Summer training presentation

on the project

Ethical issues in Pharmaceutical Marketing

ADIL KHAN (11-MBA-35)

under the supervision of

AJAY SHARMA
(CO-PROPRIETOR)

SK Pharma (new Delhi)

CONTENTS
Chapter 1 INTRODUCTION Chapter 2 ORGANIZATIONAL OVERVIEW Chapter 3 AN OVERVIEW OF PHARMACEUTICAL INDUSTRY IN INDIA

CONTENTS

Chapter4
LITERATURE REVIEW: UNETHICAL PRACTICES IN PHARMA INDUSTRY Chapter 5 RESEARCH METHODOLOGY Chapter 6 DATA ANALYSIS

CONTENTS
Chapter 7 CONCLUDING DISCUSSION Chapter8 RECOMMENDATIONS AND LIMITATIONS OF THE STUDY 9. BIBLIOGRAPHY 10. APPENDICES

OBJECTIVE OF STUDY
this report we will discuss the various ethical issues surrounding Indian Pharma industry with special focus towards unethical marketing practices. We will contrast the attitude of Patients and Doctors towards certain ethical dimensions.

RESEARCH METHODOLOGY
Research type- Descriptive Data collected Primary data Instrument Structured, non-disguised questionnaire Analytical tool- SPSS software Sample size 80 (40+40)

Data analysis

1. How important are following criterion for doctors

while prescribing the medicine.

Criteria Rank

Company image
Percentage margin Personal Relation

Self-evaluation of medicinal brand

Rank them from 1-4 1=Most important 4=least important

Rank
1

Patients

Doctors

Combined

Company image

Company image

Company image

Self-evaluation of medicinal brand

Self-evaluation of medicinal brand

Self-evaluation of medicinal brand

Percentage margin

Personal Relation

Personal Relation

Personal Relation With M.R.s

Percentage margin

Percentage margin

2. How appropriate are the following gifts for physicians to accept?

Highly appropriate 5 Stationary (Pen/pad etc.) Samples Medical exhibition Conference fare Recreation tour 4 3

Highly Inappropriate 2 1

Stationary

Samples

Medical exhibition

conference fare

recreation tour

Q.2

Mann-Whitney U Wilcoxon W Z Asymp. Sig. (2-tailed)

618.000 1438.000 -1.814 .070

641.000 1461.000 -1.617 .106

428.000 1248.000 -3.667 .000

367.500 1187.500 -4.305 .000

508.000 1328.000 -3.146 .002

In above cases Mann-Whitney U test is performed In first two variables that are for Stationary and Samples ,05(p> .05) hence null hypotheses cannot be rejected. For next three variables (Medical exhibition, conference and recreation tour) null hypothesis is rejected (p<.05)

Test of Hypothesis for overall view of Question no.2 H0= There is significant difference between the overall opinion of doctors and patients for appropriateness of accepting a gift. H1= There is no significant difference between the overall opinion of doctors and patients for appropriateness of accepting gift.
Table 1: One-Sample Kolmogorov-Smirnov Test, Q.no.2

Aggregate 1-5 N Normal Parameters(a,b) Most Extreme Differences Mean Std. Deviation Absolute Positive Negative Kolmogorov-Smirnov Z Asymp. Sig. (2-tailed) 80 15.81 3.019 .128 .081 -.128 1.144 .146

The data distribution is found to be normal so t-test can be performed.

Table 14: T- test, Q.no.2

Levene's Test
for Equality of Variances F Sig. t df Sig. (2tailed) Equal variances assumed Equal variances not assumed 4.821 75.919 .000 -2.88 .596 .867 .355 78 .000 Mean Difference -2.88 Std. Error Difference .596 Independent Samples Test

If sig>.05 then equal variance assumed row will be considered Here sig. <.05, so we may interpret that there is a significant difference between the opinion of two groups.

