In an in depth report in a recent issue of the American Scholar, Harriet Washington, author of Medical Apartheid: The Dark History of Medical Experimentation on Black Americans from Colonial Times to the Present, describes how the pharmaceutical industry uses doctors, medical organizations and medical journals to promote its products.
New England Journal of Medicine to Supremes: Uphold Vermont Ban on Selling MD Prescription Data to Big Pharma
An editorial in the New England Journal of Medicine calls on the U.S. Supreme Court to uphold the Vermont law that requires pharmaceutical data mining companies to obtain physician’s consent before selling their prescription data to drug companies. “This undesirable practice is nothing more than commercial conduct—not speech,” the editors wrote, “and it is not in the best interests of the American people.”
The Supreme Court Protects Vaccine Manufacturers and the Public’s Health
Earlier this year, with its decision in Bruesewitz v. Wyeth,[1] United States Supreme Court found that the National Childhood Vaccine Injury Act[2] immunizes vaccine manufacturers from liability for claims related to vaccines’ design defects. This decision has the shared effect of protecting vaccine manufacturers and promoting the public’s health.
Congress passed the National Childhood Vaccine Injury Act (NCVIA) in 1986 to establish a no-fault compensation program for individuals who experienced vaccine-related injuries or death and to stabilize the vaccine market. In the early to mid-1980s, concerns arose about associations between the diphtheria, tetanus, and pertussis (DPT) vaccine and physical and mental disabilities in children.
These concerns led to a wave of lawsuits against manufacturers of the DPT vaccine; ultimately two of the three domestic DPT vaccine manufacturers stopped producing the vaccine to avoid the costs associated with DPT vaccine-related litigation. By 1984, parents who sought to vaccinate their children faced vaccine shortages.[3] Other parents were electing not to vaccinate their children at all, to avoid any potential vaccine-related risks.[4]
To allay the fears of parents and vaccine manufacturers, Congress created the Vaccine Injury Compensation Program. Through this federal program, an individual with a probable vaccine-related injury (or that individual’s legal guardian) can file a petition with the U.S. Court of Federal Claims to request compensation. A court-appointed special master reviews the petition and makes a determination. This is then reviewed by the Court of Federal Claims. The process is aided by the NCVIA’s Vaccine Injury Table, which includes a list of vaccines covered by the NCVIA as well as information about compensable vaccine-related injuries.[5] If an individual’s vaccine-related injury meets the parameters specified by the Vaccine Injury Table, then the individual is compensated without needing to demonstrate causation. Compensation, which is financed via a tax on vaccines and paid by the federal government, may include medical, rehabilitative, and other costs.[6]
Individuals are permitted to reject the determination of the Court of Federal Claims and pursue a lawsuit against the vaccine’s manufacturer.[7] However, these lawsuits face certain limitations, including the requirement that the plaintiff must first present the claim to the federal Vaccine Injury Compensation Program.[8] For the most part, vaccine manufacturers are immunized from lawsuits related to their failure to warn, as long as they have met all relevant regulatory requirements and have given any vaccine-related warning to either the individual who was injured or to that person’s physician.[9] The NCVIA also immunizes vaccine manufacturers from liability due to a vaccine’s “unavoidable, adverse side effects.”[10]
This provision of the NCVIA was at the center of Bruesewitz v. Wyeth. In 1992, shortly after receiving a DPT vaccination, Hannah Bruesewitz began having seizures.[11] She was subsequently diagnosed with a “residual seizure disorder” and “developmental delay.”[12] In 1995, Hannah’s parents filed a claim on Hannah’s behalf with the Vaccine Injury Compensation Program. The Bruesewitzes rejected the Program’s determination, and they brought a lawsuit against the vaccine’s manufacturer, in 2005. They claimed that the manufacturer should be held liable for their daughter’s disabilities due to the defective design of the DPT vaccine.[13] The Bruesewitzes argued that their claims could be brought under state law, even though the federal NCVIA appeared to prohibit, or preempt, such claims. Specifically, the NCVIA states: “No vaccine manufacturer shall be liable in a civil action for damages arising from a vaccine-related injury or death associated with the administration of a vaccine . . . if the injury or death resulted from side effects that were unavoidable even though the vaccine was properly prepared and was accompanied by proper directions and warnings.”[14]
The Court held that the NCVIA does indeed preempt the state laws upon which the Bruesewitzes based their claims, meaning that the Bruesewitzes’ claims were invalidated. In its opinion, the Court noted that the NCVIA includes a sound quid pro quo: “The vaccine manufacturers fund from their sales an informal, efficient compensation program for vaccine injuries; in exchange they avoid costly tort litigation and the occasional disproportionate jury verdict.”[15] This liability protection has “coax[ed] [vaccine] manufacturers back into the market.”[16]
Bruesewitz v. Wyeth gave the Supreme Court an opportunity to reexamine the delicate balance that has ensured on-going access to vaccines in the United States for nearly 25 years. Like other corporations, vaccine manufacturers seek profits from the sales of their products. If the costs from vaccine-related litigation surpass the revenues from vaccine sales, then vaccine manufacturers will, understandably, stop producing vaccines. Some manufacturers acted on this calculation when they left the vaccine market in the 1980s. While this might be a sound business decision, it is not one that leads to effective public health policy. Vaccines are critical to protecting the public’s health. They have been hailed by the Centers for Disease Control and Prevention as “one of the greatest achievements of biomedical science and public health.”[17] This recognition led the federal government to devise a unique system to provide broad liability protections to vaccine manufacturers.
