Novartis Back in the Spotlight at Cohen Hearing

Novartis’ ill-advised attempt two years ago to get an inside  look at drugs pricing policies of newly elected US president Donald Trump came back to haunt it last week during the hearing of former presidential lawyer Michael Cohen in the House of Representatives.

Cohen will soon begin serving a prison sentence for multiple offenses stemming from his time as Trump’s personal lawyer – including campaign finance violations, tax evasion, making false statements to a bank and lying to Congress – but not directly related to his interaction with the drugmaker. 

The story Cohen told the House committee hearing reportedly contradicted the Swiss company’s original version of its actions in several ways, including how often it interacted with him and what it hoped to gain from a consulting agreement.

Novartis last year acknowledged hiring Cohen-led Essential Consultants for what it thought would be advice on "health care policy matters" involving the US pharmaceutical market. Altogether, the payments totaled $1.2 million.

News agency Reuters said Cohen told the committee the drugmaker initially wanted influence with the president more than insight: Novartis “sent me their contract, which stated specifically that they wanted me to lobby. They wanted me to provide access to government, including the president.”

The former Trump attorney and confidante told the hearing he had informed Novartis he “would not lobby or do government relations work.”

In a 22-page report last summer, Democratic senators said Novartis’ ex-CEO Joe Jimenez had worked directly with Cohen several times and exchanged multiple emails and phone calls with him on several subjects, including drugs pricing and opioid lawsuits.

The connection between the drugmaker and the Trump lawyer was revealed in May 2018 by an attorney representing an adult film actress who claimed an alleged sexual encounter with the president.

In the aftermath, Novartis CEO Vas Narasimhan, who took over the position from Jimenez, pledged to improve the company’s ethical standards. In regard to statements made at the hearing last week, the company said it had "previously addressed all questions regarding our relationship with Essential Consultants, and we consider this matter closed."