Top SFBC officials Quit Amid Senate Inaquiry Clinical Trials_ Bloomberg News

[Guest guest]

Top SFBC officials Quit Amid Senate Inaquiry Clinical Trials_

Bloomberg News

ALLIANCE FOR HUMAN RESEARCH PROTECTION (AHRP)

Promoting Openness, Full Disclosure, and Accountability

www.ahrp.org

FYI

In its continuing coverage of corrupt clinical drug trial practices,

Bloomberg News reports that all three founders of SFBC International,

one of the largest clinical trial business operations that had failed

to even screen human subjects for turberculosis, and threatened

others with deportation if they refused to become guinea pigs, quit

after the Senate Finance committee began investigating drug trial

safety issues:

Krinsky resigned as president, and Arnold Hantman as its chief

executive. On Dec. 19, Gerald Seifer, director of legal affairs quit.

" Krinsky, who the company refers to as a medical doctor, is a

graduate of Spartan Medical School in St. Lucia and not a

licensed doctor. Krinsky and former director of legal affairs Gerald

Seifer, who isn't a lawyer, share a $15 million home they

purchased last year. Seifer resigned Dec. 19 after an

investigation found he engaged in ``inappropriate'' behavior with

trial subjects, the

company said. Prior to his resignation, Seifer was placed on 30 days

paid leave after a report from two law firms hired by

SFBC's board found that a witness heard Seifer threaten to have

research subjects deported, the company said.

Hantman, referred to in company SEC filings as a CPA, is not

licensed as a certified public accountant. Jack Levine, who

previously was lead director, was elected chairman of the board of

directors, SFBC said. Hantman, Seifer and Krinsky were among SFBC's

founders. "

A team of investigative reporters at Bloomberg News provide a reality

check on the seedy side of for-profit clinical trial companies that

have been operating with impunity until Bloomberg's expose. Big

Pharma's Shameful Secret (see:

http://www.ahrp.org/infomail/05/11/03.php )

Contact: Vera Hassner Sharav

212-595-8974

veracare@...

BLOOMBERG NEWS

SFBC Loses Two Top Officials Amid U.S. Senate Inquiry

2006-01-03 08:50 (New York)

(Adds comment from chief executive in fourth paragraph.)

By Kerry Dooley Young and

Jan. 3 (Bloomberg) -- SFBC International Inc.'s two top

officials quit just before they were to be interviewed by Senate

investigators probing the company's management of the largest private

clinical trials center in North America.

McMullen was named chief executive officer.

Krinsky, 43, resigned as president and chairman and Arnold

Hantman, 69, retired as chief executive, the Miami-based

company said today in a statement on Business Wire. Krinsky was to

meet with Sen. Grassley's staff Jan. 11 as part of

Grassley's inquiry into drug trial safety issues. No date was set for

a meeting Grassley sought with Hantman.

Grassley, the Senate finance committee chairman, began his

review after Bloomberg News reported in November on conflicts of

interest and lax oversight in the industry. The SBFC management

changes come as it struggles to regain investor confidence after

Miami officials forced SFBC to remove half the beds in its main

testing center because of safety issues, Canadian health

officials began probing a tuberculosis outbreak in a Montreal drug

trial, and SFBC hired investment banking advisers to

``explore strategic alternatives.''

``We recognize the challenges facing SFBC's Miami facility, and

we believe we have the management team and structure in

place to meet these challenges and reestablish SFBC's leadership

position in the drug development services industry,'' McMullen

said in the statement.

SFBC shares fell 38 cents, or 2.3 percent, to $16.01 on Dec. 30

in Nasdaq Stock Market composite trading. SFBC shares

have lost 61 percent of their value since Nov. 1, the day before

Bloomberg News reported that bioethicist said the company's

consent process inadequately warned drug trial participants of the

risks of injury and death.

Krinsky Background

Krinsky, who the company refers to as a medical doctor, is a

graduate of Spartan Medical School in St. Lucia and not a

licensed doctor. Krinsky and former director of legal affairs Gerald

Seifer, who isn't a lawyer, share a $15 million home they

purchased last year.

Seifer resigned Dec. 19 after an investigation found he engaged

in ``inappropriate'' behavior with trial subjects, the

company said. Prior to his resignation, Seifer was placed on 30 days

paid leave after a report from two law firms hired by

SFBC's board found that a witness heard Seifer threaten to have

research subjects deported, the company said.

Hantman, referred to in company SEC filings as a CPA, is not

licensed as a certified public accountant. Jack Levine, who

previously was lead director, was elected chairman of the board of

directors, SFBC said.

