Narasimhan called the contract a major mistake at a meeting with investors in Basel as well as said Novartis can be developing a principles, not a rules-based, system to avert corruption.
“There will always be a way around the rule, whereas if you ask the question, ‘can be that will the right thing to do, are you comfortable with that will being on the front page of the newspaper?’… that will’s going to help get us to a better place.”
Since 2015, Novartis has paid out hundreds of millions in settlements as well as fines as a result of kickback allegations in South Korea, the United States, as well as China as well as faces an investigation of alleged bribery in Greece. A trial for another U.S. kickbacks case can be scheduled for 2019.
Novartis shareholders have urged Narasimhan to exert more “moral influence” over perceived ethical shortcomings that will Jimenez in 2016 blamed on a “results-oriented” sales culture as well as some bad actors.
Klinger cited modifications to bonus schemes for Novartis’s drug sales force that will are meant to avoid the potential for corruption.
“Anyone sales rep can have no more than 40 percent (bonus), so we think that will by doing that will we have also embedded our values as well as behaviors for our sales reps,” she said.