Monday, February 13, 2012

News and Events - 07 Feb 2012




07.02.2012 4:18:00



Perspective

The Shortage of Essential Chemotherapy Drugs in the United States

Mandy L. Gatesman, Pharm.D., and Thomas J. Smith, M.D.

N Engl J Med 2011; 365:1653-1655

November 3, 2011


Comments open through November 9, 2011

Article
References
Citing Articles
(1)

Comments (14)

For the first time in the United States, some essential chemotherapy drugs are in short supply. Most are generic drugs that have been used for years in childhood leukemia and curable cancers — vincristine, methotrexate, leucovorin, cytarabine, doxorubicin, bleomycin, and paclitaxel. 1 The shortages have caused serious concerns about safety, cost, and availability of lifesaving treatments. In a survey from the Institute for Safe Medication Practices, 25% of clinicians indicated that an error had occurred at their site because of drug shortages. Many of these errors were attributed to inexperience with alternative products — for instance, incorrect administration of levoleucovorin (Fusilev) when used as a substitute for leucovorin or use of a 1000-mg vial of cytarabine instead of the usual 500-mg one, resulting in an overdose. Most cancer centers quadruple-check drugs for accuracy, and we're unaware of any documented death of a patient with cancer such as the nine deaths in Alabama attributable to the use of locally compounded liquid nutrition because the sterile product was not available. However, it is only a matter of time.

These shortages have increased the already escalating costs of cancer care. Brand-name substitutes for generic drugs can add substantial cost. For instance, Abraxane, a protein-bound version of paclitaxel, costs 19 times as much as equally effective generic paclitaxel (see table

Average Wholesale Prices (AWPs) of Selected Oncology Drugs in Short Supply and Their Potential Alternatives. ). Since 2010, health care labor costs in the United States have increased by about $216 million because of the increased time and work required to manage drug shortages. 2 A gray market for essential drugs — an unofficial alternative market of drugs obtained by vendors outside the usual distribution networks — has grown rapidly, with unregulated vendors charging markups of up to 3000% for cancer drugs.

The main cause of drug shortages is economic. If manufacturers don't make enough profit, they won't make generic drugs. There have been some manufacturing problems, but manufacturers are not required to report any reasons or timetable for discontinuing a product. Contamination and shortages of raw materials probably account for less than 10% of the shortages. In addition, if a brand-name drug with a higher profit margin is available, a manufacturer may stop producing its generic. For instance, leucovorin has been available from several manufacturers since 1952. In 2008, levoleucovorin, the active l-isomer of leucovorin, was approved by the Food and Drug Administration. It was reportedly no more effective than leucovorin and 58 times as expensive, but its use grew rapidly. Eight months later, a widespread shortage of leucovorin was reported.

The second economic cause of shortages is that oncologists have less incentive to administer generics than brand-name drugs. Unlike other drugs, chemotherapeutics are bought and sold in the doctor's office — a practice that originated 40 years ago, when only oncologists would handle such toxic substances and the drugs were relatively cheap. A business model evolved in which oncologists bought low and sold high to support their practice and maximize financial margins. Oncologists buy drugs from wholesalers, mark them up, and sell them to patients (or insurers) in the office. Since medical oncology is a cognitive specialty lacking associated procedures, without drug sales, oncologists' salaries would be lower than geriatricians'. In recent decades, oncology-drug prices have skyrocketed, and today more than half the revenue of an oncology office may come from chemotherapy sales, which boost oncologists' salaries and support expanding hospital cancer centers.

Before 2003, Medicare reimbursed 95% of the average wholesale price — an unregulated price set by manufacturers — whereas oncologists paid 66 to 88% of that price and thus received $1.6 billion annually in overpayments. 3 To blunt unsustainable cost increases, the Medicare Modernization Act mandated that the Centers for Medicare and Medicaid Services (CMS) set reimbursement at the average sales price plus a 6% markup to cover practice costs. This policy has reduced not only drug payments but also demand for generics. In some cases, the reimbursement is less than the cost of administration. For instance, the price of a vial of carboplatin has fallen from $125 to $3.50, making the 6% payment trivial. So some oncologists switched to higher-margin brand-name drugs. 4 Why use paclitaxel (and receive 6% of $312) when you can use Abraxane (for 6% of $5,824)?

