Drug companies are schmoozing Australian doctors to the tune of more than $5million a month to try to boost sales of new medicines.
A new report reveals that the pharmaceutical industry spent $31million in six months to educate the medical community. Companies forked out more than $24,000 a month for "hospitality" in Canberra.
For the first time, pharmaceutical companies have publicly disclosed their bills to run contentious "education events", which a critic called an "orgy of wining and dining designed to schmooze doctors and boost the sales of new medicines".
Fifty-two of these events had raised a red flag and were now under investigation to see if the companies had breached the industry's code of conduct.
The Australian Medical Association and Medicines Australia staunchly defended the "education events", saying these were critical so drug companies could share information with those who prescribed their products.
As directed by the Australian Competition and Consumer Commission, Medicines Australia published yesterday the reports from 43 drug companies.
The reports covered 14,633 events, which were attended by 385,221 member of the medical community and staged during the six months to December 31.
Pharmaceutical companies shelled out $31million, including $16.3million on hospitality such as food, drinks, travel and accommodation. The industry's peak body, Medicines Australia, reported the bill was about $43 per person for hospitality.
Drug makers staged or sponsored about 170 events in the ACT, which attracted 4267 members of the medical community.
The six-month bill was more than $282,000, including about $146,500 for hospitality, which was more than $24,000 a month on average.
Many of the events were held at Canberra Hospital.
But health professionals had dined at some of the city's upmarket restaurants including the Ottoman, Boathouse, Commonwealth Club, Chairman and Yip, Ginger Room and Courgette when they ventured off campus for "education events". Closer scrutiny showed there were some errors in the documents.
For instance, Organon Australia reported spending $180 on food and drink for 10 psychiatrists at the James Fletcher Hospital in Canberra. An 86-bed mental health facility called the John Fletcher Hospital is located in Newcastle, not the national capital.
Sanofi Aventis reported spending $15,181 including $12,470 on hospitality to inform 30 pharmacists about changes to the Pharmaceutical Benefits Scheme during a three-hour event at the National Press Club.
The pharmacists were served a three-course meal costing $58.50 a head which included olive tapenade, nirvana salad or asparagus crepe, oven-baked salmon or beef tenderloin, a fresh fruit tartlet or pecan pie.
The drug company picked up the drinks tab, with pharmacists offered Redbank wines, Australian beers, mineral water, soft drink and orange juice. Sanofi Aventis moved to clarify the figures late yesterday, saying 60 pharmacists had actually attended and the bill was lower than reported because the $12,470 was an estimate made before the event.
University of Newcastle academic Ray Moynihan an outspoken critic of pharmaceutical marketing described education events as an "orgy of wining and dining ... designed to schmooze doctors and boost the sales of new medicines".
"If they're accurate, the new figures show drug companies in Australia are funding about 100 events every working day for doctors, at a cost of more than a million dollars a week," he said.
Medicines Australia chief executive Ian Chalmers hit back, saying $43 a head for hospitality was hardly an "orgy".
"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," he said.
"Pharmaceutical companies have a responsibility to ensure that doctors are kept informed about any new or improved use of prescription medicines."
Australian Medical Association president Dr Rosanna Capolingua agreed, saying she was defending access to drugs information.