USFDA ‘Import Bans’: The Malady Calls For Strong Bitter Pills

It is a matter of pride that Indian pharmaceutical industry is the second largest exporter of drugs and pharmaceuticals globally, generating revenue of around US$ 13 billion in 2012 with a growth of 30 percent (Source: Pharmexcil).

Though sounds awkward, it is a reality that India is a country where ‘export quality’ attracts a premium. Unintentionally though, with this attitude, we indirectly accept that Indian product quality for domestic consumption is not as good.

‘Export quality’ being questioned seriously:

Unfortunately today, increasing number of even ‘export quality’ drug manufacturing units in India are being seriously questioned by the regulators of mainly United States (US) and the United Kingdom (UK) on the current Good Manufacturing Practices (cGMP) being followed by these companies. In many instances their inspections are culminating into ‘Import Bans’ by the respective countries to ensure dug safety for the patients.

Are drugs for domestic consumption safe?

Despite intense local and global furore on this subject, Indian drug regulators at the Central Drugs Standard Control Organization (CDSCO), very strangely, do not seem to be much concerned on this critical issue, at least, not just yet. Our drug regulators seem to act only when they are specifically directed by the Supreme Court of the country.

A recent major incident is yet another example to vindicate the point. In this case, according to media reports of November 2013, the Drug Controller General of India (DCGI) has ordered the Indian pharma major Sun Pharmaceuticals to suspend clinical research activities at its Mumbai based bio-analytical laboratory, after discovering that the company does not have the requisite approval from the central government for operating the laboratory. The DCGI has decided not to accept future applications and will not process existing new drug filings that Sun Pharma has made from the Mumbai laboratory until the company gets an approval.

Considering the blatant violations of cGMP standards that are increasingly coming to the fore related to ‘export quality’ of drugs in India, after inspections by the foreign drug regulators, one perhaps would shudder to think, what could possibly be the level of conformance to cGMP for the drugs manufactured in India solely for the local patients.

This question comes up as the record of scrutiny on adherence to cGMP by the Indian drug regulators is rather lackadaisical. The fact that no such warnings, as are being issued by the foreign regulators, came from their local counterpart, reinforces this doubt.

USFDA ‘Import Bans’:

Be that as it may, in this article let me deliberate on this particular drug regulatory issue as is being raised by the USFDA and others.

It is important to note that in 2013 till date, USFDA issued ‘Import Alerts/Bans’ against 20 manufacturing facilities of the Indian pharmaceutical exporters, sowing seeds of serious doubts about the overall drug manufacturing standards in India.

The sequence of events post USFDA inspection: 

Let us now very briefly deliberate on the different steps that are usually followed by the USFDA before the outcomes of the inspections culminate into ‘Import Alerts’ or bans.

After inspections, depending on the nature of findings, following steps are usually taken by the USFDA:

  • Issue of ‘Form 483’
  • The ‘Warning letter’
  • ‘Import Alert’

Revisiting the steps: 

Let me now quickly re-visit each of the above action steps of the USFDA.

‘Form 483’: 

At the conclusion of any USFDA inspection, if the inspecting team observes any conditions that in their judgment may constitute violations of the Food, Drug and Cosmetic (FD&C) and other related Acts, a Form 483 is issued to the concerned company, notifying the firm management of objectionable conditions found during inspection.

Companies are encouraged to respond to the Form 483 in writing with their corrective action plan and then implement those corrective measures expeditiously. USFDA considers all these information appropriately and then determines what further action, if any, is appropriate to protect public health in their country.

The ‘Warning Letter’:

The ‘Warning Letter’ is a document usually originating from the Form 483 observations and results from multiple lacking responses to Form 483 requiring quick attention and action. It may be noted that higher-level USFDA agency officials and not the investigator issue the ‘Warning Letters’.

‘Import Alert/ Ban’:

‘Import Alerts’ are issued whenever USFDA determines that it already has sufficient evidence to conclude that concerned products appear to be adulterated, misbranded, or unapproved. As a result, USFDA automatically detains these products at the border, costing the related companies a lot of money. The concerned company’s manufacturing unit remains on the import alert till it complies with USFDA cGMP.

