Most of the U.S. Department of Justice’s major pharma-related decisions invoking the False Claims Act recently have involved illegal marketing and sales. So far, GSK’s is the only one to deal with current good manufacturing practices (cGMP’s).  Read on for a roundup of the top 20 recent cases from Taxpayers Against Fraud (TAF).

From 'On Pharma'

The blockbuster model is dying a very slow and painful death and there will be more collateral damage before it's all over. Early morning brought news that Pfizer might buy Wyeth Pharmaceuticals, including its biologics division, for $60 billion. 

Will a short-term financial quick fix steamroll a vibrant company, with all the inevitable layoffs and culture issues that will result?

From 'On Pharma'

I thought the whole "Rost for FDA Chief" that surfaced after John Mack's recent poll was a joke, but then read that Dr. Rost, who emerged as the favorite candidate in that poll,  has received the backing of at least two members of Congress.

From 'On Pharma'

Several names are being bandied about as leading candidates for the position of FDA commissioner in the Obama adminstration. They include Duke University's Robert Califf, Cleveland Clinic's Steven Nissen, Baltimore health commissioner Joshua Sharfstein, and George Washington U. professor Susan Wood.

From 'On Pharma'

 The Department of Justice is reportedly supporting Peter Rost's appeal of the prior qui tam case. 

 To quote from the legal brief, "the allegation of a specific false claim is not an absolute prerequisite to pleading a viable FCA claim....The strength of the inference of fraud on the government may be measured by, for example, factual or statistical evidence tending to show fraud....The U.S. submits that it is not aware of any billable diagnosis code for anti-aging use that would be reimbursable by Federal healthcare programs...."

You can plow through the legalese yourself in the text pasted beneath this post.

Rost says he has decided to take a much more serious approach to his blog, which is now called the Pharma Law Blog.  That's in addition to his Expert Witness blog.  He'd once likened his blog to an online pharma-related Colbert Report.  Not so the new ones...."No more messing around," he writes...

What, no more cheerleader drug rep photos?   Promises to be interesting (and a whole lot more valuable, since the other pharma law blogs deal mainly with  FDA, IP and issues other than sales and marketing).

 AMS

Case 1:03-cv-11084-PBS Document 118 Filed 05/12/2008 Page 1 of 13

UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF MASSACHUSETTS

v.

Plaintiff,

Defendants

PFIZER, INC., et aI.,

Docket No. 03-CV-II084-PBS

The Honorable Patti B. Saris

UNITED STATES OF AMERICA ex reI.

PETER ROST,

 

UNITED STATES' STATEMENT OF INTEREST

IN RESPONSE TO DEFENDANT'S MOTION TO DISMISS

PLAINTIFF'S FIRST AMENDED COMPLAINT

The United States, real party in interest in this action, hereby moves to submit this

Statement ofInterest pursuant to 28 U.S.C. § 517 to respond to certain arguments raised in the

context of defendants' Motion to Dismiss Relator's First Amended Complaint. The United

States remains a real party in interest in this matter, even where it has not intervened in the

action. United States ex reI. Karvelas v. Melrose-Wakefield Hosp., 360 F.3d 220,231 (1st Cir.

2004). The False Claims Act (FCA), 31 U.S.C.

§ 3729 et seq., is the United States' primary tool

used to redress fraud on the government. As such, the statute should be read broadly to reach all

fraudulent attempts to cause the government to payout sums of money. United States v. Neifert-

White, 390 U.S. 228, 233 (1968). Thus, the United States has a keen interest in the development

ofthe law in this area and in the correct application ofthe law in this, and similar, cases.4

4 The brief of amicus Washington Legal Foundation (WLF) offers this Court its views as

to what information manufacturers of medical devices and drugs may lawfully disseminate about

the off-label uses of their products. Defendants, however, do not seek dismissal ofthis case on

the grounds that the off-label marketing alleged in the First Amended Complaint was lawful.

