Novartis Overhauls Japan Operations Following Diovan Scandal

Oct. 3, 2013

Swiss drugmaker Novartis has overhauled management operations and sanctioned key staff in Japan following an investigation into manipulated Diovan blood pressure drug data.

A Japanese health ministry panel called for an investigation of Novartis Pharma, the company's Japanese arm, saying it may have violated the law when it cited studies based on allegedly manipulated data. Novartis may have been promoting its Diovan hypertension medicine as a treatment for cutting stroke risks without sufficient evidence, the panel said.

Concerned about its global reputation, Novartis has responded by setting up a compliance advisory panel to prevent future problems and cutting pay for certain top-level Novartis managers in Japan. Read more