Court Mandates Government to Regulate Pharma Incentives for Physicians

The Supreme Court, on October 8, issued a directive compelling the Union Government to set up a high‑level committee to tackle the issue of pharmaceutical companies offering expensive tokens to doctors. The petition, originally filed in 2021 by a federation representing medical sales representatives, sought a robust legal framework to stop the practice of gifting that leads to the prescription of costly and sometimes unnecessary medicines.

According to the filing, many drug manufacturers provide doctors with luxury items, overseas trips, cash advances and other perks, influencing prescription patterns and burdening patients financially. The court noted that the government had earlier requested more time to devise a regulatory draft, but it rejected the postponement, stressing the need for swift intervention.

The committee’s mandate includes drafting clear legal provisions to ban improper marketing, creating enforcement guidelines, and reviewing suggestions received from the public, experts and relevant institutions. Once the recommendations are compiled, they will be submitted to the government for implementation.

The next hearing is slated for January 29, at which the Union will be required to file an affidavit detailing the status of the committee’s formation and the progress made on rule‑making.