Page 152 - CW E-Magazine (7-1-2025)

Pharmaceuticals

INFLUENCING DOCTORS
AbbVie Healthcare hauled up for unethical marketing

practices

Acting on an anonymous com- The order also noted that the com-
plaint, the Department of Pharma- pany justifi ed its actions as a common
ceuticals (DoP) has reprimanded industry practice, stating that it had a
AbbVie Healthcare India for violating professional service agreement with
ethical marketing practices under the these HCPs to compensate them for
new Uniform Code for Pharmaceuti- their services. AbbVie’s arguments
cal Marketing Practices (UCPMP) by failed to satisfy the auditors from the
sponsoring foreign vacations for 30 apex committee, which rejected the
doctors. claims.

The department has also asked “The agreements entered into
the Central Bureau of Direct Taxes by AbbVie do not clarify why such
(CBDT) to evaluate the liabilities of This marks the fi rst instance of a trained HCPs need to be provided with
both the company and the doctors and company being penalised for breach- foreign travel to gain knowledge about
requested the National Medical Com- ing the marketing practices code since simple procedures in medical aes-
mission (NMC) to take action against its notifi cation in March 2024. The thetics, such as the administration of
the 30 doctors found to be in contra- code was introduced to regulate inter- Botox and Juvederm,” the committee
vention of the code under appropriate actions between pharmaceutical com- stated in its order.
regulations. panies and HCPs, categorising foreign
trips, gifts, and inducements as unethi- The DoP order also highlighted that
AbbVie Healthcare India, a sub- cal marketing practices. AbbVie declined to consider remedial
sidiary of US-based AbbVie Inc., is action, such as extending support to
under scrutiny for spending nearly According to an offi cial order dated underprivileged patients receiving
Rs. 1.91-crore on travel tickets and December 23 by the DoP’s apex treatment in government hospitals, for
hotel accommodations for healthcare committee for pharma marketing an amount equivalent to the violations
professionals (HCPs) “for extravagant practices, the company claimed that computed by the DoP’s audit team.
pleasure trips under the guise of con- the trip was intended to enhance the Following this, the apex committee
ferences” such as the Aesthetics and HCPs’ “knowledge” about popular decided to proceed with an offi cial repri-
Anti-ageing World Congress 2024, anti-ageing products such as Botox mand, directing the CBDT and NMC
which violates the UCPMP. and Juvederm. to assess the violations accordingly.
Cipla faces Rs. 1-crore GST penalty

Mumbai-based pharma fi rm, Cipla, has been passed by GST Authority on
has said that a penalty of over Rs. 1-crore the contention that the company has
had been imposed on it by the GST availed inadmissible TRAN-1 credit.
Authority for an alleged inadmissible The GST Authority has ordered for
credit claim. The company would fi le recovery of the same along with appli-
an appeal with the appellate authority, it cable interest and penalty,” Cipla said.
said, adding that the development did not
have a material impact on the company’s “Based on assessment of facts and
fi nancials or operations. passed by the GST Authority imposing prevailing law, the Company is of the
a penalty of Rs. 1,11,94,324 under ap- view that the penalty levied is arbitrary
Giving details, the company told the plicable provisions of the Central Goods and unjustifi ed,” it said, adding that it
stock exchanges that an order had been and Services Tax Act, 2017. “The order would appeal the directive.

152 Chemical Weekly January 7, 2025

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