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April 8, 2005

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In this Issue


Crawford Nomination Hits Speed Bump


FDA Takes Further Action on COX Drugs


Implementation of Full NIH Ethics Rules Slowed


HELP Committee Announces Importation Hearing


Broader Stem Cell Access to Receive House Floor Vote


Obesity and Nutrition Addressed at House Hearing


FDA Publishes Food Labeling Notices


CMS Publishes Draft Guidance on “Coverage with Evidence Development”


Bond Introduces Bill to Modernize Mississippi Lock System


Groups Push for Low Level Antibiotic Ban in Feeds


Europe to Leave Syngenta Inquiry to the U.S.


Harkin Calls for Investigation into Livestock Concentration


Conner Confirmation Hearing as USDA Deputy Secretary Goes Smoothly


ITC Goes Against Pork Producers; Canada to Hit U.S. with Tariff on Hogs


BSE UPDATE:


New Bills
 

Crawford Nomination Hits Speed Bump

As promised at his nomination hearing before Senate Health, Education, Labor & Pensions (HELP) Committee, FDA Commissioner-designate Dr. Lester Crawford met with interested committee members on April 6 to further respond to concerns about FDA’s handling of an application to move the so-called “morning after pill” Plan B to over-the-counter (OTC) status. At the hearing, Crawford responded this application has taken longer than some might have expected because it has “unique” aspects. Several committee members wanted further information about what was “unique” about the application, as well as the agency’s timeframe for a decision.

Among those attending the meeting with Crawford, Sens. Patty Murray (D-WA) and Hillary Clinton (D-NY) were dissatisfied with information they received and placed “holds” on Crawford’s nomination. This action is taken when Senators want to slow down, or stop altogether, Senate action. Murray and Clinton indicated they want better answers about Plan B before they will support Crawford’s appointment.

Crawford reportedly indicated at yesterday’s meeting the agency remains concerned about who will use Plan B if available OTC and why it will be used. Further, he is said to have indicated, as he did at the earlier hearing, that a pending lawsuit is slowing agency action while decisions are being made about how this will be dealt with.

Meanwhile, the HELP Committee posted a notice that it will meet on April 13 to consider the Crawford nomination. How the nomination will fare at the committee or when and how the Senate subsequently will proceed is unclear.

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FDA Takes Further Action on COX Drugs

Following on the heels of a three-day advisory committee meeting in February focusing on the relative risks and benefits of COX-2 and non-steroidal anti-inflammatory drugs sold both by prescription and over-the-counter (OTC), FDA Thursday announced a number of dramatic changes.

First, the agency has reached an agreement with Pfizer to remove Bextra from the market, making this the second COX product withdrawal in less than a year. (VIOXX was removed from the market by Merck in September, 2004.) When it considered Bextra specifically, the FDA advisory committee voted 32-0 that the product significantly increased cardiovascular risk, but 17-13 that the overall risk-benefit profile supported continued marketing of the drug. Among the advisory committee’s recommendations was increased and more prominent (Black Box) warning labeling on the product. The committee did not specifically recommend product withdrawal.

Further, FDA will require Black Box warnings on Celebrex and all prescription non-steroidal anti-inflammatory drugs (NSAIDs), and revised labeling on all OTC NSAIDs. The new labeling will provide more information about potential cardiovascular and gastrointestinal risk.

In addition to a press release and talk paper, FDA also issued a Public Health Advisory and provided new fact sheets for patients and providers regarding these products and decisions.

These actions come as FDA continues to be criticized by some on Capitol Hill and in the consumer advocacy community for not being aggressive enough on drug safety. Public Citizen, in fact, while applauding removal of Bextra from the market, continued in its public statements to call for more action. “While we are pleased that the FDA has taken Bextra off the market, it has recklessly allowed Celebrex to continue to be sold,” the organization stated. “We call on Congress, which is finally delving into FDA’s operations, to investigate why the agency is not also pulling the equally dangerous Celebrex from the shelves.” FDA, in its Public Health Advisory, states the agency’s conclusion that “the benefits of Celebrex outweigh the potential risks in properly selected and informed patients.”

