Pharmalot

What FDA Problems? Ranbaxy Founders Fire Back At Daiichi Sankyo

The mess that is Ranbaxy Laboratories is growing more intriguing every day. One day after Daiichi Sankyo issued a statement charging “certain former shareholders concealed and misrepresented critical information” and that “legal remedies” are being pursued, the Singh family that sold the generic drugmaker to Daiichi for $4.6 billion five years ago is lashing out.

In their own statement, the Singhs accuse the Japanese drugmaker of trying to “desperately shift” the blame for the long-running manufacturing scandal that caused Ranbaxy last week to agree to pay $500 million to resolve civil and criminal charges stemming for selling substandard medicines and providing fraudulent data to the FDA, among many other things (back story with links to documents is here).

“The belated suggestion, made years after the fact, that information was concealed from and/or misrepresented to Daiichi Sankyo is false and designed to divert attention away from Daiichi Sankyo’s own failures to protect itself and its shareholders in the negotiations and agreement with the Singh family shareholders of Ranbaxy,” they say in their statement.

The Singhs contend that Daiichi was informed of investigations into Ranbaxy manufacturing problems by the FDA and the US Department of Justice “at every step of the way” and full access to all documents was provided. The Singhs add that, until recently, they never received any indication from Daiichi execs that anything was amiss.

In April 2012, for instance, former Ranbaxy ceo Malvinder Singh was invited to attend a product launch and met with Daiichi chairman and executive Tsutomu Une, who did not mention any issues. Their statement also included an excerpt of a 2009 thank you note sent to Singh for his tenure running the generic drugmaker. He had remained after the sale.

The sparring comes as Ranbaxy faces still more fallout from its manufacturing troubles. For instance, India’s Ministry of Health & Family Welfare is contemplating taking action and asked the Drug Controller General of India to examine court documents filed in the US in which Ranbaxy admitted to fabricating data and selling substandard medicines (read here).

Meanwhile, Ranbaxy is still operating under a consent decree with the FDA, which means winning agency approvals could prove challenging. Moreover, the possibility exists that the US affiliate could face exclusion from participating in contracts with federal healthcare programs (read this). And Ranbaxy is reportedly laying off one-third of its global sales force (read here).

The accusations leveled by Daiichi, however, are not surprising. The FDA issued an import alert on 30 Ranbaxy drugs made at two plants in India not long after Daiichi purchased the generic drugmaker, although the US agency had previously issued warning letters about manufacturing problems (back story).

By then, a former Ranbaxy employer had already contacted the FDA about numerous, systemic violations at the drugmaker, including using raw chemicals from unapproved sources, fabricating in-house test data to meet FDA standards and attempting to conceal...

Social Media Suggests An MS Dogfight Between Biogen And Novartis

Over the past month, the track record for the newly launched Tecfidera multiple sclerosis pill has become a closely watched exercise on Wall Street. Each week for the past month, analysts have been poring over prescription data to gauge the extent to which the drug, which is sold by Biogen Idec, is capturing market share and  how many billions of dollars in sales may be generated this year (back story).

Last week, for instance Tecfidera prescriptions rose 27 percent, a substantial increase, although less than the 37 percent gain noticed during the previous week. Not surprisingly, some of this reflects patients who are switching from older MS drugs that are injectables, such as Copaxone and Avonex, which is also sold by Biogen.

A key issue, however, is the emerging horse race between Biogen (BIIB) and Novartis (NVS), which sells the rival Gilenya pill that was approved in September 2010 and generated $1.2 billion in sales last year. Last year, though, a spate of bad publicity about heart risks emerged after a few patient deaths and Novartis is keen on fending off Biogen (back story).

To so, the drugmaker recently began pushing an aggressive advertising campaign aimed at younger patients and also began sponsoring lunches at restaurants around the country where patients and caregivers can learn more about its pill. The pricing, by the way, is similar (see this and this). The average wholesale price for Tecfidera is $54,900, compared with $58,000 for Gilenya.

