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Quote of the week

  • 12.02.2009
Economist Thomas Sowell on the purported savings of health care reform:
 
“Here is a math problem for you: Assume that the legislation establishing government control of medical care is passed and that it 'brings down the cost of medical care.' You pay $500 a year less for your medical care, but the new costs put on employers is passed on to consumers, so that you pay $300 a year more for groceries and $200 a year more for gasoline, while the new mandates put on insurance companies raise your premiums by $300 a year, how much money have you saved?”

Temple Fugit

  • 12.02.2009
CDER now has two deputy directors.  And two heads are better than one – especially when they belong to Doug Throckmorton and Bob Temple.

Bob Temple has been named deputy director for clinical science with primary responsibility for high-level initiatives and programs related to clinical science and clinical trial methodology issues. He retains his position as acting director for the office of drug evaluation I.

Current CDER deputy director Dr Douglas Throckmorton becomes deputy director for regulatory programs and will continue as the primary representative on high-level initiatives and programs related to the regulation of drugs that are controlled substances and CDER  programs on bioterrorism, emergency response and coordination.

Dr Rachel Behrman has been named acting associate center director for medical policy and acting director of the office of medical policy. She will lead medical policy programs and strategic initiatives involving drug promotion and advertising, clinical trial design, human subject protection and good clinical practices.

A good use of great talent.

Consider the enterprise of pharmaceuticals.  Is it business?  Is it health?  Is it the business of health?

European Commission president José Manuel Barroso has decided to transfer responsibility for EU pharmaceutical policy to the commission's health directorate. The responsibilities of the new commissioner for health and consumer policy, John Dalli, will now include pharmaceuticals and the European Medicines Agency, which were previously overseen by the enterprise and industry directorate under former enterprise commissioner Günter Verheugen.

Verheugen was known as a strong supporter of the pharmaceutical industry. Among his projects was the "pharmaceutical package" of draft legislation, in particular the plan to allow pharmaceutical firms to give patients information on their prescription medicines.

According to an article in SCRIP World Pharmaceutical News, “Industry is clearly disappointed.”

EFPIA (the European Federation of Pharmaceutical Industries and Associations) put a somewhat better face on it, saying that it hoped the new commissioner would help to maintain the existing policy balance between the pharmaceutical industry's dual roles of meeting the health needs of Europe's patients and its "significant contribution to Europe's economic well-being.”

The industry has previously said it prefers the current arrangements because it is not simply a producer of medicines but a dynamic sector of the European innovation economy.

Which takes precedence?  The importance the industry has to the greater EU economy (considerable) or the importance to the health of Europeans (crucial).

If we want healthcare policy (reimbursement and otherwise) to focus on patient care first and cost issues second – which answer does that point to?

Indeed.

Not making this up...

http://www.iqwig.de/index.970.en.html?random=86ae7c

IQWiG presents a method for evaluating the relation between cost and benefit

Method guarantees medically necessary services to all patients and can slow down costs
 

After nearly two years of development and extensive discussion in the scientific community, the Institute for Quality and Efficiency in Health Care (IQWiG) presents its methods for evaluating the relation between cost and benefit. The Institute can now apply these methods when working on certain commissions awarded by the Federal Joint Committee (G-BA). The method developed by IQWiG is suitable for passing on recommendations to the GKV-Spitzenverband [National Association of Health Insurance Funds] for establishing maximum reimbursable prices. Moreover, in line with legislation, it ensures that medically necessary interventions will not be withheld from patients for financial reasons.

As the Institute's director, Peter Sawicki, explains, "The 'analysis of the efficiency frontier' is the most suitable method for the German system. During the various submission of comments procedures, no participants came up with a better alternative proposal. Contrary to what some critics maintain, we are not following a different course to other countries. While our procedure is quite different to that in the UK, there are a lot of similarities with Australia."

The Innovative Medicines Initiative (IMI) has officially launched its “second call” for proposals. The public-private partnership between the European Commission (EC) and the European Federation of Pharmaceutical Industries and Associations (EFPIA) is inviting research consortia to submit proposals for nine scientific topics.

Similar to the FDA’s Critical Path program, the aim of the IMI is to speed up the discovery and development of new medicines for diseases such as cancer and inflammatory and infectious diseases. IMI will also fund projects to improve data exchange between industry and the scientific community, an important aspect of knowledge management.