Recently, scholars have referred to the NCVIA as a “social compact” and “a compromise that safeguards the public’s health.”[18] They have posited that the Supreme Court was correct to “protect” this compromise.18 Others have noted that “civil litigation [outside the Vaccine Injury Compensation System] could be useful in the rare cases in which a plaintiff was contending that a plausible alternative vaccine design would have prevented the adverse event at issue.”[19] A related point was raised in Justice Sotomayor’s dissent to the Bruesewitz decision. She argued that the text of the NCVIA did not preempt all design-defect claims, because the statute only grants liability protection to vaccine manufacturers for “unavoidable,” as opposed to avoidable, side effects.[20] In the majority opinion, however, the Court suggested that allowing such litigation to proceed would be undesirable, as it could potentially leave vaccine manufacturers to face a “universe of alternative designs . . . limited only by an expert’s imagination.”[21] In other words, the Court endorsed Congress’s decision to protect specific corporations to accomplish the greater goal of protecting the public’s health.
In recent years, the Court has decided several major cases, such as Bruesewitz, involving preemption and public health. These opinions are often fact-specific, making it difficult to draw generalizations about the Court’s preemption jurisprudence. From a public health perspective, federal preemption of state and local laws can, at times, promote public health goals. Most public health professionals would favor a strong federal law rather than “a patchwork of weaker or inconsistent state or local laws” to support a public health intervention.[22] Preemption, though, often interferes with public health goals, by preventing states or localities from enacting experimental or innovative laws to address the particular health challenges they face. AsBruesewitz demonstrated, preemption can also prevent state-level lawsuits from proceeding, which may prevent injured parties from receiving compensation for harms they experienced. Although Bruesewitz involved federal preemption, in all likelihood it will ultimately be regarded as a decision that protected the nation’s vaccine supply and, thus, the public’s health.
References:
[1] Bruesewitz v. Wyeth, 131 S.Ct. 1068 (2011).
[2] 42 U.S.C. § 300aa et seq. (1986).
[3] Centers for Disease Control. Diptheria-tetanus-pertussis vaccine shortage. Morb Mortal Wkly Rep. 1984;33:695-696.
[4] Bruesewitz v. Wyeth, 131 S.Ct. 1068, 1073 (2011).
[5] 42 U.S.C. § 300aa-14(a) (2010).
[6] 42 U.S.C. § 300aa-15(a) (2010).
[7] 42 U.S.C. § 300aa-21(a) (2010).
[8] 42 U.S.C. § 300aa-11(a)(2) (2010).
[9] 42 U.S.C. §§ 300aa-22(b), (c) (2010).
[10] Bruesewitz v. Wyeth, 131 S.Ct. 1068, 1074 (2011).
[11] Bruesewitz v. Secretary of Health and Human Servs., 2002 WL 31965744 (Ct. Cl., Dec. 20, 2002).
[12] Bruesewitz v. Wyeth, 131 S.Ct. 1068, 1075 (2011).
[13] Bruesewitz v. Wyeth, 561 F. 3d 233, 237 (3rd Cir. 2009).
[14] 42 U.S.C. § 300aa-22(b) (2010).
[15] Bruesewitz v. Wyeth, 131 S.Ct. 1068, 1080 (2011).
[16] Bruesewitz v. Wyeth, 131 S.Ct. 1068, 1080 (2011).
[17] Centers for Disease Control. Achievements in public health, 1900–1999: impact of vaccines universally recommended for children. Morb Mortal Wkly Rep. 1999;48:243-248.
