Conflicts of interest are a chief compliance concern in many industries, from financial services to information technology. In the pharmaceutical field, one company is taking dramatic steps to reduce its potential liability by significantly changing its business model.
GlaxoSmithKline recently announced that it plans to address their compliance concerns and halt the commonly used practice of paying medical professionals to promote its medications. The drug maker will also stop setting marketing goals based on the number of prescriptions that doctors write.
The decision follows several recent scandals involving conflicts of interest in the pharmaceutical industry. It also begins to address the long-standing criticism that the companies routinely put profits before patients.
For GlaxoSmithKline, its latest legal headache involves allegations that four senior Chinese executives paid kickbacks to Chinese doctors for prescribing their drugs. According to Chinese officials, the executives used travel agencies as intermediaries to pay bribes to government officials, doctors, and other members of the Chinese drug industry.
In this country, the company paid a record $3 billion fine for promoting drugs for unapproved uses and failing to report safety problems with several popular medications. Following last year’s settlement, the company vowed to overhaul its sales and marketing tactics.
In addition to penalties for illegal kickbacks and false marketing claims, the Affordable Care Act (ACA) also places additional pressure on drug companies to be more open about their relationships with medical professionals. Under an ACA provision entitled the “Physician Payment Sunshine Act,” drug makers must disclose any transfer of value to a physician that exceeds $10, including money, gifts, meals, and other perks.
Drug companies must also report whether a physician or his or her family members have an ownership stake in the company outside of publicly traded stock. The information will be made publicly available with the goal of educating patients about possible conflicts of interest that may impact their care.
Given the increased regulatory and public scrutiny, it would not be surprising if other pharmaceutical companies follow GlaxoSmithKline’s lead.
Can You Change an Irrevocable Trust in New Jersey?
In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
Data Center, Dark Fiber, and Lit Services Agreements in New Jersey: Key Terms and Legal Pitfalls
For New Jersey data center owners and operators, a service agreement may look routine when it is signed. The network is functioning, the vendor is meeting its installation schedule, and the parties have agreed on pricing and performance specifications. The provisions that seem most important at that stage are often the technical ones. That changes […]
Fort Monmouth Redevelopment and the Transformation of Monmouth County Real Estate
The Fort Monmouth redevelopment has entered its execution phase, and it is repositioning the broader Monmouth County real estate market. When Netflix and the Fort Monmouth Economic Revitalization Authority closed on the 292-acre Mega Parcel in December 2025, the transaction did more than hand over a deed. It marked the moment Fort Monmouth stopped being […]
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them
The five most common real estate disputes are breach of contract claims, landlord-tenant conflicts, zoning and land use disagreements, construction claims, and boundary disputes. Understanding why each arises, and taking preventive steps early, can help property owners, tenants, developers, and investors avoid costly litigation. Key Takeaways: Real estate transactions are complex endeavors involving numerous parties […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