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Implementation of Full NIH Ethics Rules Slowed

National Institutes of Health (NIH) Director Elias Zerhouni said he is delaying implementation of the requirement in the new ethics guidelines that force employees who hold stock in drug or medical companies to divest their stock.

Appearing Wednesday before the Senate Appropriations subcommittee on Labor, HHS, & Education Zerhouni reiterated his strong support for the new rules' ban on consulting with any drug, biotech or medical devices company, or any institution doing substantial business with NIH. Yet he also acknowledged that restrictions on stock ownership have alienated NIH employees, led to the resignations of high-level administrators and delayed the appointment of a new NIH official.

"That part of the rule, frankly, is the one I think we need to re-evaluate very quickly," Zerhouni told the Senate panel. Among Senators who said the rules went too far were Sens. Arlen Specter (R-PA) and Tom Harkin (D-IA).

In one instance, James F. Battey, chief of NIH's human-stem-cell program and director of that agency's deafness institute, cited the rules in announcing his retirement, and David Schwartz, a physician from Duke University, has postponed taking the helm of the National Institute of Environmental Health Sciences.

The Washington Post has been covering the new ethics rules closely with coverage of the chilling effect the new rules are having on the scientific community. For instance, under the new rules, many NIH employees cannot hold executive positions with trade or professional organizations, even on a volunteer basis, because those groups often represent scientists who could be grant recipients. They also cannot accept awards or prizes of more than $200. The Post went further in an editorial appearing in Wednesday’s edition criticizing the rules for being “overbroad, intrusive and unnecessarily punitive.”

 

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HELP Committee Announces Importation Hearing

Fulfilling a commitment made earlier this year to Sen. Byron Dorgan (D-ND), the Senate Health, Education, Labor & Pensions (HELP) Committee will hold a hearing on Dorgan’s prescription drug importation bill, S. 334. The committee has held two hearings on Rx importation, one focusing on the Surgeon General’s report regarding safety, and a second focusing on a Commerce Department report on cost. At neither hearing were specific legislative provisions discussed.

The upcoming hearing, scheduled for the week of April 18, will respond to Dorgan’s request, made in the context of the Senate’s moving forward with the nomination of Gov. Mike Leavitt to be Secretary of Health & Human Services, was to have the committee and witnesses talk specifically to provisions of proposed legislation, particularly his bill. S. 334 has 30 cosponsors, of whom four (Sens. Ted Kennedy (D-MA), Jim Jeffords (I-VT), Hillary Clinton (D-NY), and Jeff Bingaman (D-NM)) are members of the HELP Committee. S. 334 is not the only Rx importation bill to be introduced in this Congress, and Enzi has indicated his own interest in working in a bipartisan fashion on the issue.

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Broader Stem Cell Access to Receive House Floor Vote

House Republican leadership told party moderates a vote will occur before August on a proposal to modify President Bush's stem cell research policy. Rep. Mike Castle (R-DE) said the leadership pledged to take up some version of a proposal to allow federally financed research on stem cells taken from leftover frozen embryos from fertility clinics.

Under the current policy set by President Bush in 2001, federal financing is only available for a finite number of stem cell lines. A bill introduced by Castle and Rep. Diana DeGette (D-CO) would allow for the use of leftover embryos from fertility treatments with the permission of the couple. In an attempt to tackle the ethical questions surrounding embryonic stem cells, the members argue these embryos have already passed the point where a decision has to be made between life and destruction. Castle said his proposal strikes a balance between the benefits of research using existing stem cell lines and reluctance to create a potential human life solely for laboratory use.