Case 1:03-cv-11084-PBS Document 118 Filed 05/12/2008 Page 2 of 13

The United States submits this brief to make four points. First, the fact that an off-label

use is listed in a statutorily recognized compendium does not necessarily mean that the use is

supported by the compendium citation, so that, in some circumstances, a use that is listed may

not qualify as a "medically accepted indication" that is covered by law. Second, even if an offlabel

use is supported by a citation in a compendium, a claim nevertheless may be false for any

other number of reasons (if sufficiently plead) and thus present an alternative ground for FCA

liability. Third, as to section (a)(2) ofthe FCA, which requires the existence ofa false record or

statement to get a false or fraudulent claim paid or approved, a complaint need not allege that the

defendants themselves made a false statement - the defendants may be liable ifthey caused a

third party to make a false statement to get a false claim paid. In addition, false statements

include not only affirmative misrepresentations but also material omissions so that the existence

of either one may suffice to satisfy the false statement requirement of section (a)(2). Fourth, the

identification of specific false claims is not an absolute prerequisite to satisfying the particularity

requirement of Rule 9(b) in FCA cases. So long as the complaint as a whole is sufficiently

particular to strengthen the inference of fraud beyond possibility, a court may conclude, as this

one has in other cases, that Rule 9(b) is satisfied. Nonetheless, the United States submits that if

WLF's arguments have not been raised or briefed by the parties, are not relevant to the instant

motion to dismiss, and need not be addressed by this Court.

Indeed, WLF's assertion that it "successfully challenged the constitutionality of certain

FDA restrictions on speech about off-label uses and has in place a permanent injunction against

enforcement ofthose restrictions" is incorrect. There is no permanent injunction against the

enforcement ofFDA's guidance as WLF asserts. Washington Legal Foundation v. Henney, 128

F. Supp. 2d 11, 15-16 (D.D.C. 2000) (denying WLF's motion to confirm and enforce injunction,

stating that the Court ofAppeals "vacated all ofthis Court's previous constitutional rulings on

the matter").

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Case 1:03-cv-11084-PBS Document 118 Filed 05/12/2008 Page 3 of 13

the Court finds that relator's complaint fails to meet that test and is subject to dismissal under

Rule 9(b), then it need not reach the other issues addressed herein.

BACKGROUND

In order to participate in the Medicaid program, a State must have a plan for medical

assistance that has been approved by the Centers for Medicare and Medicaid Services (CMS),

which administers the program on behalfofthe Secretary of Health and Human Services. The

state plan must specify, among other things, the specific kinds of medical care and services that

will be covered. 42 U.S.C. § 1396a(a)(1 0) and (17). If the plan is approved by the Secretary, the

State thereafter is eligible for federal financial participation,

i.e., reimbursement by the federal

government for a specified percentage of the amounts that qualify as medical assistance under

the state plan.

Id. at §§ 1396b(a)(I), 1396d(b).

States are accorded a broad measure of flexibility in tailoring the scope and coverage of

their plans to meet the particular needs oftheir residents and their own budgetary and other

circumstances. While the Medicaid Act requires States to provide certain basic services, the Act

permits, but does not require, States to cover prescription drugs, although most States choose to

do so. 42 U.S.C. § 1396d(a)(12).

In 1990, Congress enacted the Medicaid Drug Rebate Statute, codified at 42 U.S.C.

§1396r-8, to "establish a rebate mechanism in order to give Medicaid the benefit ofthe best price

for which a manufacturer sells a prescription drug to any public or private purchaser." H.R. Rep.

No. 881, 101st Cong., 2d Sess. 96 (1990). That statute prohibits federal financial participation

for covered outpatient drugs unless there is a rebate agreement in effect under section 1396r-8.

See 42 U.S.C. §§ 1396b(i)(10)(A) and 1396r-8(a)(I). Once a drug manufacturer has entered into

-3-

Case 1:03-cv-11 084-PBS Document 118 Filed 05/12/2008 Page 4 of 13

a rebate agreement for a covered outpatient drug, a State is generally required to cover that drug

under the state plan. However, there are several provisions ofthe Medicaid Act that permit a

State to exclude or restrict coverage, at least two of which are potentially implicated in this case.

