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Ethics, Business, Innovation Andreas Loefler Adrian Cosenza Australia

Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

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Page 1: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Ethics, Business, Innovation

Andreas Loefler Adrian Cosenza

Australia

Page 2: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Collective Aims • Promote innovation

– New drugs – New devices

Page 3: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Collective Aims • Promote innovation

– New drugs – New devices

• Patient safety – Provide a benefit – Do no harm

Page 4: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Collective Aims • Promote innovation

– New drugs – New devices

• Patient safety – Provide a benefit – Do no harm

• Keep the trust – of patients – of community

Page 5: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Specific Objectives • Companies

– Need profits – Answerable to shareholders – Need clinical outcomes – Need doctors to prescribe

Page 6: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Specific Objectives • Companies

– Need profits – Answerable to shareholders – Need clinical outcomes – Need doctors to prescribe

• Doctors – Need patients – Want good outcomes

Page 7: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Specific Objectives • Companies

– Need profits – Answerable to shareholders – Need clinical outcomes – Need doctors to prescribe

• Doctors – Need patients – Want good outcomes – Want good incomes

Page 8: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Specific Objectives • Governments

– Provide health care – Encourage business – Regulate industry

• Safety • Transparency

– Control costs

Page 9: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Company Perspective • New product • Needs safety

– Preclinical testing – Regulatory approval

Page 10: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Company Perspective • New product • Needs safety

– Preclinical testing – Regulatory approval – Clinical trials – Clinical papers

Page 11: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Company Perspective • New product • Needs safety

– Preclinical testing – Regulatory approval – Clinical trials – Clinical papers

• Need sales

Page 12: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Company Perspective • New product • Needs safety

– Preclinical testing – Regulatory approval – Clinical trials – Clinical papers

• Need sales • Target doctors

Page 13: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Doctors’ Perspective • Well trained and skeptical • Treat patients • Enjoy trust in the community • Believes in the New

Page 14: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Doctors’ Perspective • Well trained and skeptical • Treat patients • Enjoy trust in the community • Believes in the New (Techno Optimism)

Page 15: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Doctors’ Perspective • Well trained and skeptical • Treat patients • Enjoy trust in the community • Believes in the New (Techno Optimism)

– Better – Quicker – Safer

Page 16: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Doctors’ Perspective • Well trained and skeptical • Treat patients • Enjoy trust in the community • Believes in the New (Techno Optimism)

– Better – Quicker – Safer – But unproven

Page 17: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Incentives • Direct payments • Royalties and consultancies • Educational support • Overseas trips • Wining and dining • Tickets to rugby games

Page 18: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Three Parties • Unusual business model

– Company markets the product – Doctors choose the product – Governments pay for the product

Page 19: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Three Parties • Unusual business model

– Company markets the product – Doctors choose the product – Governments pay for the product

• Educated players – Sophisticated industry – Highly trained doctors – Specialized government departments

Page 20: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Ethical Problems • Drugs or devices untested • Informed consent with hope • Payments undisclosed • Cost of the New is usually high • Advertisements overstated

Page 21: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Ethical Problems • Drugs or devices untested • Informed consent with hope • Payments undisclosed • Cost of the New is usually high • Advertisements overstated Lack Science Use Testimonials

Page 22: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Better Way • Company approaches institution • No direct payments to doctors • Randomized Controlled Trial • Minimum 2 year follow up • Independent assessment • Peer reviewed publication

Page 23: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Registries • AOA National Joint Replacement Registry

– Captures all hip and knee replacements – Cooperation of surgeons, hospitals, industry – Government funded – Surgeon owned – Post market surveillance – Long term outcomes

Page 24: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Registries • Other registries

– Anterior Cruciate Ligament – Cardiac stents – Breast implants, etc.

Page 25: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Codes of Conduct • Australian Orthopaedic Association

– Position Statement on Interaction with Medical Industry

• Royal Australasian College of Surgeons • Australian Medical Association • Medical Board of Australia • Medical Technology Association Australia • State and National Legislation

Page 26: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Interaction with Industry • AOA Position Statement spells out

– To act in the patients best interest – To avoid commercial persuasion – To disclose financial interests – To acknowledge sponsorship – To refuse gifts

Page 27: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Interaction with Industry • MTAA Code stipulates

– What companies can and cannot do – How to interact with surgeons

• AOA requires MTAA compliance • Regular discussion and cooperation • Arms length funding of projects

Page 28: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Legislation • Illegal under Medical Board

– To create unrealistic expectation – To use testimonials

• Corporations Act – Directors to act honestly

• Crimes Act – Offence to bribe a public official

Page 29: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Legislation • Illegal under Medical Board

– To create unrealistic expectation – To use testimonials

• Corporations Act – Directors to act honestly

• Crimes Act – Offence to bribe a public official

(The Brown Paper Bag)

Page 30: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

International Code • Global trade

– Same pathology – Converging medical practice

• Companies – Multinationals have legal departments – Smaller companies need help

• Governments – Lobby for business

Page 31: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

International Code • Global trade

– Same pathology – Converging medical practice

• Companies – Multinationals have legal departments – Smaller companies need help

• Governments – Lobby for business – Lobby for patients and for ethical practice

Page 32: Ethics, Business, Innovation - AdvaMed · 2016-08-11 · Title: Australian Orthopaedic Association Presentation on Ethics, Business, Innovation Author: Andreas Loefler Subject: Dr

Thank you.