Hantman, Seifer and Krinsky were among SFBC's founders.

McMullen

McMullen, 43, is now president and CEO of SFBC's Pharmanet unit,

a clinical trial company purchased in December. His

background includes time spent as a member of the senior management

team at Corning Pharmaceutical Services, now Covance

Inc., another organizer of medical studies.

McMullen's 13 years at Covance include a range of operational,

business development and sales and marketing roles,

the statement said. SFBC updated its earnings guidance to

reflect the separation agreements with Krinsky and Hantman. The

company will

take one-time, pretax charges of $3.83 million, or about 17 cents a

share net of tax effect, in the fourth quarter of 2005.

SFBC's new guidance for 2005 is about $1.39 to $1.44 in GAAP earnings

per share.

Grassley, an Iowa Republican, has also requested documents from

U.S. regulators on inspections of SFBC. Last month,

Grassley said Inspector General Levinson should quickly

compile a list of recommendations his office has made since 1995

and determine whether the appropriate federal agencies are heeding

them.

Law Firms' Report

The company said last month that it had sent Grassley a copy of

a report by two law firms SFBC hired to conduct an

independent review of allegations in the Bloomberg report. The

resulting report from Winston & Strawn, based in Chicago, and

Tew Cardenas of Miami ``exonerated'' the company, SFBC said.

The review found that a witness heard Seifer, then SFBC's vice

president of legal affairs, threaten to have research

subjects deported. Seifer, a 10-year employee, was placed on 30 days

paid leave after the report, and the company said Dec. 19

that he resigned.

--With reporting by in Rio De Janiero. Editor: Gale

(rtg)

To contact the reporters on this story:

Kerry Dooley Young in Washington (1) (202) 624-1936 or

kdooley@...;

in Los Angeles (1) (323) 782-4241 or

davidevans@...

To contact the editor responsible for this story:

Simison at (1) (202) 624-1812 or

rsimison@....

FAIR USE NOTICE: This may contain copyrighted (© ) material the use

of which has not always been specifically authorized by the copyright

owner. Such material is made available for educational purposes, to

advance understanding of human rights, democracy, scientific, moral,

ethical, and social justice issues, etc. It is believed that this

constitutes a 'fair use' of any such copyrighted material as provided

for in Title 17 U.S.C. section 107 of the US Copyright Law. This

material is distributed without profit.

[Guest guest]

Top SFBC officials Quit Amid Senate Inaquiry Clinical Trials_

Bloomberg News

ALLIANCE FOR HUMAN RESEARCH PROTECTION (AHRP)

Promoting Openness, Full Disclosure, and Accountability

www.ahrp.org

FYI

In its continuing coverage of corrupt clinical drug trial practices,

Bloomberg News reports that all three founders of SFBC International,

one of the largest clinical trial business operations that had failed

to even screen human subjects for turberculosis, and threatened

others with deportation if they refused to become guinea pigs, quit

after the Senate Finance committee began investigating drug trial

safety issues:

Krinsky resigned as president, and Arnold Hantman as its chief

executive. On Dec. 19, Gerald Seifer, director of legal affairs quit.

" Krinsky, who the company refers to as a medical doctor, is a

graduate of Spartan Medical School in St. Lucia and not a

licensed doctor. Krinsky and former director of legal affairs Gerald

Seifer, who isn't a lawyer, share a $15 million home they

purchased last year. Seifer resigned Dec. 19 after an

investigation found he engaged in ``inappropriate'' behavior with

trial subjects, the

company said. Prior to his resignation, Seifer was placed on 30 days

paid leave after a report from two law firms hired by

SFBC's board found that a witness heard Seifer threaten to have

research subjects deported, the company said.

Hantman, referred to in company SEC filings as a CPA, is not

licensed as a certified public accountant. Jack Levine, who

previously was lead director, was elected chairman of the board of

directors, SFBC said. Hantman, Seifer and Krinsky were among SFBC's

founders. "

A team of investigative reporters at Bloomberg News provide a reality

check on the seedy side of for-profit clinical trial companies that

have been operating with impunity until Bloomberg's expose. Big

Pharma's Shameful Secret (see:

http://www.ahrp.org/infomail/05/11/03.php )

Contact: Vera Hassner Sharav

212-595-8974

veracare@...

BLOOMBERG NEWS

SFBC Loses Two Top Officials Amid U.S. Senate Inquiry

2006-01-03 08:50 (New York)

(Adds comment from chief executive in fourth paragraph.)