[18] Kraemer JD, Gostin LO. Vaccine liability and the Supreme Court: forging a social compact. JAMA. 2011;305:1900-1901.
[19] Kesselheim A. Safety, supply, and suits—litigation and the vaccine industry. N Engl J Med. 2011;364:1485-1487.
[20] Bruesewitz v. Wyeth, 131 S.Ct. 1068, 1087 (2011).
[21] Bruesewitz v. Wyeth, 131 S.Ct. 1068, 1079 (2011).
[22] Rutkow L, Vernick JS, Hodge JG, Teret SP. Preemption and the obesity epidemic: state and local menu labeling laws and the Nutrition Labeling and Education Act. J Law Med Ethics. 2008;36:772-789.
Image Credits:
1. Timojazz via Flickr
2. OpenDemocracy via Flickr
Pharma Pay for Delay Boosts Drug Profits at Consumer’s Expense
In a Los Angeles Times column, Michael Hiltzik descibes how Cephalon and other pharma companies pay generic drug makers to keep products off the market to enable them to stretch out monopoly protection and the profits it brings. One analyst estimates on average a one-year delay in the entry of a generic version of a drug can cost consumers more than $660 million.
Vermont and Big Pharma Face off in U.S. Supreme Court
In The Atlantic Monthly, Andrew Cohen analyzes the issues at stake as Big Pharma goes to the U.S. Supreme Court to challenge states’ rights to ban pharmaceutical companies from using “prescriber-identifiable data” to market or promote those drugs to doctors. According to Adweek, the Supreme Court hearings on April 26, 2011, were “a good day for healthcare industry researcher IMS Health, big pharma, and advertising. The day was tougher for the State of Vermont which defended a statute preventing prescription drug data from being used to market to doctors without their permission.” The court decision, expected in the next month or so, will further clarify the constitutional protection the Supremes offer to corporate commercial speech.
Mexico Considers Suing US Gun Makers to Halt Flow of Arms to Drug Trade
Last month CBS News reported that the Mexican government had hired an American law firm to explore filing civil charges against U.S. gun manufacturers and distributors over the flood of guns crossing the border into Mexico.
The National Sports Shooting Foundation, the trade association of gun makers, responded “we are disappointed that [Mexican President Felipe Calderon] would seek to hold law-abiding American companies responsible for crime in Mexico”. The NSSF noted that the Protection of Lawful Commerce in Arms Act, signed into law in 2005 by then President George W. Bush, protects gun makers from most liability for their products, making the success of any Mexican legal action uncertain.
CVS Agrees to Pay State and Feds $17 Million for Overbilling Medicaid
CVS has agreed to pay the federal and state governments more than $17 million to settle claims that the nationwide retail pharmacy chain overcharged Medicaid, according to a CNN report.
CVS was charged with submitting inflated prescription claims in 10 states — California, Florida, Indiana, Massachusetts, Michigan, New Hampshire, Nevada, Rhode Island, Alabama and Minnesota. A CVS whistleblower pharmacist in Minnesota first brought the case forward.
Michigan Court Rules State Cannot Sue Merck to Recover Vioxx Costs
A Michigan state appeals court ruled 2 to 1 recently that the state cannot sue the drug maker Merck and Co. to recover Medicaid costs spent on the drug Vioxx. Merck withdrew Vioxx from the market in 2004 after its own research showed the once-blockbuster drug doubled the risk of heart attack and stroke. The company paid $4.85 billion to settle most of the 50,000 lawsuits claiming that Vioxx harmed or killed users. According to InjuryBoard blogger and attorney Mark Bello, the 1995 law grants immunity to drug makers for any drug approved by the Food and Drug Administration and is the only law of its kind in the U.S. Michigan State Representative Lisa Brown has introduced a bill to change this anti-consumer law and stop the drug industry profiting from putting citizens at risk.
Drug Price Spikes
After winning FDA approval for exclusive rights to sell Makena, a drug that prevents preterm labor, reported Associated Press, KV Pharmaceutical raised the price from $10 to 20 per injection to $1,500. About 130,000 women a year are estimated to benefit from the drug but many state Medicaid programs are unable to afford the higher price.
Corporate Practices in the News
In this article, we briefly describe recent health-related news on corporate practices in the alcohol, pharmaceutical, and food industries.
