Philip Morris cash for vapes scheme referred to Australian Health Practitioner Regulation Authority

Australia’s medical regulator has been asked to investigate a controversial scheme by tobacco giant Philip Morris, which offered chemists cash for selling its vaping products.

A controversial scheme offering chemists cash for dispensing vaping products made by tobacco giant Philip Morris has been referred to the medical regulator the Australian Health Practitioner Regulation Authority.

News Corp, which exposed the scheme, understands the Department of Health and Ageing has asked AHPRA to investigate the scheme.

Under government regulations when ‘dispensing prescriptions or supplying pharmaceutical benefits’ under the PBS, chemists must comply with the Pharmaceutical Society of Australia‘s Code of Ethics.

The Code of Ethics notes that pharmacists must act with honesty and integrity by avoiding conflicts of interest, including accepting incentives.

The Australian Health Practitioner Regulation Authority has been asked to investigate Philip Morris’ cash for vapes scheme. Picture: AFP

This PBS regulatory requirement only applies to dispensing PBS medicines (vaping products are not on the PBS), but accepting incentives to supply other products could be said to be not consistent with the ‘spirit’ of those requirements.

Pharmacy industry publications are reporting that PharmaPrograms, the company inviting chemists to take part in the scheme, has paused the rollout.

PharmaPrograms have not responded to News Corp inquiries about whether the program has been paused.

TOBACCO GIANT REJECTS CASH FOR VAPES CLAIMS

Tobacco giant Philip Morris has rejected as “one-sided and inaccurate” claims by Chemist Warehouse board chairman about negotiations between the companies over a deal to sell its vaping products.

“Those discussions advanced to a mature phase with Chemist Warehouse keen to showcase their capabilities and expertise as it relates to distributing our nicotine vaping product,” Philip Morris said in a statement.

“We find it very interesting that Mr Gance now refers to the tobacco industry as “our enemy” when following numerous meetings and months of discussions where he requested exclusive rights to our nicotine vaping product as well as our heated tobacco products,” the Philip Morris statement reads.

“We are further disappointed that Mr Gance has flagrantly breached his confidentiality obligations, in relation to which PML reserves its legal rights,” Philip Morris said.

Tobacco giant Phillip Morris has rejected “inaccurate” claims it was paying pharmacists to sell its vaping products.

The tobacco company also hit back at medical groups such as such as the Australian Medical Association, the Royal Australian College of General Practitioners, and the Pharmaceutical Society of Australia, who have attacked a plan to give chemists financial incentives if they dispenses Philip Morris vaping products.

Philip Morris said these groups “welcomed and participated in the establishment of the prescription model are now criticising manufacturers for participating in it”.

“The real issue, and the one not being addressed in the current commentary, is that a tsunami of illegal vaping products are being openly sold across the country by non-pharmacy retailers, in contravention of federal and state laws,” Philip Morris said.

“Most Australians have no idea that these products are illegally imported and distributed, including by organised crime syndicates,” the company said.

It called on state and federal government to “enforce the law and tackle illegal trade at the border or street level”.

‘CLEAR CONTEMPT’: TOBACCO GIANT’S CASH FOR VAPES PLAN CONDEMNED

EXCLUSIVE: Australia’s peak body for pharmacists has slammed a plan by the world’s biggest tobacco company to give pharmacists who sell their vaping products cash as “clear contempt.”

News Corp revealed on Tuesday revealed Philip Morris is offering a secret cash for vapes to chemists that would shower them with payments for dispensing its vaping product.

The Pharmaceutical Society of Australia (PSA) today strongly rejected the plan.

“No healthcare professional should accept financial incentives or support from a tobacco company. Big tobacco cannot, and should not, be trusted with the health of Australians,”

PSA National President Dr Fei Sim said.

“PMI’s offer of financial kickbacks shows clear contempt for our profession and our dedication to the health and wellbeing of our communities. It’s galling PMI are promoting these products while they remain unregulated and unregistered. No nicotine vapes are registered as medicines in Australia,” she said.

