Supreme Court Seeks Committee On Pharma Incentives Offered To Doctors

The Supreme Court has directed the Centre to form a committee to examine whether statutory rules can curb unethical marketing practices by pharmaceutical companies. These practices include travel, hospitality and other incentives allegedly offered to doctors to influence prescriptions.

A bench of Justices Vikram Nath and Sandeep Mehta directed the committee to consider suggestions from stakeholders and submit its recommendations to the government.

The court has asked the Centre to file a compliance affidavit detailing the action taken on the recommendations.

The matter will next come up for hearing on January 29.

During the hearing, senior advocate Sanjay Parikh, appearing for the petitioners, pointed to a gap in the existing framework.

While doctors can face action for accepting gifts and other benefits from pharmaceutical companies, there are no similar statutory penalties for companies that offer such incentives.

The petitioners argued that this gap could allow pharmaceutical companies to influence prescriptions and urged the government to establish a statutory framework or issue interim guidelines until it introduces one.

The Supreme Court raised concerns over the implementation of the Uniform Code for Pharmaceutical Marketing Practices (UCPMP), 2024, which does not have a strong legal enforcement mechanism.

The Centre informed the court that the departments of pharmaceuticals, health and family welfare, and legal affairs had discussed the issue. It proposed a three-member committee to examine the need for a stronger legal framework.

The petitioners referred to the Supreme Court’s 2022 judgment in the Apex Laboratories case, which held that benefits offered to doctors could influence prescriptions and affect public interest.

The new committee will examine stricter measures for pharmaceutical companies and recommend an appropriate legal framework.

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