Thursday, January 3, 2013

Oregon Board of Pharmacy and LegitScript

The National Association of Board of Pharmacy announces:
In December 2012, the Oregon State Board of Pharmacy took actions that will prevent a rogue Internet drug outlet from distributing products to customers in Oregon, while LegitScript helped to shut down a large scale marketing portal facilitating rogue sites. The Oregon Board fined Hayden Hamilton, owner of ProgressiveRX.com, $50,000 for operating without an Oregon pharmacy license as well as other violations. Hamilton agreed to no longer distribute drug products to customers in Oregon, reportsPharmacy Choice
Legitscript announced the shut down of Myrxcash.com, an Internet marketing affiliate site that provided tools to help establish rogue Internet drug outlets. The entity was linked to hundreds of Web sites identified as illegal online drug sellers, reports Pharmacy Choice. LegitScript indicates in a blog articlethat the entity subsequently set up shop under a new Web site address, but that LegitScript intends to assist in shutting down this site also, and will focus on “denying the network’s ability to process payments.” 
Quotation found here
 
In the CapeCodeToday News dated 12/31/12, Massachusetts lawmakers began pursuing changes in state laws governing pharmacies. The following summary appears:

4) COMPOUNDED DRUGS, COMPOUNDING PROBLEMS
A nationwide outbreak of fungal meningitis landed on the doorstep of public health regulators in Massachusetts after the source of the infections was traced to the Framingham-based New England Compounding Center that had been manufacturing injectable steroids for widespread distribution in violation of its state pharmacy license. To date, the contaminated steroids have led to 620 cases of infection in 19 states, contributing to 39 deaths, according to the Centers for Disease Control. Though no one in Massachusetts was treated with the contaminated drugs, the public health crisis exposed wide gaps in the federal and state regulatory structure for compounding pharmacies and led to the issuance of emergency regulations by Gov. Deval Patrick to improve reporting and start more random spot checks of pharmacies located in Massachusetts. The Board of Registration in Pharmacy also got an overhaul in its membership, and state lawmakers embarked on a series of oversight hearings to explore the reasons why NECC was able to operate undetected as a compounded drug manufacturer in violation its state license. The stage is now set for lawmakers to pursue changes in state laws governing pharmacies in the session that starts on Wednesday.


Quotation appears here

Wednesday, January 2, 2013

Victory Pharma Inc. of San Diego Pays $11.4 Million to Resolve Kickback Allegations in Connection with Promotion of Its Drugs

Department of Justice
Office of Public Affairs

FOR IMMEDIATE RELEASE
Thursday, December 27, 2012

Victory Pharma Inc. of San Diego Pays $11.4 Million to Resolve Kickback Allegations in Connection with Promotion of Its Drugs

Victory Pharma Inc., a specialty pharmaceutical company headquartered in San Diego, has agreed to pay $11,420,743 to resolve federal civil and criminal liability arising from its marketing of the pharmaceutical products Naprelan, Xodol, Fexmid and Dolgic, the Justice Department announced today. Under the agreement announced today, Victory entered into a deferred prosecution agreement and paid a criminal forfeiture of $1.4 million to resolve federal Ant-Kickback Statute allegations, and paid $9,938,310 to resolve False Claims Act allegations.
The settlement resolves allegations that Victory engaged in a scheme to promote its drugs by paying kickbacks to doctors to induce them to write prescriptions for Victory’s products, including prescriptions for patients covered by Medicare and other federal health insurance programs. The kickbacks included tickets to professional and collegiate sporting events; tickets to concerts and plays; spa outings; golf and ski outings; dinners at expensive restaurants; and numerous other out-of-office events. Victory also encouraged its sales representatives to schedule paid “preceptorships,” which involved sales representatives “shadowing” doctors in their offices. The settlement also resolves allegations that Victory improperly used these preceptorships to induce doctors to prescribe Victory’s products.
“Kickback schemes undermine the integrity of medical decisions, subvert the health marketplace and waste taxpayer dollars,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division. “We will continue to hold accountable those who refuse to play by the rules and provide illegal incentives to influence the decision making of health care providers.”
“This resolution underscores the need for physicians to make treatment decisions based on their own independent medical judgment, without being influenced by kickbacks or other improper benefits,” said Laura E. Duffy, U.S. Attorney for the Southern District of California. “Protecting taxpayers from health care fraud is a priority of this office. We will continue to work closely with our investigative partners in taking both criminal and civil measures to combat health care fraud.”
The settlement resolves a False Claims Act lawsuit filed in the Southern District of California by Chad Miller, a former sales representative for Victory. The whistleblower, or qui tam, provisions of the False Claims Act permit the whistleblower (or relator) to obtain a portion of the proceeds obtained by the federal government. As part of today’s resolution, Mr. Miller will receive $1.7 million.
“Patients expect health care providers to be concerned only with patients’ best medical interests,” said Glenn R. Ferry, Special Agent in Charge for the U.S. Department of Health and Human Services Office of Inspector General Los Angeles region. “Financial kickbacks betray that patient trust, and taxpayers’ expectation that federal and state health dollars be put only to the wisest use.”
FBI Special Agent in Charge Daphne Hearn commented, “Many laws of this nation are put in place to protect our citizens from corrupt practices that may endanger our health and safety. When individuals or businesses operate outside of the fence in order to turn a bigger profit the FBI will pursue them in the justice system.”
Chris Hendrickson, Special Agent in Charge, Western Field Office, Defense Criminal Investigative Service, stated: “The Department of Defense is committed to its partnership with the Department of Justice and other federal and state enforcement agencies to aggressively pursue those who take advantage of taxpayer-funded health care systems for illicit gain. Doctors providing services to our military members and their families should be free from undue influence in prescribing medicines and other care decisions, and DCIS will act swiftly against those who engage in these illegal and unethical acts.”
This settlement is the result of a coordinated effort by the Department of Justice, Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the Southern District of California; the FBI; and the Offices of Inspectors General for Health and Human Services, the Department of Defense, the Department of Labor, the U.S. Postal Service, the Veteran’s Administration, and the Office of Personnel Management.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover $10.1 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department's total recoveries in False Claims Act cases since January 2009 are over $13.9

