|

An EthicsWeb
website
Contact
Information:
This site is owned by:
Chris MacDonald (chrismac@ethicsweb.ca)
Webmaster:
Ashley Pringle
apringle@ethicsweb.ca
|
Pharmaceutical Scandal or not?,
The Distinction Elaborated By:
Ashley
Pringle Under Supervision
from: Dr. Chris McDonald For
a list of other drug corporation scandals see
this page

In 1995 the Shell corporation gained approval from the
UK government
to carry out its plan to dispose of the out of commission
Brent Spar offshore oil container by sinking it in a remote
region of the ocean. Shell determined this was the best
option, as opposed to onshore dismantling, because it would
be cheaper, less dangerous for the workforce, and have a
minimal impact on the environment and marine life. The same
year Greenpeace carried out extensive protests in response
to
Shell's disposal plan, including occupying the Brent Spar,
after which they claimed to have evidence that the Brent
Spar still contained more than 5000 tons of oil, and
significant quantities of other waste, including radioactive
material. The combination of the Greenpeace protests, media
coverage, new international laws and severe public outcry forced Shell to abandon
its plans and opt for the more expensive, more dangerous,
but presumably more environmentally friendly option of
onshore dismantling. But, Greenpeace later admitted that the
Brent Spar did not contain nearly the amount of contaminants
they claimed it did, and it is now accepted by many that
Shell's initial plan to sink the rig was in fact not as
damaging as Greenpeace would have the public believe. In
this situation Shell acted ethically, telling the truth
about the contents of the Brent Spar and the expected results of
their plan, but did not have the credibility in the public's
eyes that Greenpeace did. As a result, Shell was involved in
a scandal in which they did little, if anything, wrong, and
did not affect the health of anyone.

Between 1996 and 1999 Enron reported to its shareholders
that it had made $2.3 billion in profits, when in actuality
it was steadily losing money. To achieve this, a series of
complex tax schemes were employed which shifted debt into a
series of almost nonexistent companies set up by
Enron executives. As a result, Enron appeared to be making
profits, when in fact they were not. Some argued that Enron
deliberately and aggressively engaged in transactions that
had no business purpose other than to put forward the
appearance that it was a profitable company worth investing
in. Enron deliberately deceived its shareholders in
order to inflate short-term earnings and thereby enrich
senior managers. The result was serious financial harm to
thousands of investors. It can easily be argued that Enron’s
actions were unethical, but once again, these scandals did
not involve the health of consumers in any way, only the
financial well being of the company and its shareholders. It
is presented as an example of an entirely financial,
non-pharmaceutical scandal.

In
late 2001, ImClone’s drug Erbitux failed to get approval
from the Food and Drug Administration (FDA), and as a result
the company's stock price dropped severely. Later, the Security and
Exchange Commission revealed that several executives and
board members sold their stock before the announcement of
the decision. Samuel Waksal, founder and CEO of ImClone, was
arrested in 2002 on insider trading charges for informing
his friends and family to sell their stock, and attempting
to sell his own. Like the Enron scandal, this scandal
involved unethical financial actions by members of the
corporation, but didn’t directly jeopardize the health of
consumers. But, unlike the Enron scandal, the ImClone
scandal did involve a bio-pharmaceutical corporation.
Some might label ImClone’s act as a “corporate drug
scandal,” when in fact it is not substantially different
than any financial scandal which a non-pharmaceutical
corporation could be involved with, such as the Enron
scandal.

Purdue's pain relief drug
Oxycontin has been at the center of a great deal of attention
in the last few years. Despite its status as a prescription
drug, this opiate derivative narcotic went from limited use
in cancer wards, to being prescribed by family doctors,
until finally it became a sought after street drug due to
its highly addictive qualities. Initially designed as a
painkiller for the most debilitating cases of suffering, Oxycontin ended up
being stolen and sold on the street to addicts with no
medical need
for it. Despite this, it is very unclear who is to blame for this epidemic
of prescription drug abuse, because no one in particular did
anything obviously unethical. Doctors may have prescribed
OxyContin unnecessarily, but many only did so because they
most likely weren't fully aware of the properties and uses
of the drug. Also, Purdue did not obscure or
manipulate any information about the drug, and, although
they didn't directly confront the problem themselves, they also
didn't intentionally create it. In other words, they did nothing worse than any other drug
company which would manufacture and market a prescription
drug, but nonetheless their product got out of hand,
affecting the health of many citizens.

A
civil lawsuit, filed in New York, claimed that GSK committed
fraud when it avoided informing physicians that studies of its
highly profitable drug Paxil, also known as Seroxat, had
shown that the drug was not only ineffective in adolescents,
but might also contribute to some cases of suicide. Assuming
these accusations are true, GSK acted in a clearly
unethical fashion, as it deceived health care professionals
and the public about the effectiveness and safety of its drug, presumably
in order to maintain strong sales. This unethical behaviour
had the potential of seriously impacting human health,
as consumers of the drug were sometimes at higher risk of
suicide than if they hadn’t taken the drug at all.
Merck
A study by the Food and Drug
Administration reported that over four years, from 1999 to
2003, more than 27,000 heart attacks and sudden cardiac
arrests may have occurred due to Merck & Co.'s arthritis drug
Vioxx. Merck abruptly pulled its product from the market upon
the release of the study. But, some have argued that Merck &
Co. knew of the potential for health risks associated with
Vioxx as early as five years before the recall, and never
followed up on them, opting instead to market the drug without
further research. If this is the case, then Merck & Co. acted
in a clearly unethical fashion by not informing the public of
the health risks, and affected the health of the public by
releasing a product which was potentially dangerous.
For ethics
books, see...
|