Eli Lilly announces support for gift-giving transparency

WASHINGTON Eli Lilly is the first drug maker to support a federal proposal requiring drug and medical device makers to disclose payments, gifts, honoraria and travel reimbursements given to doctors, according to published reports. The company said the proposal is essential to restore public confidence between physicians and the industry.

“We believe that being transparent is one way to help re-establish that trust,” said Jack Harris, vice president of Lilly’s medical division.

Sens. Chuck Grassley, R-Iowa, and Herb Kohl, D-Wis., authors of the bill introduced last fall to create a national registry of physician payments, said Lilly’s backing will build support for the bill.

“Eli Lilly’s endorsement goes to show that transparency of the financial ties between doctors and drug makers is not only sensible, but doable,” Kohl said.

The bill would require drug and medical device makers to report anything given to a physician when the total value exceeds $500. That would not include product samples, certain educational materials, certain direct training and equipment loans.

Beginning in 2011, companies could be fined from $1,000 to $250,000 annually for failing to report payments.

Mike Bigelow, assistant general counsel for Lilly, said the company worked with Grassley on changes to the bill that made it more workable, including a later starting date and having it pre-empt state laws.