Code to restrain pharma cos from unethical promotion; new panel to review prices
In order to set the house in order the Centre has set up a panel to explore pricing reforms in both drugs and medical devices
Pharmaceuticals are perhaps one of the sectors that are most essential and yet plagued by high-decibel and persistent accusations of unfair pricing and unethical marketing practices that end up burning the pocket of the common man and often raising their level of suffering. In order to set the house in order the Centre has set up a panel to explore pricing reforms in both drugs and medical devices.
Furthermore, a Uniform Code for Pharmaceutical Marketing Practices notified by the Department of Pharmaceuticals (DoP) on March 12 has banned promotional activities such as workshops in foreign lands for doctors/healthcare professionals and greasing their palms with stay in expensive hotels, dinners or direct monetary offers. Gifts or gratifications cannot be extended even to the family members of doctors and healthcare professionals. Handing out free samples of medicines to those who cannot prescribe them has also been proscribed.
According to reports, this code is quasi-judicial, while another one issued in 2015 said compliance was voluntary. With the earlier code falling flat on its face, this time teeth has been added to achieve compliance.
“This means it strikes the right balance between cooperative and coercive compliance. We hope with the notification of this code, the pharma marketing practices will undergo an ethical transformation, and this will benefit patients, doctors and us as a nation and society at large,” Arunish Chawla, secretary of DoP told The Economic Times.
On the other hand, the panel constituted by the Centre to examine the pricing of drugs is expected to evaluate the availability of medicines and medical devices, the pricing of essential medicines while recommending incentives for the sector grow and gain competitiveness in exports.
“With the approval of the competent authourity, a committee is constituted for reforms in the Pricing Framework for Drugs and Medical Devices,” read the order of March 12.
The DoP secretary pointed out that currently there is no framework for medical devices which were brought under the purview of the law as late as in 2020.
The committee has five members – the DoP secretary, chairman of National Pharmaceutical Pricing Authority (NPPA), senior economic adviser of the DoP besides two special invitees the secretary general, Indian Pharmaceutical Alliance (IPA) and the CEO of Indian Drugs Manufacturers’ Association (IDMA).
Pricing of essential medicines and ensuring their availability is one of the key areas that the expert panel would visit. It would also explore institutional reforms within the NPPA. It will also try to draw up a framework to bring down the price of medical devices.
The DoP will have a panel of auditors who will do a risk-based audit of promotional expenditure that is incurred by the companies. If such an exercise detects breach of the code on marketing practices, the committee can recommend that the company concerned be suspended or expelled from the association. It can also direct the company to recover the cost of the gifts spent/given by violating the code.
The associations in the pharma sector have been asked to upload the code on their website along with the procedure for lodging complaints that will be linked to UCPMP portal of the DoP.