Novartis takes action as former employee is arrested in Japan

Swiss drug major Novartis (NOVN: VX) said yesterday that Novartis Pharma K.K. (NPKK) understands that the Tokyo District Prosecutor’s Office (TPO) has publicly disclosed that it will proceed with charges against a former employee regarding the publication of an article containing manipulated data related to a sub-analysis of the Kyoto Heart Study in violation of Japan’s Pharmaceutical Affairs Law.

Although NPKK has not yet received official notification, Novartis has also learned that the TPO has publicly disclosed that it will proceed with charges against NPKK in Japan. The charges against NPKK are in connection with the actions of the single former employee, Shirahashi. Under the dual liability characteristic of the Japan legal system, the charges allege that NPKK carries responsibility for failing to oversee an employee. The charge carries with it a maximum fine of 2 million Yen ($19,710).

NPKK understands that the TPO has also re-arrested Shirahashi for further investigation. NPKK will co-operate with authorities in the ongoing investigation. The company said it will review the contents of the charges against NPKK in further detail once it receives official notification from the TPO.