Drug trial company slammed over pay

12 April 2012

The lawyer for four of the men who nearly died after a disastrous medical trial have accused the US research company involved of "astonishing" double standards after it emerged that its boss has received a £900,000 bonus.

Martyn Day branded the cash and share package awarded to Parexel chief executive Josef von Rickenbach an "insult" to his clients, who have not yet got compensation.

Early reports suggested that they face the risk of developing cancer and auto-immune diseases after suffering horrific reactions to the drug TGN1412 in the tests in March, he said.

Accounts recently released by Massachusetts-based Parexel show that Mr von Rickenbach, who founded the firm and is also its chairman, got a cash bonus of 286,157 dollars and share options worth 1,469,490 this year - a total of around 1.76 million dollars (£920,000).

His basic salary was 465,750 dollars, bringing his overall package to 2,221,397 dollars (£1.16 million).

"It is astonishing that they are prepared to pay the chief executive this sort of money, at a time when they are refusing to sit round the table with the guys who have been injured," Mr Day said. "It is an insult to our clients, who face the most terrible future. It is a case of total double standards."

The only money the men have received so far has been £10,000 each as "interim payments" from the insurance company for TeGenero, the maker of the drug.

Mr Day said Parexel had refused to talk to lawyers about his clients' concerns or pay out any more. As a result the law firm is considering suing the company.

The six previously healthy men had volunteered to test the medication, which was designed to treat rheumatoid arthritis, leukaemia and multiple sclerosis. But their heads and bodies rapidly swelled up soon after they were injected with it. One was described as looking like the Elephant Man. Another, Ryan Wilson, had to have all his toes and parts of several of his fingers amputated.

A report by the Government's drug watchdog, the Medicines and Healthcare products Regulatory Agency, said Parexel had failed to follow several procedures.

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