3. Giving/receiving gift is close to bribery Extremely agree Moderately agree Neither agree nor disagree Moderatelydisagree Extremely disagree

sig. <.05 (null hypothesis can Mann-Whitney U not be accepted)

Wilcoxon W Z Asymp. Sig. (2-

420.500 1240.500 -3.750 .000

tailed)

4. In your opinion who is/are responsible in promoting unethical marketing?

Highly responsible------------------------------------------------------ not at all responsible 5 Pharmaceutical companies Medical Representative Chemists Doctors 4 3 2 1

Q.4 In your opinion who is/are responsible in promoting unethical marketing?

1.2

0.8

Axis Title

0.6

0.4

0.2

EA MA ND MD ED

Doctors Patients 4(a ) Pharmaceutical companies 42.50% 55.00% 37.50% 17.50% 7.50% 15.00% 12.50% 12.50% 0 0

Doctors Patients 4(b) Medical Representative 10.00% 27.50% 37.50% 25.00% 32.50% 25.00% 17.50% 20.00% 2.50% 2.50%

Doctors Patients 4(c) Chemists 32.50% 60.00% 15.00% 20.00% 17.50% 10.00% 25.00% 10.00% 10.00% 0

Doctors Patients 4(d) Doctors 0 17.50% 12.50% 35.00% 20.00% 27.50% 12.50% 15.00% 32.50% 5.00%

ANALYSIS FROM FREQUENCY TABLES

1.

2.

72% patients believe that Pharmaceutical companies are responsible in unethical marketing, While 80% doctors also have same opinion. 52 % of patients think that medical representatives indulge in unethical marketing practices. On the other hand only 47.5% of doctors have the same opinion. 80% of Patients believe that Chemists are engaged in unethical marketing/selling of drugs. Contrast to this only 47 % of Doctors have similar opinion. 62 % patients believe that doctors are also engaged in unethical practices. Doctors obviously are not agreeing to this allegation.

3. 4.

5. 6.

7. 8.

Test Statistics, Q.no. 4

Pharmaceutical
companies

Medical
Representative 715.500

Chemists

Doctors

Mann-Whitney U

747.000

498.000

510.000

Wilcoxon W
Z Asymp. Sig. (2 tailed)

1567.000
-.550 .582

1535.500
-.842 .400

1318.000
-3.084 .002

1330.000
-2.887 .004

H0 can not be rejected for first two variables i.e. pharmaceutical companies and Medical representative. We may infer that there is no significant difference opinion both doctors and patients consider them equally responsible or in promoting unethical promotion of pharmaceutical products. H0 can not be accepted in case of last two variables i.e. Chemists and Doctors. There is a significant difference in opinion of Doctors and Patients.

For over all view of Question no.4 data is assumed to be interval and test for normality is conducted
4) Who is responsible for unethical Pharma marketing? N Normal Parameters(a,b) Mean Std. Deviation Most Extreme Differences Absolute Positive Negative Overall view 80 14.41 2.073 .128 .104 -.128

Kolmogorov-Smirnov Z
Asymp. Sig. (2-tailed)

1.146
.145

Distribution is normal so we can conduct t- test on this data.

Levene's Test for t-test for Equality of Means

4) Who is responsible
for unethical Pharma marketing?

Equality of
Variances F Sig. T df Sig. (2 tailed) Mean Difference Std. Error Difference

Equal
variances assumed Equal variances not assumed

.717

.400

5.1
50

78

.000

2.07

.403

5.1 50

75.133 .000

2.07

.403

For Levenes sig.>.05, so Equal variances assumed row will be considered. In this row Sig. (2-tailed) <.05 which means that there is a significant difference of opinion between Doctors and Patients

5. It is Ok for professional bodies (MCI, DCI etc.) to endorse private brands Extremely agree Moderately agree Neither agree nor disagree Moderatelydisagree Extremely disagree

Mann-Whitney U Wilcoxon W Z Asymp. Sig. (2-tailed)

464.000 1284.000 -3.332 .001

H0 can not be accepted as there is a significant difference between the opinions of Patients and Doctors.

