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The California Hurdle - SB 790 and Pharma

July 12, 2017

Seven states and the District of Columbia currently have regulations that limit or ban industry gifts to physicians. The California state senate passed SB 790 in May 2017, a bill restricting pharmaceutical companies from giving gifts and incentives to medical professionals. SB 790 restricts the provision of travel, speaking and consulting fees, meals, and other 'gifts' to health care professionals (HCPs).

According to Senator McGuire, sponsor of SB 790, in 2014 California physicians received the highest number of gifts and payments from pharmaceutical companies of any state - $1.44 billion. He argues that "financial incentives change minds "and drive up the cost of branded prescription drugs. The intent of the bill is to ultimately bring down costs of prescription medicines.

There is a need to further examine viable correlations between interactions with HCPs and the cost of medicines, as well as impact on patient outcomes in order to provide a stronger basis for such laws. California's SB 790 is not a new concept to pharmaceutical companies, as other states currently have their own regulations relating to this. However, the question is because California is often a pioneer in state legislation, will other states follow suit?

FRA's Jenny McVey discusses in Life Science Compliance Update. Read the full article here.

About FRA Life Sciences

FRA Life Sciences provides a broad set of services to help companies identify global compliance risk as well as develop practical, yet effective, solutions for operating under increasing scrutiny. Our expertise will help mitigate global compliance risk across multiple functional areas, including sales and marketing, medical affairs, research & development and instill any necessary change in a company's compliance culture.

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