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Monday, July 21, 2008

Law 101 Continued: So, What's Your Price?

An inducement is a planned method and tactic for a desired action to result due to a giver having and offering something received by another of notable value and expecting that this will be beneficial in some way to the giver. This anticipated return from the giver is not uncommon in the business world, yet likely is illegal with industries such as the pharmaceutical one.

An example would be a representative of a pharmaceutical company giving a doctor's office sponsorship to do clinical trials for this company, and fully expecting favoritism to be given to this company afterwards because of this investment the company has made in this type of situation that the company presumes is quite a prize for such a doctor and thier office.

The trial sponsorship hypothesis is not exactly without a factual basis. On at least one occasion, a top pharmaceutical executive was angry because the results of the clinical trial his company sponsored did not result in favorable results for his products, and this executive believed he deserved positive results he desired because he invested in the trial process. Return on investment in a rather twisted and pathological way, I would say.

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