So far, Tecfidera is grabbing market share from the older injectables, according to Leerink Swann analyst Marko Kozul. But how vulnerable is Gilenya? This remains unclear, but perhaps a spot check of social media postings can provide some insight. For instance, between April 15 and May 20, Tecfidera was the most-discussed MS treatment on the Internet, according to Treato, a market research firm (read more here).

Since its recent launch, the firm tallied more than 600 patient posts about Tecfidera, and about 30 percent seemed to indicate that the patient writing the post had been prescribed or started to take the pill.  However, of all the patient posts that mention switching from an MS drug to Tecfidera, far fewer expressed interest in switching from Gilenya than any of the other existing MS treatments.

 Of course, this is not the same as conducting a rigorously constructed scientific survey. As Treato acknowledges, “when dealing with health social media and big data analytics one needs to be very careful about drawing conclusions.” Moreover, this is still the early going. Just the same, the numbers suggest that social media may offer some useful insights into prescribing trends. And if this is the case, then Biogen may have a prolonged fight on its hands.

STORY ENDS HERE

Steve Nissen: The FDA Meeting On Avandia Will Be A 'Whitewash'

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Next month, the FDA will hold a two-day meeting to discuss the results of a clinical trial for the Avandia diabetes pill, three years after the agency greatly restricted use of the controversial drug. And Steve Nissen, who co-authored a meta-analysis that several years ago found increased cardiovascular risks with the GlaxoSmithKline pill, believes the FDA has a hidden agenda for convening the session.

“The most likely explanation: the leadership of the division of the FDA responsible for drug regulation, the Center for Drug Evaluation and Research, is seeking to avoid accountability for its role in the Avandia tragedy,” he writes in a provocative op-ed in Forbes. Nissen, by the way, is head of cardiology at the Cleveland Clinic.

The meeting, which the agency had ordered, will reassess a clinical trial called RECORD that was, in part, the heated focus of a contentious 2010 FDA panel meeting held to review the Avandia safety record. At the time, both the drugmaker and the FDA were under considerable pressure in the midst of growing public outcry over patient safety and the disclosure of clinical trial data.

In his essay, Nissen notes that Glaxo had secretly conducted an analysis in 2005 and 2006, and concluded its pill increased the risk of heart attacks and related events by about 30 percent. Initially, Glaxo withheld the data from the FDA, but did inform the agency of the findings. But in 2007, his meta-analysis was published, which “intensely embarrassed” the FDA, he maintains.

“Since 2006, CDER has expended considerable taxpayer dollars trying to absolve itself of responsibility for this inexplicable error in judgment that cost many lives. In 2010, CDER and Glaxo saw an opportunity clear Avandia of any cardiovascular hazard and scheduled an FDA Advisory Committee meeting to exonerate the drug,” he writes.

And Glaxo was widely criticized for its handling of the trial. Some FDA scientists claimed the study was flawed and undercounted cardiovascular events. And both the US Senate Finance Committee and the Journal of the American Medical Association chastised Glaxo for attempting to undermine its own scientific steering committee and squelching unfavorable results (more here).

The most significant development at the meeting was a presentation by FDA reviewer Thomas Marciniak, who discussed how the RECORD trial was biased. “For example,” Nissen writes, “the trial was unblinded, meaning that physicians and patients were aware which drug each patient was taking. Even Glaxo was unblinded" (here is the Marciniak review).

“Incredibly, whenever a study site reported a clinical event, GSK and its contract research organization knew immediately which drug the patient was receiving. Marciniak’s review showed that events occurring in Avandia patients were changed or deleted, sometimes months after they should have been reported and counted. These and many other flaws make the RECORD trial totally unreliable.”

Just the same, the FDA ordered Glaxo (GSK) to convene an independent group of scientists to review the RECORD trial. “During the course of the FDA’s review of the RECORD study, important questions arose about potential bias in the identification of cardiovascular events. The FDA is requiring this independent review to provide additional clarity about the findings,” the agency wrote in its September 2010 announcement (...

