Corruption in the global pharmaceutical industry identified by watchdog TI

Corruption in the regulation, procurement and promotion of pharmaceuticals and medical equipment wastes scarce health resources and can harm patients if they are prescribed unsafe or unnecessary drugs, says the Germany-headquartered watchdog group Transparency International, in a recently-released background paper, entitled Global Corruption Report 2006. Some aspects of the problems in Germany were reported last week (Marketletter May 29).

Heavy government regulation in the pharmaceutical chain - while essential to safeguard the population against sub-standard drugs and unfairly priced goods - makes the sector vulnerable to corruption, says TI, adding that, if regulators are subject to pressure from commercial groups, health objectives can be compromised.

This can take place in the registration process when the labeling, marketing, usage, warning and prescription requirements for a drug are regulated. In 2004, for example, the report notes, in the Indian state of Karnakata, the Office of the Drug Controller authorized the use of sub-standard drugs because the pharmaceutical manufacturers had paid bribes.