The TGA had provided clear advice to pharmacists and the health sector that “nicotine vaping does not provide substantial benefits to patients as a smoking cessation tool, and nicotine vaping products are not a first-line option for smoking cessation,” she said.

“It is not the role of health professionals, including pharmacists, to recommend unregulated therapeutic goods to patients, and PSA calls on any healthcare organisations that have financial agreements with Big Tobacco to terminate these agreements immediately,” she said.

Jack Gance is the co-founder and chairman of Chemist Warehouse. Picture: Aaron Francis/The Australian

Chemist Warehouse board chairman Jack Gance rejected a highly lucrative exclusive deal to sell Philip Morris’s Vaping product.

“They’re actually bribing the pharmacist by giving them an extra rebate on every product that they dispense. And if they recommend a customer to doctors they are getting rebates as well, I mean, the whole thing is highly unethical if not illegal,” Mr Gance said of the secret deal.

Mr Gance told News Corp the tobacco giant had offered his company an exclusive deal to sell its vaping products in 2020.

“Rebates, training, advertising, promotion, anything I wanted, I mean, they were desperate, anything I wanted to get our business,” he said.

“The offer was very compelling because they don’t care what it costs them to win the business because for them it’s a long term game, people smoke cigarettes for the rest of their life, people were going to vape for the rest of their lives if there hooked on it,” he said.

“Why would I support Big Tobacco? I mean they’re our enemy,” he said.

“Why would a pharmacy that’s got to provide health benefits to their patients support a company that sells health products that was actually trying to protect their tobacco market,” he said.

Whilst Philip Morris were throwing heaps of money at the pharmacy, Mr Gance said: “I really do not think any pharmacist will succumb to the seduction because pharmacists are ethical and work hard to protect the health of their patients.”

In the end Chemist Warehouse struck a deal with another vaping company and entered a strategic alliance with that company because its product was designed as a quit smoking aid, he said.

News Corp revealed that pharmacies will get a $275 payment from the world’s biggest tobacco company when they order its VEEV vaping product under a controversial cash for vapes scheme.

Chemist Warehouse rejected an offer to sell vaping products. Picture: NCA NewsWire / Sarah Marshall

In addition, tobacco giant Philip Morris will pay chemists taking part in the scheme

*a $5 fee when they refer customers to a doctor to obtain a prescription for a vaping product.

*a $10 fee for educating a new patient about the VEEV device; and

*a ʻdispensing support paymentʼ of $5 every time they dispense a new script of the product.

The payments are outlined in a leaked invitation to chemists to take part in the “VEEV Pharmacy Program” run through the pharmacy IT solutions group PharmaPrograms.

The secret incentive program has been slammed as “disgraceful” by QUIT director Sarah White.

“You have a health organisation, collaborating with one of the world’s biggest tobacco companies, to incentivise pharmacists to secretly push a tobacco company product,” she said.

“We know community pharmacists are incredibly trusted by their community and something like this is just so cynical and could completely ruin the trust that the community has in pharmacists.

“How can a patient trust a community pharmacist if that community pharmacist is being incentivised to push something on them?” she asked.

the scheme has been called “an unholy alliance between Big Tobacco and the pharmacy sector”. Picture: AFP

In October last year nicotine containing vapes became a prescription only product in Australia for use in smoking cessation.

The measure was introduced to try and control the use of the products as concerns grow they have become a gateway product to tobacco smoking for teenagers and young Australians.

The former president of the Australian Medical Association Dr Omar Khorshid and its former vice president Dr Chris Moy slammed the program.

A spokesperson for the Pharmacy Guild of Australia said: “The Guild is unaware of the details of the program”.

“The pharmacist’s role is to dispense the medication as prescribed. The pharmacist does not have a role in making specific recommendations to doctors in relation to prescribing of nicotine products,” the spokesman said.

Royal Australian College of General Practitioners President Adj. Professor Karen Price said that the scheme was an “unholy alliance between Big Tobacco and the pharmacy sector” and had the potential to ruin community trust in their local pharmacy.

Originally published as Philip Morris cash for vapes scheme referred to Australian Health Practitioner Regulation Authority