Medicines Australia today set a global precedent for the pharmaceutical industry by publishing the details of medical education events held or sponsored by its member companies.

The report shows that 14,633 educational events for doctors and other healthcare professionals were held or sponsored by 42 Medicines Australia member companies during the six months to 31 December 2007 (see backgrounder). Subsequent reports will be published every six months.

Medicines Australia chief executive Ian Chalmers said he hoped the publication of the report would help the public better understand the pharmaceutical industry’s role in medical education.

“The Australian pharmaceutical industry is now the global leader in terms of transparency and accountability,” Mr Chalmers said.

“I hope the publication of this report gives the community a better sense of the contribution the pharmaceutical industry makes to our healthcare system by saving, improving or prolonging the lives of Australians.

“Pharmaceutical companies have a responsibility to ensure that doctors are kept informed about any new or improved use of prescription medicines. Medicines used properly provide the best patient outcomes.

“No one knows more about pharmaceuticals than the people who make them, so dialogue between those who manufacture medicines and those who prescribe them is critically important to all Australian patients.”

The cost of hospitality (travel, accommodation and catering) listed in the Medicines Australia report is $16.4 million. The total cost of events, including hospitality, speaker costs, event organisational costs, venue hire and other related expenses is $31 million.

The total number of attendances is 385,221, with an average hospitality cost of $43 per head.

All educational events in the Medicines Australia report have been independently reviewed by the international consulting firm Deloitte.

Mr Chalmers announced today that as a result of the independent review, 52 medical education events would be investigated for possible breaches of the Medicines Australia Code of Conduct.

Events which have been assessed as potentially in breach of the Code have been forwarded to an independent Code of Conduct Committee for formal investigation.

The result of the independent investigation, together with details of any sanctions imposed on companies, will be made public after the complaints process has been finalised.

“There is a robust and independent complaints process in place, authorised by the ACCC. That process must be allowed to run its course,” Mr Chalmers said.

“Only 52 of more than 14,000 educational events in the report have been referred for independent investigation, which means more than 99.6 per cent of events were compliant with the Code.

“However, Medicines Australia has a zero-tolerance approach to breaches of the Code of Conduct, a position fully supported by every member company. The innovative pharmaceutical industry is committed to the highest standard of corporate ethical behaviour.

“The Code of Conduct is clear on medical education events. Personal gifts are banned. Entertainment is banned. Lavish meals are banned,” Mr Chalmers said.

Companies found to have breached the Code of Conduct face fines of up to $200,000 per breach.

–ENDS–

Media Backgrounder.

Why pharmaceutical companies provide medical education events

Pharmaceutical companies have an obligation to ensure all healthcare professionals have access to the latest information about prescription medicines.

One of the ways this information is conveyed is though educational events provided for doctors by pharmaceutical companies. These events can range from small meetings in surgeries to evening briefings over dinner, to a weekend conference for hundreds of healthcare professionals.

No one knows medicines as well as those who make them. That is why healthcare decisions affecting Australian patients must be informed by ethical dialogue between those who make pharmaceuticals and those who prescribe, dispense or administer them.

Why Medicines Australia is publishing this information

Medicines Australia has been required by the Australian Competition and Consumer Commission to publish the detail of educational events provided or sponsored by Medicines Australia member companies. This requirement was a condition of the ACCC in authorising the latest edition of the Medicines Australia Code of Conduct.

The transparent reporting of industry-wide data represents a global precedent for the pharmaceutical industry, and one which Medicines Australia fully supports.

Non-members of Medicines Australia were not required to publish the details of their educational events.

Medicines Australia Code of Conduct

All educational events sponsored or provided by Medicines Australia member companies are subject to the Medicines Australia Code of Conduct. The Code of Conduct is authorised by the ACCC and is updated regularly. It sets the standard for the ethical marketing and promotion of medicines.

Under the Code, the provision of gifts to doctors is banned. Entertainment is banned. The provision of lavish hospitality is banned.

