Merck Serono breached Clause 19.1 after accommodating UK delegates in a luxury 5-star Prague hotel (AUTH/2068/11/07)

📅 2007 | 🖉 Dr Anzal Qurbain
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Key facts

Case numberAUTH/2068/11/07
PartiesBayer Schering Pharma v Merck Serono
IssueHospitality/accommodation for UK-sponsored delegates at an international meeting (ECTRIMS) in Prague
Meeting dates10–14 October 2007
Complaint received21 November 2007
Case completed7 January 2008
Applicable Code year2006
BreachYes
Clause(s)19.1
Key cost citedΒ£238 per person for one night bed and breakfast (final breakdown)
Notable contextAlmost half of sponsored delegates were nurses; invitation did not name the hotel; hotel was a member of β€œLeading Hotels of the World” and described as luxury
SanctionsUndertaking received; additional sanctions not stated
AppealNo appeal
Sourcehttps://www.pmcpa.org.uk/cases/completed-cases/auth20681107-bayer-schering-v-merck-serono

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Reviewed by Dr Anzal Qurbain (FFPM) β€” ABPI Final Signatory

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What happened

  • Bayer Schering Pharma complained about hospitality provided by Merck Serono to UK-sponsored delegates attending ECTRIMS (10–14 Oct 2007) in Prague.
  • Merck Serono accommodated delegates in a city-centre hotel described online as offering β€œsparkling luxury” and belonging to β€œone of the most luxurious hotels”, and which was a member of β€œLeading Hotels of the World” (LHW).
  • The invitation to the meeting did not name the hotel.
  • Merck Serono said an agency arranged the hotel, discussed Code adherence in advance, and an agent inspected it; it argued star ratings vary internationally and the hotel was business-appropriate and convenient.
  • The Panel considered the overall impression created by the arrangements, including the hotel’s luxury positioning and the cost of accommodation.
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Outcome

  • Breach ruled: excessive hospitality.
  • Clause breached: 19.1.
  • No appeal.
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