Pharma Freebies Under Scrutiny

Syllabus: GS2/Governance/GS4/Ethics

Context

• The Centre has asked pharma companies for details of expenditure on marketing in the last one year.

About

• The Union government is keeping a close watch on the marketing practice of pharmaceutical companies amid reports of these companies continuing to offer a range of freebies to doctors.
• The Uniform Code for Pharmaceutical Marketing Practices (UCPMP) is being implemented to check unethical marketing practices.
• The details sought by the Department of Pharmaceuticals (DoP) have to be submitted by 31 July, failing which action will be taken against them.

The Uniform Code for Pharmaceutical Marketing Practices (UCPMP)

• The UCPMP was introduced in 2024 with an objective to bring about transparency and ensure ethical conduct in the marketing practices of pharmaceutical companies.
• Prohibition of Inducements: Companies are barred from offering gifts, monetary benefits, or hospitality to healthcare professionals or their families. 
• Restrictions on Travel and Hospitality: Providing travel facilities or hospitality is prohibited unless the healthcare professional is a speaker at a Continuing Medical Education (CME) event. Even then, events cannot be held in foreign locations. 
• Accountability and Transparency: Pharmaceutical companies must self-declare adherence to the code and disclose expenditures related to conferences, seminars, and workshops. 
• Enforcement Mechanism: An Ethics Committee for Pharmaceutical Marketing Practices (ECPMP) is established within each association to address violations.
  • Penalties include public reprimand, recovery of benefits given, issuance of corrective statements, and potential legal action.

What are Freebies?

• Freebies also referred to as the “Doctors’ Commission” where pharma companies give out gifts, in cash or kind, to medical professionals to prescribe their brand of drug.

Key concerns associated with this relationship 

• Conflict of Interest: Doctors are expected to make medical decisions based on the best interests of patients, and financial or material benefits compromise this objectivity.
• Patient Trust and Confidence: Patients rely on the expertise and unbiased judgment of their doctors, and any perception of undue influence from pharmaceutical companies can undermine this trust.
• Economic Impact on Healthcare Costs: If doctors are influenced to prescribe more expensive medications due to relationships with pharmaceutical companies, it contributes to higher healthcare costs.
• Professional Ethics and Integrity: Medical professionals are expected to adhere to ethical standards that prioritize patient welfare.
  • Accepting gifts or benefits from pharmaceutical companies is perceived as a breach of professional ethics and integrity.

Recommendations

• A five-member committee headed by Vinod K. Paul (2023) to the Union government upon reviewing the UCPMP made few recommendations on freebies to Doctors by Pharma.
  • The price of branded gifts to doctors  should not exceed ₹1,000 per item.
  • Prohibition on the continuous medical education (CME) workshops for doctors in foreign locations.
  • The money received by medical practitioners from pharmaceutical companies to conduct research should be taxable.
  • In the case of free drug samples, tax should be deducted at source for the company under the Income Tax (I-T) Act if their value exceeds ₹20,000 per year. 

Conclusion

• The nexus between pharmaceutical companies and doctors in India poses significant ethical challenges, leading to compromised patient care and inflated healthcare costs.
• Most of the recommendations are now partly reflected in the UCPMP 2024, and ongoing reforms, though experts continue to call for further legal enforcement and independent oversight mechanisms.
• Strengthening regulation, ensuring transparency in medical-industry relationships, and prioritizing patient welfare over profit are essential steps toward restoring integrity in healthcare delivery.

Source: LM