Forest CEO Solomon Finally Listens To Carl Icahn And Will Retire

Carl Icahn has been waiting a long time for this. After years of controversy over his stewardship, Howard Solomon will retire as ceo of Forest Laboratories by the end of the year, and he will relinquish his role as chairman by the time the drugmaker holds its annual meeting in 2014. Meanwhile, a committee has been appointed to choose a successor. He will, however, remain a director.

The move comes after Solomon, who is 85 and has been ceo since 1977, has had a decidedly mixed tenure. On one hand, he helped build the drugmaker into a large purveyor of medicines, but more recently, he presided over setbacks that prompted corporate raider Carl Icahn to attack his leadership and successfully place a representative on the Forest board after accumulating 9 percent of the stock.

A key question now is whether this change will prompt Icahn to move for a sale of the drugmaker. "We think he is likely to do so as the current interest rate environment may not persist until the next window of opportunity, two to three years after the next ceo takes office," writes Sanford Bernstein analyst Ronny Gal in a research note. "There is an open question whether Icahn will actually succeed in pushing this agenda, likely depending on whether Solomon supports the idea, which is a possibility given that he owns a lot of shares. At any rate, we expect the question will likely be raised."

The backdrop for Icahn's actions began three years ago, when Forest pleaded guilty to obstruction of justice, distributing an unapproved drug and illegally promoting two other medicines. The drugmaker paid $313 million as part of a settlement that included $164 million in criminal penalties. The illegal marketing involved two of its best-known medicines – the Celexa and Lexapro antidepressants (see this).

The infractions prompted the US Department of Health & Human Services to seek to exclude Solomon from participating in contracts with federal healthcare programs, a move that would have, effectively, precluded Forest from doing business with Medicaid and Medicare. The feds later backed down, though, thanks, in part, to lobbying from US Senator Chuck Schumer, according to sources (read here).

The episode spurred Icahn to begin accumulating Forest (FRX) shares and seeking to oust Solomon, who he accused of being a sleepy and out of touch ceo who is protected by a cadre of “loyal buddies” and has been angling to have his son succeed him in the c-suite. He also took a shot at David Solomon by saying his only experience involved promoting movies (back story).

Sources familiar with the company have long indicated that the younger Solomon is a prime choice to succeed his father. Whether that occurs in light of recent developments remains to be seen. Not surprisingly, there was no mention of his son in the retirement announcement this morning. Forest was careful to note that the Spencer Stuart executive search firm was retained to help find candidates. We asked Icahn for comment and will update you accordingly.

“I recognize that the time has come for me to retire from the full time responsibility of running Forest Laboratories. I will be 86 this August and I think the company is entitled to the rigorous assurances of continuity that a younger chief executive can provide. I have agreed to serve Forest as an advisor and, if elected, as a director for the next several years,” the older Solomon said in a statement.

As Gal writes: "Forest is now in for a 'tough slog' as it works its way out of the Lexapro and upcoming Namenda patent cliff and the...

Those J&J Recalls Keep On Coming: Tylenol Bottles Yanked From Brazil

Despite assorted efforts to get its corporate house in order, Johnson & Johnson simply cannot escape manufacturing problems. The latest escapade has occurred in Brazil, where more than 3.3 million bottles of Tylenol Drops are being recalled because the dripper is apparently malfunctioning and can lead to an overdose.

The active ingredient is acetaminophen, which can cause liver damage, and the J&J notice adds that an overdose can also result in nausea and other gastrointestinal problems. The bottles were made between December 2011 and November 2012, according to a notice issued by the health care giant. We asked J&J for comment and will update you accordingly.

The recall is only the latest in a huge and embarrassing series of such steps by J&J, which earlier this month learned that its Janssen Korea ceo faces criminal charges over manufacturing violations that led to the withdrawal of 1.7 million bottles of Children’s Tylenol.  The government also ordered that J&J had to suspend production of several products for varying periods of time (back story).

As we noted recently, there is irony in the timing. Last month, J&J launched its first new corporate image campaign in more than a decade in hopes of restoring consumer confidence in its products after the huge laundry list of recalls – Tylenol; Motrin; Rolaids; Sudafed; Benadryl; syringes; K-Y Jelly; Accuvue contact lenses; hip replacement devices; and the Topamax epilepsy drug, among many others.