While House leadership promised a vote on the issue, it is unclear whether it will be on the Castle/DeGette bill. A Senate version of the bill has been introduced by Sen. Arlen Specter (R-PA), but Majority Leader Sen. Bill Frist (R-TN) has not indicated plans to bring it up for a vote. The White House continues to oppose any changes to the current ban.

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Obesity and Nutrition Addressed at House Hearing

Addressing obesity and nutrition issues, the House Appropriations subcommittee on Agriculture held a hearing on Research, Education and Economics (REE) on Thursday.

Joseph J. Jen, USDA Under Secretary for Research, Education and Economics, testifying at the hearing, stated “Particularly disquieting is the incidence of obesity in children, estimated to be approximately 15 percent and essentially doubling between 1980 and 2000 ... USDA, with its food assistance, nutritional education, and nutrition research programs, plays an important role in promoting healthy nutrition and weight, in general, and in addressing the obesity challenge, in particular.”

Rep. Sam Farr (D-CA) asked what the Agricultural Research Service (ARS) and USDA are doing to increase fruits and vegetables in schools. He also said that they are moving too slow and need to put their money where their mouths are. Jen responded that over the past year the department has worked to raise the importance of obesity, particularly prevention. Research into human nutrition has occurred and they have brought different disciplines together to create an integrated program. He noted that greater understanding is needed because we know that most people have the choice of eating fruits and vegetables, but don’t.

Edward B. Knipling, USDA Administrator for ARS, added that the Human Nutrition Centers are doing work on these issues and the release of the Dietary Guidelines emphasizes fruits and vegetables. He noted significant funds, 15% of the ARS budget, goes to basic core plant research, with human nutrition at 8% of the budget in six centers (35% of the budget is for plant science). Farr questioned why only 15% is spent on this research and requested a complete breakdown of the 35% figure including general and sub categories. In addition he asked for raw evidence showing if any of the money is helping the fight against obesity.

The six person panel also included Colien Hefferan, Administrator, Cooperative State Research, Education and Extension Service, Susan E. Offutt, Administrator, Economic Research Service, R. Ronald Bosecker, Administrator, National Agriculture Statistics Service and Dennis Kaplan, USDA Budget Office.

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FDA Publishes Food Labeling Notices

On April 4, FDA published two Advance Notices of Proposed Rulemaking deriving from earlier recommendations of the agency’s Obesity Working Group. The Working Group, established in 2003, issued a final report with recommendations in February 2004, after holding a number of workshops and public meetings and collecting comments through a public docket.

The notice entitled “Food Labeling: Prominence of Calories” requests comment on how the food label could be improved to provide more useful information to consumers about food calorie content. The notice raises a number of questions, asking commenters to respond and provide suggestions related to the Obesity Working Groups’ recommendations to consider giving more prominence to calorie content on the food label, presenting calorie information in ways other than, or additional to, percent daily value or percent relative to fat. The notice also asks about possibilities for reformulating food products to reduce calorie content.

“Food Labeling: Serving Sizes of Products that Can Reasonably Be Consumed At One Eating Occasion; Updating of Reference Amounts Customarily Consumed; Approaches for Recommending Smaller Portion Sizes” requests comment on revising the food label to provide more sensible and understandable information about serving size. Among issues raised by the Obesity Working Group was packaging more than one serving in small containers or bags that consumers generally would believe constitute a single serving (such as a snack pack of potato chips). The Working Group said consumers may not make the connection between label information about calories, fat in a single serving and that if they eat the whole bag, they are actually consuming two or more servings and thus twice or more times calories.

FDA indicated it is asking for comments and suggestions, not proposing solutions, because the agency wants input from industry and consumers about the best ways to proceed on these matters. There is a 75-day comment period for both notices with a June 20, 2005, deadline.

