Supreme Court Orders Centre To Form Panel To Curb Unethical Pharma Marketing, Expensive Gifts To Doctors

The Supreme Court mandated the federal government to create a committee tasked with investigating unethical pharmaceutical marketing practices and proposing regulations to discourage drug manufacturers from providing expensive gifts and incentives to doctors. The five-justice bench of Vikram Nath and Sandeep Mehta directed the Center to present the committee's recommendations before the court. The case will be heard on January 29 when the bench will assess the government's compliance with its order.

Aurobindo Pharma obtained USFDA approval for Perampanel tablets with an estimated market size of ₹558 crore. The court directed the committee to evaluate suggestions and representations on pharmaceutical marketing practices, recommending regulatory measures to the government. The petition, filed in 2021 by the Federation of Medical and Sales Representatives Association, sought stricter regulation of unethical practices where pharmaceutical companies provide costly gifts and benefits to medical practitioners to encourage prescriptions of their drugs.

The petition also requested interim guidelines from the Supreme Court to regulate such activities until a new law is enacted.

The proceedings underscored concerns over the effectiveness of existing regulatory frameworks in addressing incentives offered by drug companies to sway prescribing practices. During a previous hearing on September 8, the Union government informed the Supreme Court of its intention to establish a three-member committee to examine the issue.

The committee would assess whether a statutory framework was necessary and recommend provisions to prevent unethical marketing activities by pharmaceutical companies. The government requested two months for the committee to complete its examination and submit a report to the court.