42 U.S.C. § 1396a(a)(54); H.R. Rep. No. 881 at 97,98. A State may restrict from coverage or

exclude altogether certain drugs or classes of drugs, or certain medical uses, such as drugs used

for, among other things, cosmetic purposes. 42 U.S.C. § 1396r-8(d)(l)(B)(ii). A State also may

exclude or restrict coverage of a drug where "the prescribed use is not for a medically accepted

indication." 42 U.S.C. § 1396r-8(d)(l)(B)(i).5

Under the statute, a "covered outpatient drug" includes a drug dispensed by prescription

and approved as safe and effective under the Federal Food, Drug, and Cosmetic Act (FDCA), 21

U.S.C. §§ 355

& 357, but does not include "a drug or biological used for a medical indication

which is not a medically accepted indication." 42 U.S.C. § 1396r-8(k)(2), (3). The statute

defines "medically accepted indication" as:

any use for a covered outpatient drug which is approved under the

[FDCA], or the use of which is supported by one or more citations

included or approved for inclusion in any ofthe compendia described in

subsection (g)(1)(B)(i) of this section.

Id. at § 1396r-8(k)(6). The three compendia described in subsection (g)(I)(B)(i) are the

American Hospital Formulary Service Drug Information, the United States Pharmacopeia-Drug

Information, and the Drugdex Information System. Id. at § 1396r-8(g)(l)(B)(i).

5In addition, under the terms set forth in the Medicaid Act, a State also may adopt a prior

authorization program, maintain a formulary, impose limits on prescription quantities to

discourage waste, and address instances of fraud or abuse by individuals. 42 U.S.C. § 1396r8(

d)(4)-(6). It does not appear that any of these potential restrictions are at issue in this matter.

-4-

Case 1:03-cv-11084-PBS Document 118 Filed 05/12/2008 Page 5 of 13

I. The Term "Supported By" Requires That a Compeudium Citation Corroborate a

Particular Use.

One question raised by the parties here is what is necessary to satisfy the statutory

requirement that a use is "supported by one or more citations" in a compendium. See id. at §

1396r-8(k)(6) (defining "medically accepted indication"). As both relator and defendants

recognize, the mere existence of a compendium citation is not sufficient to meet this standard.

Common usage ofthe term "supported by" generally requires some form of corroboration or

validation. See American Heritage Dictionary of the English Language, 4th ed. (2000) ("to

furnish corroborating evidence for"); Cambridge Dictionary ofAmerican English, 2d ed. (2006)

("to show (something) to be true ... New evidence

supports his theory"); see,~, In re

Pharmaceutical Indus. Average Wholesale Price Litig., 460 F. Supp. 2d 277,284 (D. Mass.

2006) ("Dictionaries ofthe English language are a fundamental tool in ascertaining the plain

meaning of terms used in statutes and regulations."). Interpreting the definition of medically

accepted indication to require only "citation in the compendia" would be problematic because it

would fail to give meaning to the words "supported by," and would render that phrase

superfluous. See United States v. Flores, 968 F.2d 1366, 1371 (Ist Cir. 1992). Furthermore,

CMS, the agency with responsibility to administer the statute at issue, has reiterated that the

statutory definition of medically accepted indication "requires coverage of off-label uses of

FDA-approved drugs for indications that are supported (as opposed to listed) in the compendia."

See CMS Release No. 141 (emphasis added) (Attached to Relator Brief as Ex. 4). Because the

agency's interpretation ofthis statutory provision is reasonable, it is entitled to deference by this

Court. See Federal Express Corp. v. Holowecki. et aI., 128 Sup. Ct. 1147, 1156 (2008).

Moreover, a basic practical consideration is that Drugdex, the compendium relied on by

-5-

Case 1:03-cv-11 084-PBS Document 118 Filed 05/12/2008 Page 6 of 13

defendants here, classifies some indications as "not effective" and describes others as

"controversial." See Def. Brief at Ex. A. Accordingly, whether a particular use is "supported

by" a compendium citation may depend on a variety of factors, including the type of drug and

indication at issue, the compendium's assessment of the drug's efficacy in treating the

indication, the content of the compendium citation, and the scope and outcome ofthe studies as

described in the compendium.

The only other case to have considered this provision, Edmonds v. Levine, 417 F. Supp.

2d 1323, 1339 (S.D. Fla. 2006), is distinguishable because ofthe circumstances in which the

case was presented, and in particular because the decision predated CMS Release 141, which

was released three months after the decision in Edmonds. The Edmonds case arose out of certain

Medicaid beneficiaries challenging the State of Florida's adoption of a policy to make an

independent evaluation of off-label uses for the drug Neurontin that resulted in the State's

denying reimbursement for certain uses ofthe drug that were listed as effective in Drugdex, but

allowing reimbursement for other uses listed as ineffective. The Court need not address the

various issues raised in Edmonds stemming from whether the State's action was permissible.

