Biocon engages external law firm to review governance of consultants

Bengaluru: Biocon has engaged an external law firm to do a comprehensive review of its current governance processes involving its consultants and vendors, according to a top executive at the Bengaluru-based biopharmaceutical company.

The management, the person told ET on Sunday, was committed to strengthen its compliance and governance practices across Biocon Group entities.

"The company already has a strong code of conduct and an anti-bribery and anti-corruption clause in its contracts with all its vendors. The management now plans to step up its vigilance and with help from an external law firm it has appointed, it aims to plug the gaps and strengthen its governance system," the executive added.

The company's action came in response to CBI naming five persons including a senior Central Drugs Standard Control Organisation (CDSCO) official, top executives at Delhi-based consulting firm Bioinnovat Research Services and the national regulatory head at Biocon Biologics for allegedly offering a bribe to help with waiver of phase III clinical trials. Biocon, however, has denied the allegations.

In a related development, a pharma multinational has formally terminated its contract with Bioinnovat after it got ensnared in the bribery case. A senior executive at the company cited violation of the vendor agreement for its action, while refusing to divulge further details.