Now practices are struggling to treat their patients because of the unavailability of drugs. Short-term solutions include gray-market purchases, which more than half of surveyed hospitals say they've made, but that option introduces safety and quality-control issues. Pharmacists are intensively managing inventories and alerting prescribers to developing shortages and potential alternatives. Some centers now have a red–yellow–green system for quickly recognizing developing shortages and determining which patients get priority (usually those with curable cancers) when supply is limited.

Long-term, non–market-based solutions have been elusive. Proposed legislation would require manufacturers to give 3 to 6 months' notice before discontinuing a drug in order to allow others to pick up production. However, it is likely that gray-market vendors would buy the remaining inventory of such drugs and charge huge markups. Creating a national stockpile is impractical: Do we stockpile the drugs and then waste whatever is not used or stockpile the ingredients and make new batches as needed? A national health care plan with a single formulary and a central pharmacy stockpile is possible for Medicare or Veterans Affairs but unrealistic given oncologists' dependence on drug income and difficulties with timely, safe distribution.

Market solutions take one of two approaches: let the market work and accept short-term uncertainties or regulate the market more tightly. For instance, the CMS could reimburse at the average sales price plus 30%, but that wouldn't help if the drug price has fallen from $125 to $3.50 per vial. The government could set a floor for average sales prices to encourage the production of generic drugs, but that would increase the total cost of cancer drugs unless brand-name prices were reduced. Europe has fewer shortages for that reason: prices are set higher for generics so that companies will make them, but prices of brand-name drugs are often much lower than U.S. prices.

More far-reaching reforms of oncology practices and reimbursement are necessary if there is no national intervention or federal market regulation. One solution is adopting clinical pathways for which practices are paid disease-management fees that are not based on chemotherapy sales. For instance, one large oncology group has developed care pathways specifying preferred drug combinations and sequences — for example, allowing only a few first-line, mostly generic regimens for patients with non–small-cell lung cancer, as compared with the 16 possible drugs and many more combinations included in National Comprehensive Cancer Network pathways. This approach has been shown to result in equal or better survival, less use of chemotherapy near the end of life, and 35% lower costs than usual care. 5 Another solution is to pay physicians salaries, as Kaiser Permanente, Veterans Affairs, and most academic centers do, but that would reduce oncologists' earnings at a time when a 40% workforce shortage is predicted, so the effect must be monitored.

To ensure a predictable supply of generic cancer drugs, manufacturers need reasonable markets and profits, and oncologists need incentives to use generics. Standardized clinical pathways with drug choices based only on effectiveness will enable the prediction of drug needs, practices for effective management of inventory, and planning by manufacturers for adequate production. Such pathways, disease-management fees, and physician salaries would dramatically change oncologic practice, but since drug costs will increase by 4 to 6% this year alone, they are necessary. The current system not only is unsustainable but also puts oncologists in potential ethical conflict with patients, since it hides revenue information that might influence drug choices and thus affects costs and patients' copayments.

The only good news is that the drug shortages may catalyze a shift from a mostly market-based system to one that rewards the provision of high-quality cancer care at an affordable cost.

Disclosure forms provided by the authors are available with the full text of this article at NEJM.org.

This article (10.1056/NEJMp1109772) was published on October 31, 2011, and updated on November 2, 2011, at NEJM.org.

Source Information

From the Virginia Commonwealth University Health System, Richmond (M.L.G.); and the Sidney Kimmel Comprehensive Cancer Center, Johns Hopkins Medicine, Baltimore (T.J.S.).