Breaching the Code of Conduct

Where a breach of the Code of Conduct is suspected, a complaint can be lodged with the Code of Conduct Committee, an independent body chaired by a trade practices lawyer.

Companies found to have breached the Code of Conduct can be fined up to $200,000.

Key industry facts

• The Australian pharmaceuticals industry turned over $17 billion in 2005-06.
• The Australian pharmaceuticals industry invested $752 million in R&D in 2005-06.
• The Pharmaceutical Benefits Scheme paid $6.45 billion in benefits for listed medicines in 2007.
• More than 2600 prescription medicines are available on the PBS, and advances in medicine are constant.
• In the last two years alone, the Pharmaceutical Benefits Advisory Committee has recommended 119 items for listing on the PBS (05-06 and 06-07).

Contact Person:

Jamie Nicholson
Media Communications Manager
Phone: 0419 220 293
Email: Jamie.Nicholson@medicinesaustralia.com.au

Medicines Australia chief executive Ian Chalmers has assured doctors that their privacy will not be compromised by a soon-to-be-published report on medical educational events provided by pharmaceutical companies.

In an open letter published this week in Australian Doctor and Medical Observer, Mr Chalmers assured doctors that the disclosure of educational event information would not extend to naming attendees.

“The names of individuals have not been provided to Medicines Australia and will not be published on our website,” Mr Chalmers said.

Medicines Australia has been directed by the ACCC to publish every six months on the Medicines Australia website details of educational events and hospitality provided to healthcare professionals.

The first report will be published towards the end of March.

Mr Chalmers also assured doctors that the publication of the educational event report in no way implied any impropriety associated with those events.

“It is important for medical practitioners to be assured that the publication of these reports does not imply that the provision of timely information by pharmaceutical companies to the profession about what’s new in medicines is in any way improper,” Mr Chalmers said.

“We believe doctors’ participation in such educational events is legitimate and in the best interests of patients.

“On every occasion in which doctors meet with representatives from Medicines Australia member companies, hospitality must be provided in accordance with the Medicines Australia Code of Conduct. This Code sets a high ethical standard for these events.

“The number and aggregated cost of reported educational events are likely to be significant. This is to be expected given the importance of medicines in the fight against disease.

“Healthcare decisions affecting every Australian should be properly informed by the legitimate, valuable, ethical and necessary dialogue between those who make medicines and those who prescribe them.”

–ENDS–

Contact Person:

Jamie Nicholson
Media Communications Manager
Phone: 0419 220 293
Email: Jamie.Nicholson@medicinesaustralia.com.au

The Board of Medicines Australia has appointed Mr Will Delaat, the retiring Managing Director of Merck Sharp & Dohme, as its new Chairman.

Mr Delaat has just announced his retirement from Merck Sharp & Dohme after 11 years at the helm of that company.

Mr Delaat has been a director of Medicines Australia since 1998. He has previously served as Chairman, from 2003 to 2005, and as Vice-Chairman.

On retiring from Merck Sharp & Dohme, Mr Delaat will resign his directorship of Medicines Australia, but will continue to serve the Board as an independent, non-voting chairman.

Mr Delaat said he was excited by the opportunity to chair the Medicines Australia Board during a time of significant challenge and opportunity for the innovative pharmaceutical industry.

“I am honoured to have the full confidence of the Medicines Australia Board to help guide the Association over the next two years,” Mr Delaat said.

Medicines Australia chief executive Ian Chalmers said Mr Delaat’s appointment was extremely positive for the industry.

“Will’s vast and varied experience as Managing Director of Merck Sharp & Dohme in Australia, and his previous appointments as Chairman and Vice-Chairman of Medicines Australia equip him to make an excellent contribution over the next two years as our Chairman,” Mr Chalmers said.

The term of Mr Delaat’s chairmanship will expire 31 December 2009.

