ETHICS IN PHARMACEUTICAL INDUSTRY

Presented To: Ms. Shinu Vig

Presented By:
Riya Sinha BM-019137
Rohan Chandna BM-019138
Rohan Jain BM-019139
Rohit Prajapati BM-019140
Romila Pathak BM-019141
 Introduction
 Drug liabilities become more continuous, more advanced, and more costly.
They impact patients' perception, doctors' training, clinical examination, and
clinical correspondence. Intensive survey of the writing and papers shows
that the impression of ethics issues in the pharmaceutical business is to a
great extent negative and features the examination set on pharmaceutical
companies.

 The most noticeable issues revealed are drug safety, estimating, importation,
clinical investigation configuration, promoting limitations, , animal testing,
international market, creating nations, issues related to immunizations, the
cost adequacy of medicines, and in the last ten years the Pharmaceutical
fraud. The codes for Corporate Social Obligation need one significant
revision. The pharmaceutical industry is, naturally, a division where the
thoughts of corporate inclusion, duty towards patients, ethics conduct and a
general obligation towards society are present
Ethical Behaviour and Unethical Behaviour

Ethical Behaviour Unethical Behaviour

Integrity Misleading advertisement
Information sharing Personal interest
Accurate prescription Misguiding prescription
Transparency Subjectivity
Objectivity Partiality
Fairness Selling of samples to public
Care for and about people Uncontrolled testing
 Ethical Issues Faced by the
Pharmaceutical industry
 Issues of marketing of drugs-The organizations in the pharmaceutical business burn through
billions of sums in promoting or advertising. The doctors or specialists are given commissions
to endorse the drugs of the specific organization

 Increase in the prices of drugs-In some of the cases, the organizations in the pharmaceutical
business charge unreasonably high prices. There are a portion of the cases, where the costs of
medications are expanded which are disproportionate with the pace of inflation or the expense
of the medications.

 Issues of Corporate scandals- Once in a while, the pharmaceutical organizations get occupied
with the illegal or improper practices. For instance, Valeant, a medication organization in the
USA received another plan of action and represented the profit of the organization by $600
million.

 Issues in the clinical testing of drugs-The organization sometimes falls flat in their
medication testing methods. This shows how organizations are playing with the wellbeing and
security of the patients
 Case 1:Ethical conduct in Cipla Pvt. Ltd.
 Organizations should direct and oversee themselves with Ethics,
Straightforwardness and responsibility. The organization has a
set of accepted rules which gives a moral guide to its chief and
senior administration.

 The code endorses that all chiefs and senior administration will
show genuineness, respectability, just as high ethics and moral
guidelines.

 It gives direction on settling on the correct choices and doing

just right things. The code further proceeds to express that so as
to stay away from any sort of moral infringement in the
association, Chiefs and senior administration workers will
likewise verify that every one of their activities in the lead of the
business are absolutely straightforward.
 The organization has adopted the lifecycle approach so
as to guarantee item supportability over its worth chain.
In such manner, the organization has advanced nearby
providers who produce interesting items, for example,
respiratory products.

 Nearby sourcing additionally brings down the

transportation costs and furthermore helps in the
decrease of vehicular air emission. The waste produced
in the organization's tasks is either reused or arranged
off securely. As a further case of organizations item
duty, it has scaled down the costs of three generic
cancer drugs, Erlocip, Docetax and Capegard, by
dependent upon 64% with a target to make these meds
accessible to the clients at moderate costs.
 Case 2:Ethical Dilemmas in
Sun Pharmaceutical Company Ltd.
 The entirety of our Chiefs and Senior Administration workers should
try to bargain truly, morally and reasonably with the Organization's
providers, clients, rivals, representatives and investors.

 The entirety of our Chiefs and Senior Administration representatives

must not exploit anybody through control, disguise, maltreatment of
favored data, distortion of material realities or some other out of line
practice. We try to beat our opposition reasonably and sincerely.

 We look for upper hands through predominant execution, never

through exploitative or unlawful strategic policies.

 Taking restrictive data, having proprietary advantage data that was

gotten without the proprietor's assent, or initiating such divulgences by
past or present representatives of different organizations is precluded.
To keep up the Organization's notoriety, consistence with our quality
procedures and security necessities is fundamental.
 No single type of development driving pharma promoting in India's
generic medication space of the 1990s could be thoroughly liberated
from contention. Showcasing methodologies, including that of Sun
Pharmaceutical Industries Ltd, which advanced a drawn out relationship
with specialists, polarized professionals. Organizations, which adhered to
what they saw as "ethical marketing" were slipping into a moderate
development zone.

 Since Sun was changing the game and carrying new medications to
India, it couldn't stand to play by the old standards and would like to be
viable.

