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Healthcare: Novartis scam against the Ministry of Health

The crime committed as part of the H1N1 vaccine compensation. Damage to the treasury of 2.7 million euros but could increase up to 16 million.

L'CEO of the vaccine division of the pharmaceutical company Novartis is being investigated on charges of aggravated scam in the'investigation from the power of attorney Of Siena on the supply of Vaccine pandemic anti A(H1N1) al ministry from the Health: the thesis of the investigators is that damage to the exchequer of 2.7 million euros has been caused but could increase up to 16 million. The detectives, in fact, they hypothesize that the price has been inflated not only in the phase of compensation of the damage, when the ministry asked to stop the supply, but also at the beginning, when the contract ofpurchase.

The scam linked to the compensation that the state paid to Novartis on the influenza A vaccine

L'investigation of the carabinieri of the Nas Of Florence is coordinated by the Siena prosecutor's office and hypothesizes a scam in the context of the supply to the Ministry of Health of the vaccine againstinfluence A(H1N1) of 2009. The detectives suspect a scam connected to the compensation which in 2012 the state paid a Novartis, to which, in 2010, following the 'all-clear' pandemic, the ministry had asked for the supply of the vaccine to be interrupted. The charge would consist in the fact that the compensation was calculated on the basis of the significantly inflated price fictitious from Novartis of a central component of the Vaccine, the MF59 adjuvant. The cost would have been increased thanks to a number of overbilling among the companies from the group.

Investigations on the regularity of the price

The searches ordered by power of attorney of Siena in the Novartis offices also have the purpose of verifying whether, in addition to the supply of the vaccine against H1N1, Focetria, there have also been irregularities in determining the price for the seasonal flu vaccine, Fluad. Both are produced by Novartis and they were bought by the ministry. The two vaccines have Mf59 as an adjuvant. According to the indictment, in determining the damage suffered for the interruption of supplies of the H1N1 vaccine, the Novartis allegedly inflated the price of the Mf59, with a mark-up of 500% (3,964 euros per liter instead of 660) thanks to intragroup overbilling between the Italian, American and German subsidiaries. According to the indictment, this system would have misled the members of the commission of the ministry of health for the compensation of the damage linked to Focetria. The investigators of Nas they suspect that this may have also happened with Aifa, which determined the price of Fluad.

In a noteNovartis underlines that «his work is, and has always been, marked by full respect for the law and the provisions in force" and "renew its willingness to cooperate fully with the authorities". The supply of the vaccine of Novartis to deal with the H1N1 (swine flu) pandemic al ministry from the Health had already been at the center of controversy more than 4 years ago. In January 2010, the independent news magazine Other economics had in fact published the contract between the company and the dicastery, hitherto "top secret", signed by theCEO Of Novartis vaccines, Francesco Gulli, and since then general manager of the ministry, Fabrizio Oleari, today president of the Higher Institute of Health. «The writing – explained the Altriconomy – dates back to 21 August 2009. The text regulates thepurchase direct of 24 million doses of Vaccine. Cost: 184 million euros, VAT included. Even the Court of Auditors had complained that this private writing between the ministry from the Health and the pharmaceutical multinational Novartis was covered by secrecy. The story is not all here; Always there Court of Auditors had talked about conditions too favorable to Novartis, including the absence of penalties, the acquisition by the ministry of the risks and the compensation to the multinational for any losses.

Investigations in Turin and Rome

It is not the first investigation concerning the pharmaceutical house. TO Turin it's at Rome investigated starting from the fine imposed by theAntitrust to Roche et al Novartis for a sign which affected the sales of the main eye care products, Avastin and Lucentis»

Aug 11, 2014 – NEWS Blog  

Memorandum: Paradox Novartis: from the vaccine business to 24 ISF (out of 27) fired

Novartis CEO is Joseph Jimenez which in 2013 received a total compensation of SFr.13,226,287 equal to € 10.900.870,36

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