Professional Documents
Culture Documents
Distribution
Source: FDA
Increased government concern about drug diversion (e.g., Oxycontin) Heavy fines and criminal penalties for PDMA violations
Source: IMS Health; FDA
10 years in prison or a $250,000 fine $50,000 for each sales rep. violation (2 strikes maximum and permanent barring from industry)
Third violation is a $1 million fine to be paid by the company over 10 years
$100,00 fine for failing to report a violation Whistle-blowers get the penalty imposed by FDA
On December 4, 2000, FDA announced plans to hire more than 100 investigators to focus on PDMA violations and the diversion of prescription products In January 2002, President Bush asked for an 8 percent increase in FDA's 2003 budget for inspectionrelated activities FDA.gov announced that this will add 600 new investigators just to focus on PDMA violations and will conduct 520 additional inspections per year on PDMA-related compliance
1998 290 convictions; $29 million in fines 1999 375 convictions; $56 million in fines 2000 580 convictions; $96 million in fines 2001 - $290 million in fines collected through the action of whistle-blowers
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CURRENT
Office address Medical designation Name Specialty Date Product description Configuration (tablets, etc.) Manufacturer Signature
PROPOSED
State license number DEA identifier Name of distributor Bar code
Scanning
Must satisfy all security requirements and electronic signature requirements under 21 CFR Part 11 Required including knowing which lot numbers have been distributed to a specific practitioner
Lot Numbers
Not required
Source: FDA
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CURRENT
Annual count required Reconciliation is not required
PROPOSED
Must be conducted independent of person in direct supervision or chain of command of the representative. Must provide last inventory, current inventory, distributions to reps, all distributions, transfers, returns, adjustments since last inventory All investigations while in progress that involve suspected diversion or falsification must be reported to FDA in 5 days Regardless of whether electronic, paper or both, must be linked and retrievable in 2 working days
FDA Reporting
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7. 8. 9. 10. 11. 12.
Sample Accountability
TRACKING AND REPORTING CHANNELS
ACCOUNTABILITY SILOS
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PDAs
Bar Coding
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Physician Detailing
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Interactions should not take place on a golf course, at an expensive restaurant, or at other venues that PhRMA described as unsuitable for the exchange of scientific information Only certain types of gifts are permitted (stethoscopes, anatomical models) if under $100 Golf balls, sporting event tickets, show tickets are not permitted Gifts of minimal value, such as pens and notepads, are allowed under the code as long as the items are intended for use at the health care provider's practice site
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Off-Label Use
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21 CFR 201.56(c): no implied claims or suggestions of drug use may be made if there is inadequate evidence of safety or a lack of substantial evidence of effectiveness.
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J&J product FDA approved for relief of Heartburn in Adults Pediatric Studies failed to show benefits of drug
1998 prescription level at 500,000
$ 1 Billion Annual Sales by Johnson & Johnson Government and J&J negotiations for 5 years
Government report of 80 deaths and 341 injuries Propulsid pulled from market in 2000 J&J Legal settlement of $ 90 million (300 deaths 16,000 injuries)
Neurontin was promoted as effective for use as the sole drug for epileptic seizures, even after solo use had been specifically rejected by the FDA Warner-Lambert also used "medical liaisons," who represented themselves (often falsely) as scientific experts in a particular disease, to promote off-label uses for Neurontin Pfizer agreed to pay a fine of $430 million to FDA in July 2004
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Enforcement Powers:
Injunction Seizure Consent decree Fines Criminal prosecution
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Off-Label Use: Best Practices Develop policies requiring compliance with FDA rules
Materials must be consistent with approved product labeling May not engage in off-label promotion Responses to unsolicited requests for information
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Inexperienced and improperly trained chemists recruited from Asia and employed on work visas The scientists misrepresented the strength and shelf life of products because they were motivated to stay in the United States
New management of QA discovered the fraud when tests of inventory found low to non-existent levels of active compounds
Blew the whistle on the company
Able filed for Chapter 11 in July 2005 and FDA refused to let it reopen in August 2005
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General issues:
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