–ENDS–

Contact Person:

Jamie Nicholson
Media Communications Manager
Phone: 0419 220 293
Email: Jamie.Nicholson@medicinesaustralia.com.au

The decline in the rate of GP prescribing is creating financial ‘headroom’ for the Australian Government to list innovative new medicines on the PBS, Medicines Australia chief executive Ian Chalmers said today.

Mr Chalmers was responding to a report released by the Australian Institute of Health and Welfare, General Practice Activity in Australia 2006–07, which identified a 10 per cent decrease over the past 10 years in the number of prescriptions written by GPs.

Mr Chalmers said reduced GP prescribing is reflected in the slowing growth rate of the PBS.

“The steady decline in GP prescribing also points to continual improvement in the quality use of medicines. This contributes to more efficient usage of PBS funding and is creating headroom for future investment in innovative new medicines currently under development,” he said.

Mr Chalmers said the reduced GP prescribing rates may indicate greater awareness among doctors of how medicines should best be used.

“This data signifies that GPs are exercising careful consideration in the way they use medicines, which is very good news for patients,” Mr Chalmers said.

“One of the benefits of the many important interactions between pharmaceutical companies and healthcare professionals is the provision of information to doctors about how new medicines best work and how they should be prescribed.

“Medicines can be dangerous if they are used improperly, or in circumstances in which they are not appropriate. That is why Medicines Australia strongly supports the National Strategy for the Quality Use of Medicines.”

Mr Chalmers also said he was encouraged by the report’s finding that newly developed combination medicines and vaccines have contributed to the reduction in the number of GP prescriptions.

“The AHWI report identifies the increasing number of combination products available to patients on the PBS as one of the reasons behind lower prescribing rates,” he said.

“Through the research and development of combination medicines, the innovative pharmaceuticals industry has significantly reduced the number of products that many patients will require for the treatment of certain illnesses.

“The development of combination medicines has realised considerable savings for Australian patients and the Australian government and, most importantly, contributed to better health outcomes.”

–ENDS–

Contact Person:

Jamie Nicholson
Media Communications Manager
Phone: 0419 220 293
Email: Jamie.Nicholson@medicinesaustralia.com.au

Medicines Australia chief executive Ian Chalmers today announced the appointment of international business consulting firm Deloitte to review all educational events conducted by pharmaceutical companies for doctors over the period 1 July to 31 December 2007.

This appointment goes beyond an ACCC requirement that Medicines Australia member companies report the details of their educational events for publication on the Medicines Australia website.

Deloitte will undertake an independent and objective evaluation of reported events, enabling Medicines Australia to assess the level of compliance with the industry Code of Conduct.

Mr Chalmers said the audit procedure will assist member companies to achieve maximum compliance with the Code of Conduct.

“The appointment of an independent auditor recognises concerns held by some in the community that there is a lack of transparency in the interactions between pharmaceutical companies and doctors.

“We have listened to those concerns and we’re taking action,” Mr Chalmers said.

“If the auditor considers any reported events may potentially be in breach of the Code, such cases will be subject to a rigorous, independent investigative process that may, where a breach of the Code is confirmed, culminate in significant sanctions.

“I hope people will recognise that these events are important in educating doctors about new medicines and the quality use of medicines. I also hope that this audit gives the community confidence that the manner in which these events are conducted is closely and effectively monitored.”

Deloitte will report to Medicines Australia in February.

–ENDS–

Contact Person:

Jamie Nicholson
Media Communications Manager
Phone: 0419 220 293
Email: Jamie.Nicholson@medicinesaustralia.com.au

Medicines Australia chief executive Ian Chalmers today congratulated the team behind the Department of Health and Ageing’s PharmBiz program, which has won a silver award in the Prime Minister’s Awards for Excellence in Public Sector Management.

The Award was presented at a ceremony in Canberra last night.

PharmBiz is the legacy of a review of the post-Pharmaceutical Benefits Advisory Committee process, undertaken jointly by the Department and Medicines Australia in 2005 and 2006.

The review resulted in 26 recommendations to develop a more effective, efficient and transparent Pharmaceutical Benefits Scheme listing process. Those recommendations have now been implemented through PharmBiz.