What happens normally?

Most of the USFDA plant inspections are restricted to issue of Form 483 observations and the concerned company’s taking appropriate measures accordingly. However, at times, ‘Warning Letters’ are issued,  which are also mostly addressed by companies to the regulator’s satisfaction.

Import Bans are avoidable: 

Considering the above steps, it is worth noting that there is a significant window of opportunity available to any manufacturing facility to conform to the USFDA requirements by taking appropriate steps, as necessary, unless otherwise the practices are basically fraudulent in nature.

The concern:

Currently, there is a great concern in the country due to increasing frequency of ‘Import Alerts’.  As per USFDA data, in 2013 to date, about 20 drug manufacturing facilities across India attracted ‘Import Alerts’ as against seven from China, two each from Australian, Canadian and Japanese units and one each from South African and German facilities.

The matter assumes greater significance, as India is the second-largest supplier of pharmaceuticals to the United States. In 2012, pharmaceutical exports from India to the US reportedly rose 32 percent to US$ 4.2 billion. Today, India accounts for about 40 percent of generic and Over-The-Counter (OTC) drugs and 10 percent of finished dosages used in the US.

Ranbaxy cases: ‘Lying’ and ‘fraud’ allegations: 

In September 2013, after the latest USFDA action on the Mohali manufacturing facility of Ranbaxy, all three plants in India of the company that are dedicated to the US market have been barred from shipping drugs to the United States. The magnitude of this import ban reportedly impacts more than 40 percent of the company’s sales. However, Ranbaxy has a total of eight production facilities across India.

This ‘Import Alert’ was prompted by the inspection findings of the USFDA that the Mohali factory of Ranbaxy had not met with the cGMP.

Other two plants of Ranbaxy’s located at Dewas and Paonta Sahib faced the same import alerts in 2008, and are still barred from making drug shipments to the US.

The import ban on he Mohali manufacturing facility of Ranbaxy comes after the company pleaded guilty in May 2013 to the felony (criminal) charges in the US related to drug safety and agreed to pay a record US$ 500 million in fines.

In addition, the company also faced federal criminal charges that it sold batches of drugs that were improperly manufactured, stored and tested. Ranbaxy also admitted to lying to the USFDA about how it tested drugs at the above two Indian manufacturing facilities.

Heavy consequential damages with delayed launch of generic Diovan:

The ‘Import Alert’ of the USFDA against Mohali plant of Ranbaxy, has resulted in delayed introduction of a cheaper generic version of Diovan, the blockbuster antihypertensive drug of Novartis AG, after it went off patent.

It is worth noting that Ranbaxy had the exclusive right to sell a generic version of Diovan from September 21, 2012. 

Gain of Novartis:

This delay will help Novartis AG to generate an extra one-year’s sales for Diovan. This is expected to be around US$ 1 billion, only in the US. This development prompted Novartis in July this year to raise its profit and sales forecasts accordingly.

Wockhardt cases: Non-compliance of cGMP

Following Ranbaxy saga, USFDA inspection of Chikalthana plant of Wockhardt in Maharashtra detected major quality violations. Second time this year USFDA noted 16 violations of cGMP in the company’s facility. Earlier, in July 2013, the Agency issued a ‘Warning Letter’ and ‘Import Alert’ banning the products manufactured at the company’s Waluj pharmaceutical production facility.

Moreover, in September 2013, Medicines and Healthcare Products Regulatory Agency (MHRA) had pulled the GMP certificate of the company’s unit based in Nani Daman, after an inspection conducted by the UK regulator showed poor manufacturing standards. 

Again, in October 2013, the MHRA withdrew its cGMP certificate for the Chikalthana plant of Wockhardt. This move would ban import of drugs into the UK, manufactured in this particular plant of the company.

