The Hindu Business Line : Price Waterhouse’s pharma clients keeping a close watch

Though companies will discuss the role of Price Waterhouse at their board meetings, a change in auditor will need to be put forth as a resolution before shareholders.

P.T. Jyothi Datta

Mumbai, Jan. 13 As investigations are underway into the role of Price Waterhouse in the fraud at Satyam, an element of unease seems to be creeping into the relationship that other companies have with the audit firm.

A clutch of pharmaceutical companies, including Piramal Healthcare, Glenmark, Hikal, Novartis, GlaxoSmithKline Pharmaceuticals and Wyeth have Price Waterhouse as their audit firm. And they are closely watching the investigations at Satyam, as Price Waterhouse has yet to get in touch with them and clear the air, top officials with some of these companies told Business Line.

Price Waterhouse’s role as auditor in their companies will come for discussion at the forthcoming board-meetings at domestic drug-makers Piramal Healthcare and Glenmark, respectively.

They are our auditors too, said a top executive at Piramal Healthcare, adding that the company’s board will decide at its next meeting. “Our board has eminent people like Mr Malegaon and Mr Vaghul who will advise us,” the official added.

At Glenmark too, an official said that the company’s board would discuss Price Waterhouse’s role as auditors to the firm at its board meeting later this month.

In the case of multinational drug-major GSK Pharmaceuticals, the company will wait for clarity to emerge from the investigations into Satyam and its auditor. Price Waterhouse is a global auditor to GSK’s parent company as well, a top official with the company said.

A similar situation prevails at multinational companies Novartis and Wyeth. “Wyeth has had a productive and positive working relationship with Price Waterhouse since 2003,” is all that the company would comment. And another company not wanting to comment on its relationship with Price Waterhouse is local drug-maker Hikal.

Though companies will discuss the role of Price Waterhouse at their board meetings, a change in auditor will need to be put forth as a resolution before shareholders, an official with one of the companies added. No response was available from Price Waterhouse on whether it has got in touch with its clients following the developments at Satyam.