Genentech's Hands Are Clean

BIOTECH PIONEER GENENTECH and distributor Caremark International seem to have put another scandal behind them. On Oct. 3, Vice-President Edmon Jennings and three executives of Caremark were acquitted in a Minneapolis district court related of all charges to alleged Medicare/Medicaid violations. Without waiting to hear defense arguments, the judge ruled that the prosecution failed to prove that the men had played any illegal role in a kickback scheme to promote sales of Genentech's human growth hormone. In July, when Genentech's board ousted CEO Kirk Raab, there was speculation that the case was partly behind the directors' move, even though the company itself was not charged.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.