However, MHRA has now decided to issue a restricted certificate, meaning Wockhardt will be able to supply only “critical” products from these facilities. This was reportedly done, as the UK health regulator wants to avert shortage of certain drugs essential for maintaining public health. The impact of the withdrawal of cGMP certificate on existing business of the company can only be ascertained once Wockhardt receives further communications from the MHRA.

Earlier in July 2013, MHRA had reportedly also imposed an import alert on the company’s plant at Waluj in Maharashtra and issued a precautionary recall for sixteen medicines made in this unit.

RPG Life Sciences cases: allegedly ‘Adulterated’ products: 

In June 2013, USFDA reportedly issued a ‘Warning Letter’ to RPG Life Sciences for serious violation of cGMP in their manufacturing plants located at Ankleshwar and Navi Mumbai.

USFDA investigators had mentioned that “These violations cause your Active Pharmaceutical Ingredients (APIs) and drug products to be adulterated …the methods used in, or the facilities or controls used for, their manufacture, processing, packing, or holding do not conform to, or are not operated or administered in conformity with cGMP.”

Strides Arcolab case: Non Compliance of cGMP

In September 2013, Strides Arcolab announced that its sterile injectable drug unit – Agila Specialties (now with Mylan) had received a warning letter from the USFDA after its inspection by the regulator in June 2013. However, Strides Arcolab management said, “the company was committed to work collaboratively and expeditiously with the USFDA to resolve concerns cited in the warning letter in the shortest possible time.”

USV case: allegation of ‘data fudging’: 

Recently, USFDA reportedly accused Mumbai-based drug major USV of fudging the data.

After an inspection of USV’s Mumbai laboratory in June 2013, the US drug regulator said the company’s “drug product test method validation data is falsified”. The USFDA has also reprimanded USV for not training its staff in cGMP.

Probable consequences: 

USFDA import bans and a similar measure by the UKMHRA would lead to the following consequences:

  • Significant revenue losses by the companies involved, till the concerned regulators accept their remedial actions related to cGMP.
  • Increasing global apprehensions about the quality of Indian drugs.
  • Possibility of other foreign drug regulators tightening their belts to be absolutely sure about cGMP followed by the Indian drug manufacturers, making drug exports from India more difficult.
  • Huge opportunity cost for not being able to take advantage from ‘first to launch’ generic versions of off patent blockbuster drugs, such as from Diovan of Novartis AG.
  • Indian patients, including doctors and hospitals, may also become apprehensive about the general quality of drugs made by Indian Pharma Industry, as has already happened in a smaller dimension in the past.
  • Opposition groups of Indian Pharma may use this opportunity to further their vested interests and try to marginalize the Indian drug exporters. 
  • MNCs operating in India could indirectly campaign on such drug quality issues to reap a rich harvest out of the prevailing situation.
  • Unfounded ‘foreign conspiracy theory’ may start gaining ground, prompting the Indian companies moaning much, rather than taking tangible remedial measures on the ground to effectively come out of this self created mess.

Conclusion: 

Repeated cGMP violations made by the Indian drug exporters, as enunciated by the USFDA, have now become a malady, as it were. This can be corrected, only if the reality is accepted without attempting for justifications and then swallowing strong bitter pills, sooner.

Thereafter, the domestic pharma industry, which has globally demonstrated its proven capability of manufacturing quality medicines at affordable prices for a large number of patients around the world and for a long time, will require to tighten belts for strict conformance to cGMP norms, as prescribed by the regulators. This will require great tenacity and unrelenting mindset of the Indian Pharma to tide over the crisis.

Any attempt to trivialize the situation, as indicated above, could meet with grave consequences, jeopardizing the thriving pharma exports business of India.

That said, any fraud or negligence in the drug quality standards, for whatever reasons or wherever these may take place, should be considered as fraud on patients and the perpetrators must be brought to justice forthwith by the DCGI, with exemplary punitive measures.

By: Tapan J. Ray

Disclaimer: The views/opinions expressed in this article are entirely my own, written in my individual and personal capacity. I do not represent any other person or organization for this opinion.