The relevant point here is that, as both relator and defendants recognize and CMS Release 141

has made clear, the statutory language of"supported by" means something other than merely

"listed in."

-6-

Case 1:03-cv-11084-PBS Document 118 Filed 05/12/2008 Page 7 of 13

As a final issue relating to coverage, it should be noted that the Medicaid statute permits

a State to exclude or restrict reimbursement of an otherwise "covered outpatient drug" in certain

circumstances.6 See 42 U.s.C. § 1396r-8(d); supra at 3 & n. 1.

II. Coverage of an Off-label Indication Does Not Negate All Potential FCA Liability.

A claim may be false for any number of reasons regardless ofwhether it is submitted for

a use supported by a citation in a compendium. For example, a claim may be ineligible for

payment if a physician submitted a claim for reimbursement for which he received a kickback in

exchange for prescribing a particular drug.

See,~, United States v. Rogan, 517 F.3d 449 (7th

Cir. 2008); Parke-Davis, 2003 WL 22048255, at *7. Likewise, a claim may be ineligible for

payment if the prescription were signed by a person without a medical license or for a patient

that did not exist.

See,~, United States ex reI. Riley v. St. Luke's Episcopal Hosp., 355 F.3d

370,378-79 (5th Cir. 2004) (allegation that services were performed by an unlicensed and

unsupervised physician states a claim under FCA). Finally, a claim may be rendered false if a

drug manufacturer falsified studies or engaged in other unlawful, fraudulent conduct in the

promotion of a drug or to procure FDA approval or inclusion in a compendium. See, ~

United States v. Dynamics Research Corp., 2008 WL 886035, *10 (D. Mass. Mar. 31, 2008)

("[W]here a claim for payment is the result of a fraudulent process-bid rigging, self-dealing, etc.

such that the reliability and trustworthiness of a claim is compromised, the claim may be

6 Notably, this case does not present - at least not at this time - the question this Court

left open in Parke-Davis as to whether States have discretion to cover off-label uses that are not

supported by a citation in the compendia. See United States ex reI. Franklin v. Parke-Davis et

aI., 2003 WL 22048255, at *3 (D. Mass. Aug. 22, 2003). The Parke-Davis defendants argued

that States are permitted to cover prescriptions for off-label uses even if those uses are not

supported by a citation in the compendia. In this case, defendants contend that the off-label

indication of"short stature" is supported by compendium citations.

-7-

Case 1:03-cv-11084-PBS Document 118 Filed 05/12/2008 Page 8 of 13

considered false under the PCA despite its facial accuracy."); United States v. Incorporated

Village ofIsland Park, 888 P. Supp. 419,439 (E.D.N.Y. 1995) ("[T]he [PCA] is violated not

only by a person who makes a false statement or a false record to get the government to pay a

claim, but also by one who engages in a fraudulent course of conduct that causes the government

to pay a claim for money."). Thus, the mere fact that a particular use is a "medically accepted

indication" does not eliminate the possibility of fraudulent conduct or abuse that could render the

claim false and ineligible for payment.

III. False Statements Under Section (a)(2) of the FCA.

This Court has held that illegal off-label marketing that results in the submission of

impermissible claims for reimbursement states a claim under the PCA. Parke-Davis, 2003 WL

22048255, at *2. PCA liability exists so long as the defendants knowingly cause a false claim to

be submitted by a provider to the United States. Id. Proof of falsity could entail a showing that

the provider sought payment from a federal health care program for a use that was off-label and

not covered by that program. Id. at *3. It is not necessary also to show (or allege) an express

falsehood from the defendant to the provider to satisfy the "falsity" element of section (a)(I). Id.

at *1.

Defendants correctly observe that to state a claim under section (a)(2), there must be a

false record or statement. To satisfy this requirement, defendants assert that relator needed to

allege "both that Pharmacia made a false statement and that this false statement was made to get

a false claim paid by the government." See Def. Brief at 11. However, requiring a false

statement to be made by the defendant drug company is contrary to the plain language ofthe

PCA. Although section (a)(2) requires the existence ofa false statement, it does not require the

-8-

Case 1:03-cv-11 084-PBS Document 118 Filed 05/12/2008 Page 9 of 13

false statement to be made by the defendant. Section (a)(2) imposes liability on a defendant so

long as it "caused" another, such as a hired consultant, to make a false statement.

