Novo Nordisk reprimanded in UK for failure to disclose payments to healthcare sector
COPENHAGEN, July 5 (Reuters) -Danish drugmaker Novo Nordisk NOVOb.CO has been reprimanded by UK regulators for failing to disclose fees and expenses paid to individuals and organisations in Britain amounting to about 7.8 million pounds ($9.97 million) between 2020 and 2022.
The UK industry body Prescription Medicines Code of Practice Authority (PMCPA) said on Friday that the reprimand followed a voluntary submission by Novo about the payments, which related to more than 150 different bodies and included fees and expenses to health professionals and sponsorship and other payments to healthcare organisations.
Novo, whose valuation has soared following the success of its diabetes drug Ozempic and weight loss treatment Wegovy, said on Friday that it had made the voluntary admission in 2023 after it found historical payments that had not been disclosed.
"These payments are for legitimate activities but had been incorrectly categorised in finance systems as a result of human error," the company said in a statement.
"We accept the PMCPA's decision to rule the relevant breaches of the two Codes of Practice which applied during the timeframe for this case and agreed that this was the appropriate ruling as part of our voluntary admission."
In March last year Novo was suspended from the Association of the British Pharmaceutical Industry (ABPI), a UK lobby group, for two years over breaches of the group's code of practice.
ABPI linked to a website of a self-regulatory body run by the association that pointed to a complaint, alleging that Novo had sponsored courses on weight management on LinkedIn for health professionals, without making clear that it was doing so.
The PMCPA also said on Friday that Swiss pharmaceuticals company Novartis NOVN.S and US rival Pfizer PFE.N had breached the ABPI's code of practice in more minor ways that brought discredit upon, and reduced confidence in, the pharma industry.
($1 = 0.7820 pounds)
Reporting by Louise Breusch Rasmussen, editing by Susan Fenton
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
