E-drug: Re: Study on tax subsidies for donations of expiring drugs
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Dear E-druggers:
Carolyn Greene's comments about donation of short-dated
medicines are important, particularly in the context of emergency
situations far from the donor country.
Unfortunately, many well-meaning people assume that in
emergencies, donations are expedited, making short-dated products
acceptable. In reality, the opposite is more likely, due to disruptions
in transport and communications. That is one reason the drafters of
the Interagency Guidelines for Drug Donations advise that drugs
have at least one year's dating on arrival in the recipient country.
On the other hand, the Guidelines allow for the fact that it is
difficult and unwise to set ironclad rules. For one thing, not all
drugs have long dating at the outset -- insulin, for example, often
has only ten months remaining when dispensed in US pharmacies.
Still, some basic rules can be set down: No matter the dating,
nothing should be shipped without the recipient's agreement that it
is appropriate. If donation of short-dated product is under
consideration, nothing should be shipped that will arrive with less
than 12 months remaining -- unless the recipient knows
beforehand, accepts it, and is confident that it will be consumed
before expiry.
The above are not PQMD's, of course. They are in the Interagency
Guidelines for Drug Donations, which we believe merit universal
support.
The tax deductibility of donations is secondary, but assuming a
donation conforms to the Guidelines and other regulatory conditions
are met, the deduction should to go forward.
On a related point: Contrary to the assertion in the recent paper, no
tax deduction is permitted for an unsaleable drug. If pharmacists or
hospitals won't buy the drug (due to the proximity of expiration, or
because it has been discontinued, or because it is in a sample,
which by definition is not saleable) no deduction can be taken. In
short, it is not true that donations allow companies to get rid of
unsaleable drugs and obtain a tax write-off.
In sum, the WHO Interagency Guidelines constitute flexible and
practical standards on this and other points.
James B. Russo
Executive Director
The Partnership for Quality Medical Donations
146 Koenig Road
Bernville, PA 19506, USA
610 488 8303
610 488 7036 (fax)
JBRusso@aol.com
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