Contrary to what defendants' brief implies (Def. Br. at 11-12), for a statement to be

"false," it need not be an affirmative misrepresentation; a material omission will suffice: "[H]alf

the truth may obviously amount to a lie, if it is understood to be the whole." W. Page Keeton.

Prosser

& Keeton on the Law of Torts § 106, at 738 (5th ed. 1984); see Luckey v. Baxter

Healthcare Corp., 183 F.3d 730, 732 (7th Cir. 1999) (observing that a half-truth may amount to a

false statement under the FCA in certain circumstances); United States ex reI. Schwedt v.

Planning Research Corp., 59 F.3d 196, 199 (D.C. Cir. 1995) (finding that false progress reports

may constitute false statements under the FCA); United States ex reI. Fry v. Guidant Corp., 2006

WL 2633740, at

*10-11 (M.D. Tenn. Sept. 3, 2006) (finding representation was rendered false

by concealment of material information); United States ex reI. Kneepkins v. Gambro Healthcare.

Inc., 115 F. Supp. 2d 35, 43 (D. Mass. 2000) (an "omitted material fact," such as the existence of

illegal kickbacks, may be actionable under the FCA). Thus, a statement urging a physician to

prescribe a drug for an unapproved, off-label use could well amount to a half-truth and satisfy

the false statement requirement of section (a)(2), where, for example, the drug sales

representative fails to mention that the evidence does not support the drug's efficacy for the use

he or she is promoting or the FDA has specifically concluded that the drug is not safe or

effective for that use.7

7 Notably, despite defendants' suggestion to the contrary (Def. Br. at 11, n. 8), the fact

that the Medicaid Act provides for coverage for off-label uses that are supported by citation in

certain compendia is irrelevant to whether a drug company made a false statement. To the extent

that the FDA Modernization Act, 21 U.S.C. § 360aaa, provided a safe harbor for the

dissemination of certain scientific information if a manufacturer complied with the requirements

-9-

Case 1:03-cv-11084-PBS Document 118

IV. FCA Pleading Requirements.

Filed 05/12/2008 Page 10 of 13

Ofcourse, if a relator is claiming that the defendant drug company caused the providers

to submit these false claims, the relator must adequately allege such causation. See Parke-Davis,

2003 WL 22048255, at *4-5; United States ex reI. Cantekin v. University ofPittsburgh, 192 F.3d

402, 416 (3d Cir. 1999). The relator need not allege an express false statement to satisfy the

causation element, though such evidence would be one way the relator could do SO.8

Defendants argue that relator's complaint fails to set forth with sufficient particularity

that conduct by defendants caused false claims to be submitted to federal health care programs.

Defendants also argue the complaint does not sufficiently allege that the two off-label uses raised

by relator (adult anti-aging and pediatric short stature) resulted in claims being submitted to

federal health care programs that were false. Finally, Defendants further assert that relator has

failed to identify specific adult anti-aging claims and that regardless of whether relator has

identified specific pediatric short-stature claims submitted to federal health care programs, he

set forth in the statute, the provision expired on September 30, 2006, and Congress has not

renewed it. Moreover, the FDA draft guidance on

Good Reprint Practices for the Distribution of

Medical Journal Articles and Medical or Scientific Reference Publications on Unapproved New

Uses ofApproved Drugs and Approved or Cleared Medical Devices

states that it contains

"Nonbinding Recommendation, Draft - Not for Implementation" and that the FDA is accepting

comments on the draft.

8 WLF wrongly suggests that the defendant must have instructed or directed that claims

be submitted or how to do so in order for liability to exist for "causing" the submission ofa false

or fraudulent claim. As the Supreme Court has recognized, the prototypical FCA case involving

the "causing" of the submission of a false claim - when a subcontractor submits a false invoice

to a prime contractor which, in tum, submits the invoice to the United States - rarely involves a

subcontractor affirmatively instructing or directing the prime contractor to submit a false claim.

See United States v. Bomstein, 423 U.S. 303, 309 (1976); Marcus v. Hess, 317 U.S.537, 544-45

(1943).

-10-

Case 1:03-cv-11084-PBS Document 118 Filed 05/12/2008 Page 11 of 13

has failed to provide sufficient details about those claims.9 To the extent that defendants

contend that relator's complaint must fail because it did not identify specific false claims or do

so with sufficient particularity, defendants seek to impose too rigid a pleading standard in FCA

cases.