References


  • 1

    Food and Drug Administration. Current drug shortages (
    http://www.fda.gov/drugs/drugsafety/drugshortages/ucm050792.htm).


  • 2

    Kaakeh R, Sweet BV, Reilly C, et al. Impact of drug shortages on U.S. health systems.
    Am J Health Syst Pharm
    2011;68:1811-1819

    CrossRef |
    Medline


  • 3

    Twombly R. Medicare cost containment strategy targets several oncology drugs.
    J Natl Cancer Inst
    2004;96:1268-1270

    CrossRef |
    Web of Science |
    Medline


  • 4

    Jacobson M, Earle CC, Price M, Newhouse JP. How Medicare's payment cuts for cancer chemotherapy drugs changed patterns of treatment.
    Health Aff (Millwood)
    2010;29:1391-1399

    CrossRef |
    Web of Science |
    Medline


  • 5

    Neubauer MA, Hoverman JR, Kolodziej M, et al. Cost effectiveness of evidence-based treatment guidelines for the treatment of non-small-cell lung cancer in the community setting.
    J Oncol Pract
    2010;6:12-18

    CrossRef

  • Citing Articles


    1. 1

      Marc Cohen, Walter P. Jeske, Jose C. Nicolau, Gilles Montalescot, Jawed Fareed. (2012) US Food and Drug Administration approval of generic versions of complex biologics: implications for the practicing physician using low molecular weight heparins.
      Journal of Thrombosis and Thrombolysis


      CrossRef

    14 Reader's Comments

    Page

    • 1

    Data by Profession and Location
    DEAN TSARWHAS, MD | Physician | Disclosure: None
    LIBERTYVILLE IL
    November 08, 2011

    Integrity among Medical Oncologists

    I am writing to defend the thousands of medical oncologists in community and academic practices who do not prescribe particular chemotherapy regimens based on maximizing financial profits but based on approved treatment guidelines, pathways, and what is best for the patient. The article is truly a "slap in the face" for the hard working oncologists who provide countless hours of unreimbused time caring for some of the sickest patients in medicine. The article fails to mention that the "drug margin" primarily goes to cover the numerous under-reimbursed expenses involved with providing cancer care in the community setting. Since the advent of the MMA, the ASP+6% reimbursement is often under our acquisition cost, making it impossible to treat the patient in the cost-effective office setting, and as a result, the patients are treated at the hospital where it is costlier and often more inconvenient. Finally, many medical students and medical residents choose a career not only based upon their passion, but also upon financial considerations. To suggest that oncologists should be salaried as at the VA would exacerbate a workforce shortage that already exists.

    DANIEL LANGER, MD | Physician | Disclosure: None
    WINDSOR CO
    November 03, 2011

    Price fixing.

    Economics 101. Price fixing = drug shortages.

    Han Zhong | Other | Disclosure: None
    Madison WI
    November 03, 2011

    ASP not AWP

    Why does the table list the AWPs of comparable drugs when physicians are reimbursed at ASP+6%? Actual Medicare Part B drug reimbursement at ASP+6% is often significantly lower than AWP.

    Just look at the CMS Medicare Part B drug pricing file https://www.cms.gov/mcrpartbdrugavgsalesprice/

    Just looking at Paclitaxel vs. Abraxane, Abraxane is more expensive at ASP+6%, but it is also significantly more effective. Is it worth the difference in price? Ask a cancer patient if they want a less efficacious drug to treat their life-threatening condition.

    THOMAS WAGNER | Other | Disclosure: None
    SNELLVILLE GA
    November 03, 2011

    The faliure of economic homeopathy

    Why is the answer to a market failure caused by inane regulatory action always more inane regulatory action, instead of removing the regulatory thumb from the market's windpipe? This is reminiscent of homeopathic theory, where the cure for a disease is a drug that reproduces the symptoms of the disease, without homeopathy's saving grace of dilution to extinction.

