Drug Makers Look at New Ethics Code

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Could trigger extensive corporate governance work for attorneys

Sheri Qualters
The National Law Journal
August 5, 2008

Lawyers say a trade group's new sales and marketing code of ethics for pharmaceutical companies that's designed to help companies avoid government investigations and prosecutions will trigger extensive corporate governance work on behalf of participating companies.

The Pharmaceutical Research and Manufacturers of America (PhRMA), a trade organization for drug makers and research companies, announced a massive overhaul of its ethics code governing companies' interactions with health care professionals, which will become effective in January 2009.

Lawyers say the new code significantly alters PhRMA's 2002 Code. Attorneys' key roles will involve crafting policies and training their clients' employees. They also anticipate that the policies will help companies avoid or lessen enforcement actions from the U.S. Department of Health and Human Services' Office of Inspector General (OIG).

The updated PhRMA Code, which was announced on July 10, features several marketing restrictions, including limiting meals provided to health care professionals; imposing stricter protocols for speaking and consulting arrangements with health care professionals; and banning giveaways of so-called "reminder" items with drug company logos such as pens and cups.

Now that 'consumers' are without options and 'free market' is working, let's cleanup our appearance?