Download - Fact Sheet: Pharmaceutical Gift Ban
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8/13/2019 Fact Sheet: Pharmaceutical Gift Ban
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Gift Ban and Disclosure LawC.111N - Pharmaceutical and Medical Device Manufacturer Conduct, Enacted in 2008
What is the gift ban and disclosure law?Based on thePhRMA federal code1of conduct,the law bans drug and medical device companies from giving
physicians free gifts, such as meals or entertainment, as part of their marketing practices. The gift ban law further
requires the reporting of certain payments to physicians and other prescription drug prescribers from the drug and
medical device industry. The Department of Public Health (DPH) annuallypublishesthe data from this reporting
on their website.2
Is there public support for legislation? 85% of physiciansbelieve drug reps influence decisions.
3
81% of Americansbelieve doctors should not receive free meals from drug reps.68% support disclosurelaws.4What are the true costs of pharmaceutical marketing?
Pharmaceutical companies promotional spending nearly doubles that of research and development. Health
care consumers foot the bill for industry marketing.
From 20062010, prices for the top 100 commonly used prescription drugs increased at a rate nearly double
that of the medical industryandover double the rate of general inflation.5
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1Code of Interactions with Healthcare Professionals, PhRMA and the Advanced Medical Technology Association.2Prepared Reports, Commonwealth of Massachusetts Executive Office of Health and Human Services.
3Michael A. Steinman et al, Of principles and pens: attitudes and practices of medicine housestaff toward pharmaceutical industry promotions, The
American Journal of Medicine, Vol. 110, Issue 7, (2001).4The Prescription Project, International Communications Research (2008).
5GAO-11-306R: Prescription Drug Price Trends, U.S. Government Accountability Office (2011).
6Id., at 19, Figure 4.
7Glenn Snyder, Showdown over drug pricingget ready for another round, Deloitte(2010).
89%
11%
PharmaceuticalsMarket Share
Brand GenericsThe index value of137.7 indicates anincrease of 37.7%inthe average U&C pricefor brand-namedrugs.
The index value of90.1 indicates adecrease of 9.9%inthe average U&C price
for generic drugs.
From 2006-2010 the price of brand-name drugs increasedby 37.7%,while generics decreasedby 9.9%.
___ Brand----- Generic
http://www.mass.gov/eohhs/provider/licensing/programs/pharm-code-of-conduct/data/prepared-reports.htmlhttp://www.mass.gov/eohhs/provider/licensing/programs/pharm-code-of-conduct/data/prepared-reports.htmlhttp://www.mass.gov/eohhs/provider/licensing/programs/pharm-code-of-conduct/data/prepared-reports.htmlhttp://www.mass.gov/eohhs/provider/licensing/programs/pharm-code-of-conduct/data/prepared-reports.html -
8/13/2019 Fact Sheet: Pharmaceutical Gift Ban
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Gift Ban and Disclosure LawC.111N - Pharmaceutical and Medical Device Manufacturer Conduct, Enacted in 2008
Myths Facts Supporting Data
The gift ban is
hurting the
restaurant industry.
Restaurant revenues
are up.
According to the Department of Revenue, restaurants are on trackto have their best year ever in 2012, and revenues are up more
than $25 million so far over 2011. Overall restaurant revenues for
2011 were up more than $33 million over 2010 numbers.8Fine
dining declines in 2009 were nationwide, not triggered by the gift
ban.9
The gift ban is
hurting the
convention industry.
Massachusetts is
gearing up for its
biggest convention year
to date.
Well over 50 medical eventsare scheduled in Massachusetts for
2012. The BCEC is expanding in anticipation of the largest
convention year to date, including the worlds largest biotech
conference, Biotechnology International Organization (BIO),
coming to Boston in June, 2010.
The gift ban is
stymying innovation.
Massachusetts is a
leader in biotech
production.
Massachusetts-based companies account for 10% of the U.S.
drug development pipelineand 5% of the global pipeline.10
Biotech employment is
booming.
Despite the 2009 downturn, biotech employment grew 4% in 2010
a 53% growth since 2001. According to the Bureau of Labor
Statistics,11MA leads the nation in biotech R&D
employment, with almost twice the concentration of jobs as the
next closest state.12
The gift ban is
deterring venture
capital investment.
Massachusetts isoutpacing Silicon Valley
in biotech investment.
Massachusetts-based biotech companies attracted a record $553
million in VC investment in 2011, outpacing Silicon Valley as the
most active target for biotech venture capital in the
nation.13
Massachusetts had its
best year to date for
venture capital in 2011,
beating the 2010
historic high.
We believe Mass.-based companies raised more than $1 billion in
VC funding last year. Massachusetts companies are now getting
one-quarter of all biotech venture dollars in the country,
Robert Coughlin, president and CEO of MassBio.14
8Net Collections Table A, Monthly Report of Collections and Refunds: April 2012, Commonwealth of Massachusetts Department of Revenue (2012).
9Robin Lee Allen, Fine Food is Not Just For White-Tablecloth Restaurants Anymore, Nations Restaurant News(2009).
10Biotechnology Industry Snapshot: 2011, Massachusetts Biotechnology Council (MassBio).
11Quarterly Census of Employment & Wage (QCEW), Bureau of Labor Statistics.
12Biotechnology, supra note 9.
13bioSTATus: Winter 2012, Richards Barry Joyce & Partners, LLC.
14Lori Valigra, MassBio: Mass. Biotechs raised most venture capital in 2011, Mass High Tech(2012).