MSD suspended from Japanese industry association following FTC warning
This article was originally published in Scrip
Merck & Co's MSD subsidiary in Japan has been suspended for an unspecified period from the JPMA, the main research-based pharmaceutical industry association in the country, for violations of its promotional code of conduct.
The move follows the recent serious warning to MSD from Japan's Fair Trade Commission in relation to certain educational and promotional activities conducted in the 2009-10 period. These included the collection of case report data over the internet, overseas education and training trips and "advisory panels" for cholesterol and vaccine products, which along with related honoraria were judged by the FTC to be non-compliant with relevant fair competition rules (scripintelligence.com, 30 May 2011).
The JPMA, which has around 70 Japanese and foreign corporate members, said in a brief statement that MSD had been suspended due to breaches of the association's code of promotion; the company told Scrip that it continues to be a member of the association. The code is in line with the code of pharmaceutical marketing practices of the international industry federation, the IFPMA, and among other things obliges members to comply with all relevant laws and regulations.
The JPMA code also stresses "an obligation to provide, collect and disseminate information on pharmaceuticals…with proper means," and states that companies must refrain from any act that may distort the appropriate use of medicines.
MSD Japan has already announced a series of measures since the FTC warning including setting up an internal compliance group and retaining outside advisory experts, while several of its top executives are to take a voluntary 10% salary cut for two months.