From: <b class="gmail_sendername">Gopal Dabade</b> <span dir="ltr"><<a href="mailto:drdabade@gmail.com">drdabade@gmail.com</a>></span><br><div class="gmail_quote"><br><br><p class="MsoNormal" style="margin-bottom:7.5pt;background-repeat:initial initial">
<a href="http://www.reuters.com/article/2012/10/16/us-abbott-india-doctors-idUSBRE89F1N820121016" target="_blank">http://www.reuters.com/article/2012/10/16/us-abbott-india-doctors-idUSBRE89F1N820121016</a><span style="font-size:24pt;font-family:Arial,sans-serif"></span></p>
<p class="MsoNormal" style="margin-bottom:7.5pt;background-repeat:initial initial"><span style="font-size:24pt;font-family:Arial,sans-serif">Exclusive:
Abbott suspends giving gifts to doctors in India</span></p>
<p style="margin:0in;margin-bottom:.0001pt;background:white"><span style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#666666"> </span></p>
<p style="margin:0in;margin-bottom:.0001pt;background:white"><span style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#666666">By
Frederik Joelving</span></p>
<p style="margin:0in;margin-bottom:.0001pt;background:white"><span><b><span style="font-size:8.5pt;font-family:"Arial","sans-serif";color:#666666">NEW YORK</span></b></span><span><span style="font-size:8.5pt;font-family:"Arial","sans-serif";color:#666666"> </span></span><span style="font-size:8.5pt;font-family:"Arial","sans-serif";color:#666666">|<span> </span><span>Tue Oct 16, 2012
6:03pm EDT</span></span></p>
<span></span>
<p style="margin-top:0in;margin-right:0in;margin-bottom:7.5pt;margin-left:0in"><span style="font-size:15pt;font-family:Arial,sans-serif;background-repeat:initial initial">(Reuters Health) - Abbott Laboratories Inc has instructed its sales
representatives in India not to give gifts to doctors, who are prohibited by
local law from accepting them, a practice that has been used as a bargaining
chip by companies wanting a piece of the country's burgeoning healthcare
market.</span></p>
<span>
<p style="margin:0in 0in 7.5pt;background-repeat:initial initial"><span style="font-size:10.5pt;font-family:Arial,sans-serif"></span>According to an internal
email dated October 11 from Sudarshan Jain, managing director of Abbott
Healthcare Pvt. Ltd, the gift-giving has been temporarily suspended.</p>
<span></span>
<p style="margin:0in 0in 7.5pt;background-repeat:initial initial"><span style="font-size:10.5pt;font-family:Arial,sans-serif">"Only Abbott-approved
clinical/scientific literature may be distributed to current and potential
customers," said the email, which was reviewed by Reuters on Tuesday.
"No brand reminders or therapy reminders in your possession should be
given to any current and potential customer and no further brand reminders or
therapy reminders should be ordered."</span></p>
<span></span>
<p style="margin:0in 0in 7.5pt;background-repeat:initial initial"><span style="font-size:10.5pt;font-family:Arial,sans-serif">Accepting gifts or travel
arrangements from drugmakers is against the law in India, but enforcement is
inconsistent.</span></p>
<span></span>
<p style="margin:0in 0in 7.5pt;background-repeat:initial initial"><span style="font-size:10.5pt;font-family:Arial,sans-serif">Public health experts say
gift-giving leads to dangerous overprescribing and unnecessary use of expensive
medications when cheaper versions are available. That can be a significant
burden for the 400 million people in India who live on less than $1.25 a day.</span></p>
<span></span>
<p style="margin:0in 0in 7.5pt;background-repeat:initial initial"><span style="font-size:10.5pt;font-family:Arial,sans-serif">A sales representative with
Abbott Healthcare told Reuters that therapy reminders are low-value items such
as pens, whereas brand reminders refer to electrical appliances and other
pricier merchandise.</span></p>
<span></span>
<p style="margin:0in 0in 7.5pt;background-repeat:initial initial"><span style="font-size:10.5pt;font-family:Arial,sans-serif">The representative, who spoke on
condition of anonymity, said he was not worried about his job getting harder
without the gifts, but, he quipped, it would certainly make his bag lighter.</span></p>
<span></span>
<p style="margin:0in 0in 7.5pt;background-repeat:initial initial"><span style="font-size:10.5pt;font-family:Arial,sans-serif">As multinational drug companies
ramp up investments in emerging markets to realize billions of dollars in
annual sales, they have faced increased scrutiny from the United States and
European governments. U.S. authorities are currently probing a number of
leading global drugmakers for kickbacks and bribery overseas.</span></p>
<span></span>
<p style="margin:0in 0in 7.5pt;background-repeat:initial initial"><span style="font-size:10.5pt;font-family:Arial,sans-serif">A Reuters investigation in
September showed Abbott's Indian subsidiaries plied doctors with scanners,
vacuum cleaners, coffee makers and similar items in return for prescribing the
company's drugs to patients. Sales representatives were shown lists of gifts in
strategy guides issued by the company.</span></p>
<span></span>
<p style="margin:0in 0in 7.5pt;background-repeat:initial initial"><span style="font-size:10.5pt;font-family:Arial,sans-serif">In August, Pfizer Inc paid $60.2
million to settle a U.S. probe involving illegal payments to win business
overseas, including kickbacks such as cellphones and tea sets given to doctors
in<span> </span><a href="http://www.reuters.com/places/china" title="Full coverage of China" style="outline:none" target="_blank"><span style="color:#006e97;text-decoration:none">China</span></a>. Last year, Johnson & Johnson
agreed to pay $70 million to settle U.S. charges under the Foreign Corrupt
Practices Act (FCPA) that it had bribed healthcare providers in Greece, Poland
and Romania.</span></p>
<span></span>
<p style="margin:0in 0in 7.5pt;background-repeat:initial initial"><span style="font-size:10.5pt;font-family:Arial,sans-serif">Scott Davies, a spokesman for
Chicago-based Abbott Labs, confirmed the decision but declined to say what had
prompted the move. He said he was not aware of any inquiries from regulators
about the company's dealings in India.</span></p>
<span></span>
<p style="margin:0in 0in 7.5pt;background-repeat:initial initial"><span style="font-size:10.5pt;font-family:Arial,sans-serif">"This is an internal
action," he told Reuters. "We are suspending that brand reminder
program while we review it."</span></p>
<span></span>
<p style="margin:0in 0in 7.5pt;background-repeat:initial initial"><span style="font-size:10.5pt;font-family:Arial,sans-serif">Davies said the suspension
encompasses Abbott Healthcare and Abbott True Care, but did not have
information on whether other Indian subsidiaries would continue the practice.
He declined to address travel payments.</span></p>
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