Life Sciences

Pharmaceutical companies under intense scrutiny

Pharma Compliance Alert, November 14, 2007

Editor's note: This is the first in a two-part series on OIG chief counsel Lewis Morris' remarks at last week's Pharmaceutical Regulatory and Compliance Congress.

The pharmaceutical industry is under "intense scrutiny" across the country, OIG chief counsel Lewis Morris told industry insiders at last week's Pharmaceutical Regulatory and Compliance Congress in Washington, DC.

Morris said the public perception of relationships between pharmaceutical companies and physicians is "troubling to people". Morris said news coverage of pharmaceutical companies' spending increases the perception that physicians are being unjustly influenced by the industry.

In response, many medical centers and medical schools have eliminated industry-sponsored lunches and have cut down on the number of visits by pharmaceutical representatives they permit.

Morris also expects to see more states pass their own versions of the False Claims Act and believes that pharmaceutical companies will continue to face more lawsuits under the this law.

"More prosecutors are able to build and pursue these cases," Morris said, noting that settlements are coming from more than just the Boston and Philadelphia U.S. Attorney's Offices, such as Virginia and Florida.

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