Pharmaceutical Bio Association Strengthens Review Measures for Fair Competition Rules in Drug Transactions

Penalty Imposed for Non-Compliance with Pre-Review Procedures

[Asia Economy Reporter Myunghwan Lee] The self-disciplinary standards for failing to comply with the prior review procedures of the Fair Competition Code in pharmaceutical transactions will be strengthened.

The Fair Competition Code Review Committee of the Korea Pharmaceutical and Bio-Pharma Manufacturers Association announced on the 22nd that it held its 141st meeting online on the 21st and made this decision.

The Fair Competition Code Review Committee, established in 2010, is an organization that reviews the prior and post-reporting contents of academic, educational, and charitable activities of pharmaceutical and bio companies. The Fair Competition Code was enacted in December 1994 to discourage unfair customer inducements and secure a fair competition order in pharmaceutical distribution. Since then, it has been continuously revised and managed in line with the industry's trend toward strengthening ethical management.

At this meeting, the Review Committee decided to strengthen measures against ▲ omitting or delaying prior notification when supporting international academic conferences held domestically ▲ holding product briefings without prior review or violating the appropriateness of the venue.

Accordingly, acts of failing to comply with prior review or violating procedures will be subject to warnings, penalties up to 10 million KRW, and prohibition from applying for reviews. In addition, unreported acts without voluntary reporting will receive a minor disciplinary action of a 1 million KRW penalty without warning.

The association explained that these measures are a proactive response to ensure the establishment of a series of market transparency enhancement policies, such as the expenditure report preparation status survey to be implemented in the first half of this year and the expenditure report disclosure system to be implemented from next year. It also noted that the legislative process for the pharmaceutical sales representatives (CSO) reporting system, which will be a turning point in enhancing transparency in the pharmaceutical market, is being delayed.

The Review Committee has reviewed more than 20,000 prior reviews and post-reporting contents over the past 12 years. It has also played an important role in enhancing the industry's self-regulatory capacity by resolving industry issues and disputes through authoritative interpretations. The association explained that more than half of the committee members are composed of external personnel to increase transparency.