Compounding pharmacy problems fester as death toll mounts and FDA seeks new regulatory authority

While the 112th Congress was paralyzed by the “fiscal cliff” negotiations almost up to its last day in existence, little beyond blame-game theatrics occurred during Senate and House hearings with FDA over the ongoing meningitis outbreak caused by contaminated injectables produced under unsanitary conditions at New England Compounding Center (NECC) during the first half of 2012. As of Dec. 28, according to regular updates by the Centers for Disease Control (CDC) and FDA, the death toll had reached 39; there were 656 injured patients, and 372 confirmed cases of meningitis. Over 14,000 patients are at risk (NECC had produced some 17,000 dosages of methylprednisolone acetate—a steroid used for, among other things, pain control for spinal injuries).

CDC has opened a “Clinical Consultation Network” for clinicians needing advice on taking care of patients; in December it also issued a bulletin that some patients not suffering from meningitis could be harboring infected abscesses in their spines or joints—a serious and potentially debilitating situation.

In mid-December, FDA held a public hearing with state boards of pharmacy representatives, where Margaret Hamburg, FDA Commissioner, reiterated her desire to obtain new regulatory authority to distinguish “traditional” compounding (the common practice by individual pharmacies to tailor a prescription to a specific patient, such as by turning a tablet into a drinkable liquid) from “nontraditional” compounding pharmacies, which produce multiple dosages at any given time. The latter are supposed to be performed for individual prescriptions; producing multiple dosages without a prescription is tantamount to manufacturing—but the compounding pharmacies performing such a practice have a trail of federal court injunctions hampering FDA oversight.

Pharma manufacturers’ associations have been quiet as this scandal unfolded over the fall. Neither PhRMA, BIO nor GPhA has issued a statement. The pharmacy associations, NACDS and the National Community Pharmacists Assn. (NCPA; Alexandria, VA), have emphasized their members’ differences from largescale compounders and identify themselves as “traditional” compounders. A mid-November survey of 400 independent pharmacies by NCPA found that 85% of members engaged in compounding, and 72% engaged only in non-sterile formulations (i.e., not the sterile injectable such as methylpredinisolone). That same survey showed that 62% of those surveyed said that compounding makes up less than 5% of their revenue—which leaves open the question whether some of them generate substantially more than 5% from the practice.

The International Academy of Compounding Pharmacists (Missouri City, TX) issued a position statement in early December that pointedly stresses state-level pharmacy-board inspections; it has long maintained that as its members are pharmacists, FDA has no standing with them. The statement also calls for adequate funding of state boards.

Inside-the-Beltway bashing
Both Rep. Edward Markey’s VALID (Verifying Authority and Legality In Drug compounding) Act, and a bill introduced by Rep. Rosa DeLauro (D-CT), the S.A.F.E. Compounded Drugs Act, wound up in a subcommittee, where they sat and will need to be reintroduced in the next Congress. Markey’s somewhat wider-ranging bill specifies FDA inspections under some conditions, but leaves the definition of “nontraditional” pharmacies up in the air (except to specify that pharmacies sending compounded product across state lines might be subject to inspection). Hearings held in November seemed to focus primarily on holding FDA Commissioner Hamburg to account for failing to follow up on earlier warnings (some issued by FDA itself) about NECC.

In preparation of the December FDA public hearing, Public Interest, the Washington, DC consumer advocacy group, sent a letter to HHS Commissioner Sibelius tearing into FDA for lax enforcement of existing authority. It also called for an independent investigation of CMS, claiming that CMS’ Medicare-reimbursement policies may in fact have spurred the production of compounded products like the steroid.
"By failing to use [its reimbursement authorization policies], CMS essentially has encouraged pharmacies to produce such medications at dangerously large scales,” said Dr. Michael Carome, deputy director of Public Citizen’s Health Research Group, in a statment. “An independent investigation is necessary to determine exactly how these policies contributed to the current meningitis outbreak and to prevent a similar tragedy from happening in the future.”

Given all the finger-pointing, it’s hard to say that substantive change will come out of the NECC scandal. But pharma manufacturers should be engaged; there have been occasional conflicts between manufacturers with branded products and compounding pharmacies that offer alternative products; in recent years, Eli Lilly was disputing the efficacy of “natural” hormone replacement therapy over its branded product; Genentech with less-expensive, compounded Avastin (bevacizumab) being used in place of its branded macular degeneration product, Lucentis (ranibizumab; both it and bevacizumab are angiogenesis inhibitors); and KV Pharmaceutical which went bankrupt trying to market an FDA-approved product, hydroxyprogesterone caproate, for which a cheaper compounded version was available. Moreover, as IACP’s position statement noted, it supports state boards of pharmacy monitoring “all pharmacy practice sites that conduct sterile compounding,” including hospitals, long-term care facilities, hospice, home infusion and specialty pharmacies—the latter of which is a key growth area for manufacturers

Source found here