Out of the nine second call topics, three are related to improving knowledge management which is key to future progress in the development of efficient medicines. They notably aim to improve data standards for the industry, academia and regulatory authorities to better evaluate efficacy and safety of new medicines. They also seek to allow easier
sharing of information that will accelerate drug development.

The six other topics aim at working on the efficacy of drugs against cancer, inflammatory and infectious diseases. For example, one topic focuses on understanding the composition of cancer tumors and their response to treatment. Another aims to speed up the development of better, cheaper and quicker diagnostics for infectious diseases.

The European Commission's contribution to this second call will be €76.8 million is expected to be at least matched by in-kind contributions from the member companies of EFPIA.

The FDA’s Critical Path program was given only $6 million by Congress.  Is the future of drug development really more than 10X more important in Europe?
Good article in the FT by the away-meticulous Andrew Jack.  His focus is on the impending patent expiry of Lipitor.  But read between the lines. It’s really about how Big Pharma is going to survive and thrive in the post-blockbuster era.

Jack writes:

Jeffrey Kindler, CEO of Pfizer, the maker of Lipitor: “When such a thing goes off-patent, obviously it’s a very significant event ... Our job is to prepare the company for that”

But the monopoly rights that made Lipitor so lucrative are now set to disappear. Once its patents expire in 2011, generic drug manufacturers will be able to sell it far more cheaply. That is good for patients, but bad for Pfizer as it struggles to maintain its pre-eminent industry ranking. It is also a sobering moment for the entire pharmaceutical industry: many believe that the circumstances that gave rise to Lipitor’s extraordinary success may never occur again.

The complete FT article can be found here:

http://www.ft.com/cms/s/2/d0f7af5c-d7e6-11de-b578-00144feabdc0.html

Media Stenographers

  • 11.27.2009
From today's edition of the Wall Street Journal:

Big Pharma Sells Out

However the Senate's health-care debate pans out, we'll wager this prediction: The pharmaceutical executives who have endorsed this exercise will eventually be exposed as among the most shortsighted CEOs in the history of capitalism.

In June, the Pharmaceutical Research and Manufacturers of America sealed a deal with the White House and Senate Finance Chairman Max Baucus promising to contribute $80 billion in lower drug costs over the next decade to ObamaCare, plus a multimillion-dollar TV ad campaign. In return they were to be spared from price controls and the reimportation of cheaper foreign drugs.

The loophole is that the deal didn't include the House, and now it may fall apart in the Senate. But even if it does somehow survive, by now it is obvious that the industry's political protection will last only as long as it takes to pass a bill, whereupon the same politicians who are trying to override this deal will get back to work.

"You've heard that as a consequence of our efforts at reform, the pharmaceutical industry has already said they're willing to put $80 billion on the table," President Obama said in July. "We might be able to get $100 billion out or more."

Led by Henry Waxman, the House saw that and raised: The bill that passed earlier this month extracts as much as $150 billion from the industry, including demands for a 23.1% "discount" when Medicare buys prescription drugs for some seniors (much like Medicaid imposes now) and gives the government the power to "negotiate" lower prices for everyone.

The pharma lobby was unfazed. "Despite the shortcomings in the House legislation, we remain completely committed to helping the President and Congress pass comprehensive health care reform this year," a senior vice president said in a statement. "This is a three-act play and a good critic doesn't write a review after the opening scenes."

But now the curtain is coming down. The Senate bill is only going to grow more expensive on the floor. Given that Harry Reid is even relying on a 5% "botax" on cosmetic surgery, the drug makers will become ever more appealing targets as the search for revenue to make ObamaCare appear to be deficit neutral grows more desperate.

Meanwhile, the AARP and its media stenographers are levelling allegations that drug makers are already jacking up prices for brand-name prescriptions. John McCain and Olympia Snowe are cosponsoring a bill with Byron Dorgan that would allow pharmacies and wholesalers to import medications from Canada and Europe.

So how has the industry responded? More or less as Lenin predicted. Big Pharma is now running ads against Joe Lieberman, saying his threat to torpedo the Senate bill could cause drug prices to rise by 20%. It is also funding a campaign that targets the fence-sitters Ben Nelson, Mary Landrieu and Blanche Lincoln.

In other words, the industry is trashing the very Senators who stand the best chance to rescue it from government control. Instead, the drug CEOs are making themselves complicit with the Washington mentality of seeing only the costs of medications, not benefits like longer lives or fewer hospitalizations. They are ensuring that they will always be a political target and making the extortion easier in the bargain.

