April 16, 2025

Drug Makers Use Safety Rule to Block Generics

But federal regulators contend the latest strategy — which relies on a creative interpretation of drug safety laws — is illegal.

The Federal Trade Commission recently weighed in on a legal case over the tactic involving the drug maker Actelion, and earlier this month a federal suit was filed in another case in Florida.

“We definitely see this as a significant threat to competition,” said Markus Meier, who oversees the commission’s health care competition team.

The new approach is almost elegant in its simplicity: brand-name drug makers are refusing to sell their products to generic companies, which need to analyze them so they can create the copycat versions. Traditionally, the generic drug makers purchased samples from wholesalers. But because of safety concerns, an increasing number of drugs are sold with restrictions on who can buy them, forcing the generic manufacturers to ask the brand-name companies for samples. When they do, the brand-name firms say no.

Brand-name companies say they are protecting themselves — and patients — in case the drugs are somehow used improperly. They say no law requires one company to do business with another.

Advocates for generic drugs say the practice could limit access to the low-cost drugs, which they say have saved more than a trillion dollars over the last decade. They say the companies that have most aggressively pursued the tactic tend to be those with drugs that are nearing the end of their patent life.

Actelion, a Swiss company, is withholding samples of its flagship product, Tracleer, which treats a lung disorder. Its patent is set to expire in 2015. The company’s other product in question, Zavesca, has a patent that expires later this year. Tracleer costs about $79,000 a year, while Zavesca costs about $229,000.

The issue has its roots in a 2007 law that allowed the Food and Drug Administration to require detailed safety programs for drugs with serious side effects or the potential for abuse. In many cases, those programs simply direct the company to educate doctors or patients about risks. But in other cases, they require that distribution be limited to approved pharmacists and health care providers.

About 70 drugs carry mandatory drug safety plans, and of those, 34 have more restrictive requirements, according to the F.D.A.

Although the 2007 law said the programs should not be used to block development of generic drugs, brand-name companies said the language was vague and began restricting access to drug samples soon after it was passed.

In 2009, generic companies began complaining that Celgene had refused to sell them samples of Thalomid, the drug better known as thalidomide that is now used to treat cancer and leprosy, and a related drug, Revlimid. Lannett, a generic company, sued Celgene, claiming its practices were anticompetitive, and the case was settled. The trade commission and the Connecticut attorney general started investigations, which Celgene has said are still under way.

At least one company, Gilead Sciences, explicitly restricts access to samples. Pharmacies and other institutions that buy its drug Letairis, which treats a serious lung condition, must agree not to “use product in clinical trials or other studies without the prior written consent of Gilead Sciences,” according to an order form sent to customers by Accredo, a specialty pharmacy that distributes Letairis for Gilead. A spokesman for Gilead declined to comment.

Brand-name manufacturers are also limiting access to drugs even when the government does not require it. In a federal lawsuit filed April 1 in Florida, Accord Healthcare, an Indian generics manufacturer, said the drug company Acorda refused to turn over samples of its multiple sclerosis drug Ampyra, even though there are no restrictions on its distribution.

In a letter to Accord from Acorda that was submitted to the United States District Court for the Southern District of Florida, in Fort Lauderdale, Acorda echoed other companies’ positions and said it was under no obligation to sell its products to another manufacturer.

Apotex, a Canadian company, said the drug maker Novartis denied it access to Tasigna, a leukemia drug, until Apotex threatened to sue. Another company, Lundbeck, has so far declined to provide Apotex with samples of the drug Xenazine, which treats a movement disorder caused by Huntington’s disease.

Julie Masow, a spokeswoman for Novartis, said Apotex ultimately purchased samples of Tasigna through the drug’s sole distributor. She said the delay was the result of a misunderstanding, adding “generic companies are free to buy Novartis products through distribution channels.”

