LAHORE:

A London laboratory has determined that Isotab, a medicine manufactured by Efroze

Chemical Industries, caused the reaction that has so far cost 120 lives.
At a press conference on Wednesday, Chief Minister Shahbaz Sharif revealed that Isotab tablets,
which are meant for heart patients, had been contaminated with an anti-malarial chemical, which
resulted in fatalities to patients who used it daily. The medicine was given free of cost to patients
of the Punjab Institute of Cardiology (PIC).
A doctor familiar with the investigation, who did not want to be named, told The Express
Tribune that there were dangerous quantities of the chemical, Pyrimethamine, in Isotab.
Explaining the reaction to the body, the doctor said: Pyrimenthamine is found in Fansidar, an
anti-malarial drug. This chemical reduces folic acid, which is responsible for production of
blood. Isotab is given to heart patients twice daily to lessen the burden on their heart. The
chemical found in Isotab, however, was equal to 10 tablets of Fansidar, which means those who
used this medicine twice a day were effectively taking 20 tablets of Fansidar, which suppressed
the bone marrow, disturbed blood production, and ultimately caused death.
The doctor said that the other four medicines under suspicion Cardiovestin, Alfagril, Concort
and Soloprin were manufactured by lesser-known pharmaceutical companies. We didnt
expect Isotab to be contaminated because its manufactured by Efroze Chemical Industries, who
have around 80 registered medicines in Pakistan. We suspected the above four medicines, but
Isotab has turned out to be the one with faults, he said. He added that drug testing laboratories
in Pakistan had previously cleared Isotab.
At the press conference, Shahbaz was in no mood to accept responsibility, claiming that the
circulation of the faulty medicine was a conspiracy against Punjab.
A high-ranking person in Islamabad is responsible for this, he said, adding that official letters
had been written to the federal government with these allegations. Referring to the treatment of
patients, the chief minister said that folic acid was being used as an antidote.
Shahbaz also announced that the London laboratorys report would be forwarded to the World
Health Organisation.
Meanwhile, Governor Sardar Latif Khan Khosa took a different view to the chief minister. He
announced that the federal government would compensate the families of those who died of the
drug reaction. This is an extreme form of criminal negligence. The Punjab government should
accept its negligence. By raising fingers toward President House in Islamabad, the provincial
government cannot beguile people, the governor said.
The owner of Efroze Chemical Industries did admit on Wednesday that the batch of Isotab
produced for the PIC containted Pyrimethamine. However, the owner told Express News that
his factory should not be closed down, as it had been producing drugs for 35 years and exported
them to over 20 countries.
Terming the disaster a conspiracy to malign the factorys name, the owner said that in
September last year, some material was stolen from their warehouse, and this might have been
used in adulterating the batch of medicines. He said that only this particular batch was spurious
and that the rest of the medicines produced by the factory did not have any issues.
The Federal Investigation Agency, meanwhile, has closed the factory after inspecting the
premises and meeting staff on Wednesday. The three pharmaceutical laboratories in Lahore
which were originally suspected of foul play have been cleared of any criminal offence.
However, a medicine called Alfagril, produced by one of the laboratories, has been declared
substandard though not spurious a source with ties to the FIA said.
Its obviously more serious for Isotab, which has been taken off the shelves in Pakistan and
banned across the world.
(Read: Medicine crisis who is to blame?)
(With additional reporting by Asad Kharal)
Published in The Express Tribune, February 2
nd
, 2012.
Read more: freemedicine


Question #1
Answer

Johnon and Johnson Model:

Johnson and Johnson is world renowned company due different products, especially Tylenol.
Tylenol is a pain killer and a fever reducer drug but this drug faced very serious issue when
suddenly many of the user of the medicine started dyeing. At that time the company had to face a
very serious issue their most darling and money making medicine was in danger. At that time the
company both of the Johnson brother came forward and showed very good example of good
corporate governance, they accepted that there was an issue with there medicine formulae and
thry not only order to take all the medicine from the shelves but also informed general public not
use their medicine. The company spend almost 31 million dollars during that face but this all
resulted in there favor many marketers said that Tylenol would not survive, it would now not
seen in the shelves again. But the companys good code of corporate governance paid and the
company successful not only regained the image of their money machine medicine but also once
again made it number one selling drugs in the market. Here we can clearly see that Johnson and
Johnson had make use of McKinsey market model by accepting there responsibility and great
deal of social work.
Efroze Chemical Industries.

Similar nature of case happened in the Pakistani market, when a product of Efroze killed people.
There was a use of isotope in in the medicine by the company which lowered down the patient
blood pressure and lead to ultimately death. But alaas first Shahbaz Shariff tried ti defend
himself and his parties political image by saying that this is conspiracy against them as the
medicine was given free of cost to the patient of Punjab Institute of Cardiology (PIC).More
damage was caused by when the owner of the company said that the only that batch of the
medicines were infected which got stolen from the companys warehouse rest all of the
medicines were free of it. More he claimed that since there company was 35 years old and has
been also exporting medicine from 20 years so it should not be shut down. But at that time the
Governor order to banned the companys medicine and immediately shut down the company.
Unlike Johnson and Johnson the company showed poor code of corporate governance and never
accepted there mistake and nor they played any role for the society as a result they had to suffer.