Healthcare Malpractice in India: Even Medical Association distastes the ‘Bitter Pill’

At a peak of repeated overdose of media sensationalism covering various facets of happenings around us, at times almost mimicking ‘self-flagellation’ though, the program ‘Satyamev Jayate (Truth Alone Triumphs) ’ of Bollywood icon Aamir Khan has the potential to be a ‘game changer’ in terms of transformation of mindset of ‘We the People of India’  towards ‘What we can do for the country’ and JUST NOT ‘What the country can do for us’.

My perspective:

As I see it, the show endeavors to instill a sense of introspection in the viewers’ mind providing relevant information and knowledge, especially when for misdeeds of all shades, hues and colors around our lives, we tend to instinctively blame others, positioning ourselves on the illusive high pedestal of probity and considering ourselves ‘Lilly-white’ …and just the victims of circumstances.

What made me aware of it?

Personally, I became aware of the show, when one of my good friends strongly recommended watching its ‘Episode 4′ titled, “Every Life Is Precious: Does Healthcare Need Healing?’  He in fact mailed me even the video link of the same. Thereafter, I collected similar video links for previous other episodes from the internet and was highly impressed with the sense of purpose of the program.

What did it want to achieve?

As far as I am concerned, I am quite convinced that this particular episode highlights that:

“People trust medical practitioners, believing that they are equipped with the knowledge and skills to safeguard their health. But when this knowledge is misused to exploit this trust, medical care becomes a nightmare. The profession is riddled with unscrupulous doctors and hospitals out to make big bucks at the cost of patients, but there are still medical practitioners who stand up for the Hippocratic Oath, and those who want to clean up the profession.”

Dishonest acts in healthcare need to be opposed with courage:

In the program, Aamir Khan started by saying that that the episode was not about mistakes and negligence that a doctor may commit but about dishonest acts of some doctors, which were committed undoubtedly with equally dishonest intentions, amounting to fraud and a breach of trust between doctors and the patients.

The ‘Episode 4′ not only highlighted the deficiencies in the existing system related to medical ethics, but also issues pertaining to pricing of drugs, medical education and  the functioning of the Medical Council of India (MCI).

Strong protests do not prove innocence:

Unfortunately, instead of appreciating the social transformation efforts of the program, many doctors reportedly protested against this particular episode.

I shall not be surprised, if some more protests from other quarters reach Aamir Khan in a different guise, even in the guise of seemingly support, especially from those who are perpetually in a denial mode stating: ‘what all were shown in the program are misguiding/misleading’, ‘you don’t know the facts/reality’, ‘what was shown is just half truth’, ‘our way is the right way’ and ‘we were not given a chance to express our views’.

However, as we all know that strong and venomous protests, even protests well concealed in the guise of support, do not prove innocence of the perpetrators, at all, though we all have a right to protest in our country.

In a protest credibility also matters:

A leading magazine of the country, ‘India Today’ in its August 25, 2011 edition titled ‘Address sick state of the health system’, reported in a different context:

“Among the multitude of people who flocked to the Ramlila grounds this week in support of the anti-corruption crusader Anna Hazare were some surprises. A delegation of the Indian Medical Association (IMA) met Hazare and extended support to his fight against corruption”.

“Subsequently branches of the association all over the country were told to organize candle light vigil and sit-ins against corruption. IMA is the largest professional body of Indian doctors and their support to the anti-graft movement should be taken seriously. After all, doctors are considered strong opinion makers in the society”.

“However, a careful look at the association’s past and its stand on the issue of corruption in medical community makes one wonder if IMA’s views on corruption have any value at all”, the report added.

Reports of protest on “Every Life Is Precious: Does Healthcare Need Healing?’ :

The daily newspaper ‘DNA’ in its June 2, 2012 issue reported, “Indian Medical Association asks Aamir Khan to apologize.”

The report elaborated that the Indian Medical Association demanded an immediate apology from Aamir Khan for having ‘defamed’ the medical profession in his TV show and warned him of legal action if he fails to comply with their demand.

