Keywords: Medicnes Australia, Competition Commission, Code of Conduct, Marketing

Australian pharma industry embraces tougher Code of Conduct

Article | 4 December 2009

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The Australian Competition and Consumer Commission this week said that it has decided to grant authorization for five years to pharmaceutical trade group Medicines Australia's 16th edition of its Code of Conduct. The Code sets standards for the marketing and promotion of prescription medicinal products in Australia.

The Code provides, among other things, a standard to address potential conflicts of interest from unrestricted relationships between pharmaceutical companies and health care professionals, which may harm consumers, for example through inappropriate prescribing by health care professionals.

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The Code prohibits pharmaceutical companies from providing entertainment and extravagant hospitality to health care professionals, with the requirement that all benefits provided by companies successfully withstand public and professional scrutiny.

Areas in which provisions of the Code have been strengthened are:

• Brand name reminders: a ban on brand name reminders that are ordinarily used outside the surgery (eg, pens, coffee mugs, notepads, etc);
• Prescribing software: a ban on advertisements for prescription medicines in prescribing software used by doctors;
• Support for consumer groups: any support provided by consumer groups must be disclosed on the company’s web site; and
• Fines: the maximum fine for a breach of the Code is increased to A$300,000 ($272,727).

Medicines Australia acting chief executive Brendan Shaw has welcomed the ACCC’s decision today to authorise the new, tougher Medicines Australia Code of Conduct. Dr Shaw said the ACCC’s decision reflected the considerable work undertaken by the innovative pharmaceutical industry to ensure its marketing and promotional activities continued to reflect community standards.

“The Code provides an ethical framework for companies when they interact with health professionals and consumers. Medicines Australia members are continuously redoubling their efforts to ensure their conduct remains at a high ethical standard and that the Code sets the benchmark for industry self-regulation,” he stated.

“The ACCC’s authorization is the culmination of an 18-month consultation process during which Medicines Australia and the ACCC have sought input from patient groups, consumer organisations, healthcare professionals, Colleges, professional associations, academics and other stakeholders. Medicines Australia members will continue to work towards ensuring the industry maintains the highest standard of transparency and ethical behaviour,” Dr Shaw concluded.

Edition 16 of the Code of Conduct will come into effect on January 1, 2010.