The shame is that there be will fewer resources for the research and development that drives innovation, particularly for the smaller biotech companies that are the future of cutting-edge medicine. When it takes about a decade and a billion dollars to bring a new drug to market, a CEO of a smaller drug company told us recently, most firms are "living on the edge of extinction."

But it is the biggest players who are engaged in political gamesmanship. At a speech in February at the Economic Club of Chicago, Pfizer CEO Jeffrey Kindler laid out what he called his company's "new approach to legislation and public policy." Rehearsing the health industry's role in stopping HillaryCare in 1994, he announced that the difference this time is that pharma will be "actively supporting appropriate reforms, rather than simply trying to stop things we don't agree with."

Mr. Kindler, a lawyer and former McDonald's executive, went on to endorse even such political inspirations as comparative effectiveness research, which while fine in theory will inevitably be used to "prove" that more expensive medications aren't worth the costs to government when ObamaCare's spending detonates. In England, these kinds of studies were used to try to ban Pfizer's Stutent, a treatment for kidney cancer. The Senate bill contains a Medicare commission with a mandate to go after drugs, though only about 10 cents of every U.S. health dollar goes toward prescriptions.

The irony is that if business began to educate the public about what the current bills will mean for U.S. health care, it might be able to defeat them and force a more modest, sensible reform. National Journal's composite of all health polling finds that 50.9% of the public now opposes health reform in general, up from about 15% in February. Only 43.9% are in favor. The most recent polls put support even lower: Just 35% from Quinnipiac, 38% from Rasmussen.

A Washington Post-ABC poll found that 52% of the public believes ObamaCare will increase their personal health costs and that 37% expect their quality of care will deteriorate. They're right. A survey of registered voters by Public Opinion Strategies found that the more people hear about the plan, the less they like it, and that voter hostility is higher now than it ever was for HillaryCare.

Yet now this son of HillaryCare is headed toward passage, and when shareholders start griping about lousy returns, Mr. Kindler and his fellow executives will be long gone. It's one more reminder that when it comes to protecting economic freedom, you can never trust big business. The biggest losers will be patients, who lack the millions to lobby Congress and in the future will have fewer innovative medicines.

A new Nature editorial.  Pay heed or pay later.

Getting what you pay for
 
US, 26 Nov 2009 - The US Food and Drug Administration (FDA) is in capable new hands. Its commissioner, Margaret Hamburg, a Harvard-trained physician six months into her tenure, brings to the job both a broad experience in science, public health and biosecurity (see page 406) and an ability to handle multiple, simultaneous demands — a skill she displayed as New York City's youngest health commissioner.

For all her abilities, however, Hamburg is struggling to steer an underpowered ship that is loaded to the gunwales. The 103-year-old agency, based in Silver Spring, Maryland, has never before had so many demands placed on it, nor has its budget ever been so constrained relative to its duties. Between 2001 and 2007, for example, the number of US food-manufacturing plants under the FDA's jurisdiction increased from about 51,000 to more than 65,000, yet the number of staff in its foods programme fell from 3,167 to 2,757. At current inspection rates, any given domestic food company faces a less than one-in-four chance of being inspected once in seven years. And that looks frequent compared with the agency's estimated average inspection rate for foreign manufacturers of medium-risk medical devices: once every 27 years.

It is true that the FDA's funding has been boosted since 1993 by user fees paid by drug- and device-makers. In 2009, such fees amounted to nearly 23% of the agency's $2.7-billion budget. But this influx has, paradoxically, taken the pressure off Congress to fund the many mandates it continues to heap on the agency. For instance, the FDA is expected to monitor the accuracy of direct-to-consumer advertisements by drug companies, and the promotional materials they send to physicians. But in 2008, Congress gave enough money to fund only 55 staff for this job. With some 71,000 industry submissions in 2008, those employees can cope with only a small fraction. Similarly, because drug and device fees are dedicated largely to funding reviews for market approval, other functions at the agency, most notably food safety, have received short shrift.

Calls for more cash inevitably raise red flags in this era of ballooning deficits, but the imbalance between the FDA's means and its responsibilities makes the need inescapable. A bipartisan group including six former FDA commissioners and three former heads of the agency's parent department, the Department of Health and Human Services, has publicly urged Congress to boost the agency's appropriations. So have almost all FDA-regulated industries, including the Grocery Manufacturers Association, the Medical Device Manufacturers Association and most major drug companies, as well as dozens of patient groups.