    ROGER WILGUS | Other | Disclosure: None

    November 02, 2011

    What an Astounding Situation

    I worked in the health care field for more than three decades and was unaware of the absurd situation described, wherein oncologists sell drugs to their patients at cost plus a percentage. This situation simply begs for abuse, which is clearly occurring. Only our governmet bureaucracy could countenance such a situation, after having permitted it to begin.

    Whether oncologists need this windfall to obtain fair compensation for their services is beside the point. There are other ways to provide them such remuneratiion -- ways in which patients and the taxpayers aren't negatively affected. This deplorable situation should be halted at once.

    GEORGE CALDWELL, MD | Physician | Disclosure: None
    SINGAPORE Singapore
    November 02, 2011

    Benzbromarone shortage

    For the treatment of Acute Gout the combination of Colchicine with Benzbromarone ("Narcaricin") is excellent.

    No longer is Benzbromarone available unless someone knows of a new manufacturer.

    Don't try and teach me.

    Allopurinol is for defectives who will not observe careful diet.

    Do they yet know that an excess of Fructose will cause a delay in the kidney's ability to excrete Uric Acid? That is, Bananas and Mangos, Dates and figs and nectarines can produce Gout just as Prawns and Squid will.

    Anyone got any "Narcaricin" (Benzbromarone)?

    THOMAS MONAGHAN, MBBS | Resident - Neurology | Disclosure: None
    MEATH Ireland
    November 02, 2011

    A physician should not profit from a prescription

    In our country we have strong laws that prevent any association between a prescriber and the dispenser for obvious and sensible reasons. Therefore I was somewhat horrified when I came to understand this article and that the oncologist profits from the dispensing of the drug.

    Of course bringing this to its logical extension one might question the prescriber of angioplasty also being the person who may materially "profits" from it. This has of course been addressed worldwide with concerns about pay-for-procedure. Perhaps it is not that different from the concerns expressed here.

    Perhaps it is therefore a cultural thing, or that I am a product of a semi-socialised system (full of it's own ills), but I remain deeply concerned about the act of profiting from prescribing a medication. We are beyond the spectrum of a few pens from a drug representative or a trip to a conference here. Maybe those geriatricians should be marking up and selling the donepezil...

    ROBERT HAMILTON | Other | Disclosure: None
    COLCHESTER VT
    November 01, 2011

    Reimbursements

    Instead of reimbursing oncologists at cost plus a percentage, reimburse at cost plus a fixed fee. This removes the incentive to use more expensive drugs to maximize the percentage reimbursements.

    JEFF SOURBEER, MD | Physician | Disclosure: None

    November 01, 2011

    The inevitable result of the attempt to fix prices.

    This is an excellent analysis, except for the statement implying the need to move from a market-based solution. Such shortages and perverse incentives are the natural result of the attempt to control prices by fiat (government regulation). The failure is not that of a market system so much as it is a failure of a mis-regulated market system, with prices fixed by Medicare for both the drugs and the services. The Medicare system fails to appropriately reward oncologists for their cognitive efforts and the real costs of administration of chemotherapy, leaving them reliant upon "ancillary income" from drug sales. This is a fine illustration of the Rule of Unintended Consequences that attends bureaucratic management of a complex system. Medicare compounds the shortages of the drugs by its pricing mechanism, as is so well highlighted in the article. It creates perverse incentives for providers, such as those cited.

    JAMES COWELL, PHD | Other | Disclosure: None
    HOLLY SPRINGS NC
    November 01, 2011

    Abraxane vs paclitaxel use

    The authors strongly imply that many oncologists use Abraxane over paclitaxel for their patients simply for a higher profit for their practice. I suggest that this is not a good example to draw such a conclusion, since it my understanding that there are important advantages for use of Abraxane from the standpoint of reduced adverse reactions compared to the use of paclitaxel.

