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Murky Relationships between Doctors and Pharmaceutical Companies Exposed

br> According to according to Harvey A. Silverglate, a lawyer in Boston who specializes in civil liberties cases Dr. Gleason has been trapped in the complex rules that cover what doctors and drug manufacturers are allowed to say about prescription drugs. He said, ‘What they are doing is criminalizing conduct that is not clearly criminal.’

It is no secret that the same practices are observed in many parts of the world with severe and far-reaching consequences. Its primary effect is on the price of just about every drug in the market. The retail price is based on the wholesale price. The wholesale price is known to be the production cost plus operating cost plus markup. Production costs involve the actual expenses in the manufacture of drugs, such as research, development and testing. The operating costs involve the costs iinvolved in marketing the products which could involve expenses of drug companies in wining and dining doctors, sending them on local and foreign trips, and showering them with gifts, all declared to be a part of marketing expenses.

These doctors are the ones who instruct the patients on what kind of medicine they need and why. In other words they are the direct link between consumers and the drug companies. So they are pampered and these costs are passed on to the public.

Matters are complicated further because F.D.A. rules allow doctors to prescribe federally approved drugs for any purpose, although it is not indicated on the medicine’s label. However drug companies are constrained in what they can say about their medicines. Companies can only promote drugs for their federally approved purposes or the so-called “on label” use.

Since “off label” promotion by drug companies has been declared illegal several drug makers have paid large fines to settle federal criminal cases over off-label prescriptions.

For instance Pfizer paid $430 million in 2004 to settle allegations that it had promoted Neu
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