FDA Pharmaceutical Industry Ties

AHealthcareZ - Healthcare Finance Explained

@ahealthcarez

Published: September 6, 2021

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This video, presented by Dr. Eric Bricker of AHealthcareZ, delves into the intricate and often problematic financial and personnel ties between the U.S. Food and Drug Administration (FDA) and the pharmaceutical industry it is tasked with regulating. Drawing insights from a 2021 New York Times opinion piece by Farhad Manjoo, Dr. Bricker explores two primary areas of potential conflict of interest: the FDA's funding model and the "revolving door" phenomenon where regulators transition to industry roles. The overarching purpose is to highlight systemic issues that may compromise the FDA's impartiality and, consequently, drug safety for patients, prompting a discussion on how physicians should approach prescribing newly approved medications.

The speaker details a significant shift in FDA funding that occurred in 1992, where the agency began collecting fees directly from pharmaceutical companies to cover the salaries of FDA employees. This arrangement, which includes "performance guarantees" from the FDA related to the speed of drug reviews, creates a direct financial link between the regulator and the regulated, raising concerns about "regulatory capture." Dr. Bricker emphasizes that this model means the industry itself funds the very body designed to oversee it, inherently creating grounds for a conflict of interest that could prioritize speed of approval over thoroughness or safety.

Further exacerbating these concerns is the "revolving door" phenomenon, where FDA personnel, particularly those involved in drug approval, leave their government positions to take up more lucrative roles within the pharmaceutical industry. The video cites an example of over 13 cancer drug reviewers making this transition. A particularly egregious case highlighted is that of Curtis Wright, the FDA regulator specifically responsible for Oxycontin, who subsequently left the FDA to work for Purdue Pharma, the manufacturer of Oxycontin and a central figure in the opioid epidemic. These instances suggest a potential for regulators to be overly lenient in the approval process, possibly with an eye toward future employment opportunities within the industry.

The consequences of these ties are illustrated by a troubling statistic: one-third of drugs approved by the FDA between 2000 and 2010 were later found to have safety problems during Phase 4 post-market surveillance. In response to these systemic issues, Dr. Bricker shares a practical recommendation from his residency training at Johns Hopkins: physicians might consider waiting five years after a new drug's approval before prescribing it, especially if other proven and safe alternatives exist. This allows for more extensive real-world data collection and identification of issues missed in initial clinical trials, as seen with drugs like Vioxx, Avandia, and Zelnorm. While acknowledging exceptions for critical medications with no alternatives, such as the COVID vaccine, the video concludes with a strong call for fundamental changes to the FDA's funding and operational structure to restore public trust and ensure unbiased regulation.

Key Takeaways:

  • FDA Funding Model Conflict: Since 1992, the FDA has received funding directly from pharmaceutical companies to pay employee salaries, creating a direct financial tie and potential conflict of interest, as the regulated industry funds its regulator.
  • Performance Guarantees: In exchange for industry funding, the FDA reportedly offered "performance guarantees" related to the speed of drug reviews, suggesting a prioritization of efficiency that could compromise thoroughness.
  • High Incidence of Post-Approval Safety Issues: A significant concern is that one-third of drugs approved by the FDA between 2000 and 2010 were later found to have safety problems during Phase 4 post-market surveillance, indicating potential gaps in the initial approval process.
  • The "Revolving Door" Phenomenon: Many FDA regulators transition to high-paying jobs within the pharmaceutical industry after their tenure, raising ethical questions about potential leniency during their regulatory roles.
  • Egregious Example of Conflict: The case of Curtis Wright, the FDA regulator for Oxycontin, who later worked for Purdue Pharma, serves as a stark illustration of how the "revolving door" can lead to severe conflicts of interest with public health consequences.
  • Physician's Prudent Prescribing Strategy: A recommendation from Johns Hopkins suggests physicians consider waiting five years after a new drug's approval before prescribing it, allowing for more robust post-market safety data to emerge.
  • Importance of Phase 4 Surveillance: This waiting period emphasizes the critical role of Phase 4 post-market surveillance in identifying adverse effects or safety issues that may not be apparent during pre-market clinical trials.
  • Historical Precedents for Caution: Past examples like Vioxx (increased cardiovascular risk), Avandia (poor cardiovascular outcomes), and Zelnorm (liver function problems) underscore the historical basis for exercising caution with newly approved medications.
  • Exceptions for Unmet Needs: The strategy of waiting five years is not absolute; in situations where no other effective treatment options exist (e.g., the COVID vaccine), the immediate use of new drugs may be justified, balancing risks and benefits.
  • Broader Regulatory Context: When evaluating critical new drugs, especially in global health crises, considering approvals by multiple international regulatory agencies can provide an additional layer of validation beyond the FDA's assessment.
  • Call for Systemic Reform: The video advocates for fundamental changes to the FDA's funding and operational structure to eliminate conflicts of interest, enhance regulatory independence, and rebuild public trust in drug approval processes.

Tools/Resources Mentioned:

  • New York Times article by Farhad Manjoo (September 2, 2021)
  • AHealthcareZ video on Regulatory Capture
  • AHealthcareZ video on Stages of Drug Approval

Key Concepts:

  • Regulatory Capture: A form of political corruption that occurs when a regulatory agency, created to act in the public interest, instead advances the commercial or political concerns of special interest groups that dominate the industry or sector it is charged with regulating.
  • Post-Market Surveillance (Phase 4): The ongoing monitoring of a drug's safety and effectiveness after it has been released to the market and is being used by the general public. This phase is crucial for detecting rare or long-term side effects that may not have been observed during clinical trials.
  • Conflict of Interest: A situation in which a person or organization has a vested interest—financial, personal, or otherwise—that could potentially bias their judgment or actions in a professional or official capacity.
  • Quid Pro Quo: A favor or advantage granted or expected in return for something. In this context, it refers to the implied exchange of industry funding for faster drug review times or future job opportunities.

Examples/Case Studies:

  • Curtis Wright and Oxycontin: The FDA regulator responsible for Oxycontin who later took a job with Purdue Pharma, the drug's manufacturer, illustrating a direct "revolving door" conflict.
  • Vioxx: A pain medication found to increase cardiovascular and stroke risk after its approval.
  • Avandia: A diabetes medication found to increase poor cardiovascular outcomes post-approval.
  • Zelnorm: An IBS medication taken off the market due to problems with liver function.
  • COVID Vaccine: Cited as an example of a critical new drug where immediate use was justified due to the lack of alternatives and global pandemic circumstances, despite broader concerns about FDA processes.