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ACCC authorises new Medicines Australia Code of Conduct - A drive for increased transparency

On 26 July 2006, the Australian Competition and Consumer Commission ("ACCC") re-authorised the long awaited 15th edition of the Medicines Australia Code of Conduct ("the Code")[1] for three years. Subject to any appeal by Medicines Australia, the Code will take effect on 17 August 2006.

However, the ACCC imposed a condition on its approval which appears intended to increase the level of transparency in relation to doctor orientated functions sponsored by pharmaceutical companies.

As a result, from 1 October 2006 Medicines Australia members will be required to submit a proforma table twice a year. The table will disclose the hospitality provided by the company at all educational meetings and symposia held or sponsored by that company during each of the previous 6 months and the cost of such hospitality. Medicines Australia will, in turn, make this information available on its website.

The ACCC also requires the Medicines Australia Monitoring Committee to conduct an annual audit of three randomly chosen months for each member and refer suspected breaches to the Code of Conduct Committee.

Although it approved the Code, the ACCC questioned its effectiveness. The ACCC's Chairman, Graeme Samuel, noted in a press release on 26 July that "[t]he ACCC believes the new edition of the code contains some improvements... however, the ACCC recognises that this is a self regulatory code and thus it is unclear how effective it is in actually regulating drug companies' conduct".[2]

Medicines Australia has said that it will carefully consider the condition imposed by the ACCC before making a response.

We will report further on the new Code and any associated developments in the September edition of Life Sciences Insights.

[2] See 1 above

For further information, please contact Jocelyn Kellam and Greg Williams.