Last year, I detailed some of the reasons that “a commitment to free markets in the abstract does not oblige conservatives to defend McKinsey in particular.” At its worst — which seems to be the case distressingly often — the firm embodies the kind of soulless, value-free technocracy that seeks only to maximize goals within evident parameters, frequently eliding questions about whether those parameters are sound in themselves. Aside from McKinsey’s dodgy dealings with foreign governments, including the Chinese Communist Party (with which McKinsey had a deeper relationship than it had first let on), its most dubious project by far was its role in helping to “turbocharge” America’s opioid crisis. As I wrote last year:
This might explain the embarrassing litany of truly egregious business decisions McKinsey has made in recent years. Most egregiously of all, the company inarguably exacerbated two of the most distressing trends of the 21st century. Inside the U.S., McKinsey was hired to help Purdue Pharma “turbocharge” sales of opioids, resulting in the opioid epidemic that has ended thousands of lives and destroyed or unsettled countless more. In February, the company agreed to a $600 million settlement with 47 states for its role in the epidemic. But don’t cry for McKinsey: Its stake in opioid-treatment businesses means it may profit off this as well.
One result of this settlement was the release of documents, now obtained by the New York Times, that paint a picture of even greater McKinsey involvement in promoting the sale of opioids. A recent Times story focuses on the opioid Opana, manufactured by pharmaceutical company Endo, and McKinsey’s role in boosting its sales:
It was twice as potent as OxyContin, the painkiller widely blamed for sparking the opioid crisis, and was relatively easy to dissolve and inject. By 2015, government investigations and scientific publications had linked its misuse to clusters of disease, including a rare and life-threatening blood disorder and an H.I.V. outbreak in Indiana.
Opana’s manufacturer, the pharmaceutical company Endo, had scaled back promotion of the drug. But months later, the company abruptly changed course, refocusing resources on the drug by assigning more sales representatives.
The push was known internally as the Sales Force Blitz — and it was conducted with consultants at McKinsey & Company, who had been hired by Endo to provide marketing advice about its chronic-pain medicines and other products.
The story goes on to detail how McKinsey used its most cutting-edge techniques to expand markets, target providers, and creatively circumvent regulators and taxes. One presentation the firm made to promote its services reportedly bragged of its “in-depth experience in narcotics.” And at one point, the relationship between Endo and McKinsey extended even to personnel, when a McKinsey employee crossed over to head Endo.
The whole article is worth reading, if for nothing else than to get a better sense of McKinsey’s questionable record.