Revised PhRMA Code Provides a New Roadmap

Some have reported that the pharmaceutical industry directs up to 90% of its $20-plus billion dollar marketing budget toward physicians. See, e.g., Troyen A. Brennan, et al., Health Industry Practices that Create Conflicts of Interest: A Policy Proposal for Academic Medical Centers,” JAMA, Jan. 25, 2006 at p. 430. Research indicates that the impact of gifts ' such as meals, conferences and other benefits ' on physician prescribing practices is a legitimate concern. See Ashley Wazana, M.D., “Physicians and the Pharmaceutical Industry: Is a Gift Ever Just a Gift?” JAMA, Jan.19, 2000 at pp. 373-380. Reports and study findings of this nature arguably create an “appearance of impropriety” that may be harmful to the professional image of physicians and pharmaceutical manufacturers alike, as well as impact public trust.

In response to growing concerns regarding the potential impact of gifts on physician prescribing habits, professional groups have been taking steps to guide physicians and/or to ban gifts. For example, the American Medical Association (AMA) has established clear ethical guidelines that govern physician interaction with the pharmaceutical industry; the AMA Principles of Medical Ethics and the AMA Code of Medical Ethics are intended to ensure that physicians do not place their own financial interests above the welfare of their patients and that their medical recommendations are not inappropriately influenced by financial considerations.