Tanya vogt developing anti corruption best practice, applying incentives and enforcing 25 sept...

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Business Learning Forum on Anti-Corruption 25 September 2012

Transcript of Tanya vogt developing anti corruption best practice, applying incentives and enforcing 25 sept...

Business Learning Forum on

Anti-Corruption

25 September 2012

April 2011

The Case for a Marketing Code of Practice

The Marketing Code of Practice Journey

Code Training

The Parts to the Code

Next Steps

SA Code of Practice for

the Marketing of Health Products

Ethical promotion of health products

To ensure that health care professionals and the public have access to the information they need

That patients have access to the health products they need

That health products are prescribed and used in a manner that provides the maximum healthcare benefit to patients

Promotional activities that comply with applicable legal, regulatory and professional requirements

To enhance the rational use of health products and fair competition in the marketing thereof

To establish a clear understanding of the appropriate use of health products

Accurate information about health products is integral to providing quality healthcare services to patients

Preserve the independence of the decisions taken by healthcare professionals

Enhanced confidence of the general public in the Pharmaceutical industry in general and in pharmaceutical products specifically

SA Code of Practice for

the Marketing of Health Products

• Marketing & promotion of medicines to healthcare professionals

Part A

• Marketing & promotion of medicines to consumers Part B

• Devices Part C

• Enforcement Part D

- Replace ASA appendix A & H

- Guidelines

- MoU - Constitution -Sanctions -SLA with ASA -Guideline

July 2007 – Marketing Steering Committee

2009 – SAMED & SALDA join

Feb 2010 – Interim Board of the MCA

Oct 2010 – Agreed version of the Code

May 2011 – Agreed MoU

Interim Phase

INNOVATIVE MEDICINES SA (IMSA)

NATIONAL ASSOCIATION OF PHARMACEUTICAL MANUFACTURERS (NAPM)

PHARMACEUTICALS MADE IN SA (PHARMISA)

PHARMACEUTICAL INDUSTRY ASSOCIATION OF SA (PIASA)

SELF-MEDICATION MANUFACTURERS ASSOCIATION OF SA (SMASA)

THE SOUTH AFRICAN ANIMAL HEALTH ASSOCIATION (SAAHA)

SOUTH AFRICAN MEDICAL DEVICE INDUSTRY ASSOCIATION (SAMED)

SOUTHERN AFRICAN LABORATORY DIAGNOSTICS ASSOCIATION (SALDA)

Support for the initiative and enforcement

PHARMACEUTICAL WHOLESALERS AND DISTRIBUTORS

PHARMACEUTICAL SOCIETY OF SOUTHERN AFRICA (PSSA)

The interim period will be between 6 – 12 months unless preceded by legislation and consists of. • 4 months of training and awareness by all companies • 2 months of self regulation whereby complaints will be

managed company to company • EO notified of complaints and the outcome to allow for

monitoring the robustness of the Code and its principles. • The Code will not be enforced i.e. no sanctions until MCA

is formalised and members have signed the Constitution unless legislation intervenes.

• Trade associations that form MCA are those that represent manufacturers of health products.

• The Marketing Code Authority will be funded by these associations on a “market share” basis.

Market Share Determinations for Participating Associations

Calculation and Logic Final Determination

Association

No of Members Deloitte study Actual, total

market Total market

Intra-pharma % split by private market

% figure used to determine contribution to MCA

IMSA 12

26.7 74%

26 19.28%

NAPM 24 12 8.90%

PHARMISA 6 19 14.09%

PIASA 16 32 23.73%

SMASA 20 11 8.16%

SAAHA ? 0.3 0.83% 0.83%

SALDA 33 2.0 5.55% 5.55%

SAMED ? 7.0 19.47% 19.47%

Total Market 36.0 100.00%

Associations sign MoU

Appoint Executive

Officer for the MCA

Prepare Member

Companies for Code

Implementation

Regulations for enforcement

Sign MoU

(before 1 May 2011)

Appoint Executive Officer

(May 2011)

Prepare Industry for Code Implementation

(Four months training / awareness and two months self-regulation

without sanctions from May-Oct 2011)

Launch of fully operational

MCA & Code Enforcement (no later than 12 months from

signing of MoU, unless preceded by legislation)

Training providers and any other interested persons to download the interactive programme and roll out the training to their organisations.

The training program consist of modules that unpack the code through explanations, definitions and examples that promote understanding.

