Pfizer Will Disclose Payments to Doctors, a Drug Industry First

Pfizer Inc., the world’s largest pharmaceutical company, beginning in 2010 will publicly disclose all payments over $500 the company makes to physicians, a first for the drug industry and a move designed to increase transparency in the often murky relationship between doctors and drug companies.

Critics of the nation’s pharmaceutical industry claim millions of dollars in secret money paid by drug companies directly to doctors taints the reliability of medical research by encouraging favorable findings on drugs and entices doctors to prescribe certain drugs over others, putting the health of patients at risk.

News that Pfizer will start disclosing all sizable payments it makes to doctors on the company website was welcomed by some pharmaceutical industry watchdogs, who have long called for more openness in the common practice of drug companies paying doctors who consult with the companies or conduct human experiments of company products. Other critics claimed the financial disclosures won’t go far enough.

Pfizer Going Further Than Others

Other large drug companies, such as Merck & Co., GlaxoSmithKline, and Eli Lilly & Co., recently announced plans to begin disclosing payments they make to physicians for consulting, delivering speeches at company-sponsored conferences, and similar work. However, Pfizer is blazing a trail by also disclosing payments to doctors who conduct clinical studies, author articles published in medical journals about the drugs, and provide other support designed to win regulatory approvals for new drugs.

In 2008, Pfizer said it worked with nearly 8,000 clinical researchers in more than 280 studies, funding investigators and their medical research centers.

Legislation Now Pending

Two U.S. Senators recently introduced a bill which would force drug companies to be more open with the public about payments made to doctors.

The Physician Payments Sunshine Act of 2009 would require drug companies to annually report to the U.S. Department of Health and Human Services all payments over $100. Drug firms which knowingly violate the new law by failing to report the payments and other required information would face fines of up to $1 million.

The bill is sponsored by Sen. Charles Grassley (R-Iowa) and Sen. Herb Kohl (D.-Wis.). Similar legislation was introduced in 2007, but never made it to Congress for a hearing.

Pfizer Has a History

Pfizer has previously admitted paying doctors to prescribe the company’s epilepsy drug, Neurontin, to patients suffering from conditions for which the drug was not approved by the U.S. Food and Drug Administration. Such a practice is against the law.

Doctors paid by Pfizer prescribed Neurontin for “off-label” uses of the drug, driving Neurontin to rack up billions of dollars in sales for unapproved conditions which showed no evidence of improving after treatment with the drug.

Pfizer eventually agreed to plead guilty to criminal charges stemming from the payments and pay $430 million in penalties, officials said.

Cheers for Drug Company Openness

Pfizer and other drug companies should be commended for being more open with consumers about payments the company makes to doctors. By disclosing which doctors are on the company payroll for conducting human experiments of company drugs, speaking at company seminars, and doing other work, patients can decide for themselves whether their physician is acting in their best interests or making medical decisions based on the drug company funding.

While it can be argued that the disclosures do not go far enough toward completely lifting the veil on the drug company-physician relationship, this is at least a step in the right direction. Other drug companies should follow Pfizer’s lead and open their own books to show which doctors are being paid and how much they are receiving.

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