By Kerry Dooley Young and

Jan. 3 (Bloomberg) -- SFBC International Inc.'s two top

officials quit just before they were to be interviewed by Senate

investigators probing the company's management of the largest private

clinical trials center in North America.

McMullen was named chief executive officer.

Krinsky, 43, resigned as president and chairman and Arnold

Hantman, 69, retired as chief executive, the Miami-based

company said today in a statement on Business Wire. Krinsky was to

meet with Sen. Grassley's staff Jan. 11 as part of

Grassley's inquiry into drug trial safety issues. No date was set for

a meeting Grassley sought with Hantman.

Grassley, the Senate finance committee chairman, began his

review after Bloomberg News reported in November on conflicts of

interest and lax oversight in the industry. The SBFC management

changes come as it struggles to regain investor confidence after

Miami officials forced SFBC to remove half the beds in its main

testing center because of safety issues, Canadian health

officials began probing a tuberculosis outbreak in a Montreal drug

trial, and SFBC hired investment banking advisers to

``explore strategic alternatives.''

``We recognize the challenges facing SFBC's Miami facility, and

we believe we have the management team and structure in

place to meet these challenges and reestablish SFBC's leadership

position in the drug development services industry,'' McMullen

said in the statement.

SFBC shares fell 38 cents, or 2.3 percent, to $16.01 on Dec. 30

in Nasdaq Stock Market composite trading. SFBC shares

have lost 61 percent of their value since Nov. 1, the day before

Bloomberg News reported that bioethicist said the company's

consent process inadequately warned drug trial participants of the

risks of injury and death.

Krinsky Background

Krinsky, who the company refers to as a medical doctor, is a

graduate of Spartan Medical School in St. Lucia and not a

licensed doctor. Krinsky and former director of legal affairs Gerald

Seifer, who isn't a lawyer, share a $15 million home they

purchased last year.

Seifer resigned Dec. 19 after an investigation found he engaged

in ``inappropriate'' behavior with trial subjects, the

company said. Prior to his resignation, Seifer was placed on 30 days

paid leave after a report from two law firms hired by

SFBC's board found that a witness heard Seifer threaten to have

research subjects deported, the company said.

Hantman, referred to in company SEC filings as a CPA, is not

licensed as a certified public accountant. Jack Levine, who

previously was lead director, was elected chairman of the board of

directors, SFBC said.

Hantman, Seifer and Krinsky were among SFBC's founders.

McMullen

McMullen, 43, is now president and CEO of SFBC's Pharmanet unit,

a clinical trial company purchased in December. His

background includes time spent as a member of the senior management

team at Corning Pharmaceutical Services, now Covance

Inc., another organizer of medical studies.

McMullen's 13 years at Covance include a range of operational,

business development and sales and marketing roles,

the statement said. SFBC updated its earnings guidance to

reflect the separation agreements with Krinsky and Hantman. The

company will

take one-time, pretax charges of $3.83 million, or about 17 cents a

share net of tax effect, in the fourth quarter of 2005.

SFBC's new guidance for 2005 is about $1.39 to $1.44 in GAAP earnings

per share.

Grassley, an Iowa Republican, has also requested documents from

U.S. regulators on inspections of SFBC. Last month,

Grassley said Inspector General Levinson should quickly

compile a list of recommendations his office has made since 1995

and determine whether the appropriate federal agencies are heeding

them.

Law Firms' Report

The company said last month that it had sent Grassley a copy of

a report by two law firms SFBC hired to conduct an

independent review of allegations in the Bloomberg report. The

resulting report from Winston & Strawn, based in Chicago, and

Tew Cardenas of Miami ``exonerated'' the company, SFBC said.

The review found that a witness heard Seifer, then SFBC's vice

president of legal affairs, threaten to have research

subjects deported. Seifer, a 10-year employee, was placed on 30 days

paid leave after the report, and the company said Dec. 19

that he resigned.

--With reporting by in Rio De Janiero. Editor: Gale

(rtg)

To contact the reporters on this story:

Kerry Dooley Young in Washington (1) (202) 624-1936 or

kdooley@...;

in Los Angeles (1) (323) 782-4241 or

davidevans@...

To contact the editor responsible for this story:

Simison at (1) (202) 624-1812 or

rsimison@....

FAIR USE NOTICE: This may contain copyrighted (© ) material the use

of which has not always been specifically authorized by the copyright

owner. Such material is made available for educational purposes, to

advance understanding of human rights, democracy, scientific, moral,

ethical, and social justice issues, etc. It is believed that this

constitutes a 'fair use' of any such copyrighted material as provided

for in Title 17 U.S.C. section 107 of the US Copyright Law. This

material is distributed without profit.