Meanwhile, the health care giant is still trying to remediate a key plant in Fort Washington, Pennsylvania, where its McNeil Consumer Healthcare unit is headquartered, after the facility contributed to a spate of recalls. J&J (JNJ) consequently signed a consent decree with the FDA.

The campaign is also designed to deflect attention away from ongoing investigations and litigation surrounding a scandal over failure data for its hip replacement devices and marketing practices for promoting its Risperdal antipsychotic. In fact, a $2.2 billion settlement with the US Department of Justice is in the pipeline.

The cumulative effect of all these problems earlier this week prompted J&J to ask its employees to reassess its 70-year-old corporate credo, which stresses the need to meet high quality standards. The health care giant hopes employees will then complete a survey to identify "opportunities for improvement and action" (read more here).

STORY ENDS HERE

shock pic thx to ogimogi on flickr

Pharmalot... Pharmalittle... Good Morning

Good morning, everyone, and welcome to another busy day. As usual, we are scrambling about on the Pharmalot corporate campus in order to deposit the short people at their schoolhouses and sorting out plans for the long weekend coming up. Meanwhile, though, there is much to do. The world has not stopped spinning, of course. So here are some tidbits. Hope your day is a success and do stay in touch...

Wockhardt Says FDA Import Alert Could Hurt $100M In Sales (Business Standard) 

J&J To Submit 17 New Drug Applications By 2017 (Dow Jones)

FDA Panel Says Merck Sleeping Pill Is Safe At Low Doses (Bloomberg News)

Glaxo Flu Shot May Raise Adult Narcolepsy Risk (Reuters)

Pfizer Takes A Shot At A Vaccine For MRSA (Reuters)

India Sets Guidlines To Meet EU Drug Import Rules (Economic Times)

Sandoz Recalls Injectable After Contamination At Austrian Plant (InPharma Technologist0

Pfizer To Split Off The Rest Of Zoetis Animal Health (Bloomberg News)

KV Pharma Says Makena Sales Have Doubled (St. Louis Business Journal)

EDITOR'S NOTE: Please check this post for additional stories during the day

 

Ophthalmologists Balk At Senate Compounding Bill Over Avastin Restrictions

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As the US Senate considers legislation to toughen oversight of compounding pharmacies, one group of physicians is lobbying the Senate to create an exception for biologics. The American Academy of Ophthalmology is concerned about a provision in the Senate bill that requires patients to have specific prescriptions for each medicine that is ordered from a compounding pharmacy (here is the bill).

The language is designed to prevent compounding pharmacies from expanding into large-scale production, which is what the New England Compounding Center had been doing before producing medicines that led to a nationwide outbreak of fungal meningitis last year that has been called the worst public health crisis in the US in decades (back stories here and here).

But the AAO argues that the language would have unintended consequences by raising costs for both physicians and patients. Specifically, the physician group notes that such a law would preclude many patients from being able to afford compounded versions of Avastin, a biologic that is widely used for treating age-related wet macular degeneration.

As you may recall, Avastin is an older medication approved to treat various cancers, but not the eye affliction, which is common among the elderly. However, many ophthalmologists use repackaged Avastin on an off-label basis, because the price tag is low – up to $50 for an injection. By comparison, Lucentis, which is approved to treat AMD, can cost up to $2,000 for an injection.

The AAO argues Avastin would become unaffordable. “Ophthalmologist will no longer have the option of having (Avastin) available at the time of their patients’ monthly appointment. If a patient-specific order was placed for that patient prior to their regular monthly examination, the ophthalmologist would be responsible for the product cost if the patient didn’t need it or didn’t show up,” the AAO writes.

[UPDATE: The AAO plea is, so far, being ignored. The Senate Health, Education, Labor & Pension Committee has approved its legislation (see this) and also released a report that justifies the need for giving the FDA greater oversight of compounders.]