It also consists of an assessment portion that will later on be used for certification of employees of the member companies

The programme can be down loaded from: http://www.jfmultimedia.co.za/health

Action By When Status

Arrange Signing of Master Copy of MoU End of April

Finalise amendment of Association Constitution or receive resolution to bind members to the Code

End of April

Provide Numbers to Train per Association to support budget finalisation

21 April

Share communication / presentation with members

Early May

Provide input into annual certification fee Next MCA IB Meeting (May 10th or 17th)

Provide input to proposed budget Next MCA IB Meeting (May 10th or 17th)

Action By When Status

Provide Numbers to Train to your association

18 April

Raise Awareness by sharing communication / presentation with your company

May

Distribute training link / copy of CD to all employees that will require certification

May

Ensure employees train themselves May-Aug

Apply self-regulation during pilot phase and report examples to EO (more details to follow in next industry update)

Sep-Oct

Await instruction from Executive Officer of the MCA on formal certification process

TBD, but certification to be completed by no later than Oct

Distribute Quarterly Code of Practice Updates (next update in July)

July

SA Code of Practice for

the Marketing of Health Products

PART A – Marketing and promotion of health products to healthcare professionals (19 clauses)

PART B – Marketing and promotion of health products directly to the consumer (18 clauses)

PART C – Medical Devices (7 clauses)

PART D – Provision for enforcement of the Code (12 clauses)

The Code is further supported by Guidelines to the

Interpretation of the Code and a Sanction & Corrective Action Proposal

PART C – Medical Devices

PART D – Provision for enforcement of the Code

SA Marketing

Company to company

Refer to MCA

Refer to DoH Sanction

no resolution no resolution

Legal mechanisms

Breach Classification

Expanded definition Corrective Action/Public Disclosure Fine Timelines

Minor No safety implications for patients’ well being No effect on how healthcare professionals will use product

Immediate withdrawal of material/activity from market Company to Issue a corrective statement, as determined by MCA, including target audience Written reprimand to company by MCA Notify HCP of breach, if relevant

R6K-R100K

30 days

Moderate No safety implications to patients’ wellbeing May have effect on how healthcare professionals will use product

Immediate withdrawal of material/activity from market Company to Issue a corrective statement, as determined by MCA, including target audience Written reprimand to company by MCA Notify HCP of breach, if relevant Publication of corrective advertisement, as determined by MCA, including target audience

R100K-R200K

30 days

Serious/Severe Will have safety implications to patients’ wellbeing Will have effect on how healthcare professionals will use product Commercial impact on relevant market Activities that bring disrepute to industry or reduce confidence in the industry

Immediate withdrawal of material/activity from market Written reprimand to company by MCA Publication of corrective advertisement, as determined by MCA, including target audience Issue a corrective letter to healthcare professionals/public, as determined by MCA

R200K–

R300K

30 days

Breach Classification

Expanded definition Corrective Action/Public Disclosure Fine Timelines

Fines not paid When a monetary fine is not paid within the required time period from receipt of the decisions and the reasons for the decisions of the MCA

Further fine of R50K

60 days

Corrective Action not implemented

Where corrective action has not been actioned within required timelines Any other sanction including orders as to cost and fees

The matter will be raised by MCA with the subject company and may be taken to MCA for consideration

Further fine of R100K

60 days

Repeated Breaches >3 infringements in 1 year When a company repeats any breach, as classified by MCA, in the promotion/activity of any of the company’s products/activity

The MCA may publish the decision in a newspaper with national circulation along with the name of the offending company. Publication of the infraction on MCA website All postings will remain on website for 12 months. Inform the MCC of infringement and recommend cancellation of registration of product

First:R10K + original fine; Second: R15K + original fine; Third: R25K + original fine R200K max MCC can cancel product registration

60 days

Breach Classification Expanded definition Corrective Action/Public Disclosure Fine Timelines

Multiple breaches Where the MCA, through monitoring, finds a number of breaches of the Code by a company: MCA will usually consider the aggregate of the breaches to determine whether a sanction should be imposed

The MCA may publish the decision in a newspaper with national circulation along with the name of the offending company. Publication of the infraction on MCA website Inform the MCC of infringement and recommend cancellation of registration of product/s involved MCA may impose a sanction in respect of each breach of the Code, but may choose to impose an additional financial sanction

MCC can cancel product registration

60 days

Invalid / unjustified / vexatious complaints

Does not comply with requirement of complaint as defined in Code

MCA informs complainant in writing R10K 60 days

Bringing the Code into disrepute

When a company brings the Code into disrepute or misrepresents the Code

The MCA may publish the decision in a newspaper with national circulation along with the name of the offending company. Publication of infraction on MCA website

R200K max 60 days

Ultimate goal – Regulation to S18A

enabling enforcement of the code across

the entire industry

Recognition of the MCA as the industry’s

self-regulatory body

Co-operation between the MCC/DoH and

industry in ensuring ethical marketing of

health products

Ultimate sanction – non-compliance

Product deregistration

SA Code of Practice for

the Marketing of Health Products

SA Code of Practice for

the Marketing of Health Products

Code of Marketing Practice: exemption required

Part B:

S 11: Right to restrict unwanted direct marketing

S 22: Plain Language: Guideline needed

Part E:

S 29: General standard in marketing

S 30: Bait marketing

S 31: Negative option marketing

S 34: Promotional offers

S 36: Competition

SA Code of Practice for

the Marketing of Health Products

For more information contact: Achieng Ojwang, Manager: Business in Society

+27(0)11 544 6000; [email protected]

www.nbi.org.za