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Table 1 Comparison of financial models against the three fundamental criteria

From: Models for financing the regulation of pharmaceutical promotion

Approach Criteria Other features of approach
Stability of funding Predictability of funding Preserves independence
Fee for each item of promotion Yes, unless dramatic decrease in overall promotion or amount spent on promotion Yes, unless dramatic decrease in overall promotion or amount spent on promotion May create close relationship between industry and regulator In Canada industry cooperation is voluntary
Fee paid by companies to regulatory authority to examine new drug applications and/or annual licensing fees Not necessarily, would depend on the number of new drug applications submitted annually Not necessarily, would depend on the number of new drug applications submitted annually May create close relationship between industry and regulator In the Australian variant some of the money is returned to the industry association to help fund its self-regulatory system
Fee for every prescription dispensed Yes Yes Yes, but potentially not if companies pay a fee for every prescription dispensed for their products Can be seen as a tax on the poor and sick; May not be feasible in developing countries where drugs are often bought through informal channels; Would not work in developed countries where the public health system covers most of the cost of medications
Fines paid by companies for code violations Not necessarily, depends on how stringent code provisions are and how vigilant enforcement is Not necessarily, depends on how stringent code provisions are and how vigilant enforcement is Yes Could encourage vigorous enforcement of code to increase revenue to regulator; Might be useful as a supplementary source of income
Using tax revenue May depend on relationship between government and industry May depend on relationship between government and industry May depend on relationship between government and industry Financing could be tied to health care system savings due to better regulation of promotion; Proper drug use might not necessarily lead to savings
Payments from social insurance funds Depends on whether payments are made on voluntary basis or mandated by legislation Depends on whether payments are made on voluntary basis or mandated by legislation Yes Financing could be tied to health care system savings due to better regulation of promotion