Panel reviewing pharma companies' marketing practices may propose new rules with penal provisions

A five-member panel formed by government to review the marketing practices of pharmaceutical companies and examine the requirement for a legally enforceable mechanism, is likely to submit its report within a month.

CNBC-TV18 learns that the panel headed by Dr VK Paul is likely to propose a new regulation called Uniform Code of Pharma Marketing Practices to ensure that ethical marketing practices are bound legally and have fixed responsibilities.

The proposed regulation is also likely to have penal provisions and could also in certain specific cases allow for termination of licenses.

Under the proposed regulation, it will be the duty of pharma companies, medical practitioners to strictly follow ethical marketing practices and not indulge in bribery and freebies to promote sales.

The panel is of the view that strict regulations are necessary to stop unethical marketing practices as the current voluntary system is violated and none of the stakeholders are following the ethics prescribed under the Indian Medical Council Act of 1956.

The memorandum of the committee formed by the Central government was issued on September 12 to consider a legally enforceable mechanism for regulating the marketing practices of pharmaceutical firms.

Minister of Health and Family Welfare, Chemicals & Fertilizers, Mansukh Mandaviya made the recommendation and approval of the panel.

The panel headed by V K Paul, member (health) of NITI Aayog has S Aparna, secretary of the department of pharmaceuticals; Rajesh Bhushan, secretary, Ministry of Health and Family Welfare; Nitin Gupta, chairman, Central Board of Direct Taxes (CBDT); and a joint secretary (policy) from the department of pharmaceuticals as other members.