E-DRUG: Abbott suspends giving gifts to doctors in India
--------------------------------------------------------
[A story from Reuters (thanks to Pharmalot.com for the pointer) about
gifts to prescribers in India [copied as Fair Use]. While welcoming
Abbott's actions, one wonders how the long the review will take and
what the outcome will be. And when will prescribers (not just in
India) accept that they can afford to buy their own pens, ... and
vacuum-cleaners (yes, I acknowledge the problem of under-remuneration
of the health professionals in developing countries, but this issue
has at least 2 participating parties). Douglas Ball (moderator)]
Abbott suspends giving gifts to doctors in India
By Frederik Joelving
NEW YORK | Tue Oct 16, 2012 6:03pm EDT
(Reuters Health) - Abbott Laboratories Inc has instructed its sales
representatives in India not to give gifts to doctors, who are
prohibited by local law from accepting them, a practice that has been
used as a bargaining chip by companies wanting a piece of the
country's burgeoning healthcare market.
According to an internal email dated October 11 from Sudarshan Jain,
managing director of Abbott Healthcare Pvt. Ltd, the gift-giving has
been temporarily suspended.
"Only Abbott-approved clinical/scientific literature may be
distributed to current and potential customers," said the email, which
was reviewed by Reuters on Tuesday. "No brand reminders or therapy
reminders in your possession should be given to any current and
potential customer and no further brand reminders or therapy reminders
should be ordered."
Accepting gifts or travel arrangements from drugmakers is against the
law in India, but enforcement is inconsistent.
Public health experts say gift-giving leads to dangerous
overprescribing and unnecessary use of expensive medications when
cheaper versions are available. That can be a significant burden for
the 400 million people in India who live on less than $1.25 a day.
A sales representative with Abbott Healthcare told Reuters that
therapy reminders are low-value items such as pens, whereas brand
reminders refer to electrical appliances and other pricier
merchandise.
The representative, who spoke on condition of anonymity, said he was
not worried about his job getting harder without the gifts, but, he
quipped, it would certainly make his bag lighter.
As multinational drug companies ramp up investments in emerging
markets to realize billions of dollars in annual sales, they have
faced increased scrutiny from the United States and European
governments. U.S. authorities are currently probing a number of
leading global drugmakers for kickbacks and bribery overseas.
A Reuters investigation in September showed Abbott's Indian
subsidiaries plied doctors with scanners, vacuum cleaners, coffee
makers and similar items in return for prescribing the company's drugs
to patients. Sales representatives were shown lists of gifts in
strategy guides issued by the company.
In August, Pfizer Inc paid $60.2 million to settle a U.S. probe
involving illegal payments to win business overseas, including
kickbacks such as cell phones and tea sets given to doctors in China.
Last year, Johnson Johnson agreed to pay $70 million to settle U.S.
charges under the Foreign Corrupt Practices Act (FCPA) that it had
bribed healthcare providers in Greece, Poland and Romania.
Scott Davies, a spokesman for Chicago-based Abbott Labs, confirmed the
decision but declined to say what had prompted the move. He said he
was not aware of any inquiries from regulators about the company's
dealings in India.
"This is an internal action," he told Reuters. "We are suspending that
brand reminder program while we review it."
Davies said the suspension encompasses Abbott Healthcare and Abbott
True Care, but did not have information on whether other Indian
subsidiaries would continue the practice. He declined to address
travel payments.
(Editing by Ivan Oransky, Michele Gershberg, Maureen Bavdek and Claudia Parsons)