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MERCK SUSPENDED FROM TRADE GROUP FOR ETHICS BREACH

October 25, 2006

The Association of the British Pharmaceutical Industry (ABPI) has suspended Merck Sharp & Dohme (MSD) for at least three months for violations of the industry group's code of ethics.

The suspension, which began Oct. 2, is based on a nurse audit disease management program MSD developed. The disease management program improperly linked its availability to the promotion of one of MSD's products, a practice that ABPI found "totally unacceptable." The group will reassess the suspension after three months.

This approach violates Clause 2 of the ABPI code, known as the Prescription Medicines Code of Practice, which addresses actions likely to discredit or reduce confidence in the pharmaceutical industry.

The company acknowledged the mistake and pledged to improve its procedures. "We regret the activity that led to the finding of a breach of the code and any resulting impact on the pharmaceutical industry's reputation," a company spokesman said.

The company has performed an internal audit and gotten external audits by an independent expert and by the ABPI's Prescription Medicines Code of Practice Authority to determine what changes to its management program are necessary. Some of the improvements the company is implementing include retraining all staff in the Code of Practice and implementing changes to its internal approval systems and procedures.