Voices of sanity:

Being in unison with many other voices of sanity, against the demand of apology by the medical association, the lyricist and social activist Javed Akhtar reportedly had commented, “The Indian Medical association wants Aamir to apologize for exposing corruption in their profession. That is really sick.”

The Crusader remains unfazed against threats:

However, as reported by NDTV, Aamir Khan has refused to apologize and said, “I will not apologize to the doctors, I have not insulted the medical profession. Those doctors who indulge in unethical practices have defamed the profession, not me.”

Some other examples of ‘Medical Negligence’:

As reported by ‘Livemint (WSJ)’ in its May 15, 2012 edition, “Dozens of hospitals all over the country are ransacked each year by irate relatives and other ‘socially conscious’ citizens in an attempt to get back at alleged cases of medical malpractice. In many cases patients are crippled for life or even killed, and many of these cases may indeed involve instances of incompetence or malpractice. This does not in any way condone the violence, but then the victims have little recourse to justice or investigation”.

Highlighting similar medical negligence, ‘Times of India’ ‘ on October 22, 2011 reported that ‘The National Consumer Disputes Redressal Commission (NCDRC)’ on October 21, 2012 ordered a compensation amount of Rs 1.73 Crore to be paid to the US-based husband of a child psychologist who died in Mumbai due to medical negligence.

Very few doctors punished for Medical Malpractice:

Effective January 1, 2011, just 17 doctors from all over India were found guilty on account of Medical Negligence/Misconduct and received varying degree of punishment from the MCI.

It is worth noting, unlike other countries and despite all these maladies being faced by a common man reportedly on a daily basis, not a single erring doctor’s name has been removed permanently from the Indian Medical Register/State Medical Register by the MCI or any State Medical Council, since 2008?

Some very recently reported actions by MMC and MCI:

Meanwhile the news daily ‘DNA’ in its June 6, 2012 edition reported that  for different errant behavior, so far, the Maharashtra Medical Council (MMC) has sent show-cause notices to 31 doctors in the state and suspended registrations of five doctors.

Not so long ago to maintain desirable ethical standards within the Medical Profession, the notification of the Medical Council of India (MCI) dated December 10, 2009 amending the “Indian Medical Council (Professional Conduct, Etiquette and Ethics), Regulations 2002″ was also welcomed by concerned right thinking individuals including a large section of the medical profession.

Conclusion:

Medical malpractice, of course, is not just an Indian issue. ‘The Wall Street Journal’ in an article titled, ‘How Other Countries Judge Malpractice’, published on June 30, 2009 reported that in his speech to the ‘American Medical Association’, President Barack Obama held out the tantalizing possibility of reforming medical malpractice law as part of a comprehensive overhaul of the U.S. health-care system.

With TV shows like ‘Satyamev Jayate (Truth Alone Triumphs)’, let us collectively move towards the day, transforming ourselves as the change agents, when all of us rich, middle-class or poor will live in a country where things will be quite different from what we are experiencing today.

Many erudite medical practitioners of our country who still stand up for the ‘Hippocratic Oath’, will expectedly take initiative to clean up their profession, being harsh on the ‘Black Sheep’, probably through stringent self-regulations, even if the MCI continues to keep its eyes closed.

Let us all conscientiously try to pave the way for that day, when despite socioeconomic disparity people from all strata of our society will be able to get quality healthcare, driven by competent regulators, socially conscious industry and above all the dedicated medical profession, who under ‘Hippocrates Oath’ will consider each life equally precious, taking their noble profession almost back to the earlier high pedestal of a ‘Human God’!.

Against the mighty power of rejuvenated human will, all concerned in the healthcare space, willy-nilly, hopefully will have to swallow the ‘Bitter Pill’, not just in India, but across the world, for the sake of humanity.

Let ‘Truth Alone Triumph’….‘Satyamev Jayate’.

By: Tapan J Ray

Disclaimer: The views/opinions expressed in this article are entirely my own, written in my individual and personal capacity. I do not represent any other person or organization for this opinion.