    PROF RAGHUNADHARAO DIGUMARTI, MD | Physician | Disclosure: None
    HYDERABAD India
    November 01, 2011

    Cancer Drug Shortages

    Cancer Drug Shortages in the US can be easily overcome by importing drugs from high quality, US FDA Certified manufacturers outside the US, especially from countries in the developing world, like India and China

    ROMI SZAWLOWSKI | Other | Disclosure: None
    Canada
    October 31, 2011

    Forecasting demand

    I sense the need to reexamine customer demands and forecasting methods.

    SIMON QUILTY, MD | Resident | Disclosure: None
    CASUARINA NT Australia
    October 31, 2011

    Pharmaceutical security an international issue

    This issue is of international importance, with Australia having many shortages in the last few years, most recently intravenous benzylpenicillin.

    Pharmaceutical supply chain in the global economy requires governments to mandate notification of manufacturing failure, quaIity, or supply compromise and share this information globally. Individual nations need to identify "essential" medicines and specifically legislate for secure manufacture and supply of these exceptional drugs. International efforts need to focus on strategies to diversify manufacturing of such essential medicines.

    JOHN WILLIAMS, MD | Physician | Disclosure: None
    WESTPORT CT
    October 31, 2011

    Drug "shortages" and government intervention

    Only the government could be responsible for such price dislocations.

    The president's executive order will only make things worse.

    The government should not get involved in "medicine"' and other places they don't understand! Only the government could be responsible for such price dislocations.

    Page

    • 1

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    hbottemiller@foodsafetynews.com (Helena Bottemiller)
    07.02.2012 12:59:03
    Just days after the reelection of Taiwan's President Ma Ying-jeou, Washington is stepping up pressure on the administration to back down on its ban on ractopamine, a leanness- and growth-promoting drug used widely in pork and beef production in the United States. Taiwan's zero tolerance policy for the drug, which applies to both domestic production and imports, has become a critical barrier to further liberalizing trade between the two countries.

    The ractopamine dispute is front page news in Taiwan. The country's newly sworn in cabinet will discuss the contentious dispute at its first meeting later this week and President Ma has already publicly discussed the issue, according to local media reports.

    "We have always maintained the same position as U.S. officials -- that Taiwanese have concerns about U.S. beef imports and the use of ractopamine," said Ma, at a recent press conference.

    The opposition party has been especially outspoken against lifting the ban on ractopamine.

    "No meat products, whether beef, lamb, pork or chicken, should be allowed into Taiwan if it contains leanness enhancers," said one lawmaker, according to
    Focus Taiwan

    Taiwan, which is the sixth largest export market for beef and pork, began testing U.S. beef for ractopamine in January 2011 and within days found trace levels of the drug. U.S. food safety officials said the levels found ranged from 2.4 to 4.07 parts per billion (ppb), which falls below both the U.S. Food and Drug Administration standard, of 30 ppb, and the proposed international standard of 10 ppb, but Taiwanese officials pulled the meat from the shelves of grocery stores, including Costco, citing consumer concerns.

    In early June, Taiwan rejected nearly 100 tons of frozen U.S. beef after it tested positive for ractopamine at 1.5 ppb. Ten days later, Burger King Taiwan temporarily suspended sales of products containing bacon after the Taiwan Department of Health found U.S.-imported pork products to contain ractopamine and seized the pork before hitting grocery store shelves. Public health officials said they found 3 ppb in fully cooked bacon products. Burger King declined to comment on the matter.  

    The issue has strained the U.S.-Taiwan trade relationship. Taiwan's policy on ractopamine is often cited as a primary reason the two countries have tabled bilateral Trade and Investment Framework Agreement talks. U.S. officials maintain that Taiwan's policy is not science-based.

    With renewed pressure from Washington to lift the ban, consumers and farmers are threatening protest, according to Focus Taiwan. 

    Ractopamine, a drug made by Elanco, a division of Eli Lilly, was first approved by the FDA for pork production 1999, it has since been approved in 25 other countries. The drug has sparked long-running trade conflicts beyond the U.S.-Taiwan hangup.