As a general matter, the allegation of a specific false claim is not an absolute prerequisite

to pleading a viable FCA claim. Although FCA liability attaches to the claim for payment, the

First Circuit and this Court have held that whether specific claims must be identified for a

complaint to satisfy Rule 9(b)'s particularity requirement will depend on the circumstances of

each case. See United States ex reI. Rost v. Pfizer, Inc., 507 F.3d 720, 732 (Ist Cir. 2007);

United States ex reI. West v. Ortho-McNeil Pharm., Inc., 2008 WL 435497, at *18 (D. Mass.

Feb. 19, 2008). Thus, in off-label cases, where the alleged false claims were submitted not by

the defendant, but instead by a third party, a relator "need not allege the details of particular

claims, so long as 'the complaint as a whole is sufficiently particular to pass muster under the

FCA.'" See Rost, 507 F.3d at 732 (quoting Karvelas, 360 F.3d at 225).10 In evaluating such

9 Whether the requisite knowledge under the FCA was sufficiently plead does not appear

to be a focus of defendants' brief and, in any event, questions relating to a defendant's

knowledge typically cannot be resolved at the pleadings stage of a case. Accordingly, the Court

need not address this issue.

It bears noting here, however, that if a defendant knew or acted with

reckless disregard as to the truth or falsity of claims that they caused to be submitted, "any

possible ambiguity in the regulations is water under the bridge." Minnesota Ass'n ofNurse

Anesthetists v. Allina Health System Corp., 276 F.3d 1032, 1053 (8th Cir. 2002).

10 Such an analysis is consistent with FCA cases in which courts have found that when a

complaint sets forth with particularity allegations of a fraudulent scheme or course of conduct, it

is not also necessary to identify specific claims because doing so adds little to the sufficiency of

the complaint as a whole.

See,~, United States ex reI. Singh v. Bradford Regional Medical

Center, 2006 WL 26425 I 8, at *7 (W.D. Pa. 2006) ("[T]he falsity of the instant claims does not

turn on anything unique to any individual claim or that would be revealed from an examination

of any claim, but rather the claims 'are false because ofthe improper financial arrangements

-11-

Case 1:03-cv-11084-PBS Document 118 Filed 05/12/2008 Page 12 of 13

matters, "the strength ofthe inference of fraud on the government" may be measured by, for

example, factual or statistical evidence tending to show fraud beyond possibility. See West,

2008 WL 435497, at *18. Given the posture ofthis matter, the unique circumstances ofthe drug

at issue in this case, and to assist the Court in applying the standard here, the United States

submits that it is not aware of any billable diagnosis code for an anti-aging use that would be

recognized or reimbursable by federal health care programs.

Conclusion

The United States submits this brief regarding how to interpret and apply certain aspects

ofthe Medicaid Act and the FCA. The United States takes no position on the sufficiency ofthe

complaint herein.

Respectfully submitted,

GREGORY G. KATSAS

ACTING ASSISTANT ATTORNEY GENERAL

MICHAEL

1. SULLIVAN

UNITED STATES ATTORNEY

/s/ Sara Miron Bloom

SARA MIRON BLOOM

Assistant U.S. Attorney

Suite 9200, One Courthouse Way

Boston, MA 02210

Phone: (617) 748-3265

JOYCE

R. BRANDA

MICHAEL D. GRANSTON

JAMIE ANN YAVELBERG

EDWARD C. CROOKE

Civil Division, Commercial Litigation Branch

P. O. Box 261, Ben Franklin Station

between [defendant] and the physicians."').

-12-

Case 1:03-cv-11 084-PBS Document 118 Filed 05/12/2008 Page 13 of 13

Dated: May 12,2008

Washington, D.C. 20004

Phone: (202) 353-0426

-13-

From 'On Pharma'

I haven't checked my favorite blogs in quite a while (of course Christina Truelove does every Friday that so we don't have to)....but when I tried to get to Peter Rost's blog, it redirected immediately to the Pfizer corporate web site.  What is going on: a practical joke, corporate sponsored hacking? Try it and you'll see http://peterrost.blogspot.com.  The timing is a bit strange (there would have been many "more opportune" times to try this in the past, I'm guessing).  It will likely be up and running again today, but it seems a bit scary.  Stay tuned for some reporting on Pittcon, the big analytical chemistry conference, next week.

