A presentation for business ethics on a case with Novo Nordisk and the Crisis in Greece related to the question about ethics in pharmaceutical pricing.

1. Pharmaceutical Pricing Novo Nordisk and the Crisis in Greece by Andreas Eriksen 10/12/2010

2. Agenda The Introduction The Players The Problem The Solution The Ethics

3. Why this topic?

4. 2010.02.18 Pharmaceutical company World leader in diabetes care One of the biggest Danish companies 30,000 employees in 81 countries 13,000 employees in DK Profit 2009: 10.8 bn DKK 4 key markets Diabetes Care Haemostasis Management Hormone Replacement Therapy Growth Hormone Therapy Novo Nordisk at a glance

5. Greece crisis Starting early 2010 Overspending and cheap lending made visible by world downturn Debt €300 bn(113% of GDP) Deficit of 12 % BB+ credit rating = bad!

10. vs.

11. Forced lower prices Greek government lowering by 25% Affecting pharmaceutical companies

12. May 3rd Novo Nordisk responds “Withdraw” all modern insulinsfrom Greek market Only sell human insulins at reduced price 55,000 customers affected “We and the diabetics are taken hostage by the Greek government” Lars RebeinSørensen, CEO

13. Before After

14. “Putting money over patient’s interests”

15. WHY? WHY

16. Greek price already amongst lowest in Europe Greek price used as reference for other countries Greek government use price cut as quick fix

17. May 31st Situation eases In negotiations with Greek government “…a cold-blooded pharmaceutical company…” Customer “Image has been hurt, but we felt it was necessary” Mike Rulis, Novo Nordisk

18. June 14th Resolution Agreement Novo Nordisk supply all insulin again New prices still 7-8% lower than average of 3 lowest in Europe To equal avg. of 3 lowest in Europe from Sept. 1 at latest New decree means price cut of around 10 percent for Novo

19. “We are of the firm belief that maintaining our current pricing strategy is the only way to protect the financial viability of the company in the long term and thus also what is in the patients’ best interest”Lars RebienSørensen, CEO

20. ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics ethics What do you .Think .

21. Sources Novo Nordisk InternalCommunicationmessages http://www.shootuporputup.co.uk/2010/05/novo-nordisk-pulls-insulin-from-greece/ http://diabetta.wordpress.com/2010/06/13/the-business-of-diabetes-is-novo-nordisks-pullback-from-greece-really-a-greek-tragedy/ http://edition.cnn.com/2010/BUSINESS/02/10/greek.debt.qanda/index.html http://borsen.dk/nyheder/investor/artikel/1/184065/lars_rebien_novo_er_gidsel_i_graekenland.html http://borsen.dk/nyheder/investor/artikel/1/184079/novo_tager_medicin_fra_sukkersyge_graekere.html http://epn.dk/brancher/medicin/article2083354.ece http://borsen.dk/nyheder/investor/artikel/1/184144/novo_nordisk_kan_tabe_50000_graeske_kunder.html http://borsen.dk/nyheder/investor/artikel/1/184816/graekenland_opgiver_priskrav_til_novo_nordisk.html http://borsen.dk/nyheder/investor/artikel/1/185194/novo_leverer_til_graekerne_igen.html http://epn.dk/brancher/medicin/article2104668.ece http://forums.childrenwithdiabetes.com/showthread.php?t=53927