    A recent
    msnbc.com report, produced by the Food and Environment Reporting Network, described the deadlock between China, the European Union and the United States at the Codex Alimentarius Commission, which sets global food safety standards.

    "The EU and China, which together produce and consume about 70 percent of the world's pork, have blocked the repeated efforts of U.S. trade officials to get a residue limit European scientists sharply questioned the science backing the drug's safety, and Chinese officials were concerned about higher residues in organ meats, which are consumed in China."

    High level controversy at Codex is rare. Though the commission adopts dozens of standards each year by consensus, Codex has been stalled on a residue standard for ractopamine since 2008. 

    "U.S. trade officials say China wants to limit competition from U.S. companies, and the EU does not want to risk a public outcry by importing meat raised with growth-promoting drugs, which are illegal there," added the report.

    "Setting a Codex standard for ractopamine would strengthen Washington's ability to challenge other countries' meat import bans at the World Trade Organization."
     
    While ractopamine use remains controversial abroad, there is little awareness in the United States, even though there have been issues with the drug.   

    "Although few Americans outside of the livestock industry have ever heard of ractopamine, the feed additive is controversial. Fed to an estimated 60 to 80 percent of pigs in the United States, it has sickened or killed more of them than any other livestock drug on the market, an investigation of Food and Drug Administration records shows."

    The full
    Food and Environment Reporting Network story, which was also been
    picked up by Taiwan media, can be found
    here.

     


    Editors
    07.02.2012 15:25:32
    The European College of Neuropsychopharmacology expresses its deep concern at the recently announced withdrawal by AstraZeneca from neuroscience drug research. AstraZeneca's pull-out is especially disturbing given that it follows a series of similar withdrawals in the last two years by major pharmaceutical companies. There is a growing sense that neuroscience in Europe is now facing a severe crisis.
    http://www.news-medical.net/news/20120207/ECNP-expresses-deep-concern-at-withdrawal-by-AstraZeneca-from-neuroscience-drug-research.aspx#comment

    06.02.2012 3:00:00

    When
    Hiroaki Matsunami, PhD, associate professor at Duke University, set out to study a chemical in male mouse urine called MTMT that attracts female mice, he didn't think he would stumble into a new field of study.

    But the research has led scientists at Duke University Medical Center and the
    University of Albany to the discovery that it's the copper in our bodies that makes mammals recoil from sulfurous chemical smells.

    Working with Eric Block, PhD, the Carla Rizzo Delray Distinguished Professor of Chemistry at the University of Albany, the team looked at reasons why mammals, including people, can detect even trace amounts of sulfur-containing substances, like MTMT.

    "While we were doing our experiments, on even very dilute specimens of MTMT, our neighbors on the lab hallway complained," Matsunami said with a laugh. He is an associate professor in the
    Duke Department of Molecular Genetics and Microbiology and the
    Department of Neurobiology.

    The Duke laboratory ran a high-throughput test of several hundred mammalian odor receptors, and found that one receptor that bound copper ions resulted in superior detection of even trace amounts of sulfur.

    Underarm odors from bacteria, skunk spray, volcanic gases and odorized natural gas (for leak detection) are examples of sulfurous substances.

    The work was published in the
    Proceedings of the National Academy of Sciences online the week of Feb. 6.

    "We learned that copper was the metal that allowed for detection of all the sulfur-containing compounds we tested, and it was Eric Block's idea that metal ions must be involved," Matsunami said. "Further, I see no reason why the mouse receptor activity would be different from human receptors, because we have the same kind of olfactory receptors."

    Block and colleagues created several dozen sulfur-containing compounds for testing.

    The odor impact of the sulfur-containing molecule MTMT can be attenuated by manipulating the copper concentration in the nasal mucus. The team did experiments using a chemical that binds to copper in the mouse nose, so that copper wasn't available to the receptors, and the mice didn't detect the MTMT, Matsunami said.

