SANDOZ/NOVARTIS: Daniel Vasella "da portazo" a la IFPMA...

Novartis, the Swiss pharmaceutical group, has removed its generics arm from membership of the drug industry’s international trade body – a move rivals fear creates a two-tier system that could lower ethical standards.

The move comes as the IFPMA concludes a probe triggered by criticism of Sandoz for allegedly breaching its ethical code concerning the labelling of its products.

The decision by Novartis was taken in spite of the fact Daniel Vasella, its chief executive, was the previous head of IFPMA who oversaw the adoption of a tougher new code of practice that could lead to stronger sanctions against its members for any breaches. There is no equivalent code of conduct for the international bodies operated by the generics sector.

Petra Laux, the head of global public affairs at Novartis, confirmed the change of membership status and said:

"Sandoz is no longer a member of IFPMA and does not have to comply with its obligations."

Since Novartis acquired Hexal of Germany to become the largest generics company after Teva of Israel, other pharmaceutical groups have expanded into the sector, including Sanofi-Aventis and GlaxoSmithKline. So far, neither has sought to tweak its IFPMA membership in the same way.

Mas...