Governments Turning 'Blind Eye' to Pharma Corruption - Report

According to new research from the Transparency International (TI) Pharmaceuticals & Healthcare Program, as of the beginning of 2016, one in ten corruption investigations by US authorities involves pharmaceutical companies, significantly more than the banking sector. Despite the obvious risk, firms are entrusted with a large degree of autonomy, without proper governmental oversight, TI says. 

Sophie Peresson, Director Transparency International Pharmaceuticals & Healthcare Program told Sputnik:

"The effects of corruption in the pharmaceutical sector and health sector are stark, where it can literally be a matter of life and death. Where one individual gains from creaming off the top, hundreds more can be deprived from the most basic healthcare, often in the poorest populations of the world."

​The report found that, within the health sector, pharmaceuticals stands out as sub-sector that is particularly prone to corruption. It cites as examples a pharmaceutical company bribing a doctor for prescribing its medicines irrespective of a health need or a government employee facilitating the infiltration of substandard medicines into the distribution system.

"It is shocking that despite scandal after scandal involving pharma companies still policy makers simply are not taking seriously the corrosive effect of corruption. The red flags are being ignored. Governments and pharma companies must recognize their responsibility in fighting corruption and stop turning a blind eye," Peresson told Sputnik. 

Massive Lobbying

The report found that there remains a lack of funding for anti-corruption research and interventions, creating a lack of data necessary to understand the complexity of the issue and develop well-tailored anti-corruption initiatives.

Pharmaceutical companies often fund candidates that support their position on key issues. Outside of elections, the pharmaceutical industry spends vast sums of money lobbying. Estimates suggest that in 2009 the industry association Pharmaceutical Research and Manufacturers of America (PhRMA), as well as one of the member companies Pfizer, each spent over US$25 million.

Many patient groups receive considerable financing from industry due to a lack of other funding sources. Such power can allow a pharmaceutical company to exert undue influence on cash-strapped patient groups. As a result, policy debates can be distorted and institutions can be diverted away from their intended purpose of improving public health outcomes, as patient groups promote the benefits of a new medicine while downplaying the side effects.