Novartis CEO Calls Hiring of Trump Lawyer Michael Cohen a 'Mistake'
May 10 2018 - 4:00PM
Dow Jones News
By Jonathan D. Rockoff
Novartis AG Chief Executive Vasant Narasimhan said the company
"made a mistake" agreeing to pay Trump lawyer Michael Cohen $1.2
million for what Novartis has described as his insight into
health-care policy.
In an email to the Swiss drug company's employees on Thursday
reviewed by The Wall Street Journal, Dr. Narasimhan said he felt
"frustrated" by the arrangement, which was struck under a previous
chief executive. "Many of you will feel disappointed and
frustrated," he said.
"We made a mistake in entering into this engagement and, as a
consequence, are being criticized by a world that expects more from
us," Dr. Narasimhan said in the email, which was earlier reported
by STAT, a healthcare publication of Boston Globe Media.
Dr. Narasimhan, who joined the company in 2005 and became chief
executive in February, said he "was not involved in any aspect of
this situation."
Novartis disclosed earlier this week that it paid Mr. Cohen's
company Essential Consultants LLC $100,000 a month under the
one-year contract, which ended in February.
The private company was the same one Mr. Cohen used to direct
$130,000 in October 2016 to a former adult-film actress, who goes
by the name Stormy Daniels, to prevent her from discussing an
alleged sexual encounter with Mr. Trump. Messrs. Trump and Cohen
deny the encounter took place.
Novartis, one of the world's biggest drug companies by sales,
said its aim by hiring Essential Consultants was to gain better
understanding of Trump administration policy-making, especially
regarding matters like the status of the Affordable Care Act.
Companies routinely pay advisers for policy advice in
Washington.
Novartis said Wednesday it realized from its first meeting with
Mr. Cohen in March 2017 that he wouldn't be helpful and stopped
engaging with him. The company said it determined it couldn't scrap
the contract and continued making the payments.
Novartis said it has provided information to special counsel
Robert Mueller's office regarding its agreement with Mr. Cohen's
company.
Dr. Narasimhan said in the email to Novartis employees that he
went to sleep Wednesday night "frustrated and tired." He urged
employees to stay focused on the company's mission "serving
patients."
(END) Dow Jones Newswires
May 10, 2018 15:45 ET (19:45 GMT)
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