    "This study establishes for the first time the key role of a metal, namely copper, in the activity of an olfactory receptor," Eric Block said. "What's also exciting is that, because olfactory receptors are transmembrane G protein-coupled receptors (GPCRs) of the same type as receptors for drugs, our discovery suggests a possibility that some drug-receptor responses may also be enhanced in the presence of copper or other metal ions."

    Other authors include Siji Thomas and Shaozhong Zhang, of the University of Albany Department of Chemistry; Timothy Connelly, Qiuyi Chi and Minghong Ma of the Department of Neurobiology, University of Pennsylvania School of Medicine; and Xufang Duan, Zhen Li, Lifang Wu, Guo-Qiang Chen and Hanyi Zhuang, all of the Ruijin Hospital in China. The senior authors on the paper were Dr. Matsunami and Dr. Zhuang, formerly of Duke, who is also with the Institute of Health Sciences, Shanghai Institutes for Biological Sciences of Chinese Academy of Sciences, Shanghai Jiao Tong University School of Medicine, Shanghai.

    This research is supported by National Natural Science Foundation of China Grants, Shanghai Pujiang Program Grant, the Program for Innovative Research Team of Shanghai Municipal Education Commission grant from the Chen Guang Project funded by Shanghai Municipal Education Commission and Shanghai Education Development Foundation, and a grant from the Program for Professor of Special Appointment (Eastern Scholar) at Shanghai Institutions of Higher Learning, from the Leading Academic Discipline Project of Shanghai Municipal Education Commission. The U.S. National Institutes of Health (NIH), National Basic Research Program of China, U.S. National Science Foundation, and NIH/National Institute on Deafness and Other Communication Disorders also funded the work.

    This article is dedicated to the memory of Dr. Lawrence C. Katz of Duke, who worked on related studies and with Eric Block found the first evidence of neurons that respond to social odors.


    07.02.2012 21:13:00

    Kevin Grogan

    Pharma fears it is not up to demands of 'value challenge' - EIU

    Drugmakers realise they need to demonstrate the value of their new treatments to payers, but many are concerned about their ability to do so.

    That is one of the key findings from a new report from the Economist Intelligence Unit, sponsored by Quintiles. The analysis, called 'The Value Challenge', is based on findings of a survey of 399 senior executives from the life sciences industry, and it states that the situation is "further complicated by a shift in the balance of power among industry stakeholders, each of which may require different evidence to be convinced of a product’s value".

    The EIU report argues that the value challenge is "not just a temporary symptom of current economic conditions, but a long-term issue that is a leading concern for a majority of drug companies worldwide". Moreover, although deteriorating financial circumstances are prompting some payers —particularly governments —to focus more closely on reducing pharmaceutical spending, "the demand for proof of value has been evolving for decades".

    However, many stakeholders, especially biopharma companies, "lack confidence in the industry’s ability to respond to the value challenge", the report claims. Only about one-half of survey respondents say that the pharmaceutical sector is adjusting well to increasing demands for proof of value.

    All respondents are harsher about biopharmaceutical companies’ ability to demonstrate value and, among payers and regulators, only 25% are confident about the broader claims of value made by these firms. However, 68% of life sciences respondents saw the growing demand to provide value has had an important impact on their business models; 85% have made at least one change to their model for this reason, 82% to their R&D strategy, and 78% to their commercial plans.

    The EIU survey also notes that biopharmaceutical companies see their market power decreasing, but others still regard them as dominant players. The report quotes Ed Pezalla, national medical director for pharmaceutical policy and strategy at US insurance major Aetna, as saying that “the industry is still making decisions about what drugs come to market and what they can charge. It is just beginning to pay attention to payer sensitivity.”