Among its significant achievements to date, PharmBiz has developed an online Schedule for the PBS which is automatically updated every month.

Mr Chalmers said the award demonstrated the high regard in which PharmBiz is held.

“I’m delighted that PharmBiz has been recognised by the Prime Minister through this award,” Mr Chalmers said.

“I congratulate the Health Department team, led by Judith Forster and then Rowena Sierant, who have been involved in this important project.

“This is a richly deserved accolade, reflecting the productive, collaborative partnership between Medicines Australia and the Department of Health and Ageing”.

The Prime Minister’s Awards for Excellence in Public Sector Management were established in 2002 to provide the pinnacle of recognition for outstanding public sector work groups, units and teams across all levels of public administration in Australia.

Contact Person:

Jamie Nicholson
Media Communications Manager
Phone: 0419 220 293
Email: Jamie.Nicholson@medicinesaustralia.com.au

Medicines Australia strongly supports the establishment of a robust global standard of industry conduct, chief executive Ian Chalmers said today.

Mr Chalmers was responding to the release today of a report produced by Consumers International on the pharmaceutical industry’s marketing practices.

“This report is about marketing practices in developing countries,” Mr Chalmers said.

“Medicines Australia has no jurisdiction over the practices of overseas pharmaceutical companies.

“However, what Medicines Australia can do – and is doing – is to lead by example, demonstrating our strong commitment to the highest ethical standards.

“This is an area in which Medicines Australia is showing resolute leadership. We are already working actively with an IFPMA [International Federation of Pharmaceutical Manufacturers and Associations] code communication network to encourage a robust global standard for Codes of Conduct throughout IFPMA member countries.

“For example, we have given presentations at two international industry meetings this year, in Singapore and Hong Kong, aimed at advising and assisting companies in Asia-Pacific countries in bringing their Codes of Conduct up to the IFPMA standard.

“The fact is that in Australia, pharmaceutical companies set a very high bar in terms of business ethics. Medicines Australia member companies are bound by a strict Code of Conduct, which prohibits gifts, entertainment and extravagant hospitality – as does the IFPMA Code of Conduct.

“In Australia we don’t use direct-to-consumer advertising to promote medicines, we work cooperatively within an extremely robust and effective regulatory framework, and we’re committed to transparency.

“It’s important to remember that our industry exists to help make people better. Our priority is to ensure Australians have timely and affordable access to medicines that are appropriate, effective and safe.”

Contact Person:

Jamie Nicholson
Media Communications Manager
Phone: 0419 220 293
Email: Jamie.Nicholson@medicinesaustralia.com.au

Medicines Australia chief executive Ian Chalmers today presented Roy Eccleston, of  The Weekend Australian, with the Medicines Australia 2007 Health Journalist of the Year Award.

Mr Eccleston was named as one of the four category winners for his story Think or Sink in The Weekend Australian magazine. His prize as overall winner is a study tour to the United States with a focus on the health industry.

Mr Chalmers presented the award immediately prior to the 2007 Federal Election Health Debate at the National Press Club.

“This is a richly deserved award,” Mr Chalmers said.

“Roy is a very worthy winner in a field which was of a particularly high standard this year.

“For most Australians there is no more important issue than their health. Health journalists have a significant role in raising awareness of health-related issues. These awards recognise the importance of that role.”

The annual Excellence in Health Journalism Awards is hosted by the National Press Club of Australia. National Press Club President Ken Randall said “Australian Journalists and publishers have risen to the occasion with the submission of entries that importantly were of high quality”.

Mr Randall also thanked the awards corporate supporters – Medicines Australia as Awards Principal sponsor, Pfizer Australia, CSIRO, Australian General Practice Network and Pharmacy Guild of Australia as supporting sponsors.

