might also be liable to prosecution. If Dr Smith accepted the place in return for recommending the purchase of your product, then she would also have acted illegally.

Another example would be if Dr Smith travelled to the ESA independently, but while there received lavish hospitality from Lakeshore Ltd. This could also be regarded as an inducement if the intention behind the hospitality was to influence the purchasing decision when Dr Smith returned to the UK.

However, it is also illegal for someone to accept (or expect) a reward for 'improper conduct'. So if Dr Smith supported the purchasing decision for Lakeshore's equipment and then told the local representative about her support in order to obtain a benefit (such as funding to go on a course), that would also constitute improper behaviour and be subject to the Bribery Act.

Of course, the Eucomed and ABHI codes protect us all against accusations of this type. The principles of separation and documentation enshrined in the Code ensure that any decisions in respect of funding or support for clinicians are made in the interests of patients, not for a return in terms of business. Your company will undoubtedly be rolling out a specific training programme on the Bribery Act before long, as Lakeshore Monitoring will be doing for its employees. In the meantime, however, you can be assured that if you follow the Code you will be acting in the right way.

Remember that you must always write to the hospital management to tell them that a place has been offered to one of their employees. This supports the principle of transparency, which also protects you against accusations of inappropriate behaviour.

Steve Gray is an experienced compliance specialist and Managing Director of Compliance Hub Ltd. The company provides workshops and e-coaching courses on a wide range of regulatory topics, including the Eucomed and ABHI Codes and the Bribery Act. For more information, please contact steve@compliancehub.com or visit www.compliance-hub.com.

Do you have a compliance query for Steve Gray? If so, please e-mail your question to us at joel.lane@medtechbusiness.co.uk. Your anonymity is guaranteed.