McKinsey issues rare apology for its work with OxyContin maker Purdue Pharma and vows to launch full investigation into claims two senior partners discussed deleting records related to the drug firm
Global consultancy firm McKinsey & Company has apologized for its work with OxyContin maker Purdue Pharma, amid mounting criticism about the firm's role in the opioid crisis
McKinsey, considered the world's most prestigious consulting firm, published a statement to its website Saturday acknowledging that its work with Purdue fell short of its own standards.
The company also vowed to conduct a full internal review 'of the work in question', including allegations that two senior partners, Martin Elling and Dr. Arnab Ghatak, sought to delete records related to the drug maker.
'As we look back at our client service during the opioid crisis, we recognize that we did not adequately acknowledge the epidemic unfolding in our communities or the terrible impact of opioid abuse and addiction on millions of families across the country,' McKinsey's statement read.
'We have been undertaking a full review of the work in question, including into the 2018 email exchange which referenced potential deletion of documents. We continue to cooperate fully with authorities investigating these matters.'
McKinsey & Company has apologized for its work with OxyContin maker Purdue Pharma
The company also vowed to conduct a full internal review of its actions, which includes allegations that two senior partners, Martin Elling (above) and Dr. Arnab Ghatak, sought to delete records related to Purdue
McKinsey, considered one of the world's most prestigious consulting firms, published a statement to its website Saturday acknowledging that its work with Purdue fell short of its own standards
Criticism of McKinsey has escalated in the last month, following a New York Times report that claimed the company had advised members of the Sackler family, Purdue’s billionaire owners, on ways to 'turbocharge' sales of its highly-addictive drug, OxyContin.
As part of the discussions, McKinsey reportedly proposed Purdue paying distributors rebates for overdoses linked to the pills they sold.
Lawmakers on both sides of the political aisle have called for McKinsey to be investigated, and a prominent physician employed by the firm said executives who were aware of this work should resign.
Part of the controversy stems from allegations two senior partners are the firm, Elling and Ghatak, reportedly discussed whether to purge records pertaining to Purdue in 2018 after Massachusetts filed a lawsuit against the drug firm.
'It probably makes sense to have a quick conversation with the risk committee to see if we should be doing anything [other than] eliminating all our documents and emails,' Elling reportedly wrote to Ghatakin an email. 'Suspect not but as things get tougher there someone might turn to us.'
Ghatak allegedly replied: 'Thanks for the heads up. Will do.'
Both men had previously advised Purdue. It's currently unclear whether any documents were actually destroyed.
Criticism of McKinsey has escalated in the last month after a report claimed the company had advised members of the Sackler family, Purdue’s billionaire owners, on ways to 'turbocharge' sales of its highly-addictive drug, OxyContin (Pictured above is some of the Sackler family: Dr Richard Sackler, standing second from left and Jonathan Sackler standing second from right. Seated is Raymond and Beverly Sackler)
Between 1999 and 2019, nearly 450,000 Americans reportedly died from overdoses involving opioids, according to the CDC (pictured: New York State Attorney General Letitia James holds a press conference in New York, in March, announcing a legal filing against the Sacklers)
McKinsey's apologetic statement is said to be a rare move for the firm, which seldom acknowledges its mishaps and has never before accepted responsibility in helping Purdue to sell more opioids, according to the Times.
'Our work with Purdue was designed to support the legal prescription and use of opioids for patients with legitimate medical needs, and any suggestion that our work sought to increase overdoses or misuse and worsen a public health crisis is wrong,' McKinsey's statement read.
'That said, we recognize that we have a responsibility to take into account the broader context and implications of the work that we do. Our work for Purdue fell short of that standard.'
Purdue recently pleaded guilty to criminal charges, including defrauding federal health agencies and paying illegal kickbacks to doctors. It also agreed to an $8.3billion civil settlement with the US Department of Justice related to claims about its role in the national opioid addiction and overdose crisis.
As part of the deal, Purdue will pay the federal government $225million, with the rest being part of a planned settlement between the company and thousands of state and local governments and other entities that are suing it.
Another $225million will be paid out directly by the Sackler family, for the alleged conduct of board members Dr Richard Sackler, David Sackler, Mortimer D.A. Sackler, Dr Kathe Sackler, and Jonathan Sackler, the DOJ said.
McKinsey, meanwhile, has not been charged or sued for its work with Purdue, and there is no evidence to indicate the suggested rebate scheme was ever put into practice.
A spokesperson for McKinsey told the Times that the suggested rebates were not intended to enhance sales.
McKinsey has not been charged or sued for its work with Purdue, and there is no evidence to indicate the suggested rebate scheme was ever put into practice (McKinsey's New York City office at the 3 World Trade Center is shown above)
Between 1999 and 2019, nearly 450,000 Americans died from overdoses involving opioids, according to the CDC.
The latest disclosures regarding McKinsey and Purdue have reportedly caused a number of current and former employees of the consultancy firm to speak out, the Times reported.
A physician at McKinsey, Dr. Dina Marie Pitta, is said to have written in an email to colleagues last month that recent news coverage made it clear the firm 'needs to transform, rather than remediate.'
'Systems, not people, must change to avoid future failures, yet the leadership involved knew the great potential for harm and were complicit,' Pitta continued. 'This leadership should take accountability for their role, including resignation from the firm, without a parachute package upon departure.'
A former consultant at the firm, Eran Zimmerman, also blasted two senior partners at McKinsey who allegedly oversaw the work with Purdue, Martin Elling and Dr. Arnab Ghatak.
'It appeared to me that through vigorously promoting this crime against humanity, these senior consultants have come close to producing that much feared lethal blemish on the great McKinsey name,' Zimmerman wrote in an email observed by the Times.
McKinsey's work with Purdue has also drawn criticism from lawmakers in recent weeks.
Missouri Republican Senator Josh Hawley penned a letter to McKinsey’s global managing partner Kevin Sneader last week, asking him to respond by December 15 as to whether the company destroyed any documents.
Hawley's letter also urged the company to disclose how much money it earned for its work with Purdue.
'In light of McKinsey’s possible active role in driving the opioid crisis, Congress must consider whether to impose obligations on consulting firms to report criminal activity or specific criminal penalties for consultants playing a role in federal crimes,' Hawley wrote.
Hawaiian Democratic Senator Brian Schatz, meanwhile, urged last month in a tweet that it was 'essential that the next Attorney General pursue all of these criminals.'
In the wake of the criticism, McKinsey told employees in a memo that it would be changing the way in which it selects projects to undertake.
'There are still numerous investigations and cases pending against the industry, you should not expect this will be the last time McKinsey’s work is referenced,' executives wrote, according to the Times. 'While we can’t change the past, we can learn from it.'
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