 Before Sun, Torrent Pharmaceuticals Ltd (a competitor) had started

forging closer ties with medical bodies like the Neurological Society of
India, Cardio logical Society of India and the Indian Psychiatric Society.
Its founder U.N. Mehta had served as an MR for years and understood
the struggle foot soldiers go through just to get a few minutes to tell a
drug’s story to the doctor..
Case 3:Ethics in Johnson & Johnson Co
 Johnson & Johnson(J&J) has been one of the most trusted
brands in the world for a very long time and its name has come
to be synonymous with quality. Since its inception in 1886
Johnson & Johnson has created a great number of products and
services, and has even branched out to the pharmaceutical
industry.
 The pharmaceutical company they own is called Janssen
Pharmaceutical, and much of this controversy will result from
their practices within the Janssen branch of the company, which
is a subsidiary company within the J&J corporate structure.
 J&J used to be viewed as a model of corporate ethical behavior.
There was a case in 1982. Seven people in the Chicago area
collapsed suddenly and died after taking Tylenol capsules that
had been laced with cyanide. These five women and two men
became the first victims ever to die from what came to be
known as product tampering.
 J&J acted to remove all the product from the shelves of
supermarkets, provide free replacements of Tylenol capsules
with the tablet form of the product, and make public statements
of assurance that the company would not sell an unsafe product.
 J&J reacted swiftly to the news and by all accounts the company
took the steps necessary to gain the public trust. The company
pointed to their corporate credo which is:
We believe our first responsibility is to the doctors, nurses, and
patients, to mothers and fathers and all others who use our products and
services. In meeting their needs, everything we do must be of high
quality. We must constantly strive to reduce our costs in order to
maintain reasonable prices Customers’ orders must be serviced
promptly and accurately.
 Since the Tylenol incident, the Wharton School looked at some of
the product recalls at J&J and concluded the company had quality
control problems with several of its brands. The company also
agreed to pay the state of Texas $158 million to settle claims it
improperly marketed the anti-psychotic drug Risperdal to patients on
Medicaid.
 The moral of the J&J story is ethical corporate behavior is not like a
faucet you can turn on and off at a whim. It requires consistent
behavior based on ethical values such as honesty, trust, respect, and
responsibility
 I believe the underlying cause of the problem is a culture that has
morphed from honesty to dishonesty accompanied the failure of
ethical leadership.
 Case 4:Valeant Pharmaceuticals
International Inc.
 This case study is about Valeant Pharmaceuticals, a Canadian-
based multinational pharmaceutical company. The company is
under investigation for its pricing practices, which have
allegedly resulted in extremely high prices on medicines in the
U.S. market.

 Additionally, its inappropriate disclosure of inter-corporate

relations alarmed investors, who are concerned about possible
manipulation of the insurance system.

 Regardless of patients’ rising medical costs, Valeant continued

its harmful pricing schemes. The ethical problem with Valeant’s
form of price rising is wrongfully exploitative. The key concern
is that it is unfair for a seller, in this case Valeant, to take
advantage of buyers vulnerability to derive disproportionate
benefits to Valeant’s management, even if consumers of the
drugs benefit to some degree as well.
 High retail prices may not be a problem for consumers with
adequate coverage from their current insurance plans.
However, people without access to good health insurance
would be in danger, because they cannot pay the high
monthly medical bills. Specialty medications are usually
specifically designed for patients with rare diseases

 Therefore, it is always difficult for patients to find cheap and

easy-to-obtain substitutes. With the fatal outcomes
associated with certain rare diseases, patients would be at
risk of death because of predatory drug firms like Valeant.

 Valeant’s drug price strategy, growth model and accounting

methods are not ethical in any respects. To achieve ethical
and stable business practices, this company needs to replace
both management and the company’s real core culture and
practices.
 Pharmaceutical Marketing ethics
 TRAIN EMPLOYEES ON LAWS AND REGULATIONS

 GAIN CONSENT/AUTHORISATION BEFORE

CONDUCTING DIRECT MARKETING

 DISCLOSE EVERYTHING

 LOOK TO PARTNER RATHER THAN SELL

 ADOPT AN INBOUND MENTALITY

 KEEP YOUR DATA UP-TO-DATE

 ENGAGE WITHIN DIGITAL COMMUNITIES

 CREATE A CITIZEN BRAND

 ACT RESPONSIBLY

 ILLEGALITY
Conclusion and Policy Recommendation
 There is a need of rebuilding the pharmaceutical business. Empowering and securing
monopolistic valuing neglects to advance development. Rather, arrangements, for
example, patent laws debilitate explore and permit organizations to acquire enormous
benefits while patients are compelled to manage unnecessary expenses for basic
medications.
 From a deontological viewpoint, pharmaceutical firms have an ethical commitment to
give reasonably evaluated drugs in case they utilize their purchasers as a way to a
benefit instead of organizing reasonable access to medicine.
 The central issue with the pharmaceutical business is its absence of rivalry, a trademark
ensured by current medication patent laws. The possibility to benefit that emerges from
the monopolistic security of new medications boosts organizations to raise costs to
disgusting levels, keeping patients from getting to the prescription they have to endure.
This unreasonable motivation neglects to advance examination and development, and
rather builds medicinal services expenses and government spending, while medicate
organizations benefit.
 Executing the strategies ought to be the initial moves towards reasonable evaluating of
medications. The outcomes of the current framework stretch out past restricted access
to social insurance. The current plan additionally puts monetary weights on individuals
requiring drugs, government, and at last, citizens. Until pharmaceutical organizations
grasp their ethical obligation to give drugs as an end (open great) as opposed to as a
way (to benefit), there will be a requirement for government intervention.
Thank You