AMS

From 'On Pharma'

We love the progressive thinking that's going on in pharma. That's why I enjoy my job and what makes covering this side of the industry so much more interesting and positive than looking at the financial side and all the marketing scandals. As we do every year, we've covered this year's IFPAC process analytics conference, a hotbed for some of that thinking, and promoted it on our web site.

Only this year, thanks to our talented multimedia director Scott Babcock, we did some of this via video, and professionally edited video, not the "You Tube"-ish things that editors like me have thrown together in the past.

Thanks to Robert Zutkis and IFPAC for allowing access, and to everyone, especially FDA's Janet Woodcock, for being so gracious about doing impromptu interviews, and for not running away at the sight of a video camera, and to Emil Ciurczak and colleague Jack Carroll for being open to experimenting with new media. They are both developing an online video course on Quality by Design, PAT and Analytics that will soon be up on our web site.

You'll find the official report on IFPAC our web site. But here is a brief, unsanctioned one. Let's call it the PAT Gossip report. Please don't be offended, anyone, and remember. This is only a blog.

• Insiders say working conditions at FDA are much better, but budgets for travel to training conferences aren't expanding. "Travel is just for the big wigs, " said one.
• Ajaz Hussain is now working on transgenics at Philip Morris International, which is developing tobacco plant strains for cell culture for vaccine production.
• Martin Warman reports that there is life after Pfizer. He's now consulting and, given data management challenges facing most companies embarking on PAT, his work now takes him into the IT realm more often than instrumentation. Who knows? Perhaps he will return to Big Pharma
• Ron Miller reports that life after BMS is good. He is consulting and working on another book.
• Merck is looking for some PAT leaders, at the PhD, MS and BS levels. We hear that Wyeth is, too.
• Move over Tata Consultancy Services. Puerto Rico is considering a new export: PAT team leaders available on a contract basis. The island's universities are strong, and so are their training programs, one of which is taking an accredited PAT training course online to a Web format this year. Now for some extremely random thoughts, comments and questions, in no particular order.

  Why were some pharma PAT presentations this year almost completely identical to last year's?

  IFPAC offers access to some of the greatest minds in the industry. And some of the smaller ones, too. Like the person, who will remain nameless, who turned Scott and me away, literally at the door, at the opening night dinner.

  Thus, Scott had to lug very heavy, awkward video and lighting equipment all over the hotel and store it while grabbing a bite to eat. We didn’t have the electric power or Internet access we needed to cover the program at our booth either

  More revelations from this year’s conference?

  Don’t roll your eyes when your aunt complains that the generic version “just doesn’t feel the same” as old and expensive Brand Name X. She’s onto something. Don’t call her a hypochondriac. The fact is that the excipients used in formulation can show tremendous between-batch variability, even when they meet USP and other specs. At IFPAC, we heard no less an authority than Deputy FDA Commissioner Janet Woodcock suggest that there may be a connection between these complaints and measurable manufacturing issues" We just don’t know yet,” she said.

  One batch of excipient can meet basic USP specifications and yet perform completely differently, within the formulation, than another batch of the same material that meets specs.This is all part of the challenge of relating clinical outcomes to manufacturing issues, and a fundamental reason why pharma needs to use PAT.

  Want to Take Revenge on FDA Inspectors? Teach Them
  Instructors must have had fun designing the hands-on solid dosage training course for FDA’s Inspectorate last year.Using a lab featuring Emerson process control equipment and Optimal’s SynTQ, FDA students performed simple blending operations using lactose, but material from three different batches of lactose. If the blend was made with lactose from one batch, the reaction would be completed much faster than materials using the other batches. Huh? Isn’t lactose lactose? Not exactly. That’s just what prompted GSK’s Ray Scherzer to suggest that...