How the both issues were resolved and how long it took?
Johnson and Johnson the manufacturer of the Tylenol took very effective steps to resolve the
issue, they not only resolved the issue but also repositioned Tylenol and making top of the
selling medical product in the industry. At the time of situation they took ran two main phases,
the first phase was the actual handling of the crisis. The comeback of both Johnson & Johnson
and Tylenol, was the second phase in the public relations plan. The planning for phase two began
almost as soon as phase one was being implemented. In phase one the company immediately
alerted consumers across the nation, via the media, not to consume any type of Tylenol product.
They told consumers not to resume using the product until the extent of the tampering could be
determined. Johnson & Johnson, along with stopping the production and advertising of Tylenol,
recalled all Tylenol capsules from the market. The recall included approximately 31 million
bottles of Tylenol, with a retail value of more than 100 million dollars. This not only made the
FBI to take company action in a positive manner but also made people relies that company is
ashamed of what happened and took responsibility of their actions.
The planning for phase two of Johnson & Johnson's public relations plan, or the "comeback"
phase, was already in the works by the time the first phase had been completed. Tylenol, which
had a massive advertising budget prior to the poisonings, had become the number one alternative
to aspirin, in the nation. The product had 37 percent of the market for over-the-counter
painkillers. Because Tylenol was such a huge money-maker for Johnson & Johnson, the
company unleashed a extensive marketing and promotional program to bring Tylenol back to it's
position as the number one over-the-counter analgesic in the United States.

In Pakistan the Culprits never took responsibility of their action instead they started passing the
bucks around. Shahbaz claimed this to be a conspiracy against the Punjab Government. The
medicine was given free of cost to patients of the Punjab Institute of Cardiology (PIC). Were as
the owner of the company did aspect there mistake but said that some of their stock of medicine
was stolen in September and only that is infected rest of the stock did not possess that material.
The Federal Investigation Agency, meanwhile, closed the factory after inspecting the premises
and meeting staff. The three pharmaceutical laboratories in Lahore which were originally
suspected of foul play have been cleared of any criminal offence. More serious for Isotab, which
has been taken off the shelves in Pakistan and banned across the world. This difference between
the two similar incident bit both handled differently.

What were the measures taken by the companies to handle those issues?
Johnson and Johnson took very effective measures and they not only saved there company but
also made history that how well the issue was handled. Two phases were introduced by them in
the first phase they came in front and took responsibility of their actions, they called of all of
their Tylenol products from the shelves across the country. And also announced themselves and
spread the message through the media that the medicine was infected and should not be used.
Then in phase two they reintroduced their product in the market with new formula and used the
help of media and ran very good as successful marketing, promotional and PR campaigns which
was accepted by the people and it became of the top selling medical product.
Incase of Pakistani incident first Shahbaz Shariff try to mold it as a conspiracy against the Punjab
Government and treated it as political agenda against the Government. The owner of the
company started passing the bucks and giving false statement that their products were stolen and
were contaminated. Rest of the products were good to go. This resulted in FIA sealing the
company and Government banning the export and production of the medicine.

Question No 4.

Analysis of both articles in the light of Corporate Governance concepts, models and theories.

Johnson & Johnson.

If we see J&J and its subsidiaries companies we can say that there is a good Corporate
Governance because as the issue of Tylenol product arises, all the company executive
management were shocked and they set their minds immediately to save the lives of the
consumers of Tylenol products.
They said our primary purpose is to save the lives of our consumers and our company profit
comes later .
The company fulfills all their obligations towards society, investors and their customers.
Obligations towards society:

There was non-political alignment

Board of Directors are the trustee of their shareholders.

They said that they accept their mistake and they will turn their mistake into good one.

All the company management was effective and efficient inorder to overtake the responsibility
and later own re launch of the product.
. The company Executive management gives all the transparency and full disclosures that what
was the actually reason of Tylenol issue

Obligations to Customers:
As a company the first duty is to give high quality product to the customer so that t satisfy their
needs and wants. Johnson and Johnson have been doing so although an issue aroused for Tylenol
but the company first though of their responsibility towards there customer by stopping them to
use the infected product and later on educating them with the reason and came back with all the
new and improved product.

In the case of Efroze Chemical Industries.
As Pakistan most of the companies either national or international level depicts good conduct of
Corporate Governance In the case of that company there was concentration of ownership because they
do not follow the code set in the books of corporate governance. Most common error is that there is no
board and all the company assets are owned by one person and his or her inherits, and they are sole
decision makers. When issue of Isotab arises, only the owner showed up instead of executive
management or board there was no full disclosure of information and political party also try to mold the
situation for there personnel interest. So we can say that Mckinsey Control Model Governance chain lies
there.