How much extra money is enough? The FDA's science board was asked the same question by Congress in late 2007 after the board issued a scathing report on the agency's eroding scientific capabilities (see Nature 450, 1143; 2007). To set things right, the board concluded last year, Congress would need to add $450 million to the agency's budget in 2010, and $460 million each year between 2011 and 2013.

The administration of President Barack Obama has asked Congress for a further $295 million for the agency in 2010, which would bring its congressional appropriations to $2.3 billion — less than what is needed, according to the science board's estimates, but "a good start", as Hamburg told Nature earlier this month. Congress should provide at least that much, and make plans to boost that figure in subsequent years.

Historically, it has taken crises to goad legislators into giving the FDA the money and muscle it needs — a notable example being the poisonous cough syrup that killed more than 100 people in 1937, and led to the 1938 enactment of the Federal Food, Drug, and Cosmetic Act, which still forms the basis of the FDA's authority. Congress shouldn't wait for the next crisis.

According to a technical amendment to FDA’s final rule for internal analgesics, acetaminophen products sold in stick packs and sachets must carry warnings about the risk of liver injury by April 29, 2010,.

Warnings on immediate containers such as sachets and stick packs are important because "consumers may routinely remove these packages from the outer carton and, therefore, fail to see the liver injury and stomach bleeding warning if they are only printed on the carton," FDA says in the technical amendment.

By requiring the stick pack/sachet warning, FDA refuses a request from manufacturers.

FDA acknowledged requests that the agency should exempt certain immediate containers from the labeling requirement because of limited space, but disagrees, saying stick packs and sachets have "adequate space to accommodate the required warnings."

Finally, FDA clarifies products with acetaminophen introduced within a year before the final rule's effective date - April 29, 2010 - must include a "see new warnings" flag for at least one year from the launch date.

Products launched after the effective date do not need the new warnings flag.

FDA maintains the rule will not have a "significant economic impact on a substantial number" of businesses.

According to the Tan Sheet, “Acetaminophen marketers could face more burdensome restrictions down the road, including removing certain doses from the market, if FDA follows the advice of an advisory panel convened in April to discuss ways to reduce the risk of hepatotoxicity related to the ingredient.”

Tough luck, says a front-page commentary in BioCentury.  Tough luck getting cutting-edge treatment if you don’t have “the power.”

BioCentury writes:

“In healthcare as in all else, the ability to make important decisions — especially about other people — is at its heart all about power: who has it, how those who have it use it to shape their vision of society, and the effect of those actions on individuals.”

Case-in-point – what happens when the whole becomes more important than the parts therein?

“Two clinical practice recommendations last week — one in the U.K. and one in the U.S. — illustrate the worst of what centralized healthcare can be. Both are based on a vision of society — explicit in the U.K. but still implicit in the U.S. healthcare debate — in which the whole trumps the individual. And both would condemn thousands of patients to death on the grounds that saving their lives is not worth the cost to society as a whole.”

It’s what happens when cost trumps care.

“This kind of gap between benefit to the individual and cost to society will only get worse as more power is centralized in the hands of one or a few payers, and as taxpayer subsidies enable patients to contribute even less to the direct cost of their own care.”

Except, that is, if you’ve got “the power,” a voice, clout.

On Thursday, Senator Barbara Mikulski announced she would introduce an amendment to the Senate healthcare reform bill that “would guarantee women access to mammograms beginning at age 40, and prevent insurance companies from making them unaffordable.”

So much for unbiased, non-political, science-based decisions. It’s about power not about patients.

“Fighting for such patchwork fixes is already the norm in the U.K. and likely to become so in the U.S.: government reviewers will recommend for or against medical interventions based on the cost-benefit to society as a whole, patients and doctors will object, and if their political clout is sufficient, a fix will be made.”

And, the BioCentury commentary concludes:

“Avoiding this quagmire can only be done by going back to the original question — who has power and how is it used — and shifting the answer from government-backed bodies to the patient.”

The complete BioCentury commentary can be found
here.

“Ultimately, the only power to which man should aspire is that which he exercises over himself.”

-- Elie Wiesel

CMPI

Center for Medicine in the Public Interest is a nonprofit, non-partisan organization promoting innovative solutions that advance medical progress, reduce health disparities, extend life and make health care more affordable, preventive and patient-centered. CMPI also provides the public, policymakers and the media a reliable source of independent scientific analysis on issues ranging from personalized medicine, food and drug safety, health care reform and comparative effectiveness.

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