Representatives of brand-name manufacturers say there are good reasons to restrict drugs to approved pharmacies or health care providers. Lundbeck said it sells Xenazine, also known as tetrabenazine, to a limited network of specialty pharmacies because it treats fewer than 25,000 people nationwide.

“Not many retail pharmacies would stock the product for so small a patient population,” said Sally Benjamin Young, a spokeswoman for Lundbeck.

Article source: http://www.nytimes.com/2013/04/16/business/drug-makers-use-safety-rule-to-block-generics.html?partner=rss&emc=rss

Mine Owner to Pay $209 Million in West Virginia Explosion

The deal includes $46.5 million for the families of the victims and those who were injured in the blast, and includes terms that protect Alpha — but not individual Massey executives — from criminal prosecution, said Steven R. Ruby, an assistant United States attorney for the Southern District of West Virginia.

But for the families of the miners killed in the accident — the worst such disaster in 40 years — the settlement was justice denied. Many were hoping for criminal charges against the people who ran Massey, the company that, according to the federal government’s own review, knowingly put their relatives in harm’s way.

“Families believe that senior executives should be prosecuted, but they don’t have any great faith that they will be, and that’s what they are afraid of,” said Mark Moreland, a lawyer who represents the families of two victims.

Federal prosecutors say they are trying to do just that, pursuing cases against a number of individuals involved in the explosion. But industry observers warned that because of weak mining safety laws, prosecutors face a steep uphill battle pursuing the biggest prize — criminal convictions of the powerful people who ran Massey.

Under the federal mine act, safety violations, with the exception of falsifying records, are categorized as misdemeanors. That limitation that could make it hard to build a case against senior managers, like Don Blankenship, the former chief executive of Massey, lawyers said.

In all, 18 Massey executives have refused to be interviewed by federal investigators, invoking their Fifth Amendment rights.

“Until someone goes to jail, there will be no justice done here,” said Cecil E. Roberts, president of United Mine Workers of America International.

Only the mine’s security chief at the time of the blast, Hughie Stover, is facing criminal charges so far. But observers said he was so low in the hierarchy that any sentence would do little to satisfy the families.

Proposed changes to the mine act did not make it out of the House at the end of the last session of Congress, because of what a Democratic staff member on the Education and Workforce Committee described as an intense lobbying effort by the coal industry. A sponsor of the bill, Representative George Miller, Democrat of California, called on Congress to “close gaping loopholes that allow some mine operators to put their miners at needless risk.”

Tony Oppegard, a lawyer based in Kentucky who represents miners, said, “Even though you have the biggest mine disaster in 40 years, there’s been absolutely no federal legislation flowing from it.”

Still, many argued that the disaster brought a turning point in the way federal inspectors from the Mine Safety and Health Administration dealt with the industry. Inspectors have sharply increased their efforts, industry observers said, and more closely monitor mines, including by taking control of internal communication systems during surprise inspections so miners cannot coordinate with one another.

“We have certainly seen a change,” said Keith Heasley, a professor of mining engineering at West Virginia University. “They have stepped up their enforcement, and they are issuing more paper.”

The mining industry has taken notice, but executives say the increase in inspections has generated more violations and paperwork without necessarily making mines safer.

“The regulation quite often isn’t placed with the best focus,” said Vic Svec, a senior vice president of Peabody Energy. “MSHA still needs to target real improvements in mine safety. They hand out a lot of citations, but don’t focus necessarily on things that will bring about real safety improvements.”

Dave Blankenship, director of safety and environmental affairs for Teco Coal, a company based in Kentucky that has one of the better safety records in the industry, complained that inspections had become onerous.

“They write up violations for normal activities of mining,” Mr. Blankenship said, like everyday spills from conveyor belts and small leaks in hydraulic pumps. “They slow you down.”

Sabrina Tavernise reported from Washington, and Clifford Krauss from Houston.

Article source: http://feeds.nytimes.com/click.phdo?i=ad3093323f1c70be76056a376b6d28f4