Merck Serono rapped over hospitality
pharmafile | May 23, 2014 | News story | Medical Communications, Sales and Marketing | ABPI, Merck KGaA, Merck Serono, PMCPA
The use of ‘extravagant’ dinners and ‘excessive alcohol’ has landed Merck Serono in hot water with the PMCPA as it’s found guilty of two breaches of the ABPI Code.
The complaint came from a fertility health professional who told the PMCPA, which polices the ABPI Code, that Merck Serono had flown delegates premium class to a conference in Boston where they hosted lavish dinners, followed by drinks parties, that went on late and saw large amounts of alcohol consumed.
The complainant also alleged that this ‘excessive level of hospitality’ was further evidenced by Merck Serono’s conduct at another international conference, this time in London, during which it entertained UK health professionals on a Thames river boat cruise with music.
The pharma unit of German-based Merck KGaA treated them to an ‘extravagant gala dinner’ held in the Tower of London where an ‘excessive amount of alcohol’ was again provided.
The PMCPA says that under its rules companies should only offer or provide economy air travel to delegates sponsored to attend meetings.
The PMCPA thus ruled that the premium flights to Boston was in breach given that premium economy and world traveller plus flights were ‘significantly more expensive’ than the economy flights.
The Panel says it was ‘extremely concerned’ about the impression given by the firm paying for these types of tickets. It also says the airline’s offering of premium economy appeared to be akin to business class, something not permitted by the Code.
Whilst at the conference Merck Serono also took its guests to a steak house, but contends that this was the ‘only available venue’ for a large number of diners at short notice.
The cost per head including drinks was £83 which the firm acknowledged was higher than it would ordinarily consider acceptable, and the PMCPA ruled a breach in this regard as well.
In relation to the river boat cruise, the Panel said it was not appropriate for Merck Serono employees to accompany its delegates to an event that appeared to be entirely social in nature.
The Panel says it was likely that attendees would be attracted by the venue and given this, it was important for a company to be mindful of the impression created by its activities.
But it says the resulting effect given the presence of Merck Serono employees with health professional delegates on the river boat, which was likely to be more of a party atmosphere, was ‘wholly unacceptable’.
In that regard the Panel considered that high standards had not been maintained and therefore a breach of the Code was ruled.
The PMCPA stopped short of finding the firm in breach of clause 2 of the Code however, which is the most serious as it ‘brings disrepute’ to the pharma industry.
Ben Adams
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