Pharma firm denies pyramid scheme, admits doctor incentives

MANILA, Philippines — A Filipino-owned pharmaceutical company denied allegations of a multi-level marketing (MLM) on Tuesday, but admitted providing incentives to doctors who prescribed its medicines to their patients. 

Bell-Kenz Pharma Inc. Chief Executive Officer Luis Raymond Go described the claims as “misinformation” and said the firm, owned by a group of doctors, adhered to government allegations. 

“I stand before this august assembly to vehemently refuse these baseless allegations and reaffirm our unwavering commitment to integrity and compliance,” Go, who is also a visiting cardiologist at the state-run Philippine Heart Center, said during a hearing of the Senate panel on health and demography.

“We are a law-abiding pharmaceutical entity diligently adhering to all regulations set forth by the Food and Drug Administration (FDA), the Securities and Exchange Commission (SEC), the Philippine Medical Association (PMA), and other relevant governing bodies,” he added.

Bell-Kenz Pharma was founded in 2006. The company’s product lineup includes anti-hypertensive and anti-diabetic medications, antibiotics, and health supplements. 

In a privilege speech on Monday, Sen. Jinggoy Estrada said the pharmaceutical firm “shamelessly recruits doctors, enticing them with promises of exorbitant commissions and lavish incentives in exchange for prescribing their medicines.”

Estrada claimed that Bell-Kenz Pharma has been providing rebates of up to P2 million, based on monthly productivity.

“We give them continuing medical education locally and abroad. Sometimes we also provide them with clinic equipment,” Go said. 

He, however, rejected allegations that the firm gives money, luxury cars and expensive watches. 

Health Secretary Teodoro Herbosa told senators he was unaware of the alleged MLM scheme until the issue was recently brought up.

“What I knew were trips to foreign conferences, and probably meals in expensive restaurants. But this scheme where prescriptions are counted, and quotas are made, that multi-level marketing, I only learned about that now,” Herbosa said in Filipino. 

Last week, the Department of Health (DOH) issued a memorandum reminding healthcare workers that accepting gifts from pharmaceutical companies in exchange for promoting their products is unethical.

“Societal pressures, financial gains and administrative exigencies shall not compromise the rights of the patient to quality healthcare service,” the memorandum read.