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    hbottemiller@foodsafetynews.com (Helena Bottemiller)
    06.02.2012 12:59:07
    In the broad range of serious food issues - from dangerous pathogens to chemical residues to bioterrorism - food fraud, or economically-motivated adulteration, often takes a backseat. But should it? Research shows that while adulteration is often motivated by making an extra buck, there are also serious public health risks.

    "Food Fraud is a much broader set of crimes than just counterfeiting or adulteration," says John Spink, the associate director of Michigan State University's Anti-Counterfeiting and Product Protection Program. "The term Economically Motivated Adulteration has been used by [the U.S. Food and Drug Administration], and although there has been a lot of activity using this term in the food industry, it actually involves all FDA regulated products."

    Spink and Douglas Moyer, both faculty at Michigan State University, published a paper in the Journal of Food Science in November specifically aimed at defining the public health risks of food fraud, hoping to provide a base reference for the issue and help shift the current focus on intervention to one of prevention.

    "The food-related public health risks are often more risky than traditional food safety threats because the contaminants are unconventional," write Spink and Moyer. "Current intervention systems are not designed to look for a near infinite number of potential contaminants."

    As it stands now, food fraud crackdowns often focus on the economic impact of cheating the system, not public health, and are reactive, not preventative.

    In late November, European Union's Europol teamed up with Interpol to conduct a week-long, multi-country food fraud operation. Agents seized hundreds of tons of fake and substandard food and drink--including champagne, cheese, olive, oil, and tea--from Bulgaria, Denmark, France, Hungary, Italy, The Netherlands, Romania, Spain, Turkey and the United Kingdom.

    Known as "Operation Opson," the effort, which took six-months to plan, ultimately turned up a lot of fraudulent food.

    The team seized 13,000 bottles of substandard olive oil, 30 tons of fake tomato sauce, around 77,000 kg of counterfeit cheese, more than 12,000 bottles of substandard wine worth 300,000 EUR (or nearly $400,000), five tons of substandard fish and seafood, and nearly 30,000 counterfeit candy bars. Authorities also said the sale of fake or substandard caviar on the internet was under investigation.

    Interestingly, when Interpol-Europol announced the results, they specifically cited public health as a key reason to crack down on fraudulent food practices.

    "Consumers buying these goods, either knowingly or unknowingly, are putting their health at risk as the counterfeit food and drink are not subject to any manufacturing quality controls and are transported or stored without proper regard to hygiene standards," authorities said about the operation.

    Interpol-Europo said Operation Opson, which means "food" in ancient Greek, had three critical goals:

    - Raise awareness of the dangers posed by counterfeit and substandard foods;

    - Establish partnerships with the private sector to provide a cohesive response to this type of crime;

    - Protect consumers by seizing and destroying substandard foods and identifying the criminals behind these networks.

    "One of the main goals of this operation was to protect the public from potentially dangerous fake and substandard food and drinks, which is a threat that most people are not even aware of," said Simone Di Meo, Criminal Intelligence Officer with Interpol's Intellectual Property Rights programme and coordinator for Operation Opson.

    Explicitly linking fraudulent or substandard food to public health risk is something Spink and his team at Michigan State University would like to see happen here in the United States more often.

    "I find it amazing, and refreshing, that Interpol-Europol have focused this Operation Opson on a underappreciated product risk. Most times, consumers and even lawmakers, consider product counterfeiting to be a technical problem with economic losses. While they may understand the risks of pharmaceutical drug counterfeiting, they are often unaware of the food risks," said Spink. "Any and every type of food fraud has a public health vulnerability - we may not have experienced an actual public health incident, but the bad guys are not following good manufacturing practices."

    Photo courtesy of Europol.
     





    07.02.2012 12:00:00
    Research led by Wanguo Liu, PhD, Associate Professor of Genetics at LSU Health Sciences Center New Orleans, has identified a new protein critical to the development and growth of prostate cancer. The findings are published online in the Early Edition of Proceedings of the National Academy of Sciences, available the week of February 6, 2012. Dr...

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