The full list of winners is:

BEST NEWS FEATURE / ARTICLE OR PRESENTATION
Health, Health Sciences or Innovation
Roy Eccleston – The Weekend Australian, Think or Sink

BEST DOCUMENTARY OR DOCUMENTARY SERIES
Health, Health Science or Innovation
Claire Gorman – ABC Radio 666, The Organ Donation Project

BEST FEATURE / ARTICLE OR PRESENTATION
Health Policy, Health Economics and Health Business
Christian Catalano – The Age, Lethal Risk from Blood Transfusion

BEST NEWS FEATURE / ARTICLE OR PRESENTATION
For reporting on Health, Health Science or Innovation directed to medical professionals
Jane McCreadie, Paul Smith, Brad McLean and Warren Clarke – Australian Doctor, Postcards from the Edge

HEALTH JOURNALIST OF THE YEAR
Awarded to the most outstanding entry among the winners of the previous four categories
Roy Eccleston – The Weekend Australian

Media Enquires:
Maurice Reilly
Chief Executive
Ph: +61 2 61212152 (direct)
Mob: +61 0415 738 473
Email: ceo@npc.org.au

Contact Person:

Jamie Nicholson
Media Communications Manager
Phone: 0419 220 293
Email: Jamie.Nicholson@medicinesaustralia.com.au

Medicines Australia today released Medicines Matter to Australians, a summary of election policy priorities identified by the innovative pharmaceuticals industry.

The document calls on an incoming Government to:

• Commit to implementing the program of PBS reform, to ensure sustainability of our medicines system.
• Resolve critical issues surrounding timely access to medicines, and PBS funding of new medicines.
• Substantially raise the threshold at which Cabinet approval of new PBS listings is required.
• Work with industry to deliver investment to grow the number of high-wage, highly-skilled research and manufacturing jobs in the pharmaceutical industry, and provide incentives to attract global investment.

Medicines Australia chief executive Ian Chalmers said a new Government would have an important role to play in securing access to new medicines for Australian patients.

“Australians rightly expect universal, timely and affordable access to the latest and most promising medicines,” Mr Chalmers said.

“No Government can take for granted the PBS and the industry which discovers, develops and manufactures medicines.

“Investment in new medicines helps avoid costly treatment in other parts of our health system, and provides productivity benefits to the economy. Every dollar spent on medicines saves around $6 in other health costs.”

Mr Chalmers said he also looked forward to working with the incoming Government to attract global investment to Australia.

“Pressures from regional competitors to our research and manufacturing base in Australia are mounting and we need policy settings which secure greater onshore investment and innovation by the global industry locally,” Mr Chalmers said.

Medicines Matter to Australians is available from here  262k

Contact Person:

Jamie Nicholson
Media Communications Manager
Phone: 0419 220 293
Email: Jamie.Nicholson@medicinesaustralia.com.au

The 2007 Pat Clear Award has been won by Michelle Burke, Director of External Affairs of Bristol-Myers Squibb.

The award was presented to Ms Burke at the Medicines Australia AGM in Sydney this afternoon.

The Pat Clear Award is the innovative pharmaceutical industry’s most prestigious award. It is presented annually to recognise an outstanding level of commitment by individuals, groups or teams for the benefit of the Australian pharmaceutical industry.

Ms Burke chaired the Medicines Australia PBS Reform Implementation Group (PRIG), playing a major role in ensuring that the industry participated fully in the bedding-down of the PBS reforms.

She is also a chair of the Medicines Australia’s Access Committee.

Medicines Australia chief executive Ian Chalmers said Ms Burke’s award was richly deserved.

“Michelle deserves the highest praise for this achievement,” Mr Chalmers said.

“Without her leadership of PRIG, the industry would not have been so well placed to take up important issues during the implementation process for an initiative that will change the face of the industry over time.”

The Pat Clear Award was established in 2002 to commemorate the contribution that Mr Clear made to the pharmaceutical industry in Australia.

Contact Person:

Jamie Nicholson
Media Communications Manager
Phone: 0419 220 293
Email: Jamie.Nicholson@medicinesaustralia.com.au