Alcohol
Economic crisis depresses beer sales
As the economy stagnates, the beer industry worries about falling beer sales. “They’re the worst trends we’ve ever seen,” said Benj Steinman, President of Beer Marketer’s Insights, who spoke in October at the National Beer Wholesalers Association Convention in Chicago. Steinman blamed the drop on the high jobless rates among young adult male blue-collar workers—the industry’s traditional workhorse. “If we were down another 2% next year it wouldn’t surprise me,” Harry Schuhmacher, editor of Beer Business Daily, told wholesalers. Sales of craft beers, however, continue to increase, gaining 11% so far this year as compared to last year. These trends demonstrate the deep effects the recession has on sales of alcohol, food and other products, a topic explored in a previous Corporations and Health Watch post.
Pharmaceuticals
Drug industry finds that 15-second ads don’t make the sell
To save money in a tough economy, many Big Pharma companies have shortened their direct-to-consumer television ads from 30 seconds to 15 seconds. As shown below, data compiled by Ameritest , a copy-testing firm, and Competitrack, an advertising tracking firm indicates that 15-second over-the-counter drug ads constituted 25% of drug ads in 2007, 63% last year and 65% so far this year. In the same period, Big Pharma drug makers lost market share to private label manufacturers, suggesting that shorter ads were less persuasive in winning new customers. “The companies that live and die by their advertising are stretching their budgets with 15-second ads, and frankly there’s a lot for them to learn,” said Ameritest CEO Charles Young. “It’s an awfully short form for creatives to work with. If it devolves into simply reminder advertising, you’re not building brands. You need to bring emotion and news value to those brands.”
In 2005, the drug industry spent more than $4 billion on direct-to-consumer advertising. Advertising is a tax deductible business expense and also enjoys the constitutional protection that the Supreme Court has applied to commercial speech. The rationale for such protection is that advertising helps consumers to make informed decisions. Can a 15- or 30-second ad contribute to more informed health care consumers?
Pharma spending on online advertising to reach $1 billion this year
Like the food and alcohol industries, the pharmaceutical industry is expanding its online advertising. According to a report prepared by eMarketer, online ad spending by drug companies is expected to reach $1 billion this year and keep rising through 2014. One factor slowing growth is the lack of clear guidelines for this form of advertising from the US Food and Drug Administration. A year ago, the FDA held public hearings on the topic and solicited e-mail comments. “Pharma marketers are waiting around,” said eMarketer’s Victoria Petrock, author of the report entitled DTC Pharmaceutical Marketing Online: A Slow Shift to Digital. “They are trying to test the waters but realizing that the FDA isn’t going to come down with a template or a hard-and-fast ruling. Even when that happens, there’s still going to be a process of give-and-take and experimentation.”
Food
Michelle Obama on restaurant practices
The following excerpts are from a speech Michelle Obama made in Washington, D.C. to the National Restaurant Association in September 2010:
“Together, you represent 40 percent of the nearly one million restaurants in the United States, from the biggest chains to the smallest diners. You know what Americans like to eat and what they don’t. You’ve seen how the ingredients we put in our bodies affect the way we feel and the way we feel about ourselves. And you also understand the unique role that food, and restaurants especially, play in our own lives and in the life of our nation….. And the truth is that while restaurants are offering more options and families take advantage of them more often, they aren’t always the healthiest choices…
And as America’s restaurant owners, you’re responsible for one-third of the calories our kids get on a daily basis. The choices you make determine what’s listed on the menus, what’s advertised on billboards, and what’s served on our plates.
And your decisions about how a dish is prepared, what goes into it and where is it placed on the menu, that can have a real impact on the way people eat….Together we have to do more…And we need your help to lead this effort. And today I am asking you to use that creativity to rethink the food you offer, especially dishes aimed at young people, and to help us make the healthier choice the easier choice…First, it’s important to reduce the number of empty calories that our families are consuming, calories that have no nutritional benefit whatsoever. After all, we as humans, we are programmed to crave sugary, fatty, salty foods. And as people who work to meet those needs, I know it’s tempting to respond by creating products that are sweeter, richer and saltier than ever before. But here’s the catch. See, feeding those cravings does just respond to people’s natural desires, it actually helps shape them. The more of these foods people eat, the more they’re accustomed to that taste, and after a while, those unhealthy foods become a permanent part of their eating habits.
But here’s the good news: It can work the other way around just as easily. Just as we can shape our children’s preferences for high-calorie, low-nutrient foods, with a little persistence and creativity we can also turn them on to higher quality, healthier foods.”
Image Credits:
- Grant Hutchins via Flickr
- Competitrack and Ameritest