Recently Revised PhRMA Code

Inappropriate promotional activities have been criticized as having an unduly influential impact on physician prescribing. In addition, some have expressed concerns over the way pharmaceutical companies provide information to health care professionals and consumers. Merck's longstanding code of conduct, business practices and compliance program have sought to address and pre-empt inappropriate practices. We are constantly evaluating and revising our policies and practices. However, in the past year, the pharmaceutical sector as a whole has recognized that more needed to be done to address concerns raised by public officials and stakeholders in the health care community.

In his role as Chairman of the Pharmaceutical Research and Manufacturers of America (PhRMA), Merck Chairman, President and CEO Richard T. Clark has worked with other PhRMA member companies to revise the PhRMA Code on Interactions with Health Care Professionals and respond substantively to concerns raised. On July 10, 2008, PhRMA announced revisions to the Code to strengthen the standards that govern the industry's sales and marketing practices in the United States and ensure that companies have adequate policies and procedures in place to comply with the Code.

Key Changes to the PhRMA Code

Among the key changes is an annual requirement for company CEOs and Chief Compliance Officers personally to certify that they have processes in place to comply with the Code. In addition, the new Code encourages companies to obtain third-party verification of their compliance policies and procedures. Merck completed self-certfication of our compliance policies and procedures in early 2009 and we also plan to pursue external verification. Although the current PhRMA Code already contains a number of strong provisions, the new strengthened enforcement provisions will provide our stakeholders with additional confidence that companies are complying with these strict rules.

Many of the updates to the Code do not require any changes to Merck's already strong, ethical practices. For example, Merck already follows the standards for commercial support of Continuing Medical Education established by the Accreditation Council for Continuing Medical Education (ACCME), and Merck's compliance program already requires that Company representatives be periodically assessed to ensure that they comply with relevant Company policies and standards of conduct.

Code changes that will require Merck to update our policies and practices in the United States include a new requirement that professional sales representatives and their immediate managers will no longer be able to provide physicians with meals outside of physician offices or hospitals other than through speaker programs. We will ensure that happens. In addition, we will no longer offer physicians or their office staff non-educational reminder items, such as pens and notepads, which we have sometimes used to promote products.

We believe that these steps to improve transparency and strengthen the standards for our marketing practices represent progress for the pharmaceutical industry as a whole, and are a necessary step to restoring confidence in the industry.

The content on this page was last modified on September 15, 2009.

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