Q.5 It is Ok for professional bodies (MCI, DCI etc.) to endorse private brands
40.00% 35.00% 30.00% 25.00% 20.00%

15.00%
10.00% 5.00% 0.00% Patient Doctor ED 7.50% 22.50% MD 20% 35% ND 27.50% 27.50% MA 32.50% 15% EA 12.50% 0

6. Doctors should write only generic name/ chemical name while prescribing medicine. Extremely agree Moderately agree Neither agree nor disagree Moderatelydisagree Extremely disagree

Mann-Whitney U Wilcoxon W

796.500 1616.500

Z
Asymp. Sig. (2-tailed)

-.035
.972

Here sig>.972, H0 cannot be rejected.so we can say there is no significant difference between the opinion of doctors and patients.

Q.6 Doctors should write only generic name/ chemical name while prescribing medicine.
40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Patient % Doctor % ED 12.50% 15.00% MD 27.50% 27.50% ND 10.00% 15.00% MA 20.00% 5.00% EA 30.00% 37.50%

7. Do you agree that pharmaceutical companies inspire you for unethical promotion of their products? Extremely agree Moderately agree Neither agree nor disagree Moderatelydisagree Extremely disagree

Mann-Whitney U

686.000

Wilcoxon W
Z Asymp. Sig. (2-tailed)

1506.000
-1.143 .253

Here sig.>.05, H0 cannot be rejected.

Q.7 Do you agree that pharmaceutical companies inspire Doctors for unethical promotion of their products?
45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00%

5.00%
0.00% Patient Doctor ED 0.00% 12.50% MD 5.00% 22.50% ND 22.50% 7.50% MA 37.50% 17.50% EA 35.00% 40.00%

8. Frequent samples help you to determine quality of medicine for prescription. Extremely agree Moderately agree Neither agree nor disagree Moderatelydisagree Extremely disagree

Interpretation (Question No. 8)

80% of Doctors maintains that frequent samples help in determining the Quality of medicine for prescription. Only 7.5 % of Doctors have opposite view.

9. Medical representatives satisfy your queries about new promotional drug. Extremely agree Moderately agree Neither agree nor disagree Moderatelydisagree Extremely disagree

9) Medical representatives satisfy your queries about new promotional drug.

EA

MA
ND MD ED 0.00% Q.9 10.00% 20.00% 30.00% 40.00% 50.00%

ED 15.00%

MD 12.50%

ND 17.50%

MA 45.00%

EA 10.00%

Interpretation (Question No. 9) 55% are agree with above statement. Only 27.5% are not agree.

10. Mostly, doctors provide samples to their patients free of cost. Extremely agree Moderately agree Neither agree nor disagree Moderatelydisagree Extremely disagree

70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 10.00% 0.00% SD 2.50% MD 5.00% ND Ma EA 30.00% 20.00% 10.00% 30.00% 32.50%

60.00%

Patients % Doctors % Interpretation from frequency table (Question No. 10)

92.5% of Doctors says that they provide samples free of cost to patients while only 40 % of patients are agree with this. 40% of Patients have not received any sample from any doctor or it may be just their opinion.

Test of Hypotheses Q.no.10 H0: There is no significant difference between the two groups about above statement H1: There is a significant difference between the two groups about above statement. Samples Mann-Whitney U Wilcoxon W Z 336.000 1156.000 -4.725

We have sig. <.05, H0 cannot be rejected

Asymp. Sig. (2-tailed)

.000

RECOMMENDATION
strong legislation supported by the norms and values of the society strong enforcement of existing rules and regulations Health education Consumer awareness

RECOMMENDATION
pharmaceutical industry should also restrict itself up to ethical marketing Pharmaceutical companies must adopt the concepts of Corporate Social Responsibility and Sustainable Development. The Sales Representative should be able to provide accurate information, without exaggeration of the capabilities, and be able to inform of the property

LIMITATIONS
a case study of Aligarh region only Small sample Non-probability sample Reluctantly of respondents Segregation of specialties Other demographic segregation

THANKS