Healthy Skepticism Library item: 6507

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Publication type: news

Stafford A.
Backlash over doctor entertainment feared
The Age (Melbourne) 2006 Nov 14
http://www.theage.com.au/news/national/backlash-over-doctor-entertainment-feared/2006/11/13/1163266481632.html

Full text:

Backlash over doctor entertainment feared

Annabel Stafford, Canberra
November 14, 2006

THE pharmaceutical industry fears a political backlash after refusing to reveal details of how it wines and dines doctors, a secret industry document obtained by The Age suggests.

The document, prepared for industry body Medicines Australia, reveals concerns that the Federal Government could introduce tough rules to rein in drug companies’ marketing activities.

Prepared by lobbying group Parker & Partners, the document – described as a “communications plan” – says there is a risk of “a long-term political problem for the industry” flowing from Medicine Australia’s rejection of a ruling that it reveal details of marketing to doctors.

“While the current Government is in principle opposed to compulsory regulation, we cannot presume the political circumstances will not force their hand. In addition, the Labor Party will almost certainly look to compulsory regulation as a part of their policy platform for the next federal election.”

The plan outlines a series of tactics to fight any attempt at compulsory regulation – including a list of 38 politicians, bureaucrats, journalists and medicos to target with the industry’s “key messages”.

Meanwhile, the industry is under pressure on another front, with federal cabinet due today to consider plans to reform the Pharmaceutical Benefits Scheme (PBS), which drug companies and pharmacists rely on for their income.

The plan is expected to cut the amount the Government pays for generic or copycat medicines by 25 per cent and force manufacturers to disclose the price at which they sell off-patent medicines to chemists.

Industry sources say the plan would then involve the Government averaging all prices for a particular type of medicine and lowering the amount it gives to pharmacists to buy the medicine in line with that.

But The Age has been told still-patented medicines would be protected from the price cuts, because their price would no longer be linked to the price of off-patent medicines with similar health benefits as is the case now.

The Parker & Partners “communications plan” was written in August after Medicines Australia rejected a ruling by the Australian Competition and Consumer Commission that drug companies publish details about the events they put on for doctors.

The plan includes “securing media coverage” of the industry’s position on the issue and containing political reaction.

The way medicines are marketed is currently regulated by the drugs industry itself under an industry code of conduct.

But the ACCC said it would re-endorse this code only if the companies agreed to reveal more about how they entertained doctors. Medicines Australia rejected the ACCC’s ruling and has lodged an appeal with the Australian Competition Tribunal. But the “communications plan” suggests the industry body is fearful the move could turn drug marketing into an election issue and lead to pressure for an end to industry self-regulation.

Parker & Partners managing director Andrew Parker said yesterday the plan was “a hypothetical scenario we considered, but beyond that I can’t comment on the advice we provide to clients”.