Unethical marketing practices by the pharmaceutical companies have been a major issue the country has been facing for a long time now. Accusations have periodically been flying thick and fast that several pharmaceutical companies spend crores of rupees on marketing of their brands. It was to arrest this trend of unethical marketing practice of bribing of doctors by the pharma companies, the Department of Pharmaceuticals (DoP) had out with the Uniform Code for Pharmaceutical Marketing Practices (UCPMP) in 2011. Unfortunately, it remained largely on paper as it was a voluntary code. In a country like India where even the mandatory laws are very often violated rather than complying, the less said the better about the implementation of a voluntary code like UCPMP. After releasing the code, the DoP had then stated that its implementation will be reviewed after six months and if it is found that it has not been implemented effectively by the pharma companies, the government would consider making it a statutory code. But, instead of making it mandatory after six months, the government dragged its feet on the issue. Finally, the DoP came out with a revised UCPMP in 2015, which was also voluntary. As the code lacked penal provisions to deter the wrongdoers, a large section of the pharma companies continued to indulge in bribing of doctors. As voluntary compliance failed, the DoP finally decided to make code mandatory with legal backing and penal provisions by introducing it under the Essential Commodities (EC) Act, 1955. But, due to stiff resistance from the industry, the government backed off. As the issue lingered on, the government in 2022 constituted a five-member committee headed by Indian government's policy think-tank NITI Aayog's member (Health) V K Paul to study a legal mechanism to regulate the marketing and promotional activities of the pharmaceutical companies in the country.
It was on the recommendations of the V K Paul committee the DoP last year came out with the Revised UCPMP with some legal provisions under which all the promotional expenditures have come under the relevant provisions of the Income Tax Act, 1961. The new code permitted the companies to offer brand reminders to the doctors in informational and education items like books, calendars, diaries, journals including e-journals, dummy device model and clinical treatment guidelines for professional use in healthcare settings. However, value of these items should not exceed Rs. 1000 per item and such items should not have an independent commercial value for the doctors. The new code had dealt with yet another controversial issue of engagement of pharmaceutical industry with doctors for continuing medical education, continuing professional development, or otherwise for conference, seminar, workshop, etc, and research activities in collaboration with educational institutions. In a right step, the new code had put a blanket ban on conducting such activities in foreign locations. But, time has now proven that the Revised UCPMP is still a toothless tiger. The DoP has recently reprimanded AbbVie Healthcare India, the Indian arm of global biopharma major AbbVie Inc, for alleged unethical marketing practices of sponsoring foreign vacations to Monaco and Paris for 30 doctors in violation of UCPMP, 2024. No doubt, the exact magnitude of helplessness that a code statutorily unbinding to the companies has rendered to the regulatory authorities. They can identify, investigate and establish that wrongdoings exist. But they can only 'reprimand' and do nothing else. Of course, the DoP has asked the CBDT to file a tax evasion case against the company. But, as the FMRAI said, the real issue of bribery remains unpunished. It is clear that the freebies, illegal sponsorships and pay for prescription model is still thriving in the country. It is time the government should think seriously about making this UCPMP mandatory.
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