Pharma stocks slip after government bans companies from offering gifts to healthcare professionals

Pharma stocks today NSE BSE: A majority of pharmaceutical stocks declined in trade on Wednesday, March 13, a day after the Department of Pharmaceuticals prohibited pharma companies from offering gifts and travel facilities to healthcare professionals.

As of 10:54 a.m., Nifty Pharma, which is an indicator of healthcare and pharma stocks' performance, was down 0.67 per cent at 18,829.35 levels. On the pharma index, Glenmark Pharmaceuticals, Biocon, and Sanofi India slipped the most, over 2 per cent, followed by Laurus Labs, Lupin, Sun Pharma, Alkem Laboratories, and Zydus Lifesciences, which slipped over 1 per cent. 

On Tuesday, the government of India notified pharma companies of a new marketing code that prohibits them from offering gifts and travel facilities to healthcare professionals or their family members.

The Uniform Code for Pharmaceutical Marketing Practices (UCPMP) 2024 also bans the supply of free samples to those who are not qualified to prescribe such products.

"No gift should be offered or provided for the personal benefit of any healthcare professional or family member (both immediate and extended) by any pharmaceutical company or its agent, i.e., distributors, wholesalers, retailers, etc," as per the UCPMP guidelines.

Similarly, no pecuniary advantage or benefit in kind may be offered, supplied, or promised to any person qualified to prescribe or supply drugs by any pharmaceutical company or its agent, i.e., distributors, wholesalers, retailers, etc, the notification added.

Companies or their representatives should not pay cash or monetary grants to any healthcare professional or their family members (both immediate and extended) under any pretext, as per the UCPMP code. 

"All associations are requested to constitute an Ethics Committee for Pharmaceutical Marketing Practices (ECPMP), set up a dedicated UCPMP portal on their website, and take further necessary steps towards implementation of this Code," the Department of Pharmaceuticals said in the notification addressing associations of drug firms.

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