Pharmaceutical Executives Banned From Industry


On July 30, 2012, Eric Palmer posted an article on FiercePharma entitled “Court allows HHS to essentially ban executives from industry.The story reported that Health and Human Services (HHS) banned three executives from participating in government programs which was sought to serve as a deterrent to other executives from breaking the law.

So says an appeals court that upheld a 12-year ban from government programs for former CEO Michael Friedman, general counsel Howard Udell and former Chief Scientific Officer Paul D. Goldenheim who were caught up in the government’s case that was settled in 2007 for $634.5 million over marketing of OxyContin.

An Appeals Court upheld a 12-year ban from government programs for Perdue’s Chief Financial Officer, General Counsel and former Chief Scientific Officer who were involved in illegal marketing of OxyContin in a government case that settled in 2007 for $634.5 million.The three executives pleaded guilty to one misdemeanor count of misbranding a pharmaceutical drug and were held responsible based on their positions in the company.

Justice Douglas Ginsburg stated that “[s]urely the government constitutionally may refuse to deal further with senior corporate officers who could have but failed to prevent a fraud against the government on their watch.”

In recent years, Health and Human Services has used its provision to ban executives as public outrage has grown.It is very unpopular in the industry.Some companies have gone so far as even submitting briefs on the Purdue executives’ behalf.