SC orders committee formation to curb pharma's unethical marketing practices
What's the story
The Supreme Court has directed the Indian government to set up a committee to recommend statutory regulations against unethical marketing practices by pharmaceutical companies. The decision was taken by a bench of Justice Vikram Nath and Justice Sandeep Mehta, which heard a petition seeking regulation of such practices. The court has scheduled the matter for further consideration on January 29, 2027.
Regulatory concerns
Concerns raised over effectiveness of UCPMP
The court had earlier raised concerns over the effectiveness of the Uniform Code for Pharmaceutical Marketing Practices (UCPMP), 2024.
It questioned if the Union government intended to give statutory backing to this code, noting the absence of government control could make the purportedly mandatory regime almost voluntary.
During the hearings, Solicitor General Tushar Mehta said detailed deliberations had taken place between the Department of Pharmaceuticals, Department of Health and Family Welfare and Department of Legal Affairs.
SG
Existing regulatory structure allowed for disciplinary action against doctors
He submitted that the existing regulatory structure allowed for disciplinary action against doctors who received gifts, travel, hospitality, or monetary grants from pharmaceutical corporations.
However, when it came to regulating pharmaceutical corporations themselves, he stated that the government had decided to appoint a three-member committee to investigate whether statutory regulation was required and, if so, what form it should take.
Existing framework
Petitioners question need for another committee
He further informed the court that the committee was expected to submit its findings within two months, following which the government would make a decision.
But petitioners questioned the need for another committee, pointing out that a high-level committee had already been constituted in 2022.
Senior Advocate Sanjay Parikh argued that the current regime penalizes doctors but not pharmaceutical companies.
He urged the court to direct the government to frame a statutory framework or lay down guidelines in the interim.
Legal precedent
Petitioners cite Supreme Court judgment on pharmaceutical practices
The petitioners also relied on a 2022 Supreme Court judgment in Apex Laboratories Pvt. Ltd. v. Deputy Commissioner of Income Tax, which observed that pharmaceutical companies' incentives could influence doctors' prescriptions.
The court noted that such practices create a "publicly injurious cycle."
The petition was filed in view of "the ever-increasing instances of unethical marketing practices by Pharmaceutical Companies in their dealings with healthcare professionals resulting in...prescription of excessive and/or irrational drugs and a push for high-cost and/or overpriced brands."