Pink Sheet is part of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By

UsernamePublicRestriction
UsernamePublicRestriction

BAXTER WILL APPEAL V-A SUSPENSION OF GOVERNMENT CONTRACT ELIGIBILITY

Executive Summary

BAXTER WILL APPEAL V-A SUSPENSION OF GOVERNMENT CONTRACT ELIGIBILITY within 30 days, the company said Aug. 13. The Department of Veterans Affairs suspended Baxter's eligibility to renew existing agreements or compete for new contracts with all government agencies on Aug. 13, giving the firm 30 days to appeal the decision. The suspension will last one year. The action, which applies to all Baxter divisions and "other organizational elements," will not affect existing contracts, the V-A said. "The decision to suspend [Baxter] stems from an investigation conducted by the V-A's office of the Inspector General" as well as the firm's conviction earlier this year for violating U.S. anti- boycott laws prohibiting cooperation with the Arab League boycott of Isreal, the V-A said. The IG's investigation started in 1990, following "allegations that Baxter provided false information to V-A purchasing agents concerning items which were not on government contract." The V-A characterized the "misrepresentations" as a "sales strategy" by which Baxter attempted to "'pull through' other, and at times more profitable, non-contract items by misleading V-A purchasing agents" about what products were under contract, according to the agency. Baxter said that in 1991 it "worked with the V-A and took systematic steps to assure that all its sales practices were proper and acceptable to the agency." The company "was advised at that time that the V-A was pleased with the company's response." In addition to the suspension, three top Baxter executives have been debarred by the V-A from doing business with the government as a result of the anti-boycott law violation: Vernon Loucks, Baxter's chairman and CEO; James Tobin, president and chief operating officer; and Marshall Abbey, former senior VP, secretary and general counsel of the firm. Under the terms of the debarment, the three are prohibited from participating in competition for government contracts for a period of three years. The 30-day window for presenting mitigating arguments in favor of reversal also applies to the debarments. If the action is not overturned, the Baxter topsiders would not be able to sign government contracts with the firm even after the one-year suspension ends, the V-A said. The government purchases about $138 mil. in supplies from Baxter annually. The V-A is just one of many government agencies with the authority to suspend firms or debar individuals from all government contract competition. Last spring, the Department of Defense's Defense Personnel Support Center sent a memo to hospitals it supplies indicating that Baxter's anti-boycott violations were serious enough to warrant a consideration of a recommendation for debarment.

You may also be interested in...



Part D Discount Liability Coming Into Focus: CMS Releases Drug Cost Data

Newly released Medicare Part D data sheds light on the sales hit that branded pharmaceutical manufacturers will face when the coverage gap discount program gets under way in 2011

FDA Skin Infections Guidance Spurs Debate On Endpoint Relevance

FDA appears headed for a showdown with clinicians and the pharmaceutical industry over the proposed new clinical trial endpoints for acute bacterial skin and skin structure infections, the guidance's approach for justifying a non-inferiority margin and proposed changes in the types of patients that should be enrolled in trials

Shire Hopes To Sow Future Deals With $50M Venture Fund

Specialty drug maker Shire has quietly begun scouting deals with a brand-new $50 million venture fund, the latest of several in-house investment arms to launch with their parent company's pipelines, not profits, as the measure of their worth
UsernamePublicRestriction

Register

PS023120

Ask The Analyst

Please Note: You can also Click below Link for Ask the Analyst
Ask The Analyst

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel