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DoP CODE & PROMOTION
P A Francis | Wednesday, June 15, 2011, 08:00 Hrs  [IST]

After more than two years of debate, the Department of Pharmaceuticals (DoP) has come out with a Uniform Code of Pharmaceutical Marketing Practices early this month to curb the unethical practices of bribing doctors by pharma companies. The code is going to be a voluntary one initially and the Department will be tracking its implementation by the companies and the industry associations over a  period of six months. If it finds the implementation of the code is not satisfactory, the Department is expected to make the same a statutory code. As per the terms of the code, no gifts, pecuniary advantages or benefits in kind may be supplied, offered or promised to persons qualified to prescribe or supply by a pharmaceutical company. Gifts for the personal benefit of healthcare professionals also not be offered or provided. The Department has not been taking initiatives to curb the practice of bribing doctors for several years and started acting only after a series of media reports two years ago. The Department had first urged the industry associations to come out with some solutions to the issue. The associations such as IDMA and OPPI have been hesitant to take up the matter seriously as many of their members have been indulging in this practice. However, both had prepared some voluntary codes of marketing and claimed to have circulated among their members. But , nothing came out of such half hearted efforts by the industry bodies as there was no pressure on companies from the associations.
 
It is now known to many that a major part of the price of the prescription drug is on account of the loading of promotional costs. What percentage of the cost of medicine is promotional expenditure is not clearly known and is not disclosed by most companies. However, it is believed that promotional expenditure constitutes almost 25 per cent cost of prescription drugs. For the pharma companies, increase in prescriptions will decide the sales growth and profits whereas for doctors, dependability of companies on them, bring unlimited returns by way of incentives for prescription. Decades ago, these promotional expenditures used to be in the form of some small gifts, useful to the practice of the medical profession. But, today promotion turned out to be large cash payments, expensive gifts and sponsoring of pleasure trips to the doctors. Such expenditures to thousands of doctors in the country will obviously mean a huge burden on pharma companies necessitating to shift it on to drug prices. With direct price control almost non existing on more than 500 drugs marketed in the country, a check on huge promotion costs could be a great relief to millions of patients in the country. What is to be seen, however, is how effectively DoP is going to monitor the code on the companies without it being made mandatory. Sooner or later, the code has to be made into a law if it has to work.

Comments

VYDIAM SASTRY Jun 20, 2011 5:31 PM
Nothing big should be expected out of this "uniform Code". The reason could be the doctors wants to get the benefits and some MNCs are prepared for it. So if not with right hand, it will be with left hand, that will be the difference, one can expect, even if it is implemented.You want to have a Lokpal Bill, yes it will be ready before 30th june. That is it, whether it will benefit the public or not is not important factor. That is all ----------. No wonder if Mr.Kurunanidhi's dauther gets the bail today. If not tomorrow, every body know's she will. O.k... When great thing are of this nature. What great thing is going to happen with this CODE. These are all the day to day jokes........
Sunil S Chiplunkar Jun 17, 2011 3:49 PM
A timely editorial, considering that DoP is requesting for feedback on the Pharma Marketing Code. While, there are issues, one should not forget that marketing is a business critical function, which can make or break brand destinies.

An unusual feature of pharma marketing is that the marketing activity is not focused on the buyer, as it is in case of other sector marketing activities, the focus in pharma marketing is on the influencer, and this makes all the difference!

The debate initiated by DoP has not gained momentum, perhaps pharma marketers fear a lot of dirty linen will get washed in public! Hence, there is stony silence, and no ripples made on the marketing code, although it should!

Will watch pharmabiz to see how the marketing code, courtesy DoP, will unfold!
Vivek Hattangadi Jun 16, 2011 10:39 PM
A good idea, but too late.

Unfortunately, doctors and pharma companies are smarter than the law makers.

Both will find a loophole.

We need a Anna Hazare here too.

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