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Is it halal to make a business agreement with Drug Company?

Fatwaa ID: 1936

Business agreement between a doctor and a reputed drug company is halal or haram?

A doctor is working in a private hospital. He makes a business agreement with one of the best companies in a country that exports drugs to the developed country. According to the agreement, He will write a specific drug for a specific disease that the aforementioned renowned company produces. The price of the drug is similar to the price of other companies and quality is superior or similar to other companies. As an agreement, the doctor will get a monthly salary from that company.

Conditions of the agreement:

Doctor will write the drug in his prescription according to the disease condition/according to the indication.
The salary should not be target-based. It will be a fixed monthly salary & it will not depend on number of prescriptions. This fixed monthly salary arrangement, rather than a target-based system, ensures that the doctor’s decision-making is not influenced by financial incentives. This helps maintain the integrity of the doctor-patient relationship and ensures that the doctor’s primary concern remains the welfare of the patients.
The doctor will have control over the agreement and the pharmaceutical company will not be the first priority, but patients will be the first consideration.
If the price of the drug increases, the doctor will consider alternative drugs for the betterment of the patient following re-evaluation of the agreement. If most of the reputed companies in the country increase the price due to a specific reason, then doctors will choose the drug that best suits the patient. The doctor will consider the acceptable price (most of the companies adopt) and quality. Due to price, quality should not be compromised. A balance of price and quality should be maintained.
Each party has the freedom to come out of the agreement if any deviation of conditions observe. This ensures that the doctor can maintain their autonomy and make decisions in the best interest of the patients.
The hospital has no rule to declare any conflict of interest regarding such an issue. The constitution of the hospital did not mention directly or indirectly that such an issue should be declared. Even, the job contract did not demand directly or indirectly that the employee must declare such a relationship. Moreover, the hospital allowed to maintain multiple affiliation without hampering the job. So, the doctors have no obligation regarding the declaration of such relationship.
The doctor will not be responsible for any obligation (rules/regulation) applicable to the pharmaceutical company
If the pharmaceutical company agrees with the above conditions, is it permissible to make such a business agreement with the company without harming the patients and earning money? Is it halal?

In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.

Dear brother,
May Allaah Ta’aala bless you. You have asked similar questions previously. Kindly refer to them. The ruling remains as stated in the other fatwaas.

And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York

05/06/1445 AH – 11/20/2023 CE | 695

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين


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