Healthy Skepticism Library item: 14577

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: news

Silverman E.
Do All Drugmakers Cap Payments To Docs?
Pharmalot 2008 Nov 5
http://www.pharmalot.com/2008/11/do-all-drugmakers-cap-payments-to-docs/#more-17298

Full text:

Two weeks ago, Glaxo ceo Andrew Witty caused a stir by promising to make public the level of advisory fees the drugmaker offers to doctors and medical academics – and vowed to strictly cap the payments they can receive in the US to $150,000 a year (back story).
We questioned how and why Glaxo arrived at that particular sum and a Glaxo spokeswoman responded – in the Pharmalot comments section (look here) – that the “level is consistent with the caps set by our peer companies.” This raised our curiosity. What exactly is going on at those peers? And how would Glaxo know?
So we sent cards and letters to each of the other big drugmakers and nearly all responded (is anyone home at Abbott Labs?), although it did take some time. Nonetheless, the carefully crafted replies are interesting. Most say they are reviewing their policies in connection with the new PhRMA code on interacting with docs and other healthcare professionals, which does not suggest setting any specific limits, by the way.
Some appeared to avoid the question – see Pfizer’s reply – or were vague by professing to have caps but declining to be specific. Interestingly, Wyeth, which we often find to be one of the more tight-lipped and media-shy entities, offered a few specifics. Each of the responses can be found below. Enjoy…
Johnson & Johnson: Beginning January 1, as part of our implementation of the PhRMA Code on Interaction with Health Professionals, our US-based Pharmaceutical Group companies will begin to establish total annual caps for compensation paid to an individual customer in connection with speaking arrangements. If you recall, J&J stated its support for the PhRMA Code in July and our businesses have been in the process of preparing to implement the new guidance.
Sanofi-Aventis: We currently follow all PhRMA guidelines and are in the process of reviewing our policies around disclosure and limits of payments to physicians.
Novartis: Novartis is committed to the PhRMA Code on Interactions with Healthcare Professionals.
Bristol-Myers Squibb: We have a cap on advisory payments to physicians.
Merck: Merck will be developing and implementing any necessary updates to our policies and practices during the next several months to address changes in the code such as establishing a cap on the total annual compensation that can be paid to individuals for speaking on behalf of the company. Here is the link to the full statement should you need it.
Pfizer: Pfizer supports the goals of the Physician Payments Sunshine Act, a bipartisan legislative initiative that would disclose industry payments to physicians. Our policies, which range from the posting of our clinical trial results to better disclosure of our support for independent continuing medical education initiatives, reflect our commitment to greater transparency in our business practices.
Schering-Plough: We are developing guidelines for our work under the new PhRMA code, which takes effect in January 2009. We have no further comments at this time.
Lilly: Yes, Lilly has a cap, which is significantly lower than GSK’s announced cap. However, we have not publicly disclosed that figure.
Wyeth: Wyeth does not have a cap on consultants. We only have a cap on speakers at this time. Speaker cap is $50K in US; if a US speaker is approved to conduct global talks, they can earn an additional $25K for a total of $75K per year.
AstraZeneca: We have caps in individual areas. At this time, we are evaluating the levels of the limits and what specifically they should cover
Roche: We currently don’t have a policy on caps to medical advisors. However, as part of the compliance with the new pharma code, we are looking at these kinds of policies for our company, including a defined cap for health care professional speakers.