Posts Tagged ‘big pharma’

Robert Weissman

Watch out for corporate junk economics on Capitol Hill.

Rep. Darrell Issa, chair of the House Oversight and Government Affairs Committee, has reportedly asked more than 150 trade associations, corporations and think tanks to provide a wish list of public health, environmental and other public protections that they would like to see eliminated. The purported rationale for such an effort is to spur growth, but in fact this is the cutting edge of a movement to trade away public health, clean air and a stable economy to gin up corporate profits already at record highs.

If Rep. Issa actually wants to focus on job preservation and growth, he might consider the following:

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Dr. Sidney Wolfe, director of Public Citizen’s Health Research Group, joined Democracy Now!’s Amy Goodman and Juan Gonzalez this morning to talk about our new report that shows the pharmaceutical industry has overtaken the defense industry in the amount of fines paid for violating the Fair Claims Act.

Defense contractors,who may never live down their reputation of overcharging the government (remember the $640 toilet seats?), can now offer up that there is a worse industry when it comes to cheating the government. A Public Citizen report released today found that the pharmaceutical industry has now become the biggest defrauder of the federal government.

The study found that pharmaceutical cases accounted for at least 25 percent of all federal Federal Claims Act violation payouts over the past decade, compared with 11 percent by the defense industry.

The fraud results were a key finding from a Public Citizen analysis of all major pharmaceutical company civil and criminal settlements on the state and federal levels since 1991 and found that the frequency with which the pharmaceutical industry has allegedly violated federal and state laws has increased at an alarming rate. Of the 165 pharmaceutical industry settlements comprising $19.8 billion in penalties during the past 20 years, 73 percent of the settlements (121) and 75 percent of the dollar amount ($14.8 billion) have occurred during the past five years.

Many of the infractions, and the single largest category of financial penalties, stemmed from the practice of off-label promotion of pharmaceuticals – the illegal promotion of a drug for uses not approved by the Food and Drug Administration (FDA). Off-label promotion can be prosecuted as a criminal offense because of the potential for serious adverse health consequences to patients from such promotional activities. Another major category of federal financial penalties was purposely overcharging for drugs under various federal programs, which constitutes a violation of the FCA.

Here’s the report:

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Today’s Flickr Photo

The U.S. Supreme Court for Sale. Flickr photo by takomabibelot.

If you read one thing today . . .

We already knew that pharma giant GlaxoSmithKline wasn’t above putting profits before patient health. There’s the case of its diabetes drug Avandia, the sale of which the FDA recently restricted. And now comes the disturbing news that the British drug maker knowingly sold contaminated baby ointment and an antidepressant that didn’t work. Glaxo will pay $750 million to settle criminal and civil complaints in this latest round of court cases, write Gardiner Harris and Duff Wilson in the New York Times. The case was sparked by complaints from Glaxo’s former quality manager, Cheryl D. Eckard, who told the FDA about serious problems at Glaxo’s premier manufacturing facility in Puerto Rico:

But Ms. Eckard soon discovered that quality control was a mess: the water system was contaminated; the air system allowed for cross-contamination between products; the warehouse was so overcrowded that rented vans were used for storage; the plant could not ensure the sterility of intravenous drugs for cancer; and pills of differing strengths were sometimes mixed in the same bottles.

Although F.D.A. inspectors had spotted some problems, most were missed. And the company abandoned even the limited fixes it promised to conduct, the unsealed lawsuit says. Ms. Eckard complained repeatedly to senior managers; little was done. She recommended recalls of defective products; recalls were not authorized. In May 2003, she was terminated as a “redundancy.”

Overheard:

By now you’ve probably seen the video from the Rand Paul for U.S. Senate campaign rally in Lexington, Ky. where Paul supporters wrestled a female MoveOn.org protestor to the ground and one man stepped on her head.  The guy who appears on video to be stomping 23-year-old Lauren Valle has told reporters that he wasn’t trying to hurt her. Rather, he was trying to hold her down for police and had to use his foot because a bad back prevents him from bending over. Valle told police she was assaulted while trying to take a photo with Paul while holding a fake “employee of the month” award:

“I think that this is an extreme example of the kinds of sentiments that people are feeling in many races across the country,” Valle said. “I think that tension is incredibly high.”

elderly

Ok, so I broke down and took Hearst’s RealAge test for research purposes. But I’m pretty sure the results are stuck in Public Citizen‘s spam filter. The gist of it is that you take RealAge’s online quiz about your health history and habits, and it cranks out your “real” age for you, plus or minus a few years. Predictably, couch potatoes and bacon eaters have years subtracted, while folks with clean medical histories have years added.

And then RealAge sells your info and email to pharmaceutical companies, as the New York Times reported yesterday. Our friends at the CL&P blog have a great post on this, questioning the legality of this business model.

Anyway, RealAge’s questionnaire is unremarkable.

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