  Pharma needs more physicists and materials scientists (or, at least, industrial pharmacists with training in those areas----people who understand the mechanical and other physical properties of materials used in drug formulations

  Bored and want to see some intrigue unfold among PAT types? Start a conversation about dissolution test calibration or microbiological testing of pharma-grade water and watch otherwise reasonable people become unreasonable.Anti-USP sentiment appears to be on the rise in some quarters, with insiders of one camp accusing the organization of rank commercialism, conflicts of interest and impeding the interest of science.(But wait a minute: Does ASTM give its standards away for free

  Peter Rost is a favorite read among some folks we met.Said one insider, “He understands what pharma management is all about, because he worked alongside the guys who are so glued to Bloomberg and the stock results that they forget about what’s going on inside their plants. Too bad he doesn’t get into this side of the business. Consider that an open invitation, Peter… somehow, though, I think the subject matter might be a bit dry.

  One anonymous contrarian then posed a few interesting philosophical questions:

Is standards development by consensus, as with E-55, really a good thing for FDA to be promoting? Ditto for the idea of real time/parametric release of product. "Doesn’t this approach allow industry to write its own rules," this person asked. "I mean, it would be one thing if all of pharma’s senior management were universally on board and always put the public health first and foremost in their minds, but many of them are too busy watching Bloomberg.”

Is mechanical dissolution test calibration truly science based, since it eliminates the only baseline measurement now available? Would the FAA send planes out without mandating crash tests, using uniform testing methods, rather than tests developed by each vendor? One camp has argued convincingly that USP calibrating tablet quality can vary, leading to flawed results. The insider begs to differ. Using mechanical calibration does not provide any way to judge how the given drug will behave in the human bodyFurthermore, insider says, it forces each company or facility to develop its own internal standards, and FDA inspectors to master different internal standards at each facility. Isn’t that a waste of resources and money for an already cash-strapped Agency, and even for the companies themselves I don’t think anyone should worry too much about this. I hope that all drug companies the world over move to real-time product release, but I suspect they’ll still the USP tester tablets as a final check for a very long time to come. Will generics companies, in particular, suddenly throw out all their SOPs and go modern for the sake of trend setting

Please note: We are firm believers and supporters of PAT, Quality by Design, parametric release and continuous quality improvement.We have drunk deeply of the Kool-Aid and support E-55, USP and science-based standards, and we know that FDA has never mandated mechanical calibration. But it’s important to remember that PAT and all this is still fairly new to pharma and that certain scientific basics remain unknown. As this insider says, PAT is a great thing and critical to the future of pharma, but some of the underlying science isn’t there yet, and until it is, any radical changes in industry regulation may be premature, with the industry risking “slapping lipstick on a pig

Long story short, IFPAC is well worth a visit.

From 'On Pharma'

Don't turn around. Oh oh.  

Pharma blogger and author Peter Rost has found a new calling as an Expert Witness for pharma marketing practices).  He'd hinted that he'd started exploring this career a few years ago, in an interview he did with Ed Silverman.

 You're in his eye
And you'll know why
The more you lie
The faster your brand will die

(You 1980s nostalgics, click here for the audio/video of After the Fire's cover of Falco's song in English, the lyrics to which I still don't fully understand).  My daughter's discovering techno pop...and I'm learning to appreciate what I'd avoided back then...even Duran Duran

AMS

From 'On Pharma'

From 'On Pharma'

John Mack once suggested that some pharma bloggers write about Peter Rost in the hope of "riding in his wake," and increasing their own site traffic and links.  It might seem that way, but, let's face it. Rost has been one of the most enigmatic figures in the industry for quite a few years, and his story only continues to become more interesting. 

The latest evidence?  Fortune just published a sympathetic, yet balanced piece on Rost and his blog.  

Of course Rost's Question Authority is serving the public by calling attention to questionable industry marketing practices, but there's another reason why it is so effective: Empathy.

I was glad that Fortune picked up on this, because empathy is what makes me want to read Question Authority. Between the "self marketing" posts that Fortune referred to (and that Mack had teased  Rost for---the marketing of the Question Authority clothing line, for example) and the rants against Pfizer, its CEO and management, Rost has listened to marginalized "outsiders on the inside"----whether Ashok Idnani of India, or "Jane Roe, "and brought their stories to the world.  For this alone, he deserves praise.  And there are, no doubt, many more stories out there waiting to be told.

Rost may not have become a pharma CEO but has become something more interesting (More on critics who love pharma here)

As Mack observed, Rost needs no promotion and most people surfing the Net will find his blog immediately.  But, like many others, I'll continue to post updates on his story---out of sheer interest, and  for some of our core readers who are distanced from marketing and corporate functions. Here's a link from his site to the Fortune article.

From 'On Pharma'