Healthy Skepticism Library item: 1761

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: news

Hensley S.
Drug industry curbs 'dine and dash' marketing
The Wall Street Journal 2002 Apr 19

Full text:

- The party may be over for some of the drug industry’s most controversial sales tactics aimed at doctors.

THE PRESCRIPTION-DRUG industry’s main trade group has approved a voluntary code for its members that would curtail many types of entertainment and giveaways that salespeople use to win over doctors, people familiar with the matter said. The guidelines would prohibit sales reps from currying favor with doctors in “dine and dash” events in which doctors listen to a brief sales pitch while ordering meals to go, selecting gifts or even having gas pumped into their cars.

Also prohibited would be token consulting arrangements that commonly disguise financial inducements to lure doctors to meetings.

An entertainment arms race in the industry during the past few years has led to excesses that embarrassed some companies and caused sales budgets to balloon. The move to cut back on some of the most egregious behavior could save face for the industry and stave off regulation. It remains to be seen if the voluntary code will hold, though.

The executive committee of the Pharmaceutical Research and Manufacturers of America approved the code unanimously at a meeting on Wednesday in Washington.

Executives from a dozen industry heavyweights, including Pfizer Inc., GlaxoSmithKline PLC, and Bristol-Myers Squibb Co. sit on the committee. All those who voted for the code are expected to agree to adhere to it, people familiar with the talks said, as are other members of the trade group.

The guidelines take effect July 1. Although no enforcement mechanisms are specified, participating companies are expected to be vigilant in monitoring their competitors who subscribe to the code.

The guidelines spell out that drug reps’ primary duty is to educate and inform doctors. The guidelines still permit “modest meals as judged by local standards.” But to keep the focus on education, a spouse or other guests who aren’t part of the medical practice won’t be allowed to tag along.

Entertainment for its own sake is out, a person familiar with the code said.

There will be no more golf, movies, or shows paid for by sales reps. Gone also are the golf balls imprinted with drug logos.

The staff in the doctor’s office can still get free pizza from the sales person, as long as it is delivered with an in-person educational presentation. Just dropping off a meal is verboten, though.

Giveaways to doctors that are linked to patient care must be valued at $100 or less. An anatomical model is acceptable by the code, but a VCR or CD player isn’t. The ubiquitous pens and notepads flogging products are still permitted, but floral arrangements and tickets to sports events aren’t.