Here is some interesting background, though: Both drugs are sold in the US by Roche, which has worked hard to preclude use of Avastin on an off-label basis. Five years ago, for instance, Avastin was pulled from compounders, but its Genentech unit relented after ophthalmologists caused a ruckus, which caught the attention of a US Senate committee that conducted a probe into Medicare expenditures for the drugs.

Medicare costs are a big issue. A study released three years ago found that, in 2008, Medicare paid for 480,000 Avastin injections and 337,000 Lucentis injections, but paid only $20 million for Avastin and $537 million for Lucentis. Avastin was used in 65 percent of Medicare patients, while 40 percent were treated with Lucentis.

In the statement circulating on Capitol Hill, the AAO notes that Medicare will bear the brunt if biologics are not excluded from the patient-specific prescription requirement. Medicare beneficiaries pay an average of $11 for one Avastin treatment for AMD, but $400 per dose for either Lucentis or Eylea, a newer treatment sold by Regeneron Pharmaceuticals (REGN).

At these prices, the annual cost of either approved treatment is about $4,800, while the yearly cost of Avastin to a Medicare...

A Boehringer Shake Up And An FDA Warning Letter Over Production Gaffes

After a string of grave and embarrassing manufacturing problems, Boehringer Ingelheim is overhauling some of its management. Late last week, Boehringer Ingelheim quietly posted on its web site that Wolfram Carius (see photo), a member of the board of managing directors who oversaw biopharmaceuticals and production, will be leaving the drugmaker next month after a 26-year career. And he will be replaced by Wolfgang Baiker, who most recently headed worldwide development (see this).

His resignation occurs shortly after Boehringer received a searing warning letter from the FDA about serious production violations at a plant in Rhein, Germany, where agency inspectors last November found problems with active pharmaceutical ingredients and finished drug products, such as the big-selling Spiriva Handihaler, as well as a subsequent failure to take corrective actions.

Is there a connection to the departure of the 52-year-old Carius? In response to our question, a Boehringer spokeswoman answered the question this way in a note to us: "We have made substantial changes in the leadership of our operations organization on a global level. We also are conducting a comprehensive global review of our operations network to ensure that this issue is effectively resolved and prevented in the future."

What went wrong? The drugmaker failed to conduct a thorough investigation to determine the source of foreign particles in APIs. These became known in 2009, but the FDA says Boehringer should have reviewed batches dating to 2008, since these had the potential to be contaminated. But certain lots with foreign particles were used anyway, and there was no effort to mitigate their presence until 2012.

In another instance, Boehringer filed inconsistent findings in response to a complaint about foreign particles in a drum containing APIs, drawing a sharp rebuke. “We are concerned about your ability to prevent the presence of foreign particles in your APIs and the adequacy of actions taken to address the situation,” the FDA wrote in its May 6 letter.

What else? Boehringer failed to reject multiple batches of an unnamed capsule that were contaminated with foreign particles. And the drugmaker failed to determine why a lot of Spiriva Handihaler, the best-selling treatment for chronic obstructive pulmonary disease, did not meet delivered dose test specifications during a nine-month interval.

“This same lot also failed the uniformity of delivered dose attribute during the 12-month stability interval.  It was only after the 12-month OOS result that your firm decided to initiate a product recall for this Spiriva lot. We are concerned about the management decision to allow adulterated product to remain in the market between the 9 and 12 month stability stations,” the FDA wrote (here is the FDA warning letter).

Boehringer, you may recall, is no stranger to manufacturing problems. Two years ago, its Ben Venue Laboratories subsidiary in the US had such long-standing and systemic problems that a consent decree was issued (back story) and numerous product shortages ensued, although the drugmaker initially blamed its woes on capacity constraints and tried to avoid acknowledging ongoing quality control problems.

But the FDA found numerous problems, many of which Ben Venue failed to properly investigate. These included metallic particles or flakes in some medicines, which inspectors suggested came from scrapes on metal doors or window frames; rain water leaking through a ceiling; operators were using gloves that were not sterile and shedding fibrous materials; bacterial contamination in some batches of medicines...