Healthy Skepticism Library item: 5894

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Publication type: news

Franklin M.
Pharma defies watchdog
The Australian Newswpaper 2006 Aug 17
http://www.theaustralian.news.com.au/story/0,20867,20155548-2702,00.html

Full text:

Pharma defies watchdog

http://www.theaustralian.news.com.au/story/0,20867,20155548-2702,00.html

Matthew Franklin
August 17, 2006

DRUG companies have rejected an order from the nation’s consumer
watchdog to tell the public about free meals and other hospitality they
provide to doctors.

Industry body Medicines Australia will appeal against an Australian
Competition and Consumer Commission demand that it toughen its code of
conduct to stop drug firms trying to influence doctors’ prescribing by
buying them lavish meals and expensive wines.

Thumbing its nose at the ethics push, MA said exposing details of wining
and dining doctors would involve too much red tape.

But ACCC chairman Graeme Samuel said the industry could handle the
reporting burden.

“Disclosure and transparency is the most effective discipline for
ensuring that if you have a reputation for integrity and high standards,
it will be maintained,” Mr Samuel said last night.

Controversy about drug company marketing exploded last month when The
Australian revealed that Swiss drug giant Roche spent $65,000 in July
last year treating 200 cancer specialists to meals and fine wines at
Sydney restaurants.

Critics said the entertainment breached the MA code of conduct which
said company-sponsored meals should be “simple and modest”.

In July, the ACCC approved an updated MA code of conduct subject to a
new condition requiring transparency over hospitality. Drug company
chiefs met to discuss their response on Friday.

MA chairman John Young said yesterday his industry wanted to work with
the ACCC to develop an appropriate ethical framework.

“The condition being imposed by the ACCC is being appealed due to
concern that it will create a layer of ineffective red tape for our
small, medium and large companies that goes well beyond current
monitoring measures,” Mr Young said.

The proposed regime had no precedent in Australia or overseas, he said.

Mr Samuel said the commission carefully analysed the administrative
burden imposed by its proposal and believed it was not onerous.

The appeal will be heard by the three-person Australian Competition
Tribunal, a process that could take several months.

Health Minister Tony Abbott made no comment last night.

Labor health regulation spokesman Laurie Ferguson backed the ACCC.