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CMS Publishes Draft Guidance on “Coverage with Evidence Development”

On April 7, the Centers for Medicare & Medicaid Services (CMS) published a draft guidance on its approach to National Coverage Decisions in the course of gathering additional evidence of the medical benefit of a service or product. The guidance lays out the argument that patient access to new technology, or existing technology used for new purposes, can be enhanced by allowing for coverage while evidence of benefit is being gathered. In cases where additional evidence is needed, CMS says, coverage could be provided so long as certain conditions are met that involve prospective collection of data.

Just as in cases where coverage is limited to specific individuals with certain conditions or characteristics that make them more likely to benefit or to specific providers, coverage “under protocol” could be limited to cases where patients and providers are participating in a defined data collection activity, such as a clinical study or registry.

CMS indicates that while coverage decisions generally have fallen into categories of coverage denied, coverage with conditions, or coverage without conditions, the agency does not anticipate any national coverage decisions in the future that will not be associated with some pre-defined conditions.

As its authority to proceed with this concept, CMS cites provisions of the Social Security Act stating Medicare coverage is provided for items and services that are “reasonable and necessary.” Determining whether it is reasonable or necessary, the guidance states, requires either sufficient evidence already available that a medical benefit is generally derived from the service or by specific patients, or continued collection of information to make such a demonstration. As an example, the Guidance cites off-label use of cancer drugs where use is not cited in a medical compendium. Recently, a decision was made to cover such off-label use provided the patients enrolled in specified clinical studies.

The publication requests comment on a number of aspects of this Coverage with Evidence Development (CED) process, although does not appear to suggest there is a possibility that the CED process will not move forward. Interested parties are asked to comment on a number of items, including appropriate circumstances for a CED, process for requesting such a coverage determination, various approaches to collecting evidence, what kinds of evidence will be most useful and realistically obtainable and what is the universe of affected stakeholders. Written comments are due to CMS by June 5, 2005 with an Open Door Forum scheduled for May 9, 2005.

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Bond Introduces Bill to Modernize Mississippi Lock System

Saying the legislation is key to jobs creation and economic development along the upper Mississippi River, Sen. Christopher “Kit” Bond (R-MO) this week introduced legislation to modernize the river locks and dams system.

Bond was joined on the bill, part of the Water Resources Development Act (WRDA), by Sens. Jim Talent (R-MO), Chuck Grassley (R-IA) and Tom Harkin (D-IA), but the bill is expected to garner support from a bipartisan group of Senators whose states rely on Mississippi River transport to move agricultural and manufactured commodities to ports on the Gulf.

The bill would authorize $2.475 billion for seven new locks, including $1.58 billion for ecostystem restoration. The money would be used to replace the aging infrastructure, and is predicted to create 48 million man-hours of construction work.

The current system is nearly 70 years old, Bond said, and in the last 35 years water-borne transportation has more than tripled to over 85 million tons.

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Groups Push for Low Level Antibiotic Ban in Feeds

Groups opposed to the use of low-level antibiotics in livestock and poultry feed delivered a one-two punch to the industry this week with the introduction by Sens. Edward Kennedy (D-MA), Olympia Snowe (R-ME) and Susan Collins (R-ME) of a bill to phase out seven classes of antibiotics used in human medicine, action that followed the filing of a petition with FDA to achieve the same goal.

While the public reason for the bill and the petition is concern over antibiotic resistance, the Animal Health Institute (AHI) said the action “was nothing new” for the activist groups, and reiterated its position that there is no verifiable science to substantiate the activist claim. At the same time, AHI said, to remove the products will result in animal sickness and death, while adversely affecting farmers’ income and food quality and availability.

The petition was filed by Food Animal Concerns Trust (FACT), an animal rights group, Environmental Defense, Union of Concerned Scientists, American Public Health Assn. and the American Academy of Pediatrics.

Industry also points to the same set of FDA guidelines as the activists when saying there’s no reason to ban the products. The agency is reviewing the use of some products as growth promoters.

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Europe to Leave Syngenta Inquiry to the U.S.

European officials this week said they will leave to the U.S. the investigation into how Syngenta’s unapproved genetically modified corn seed got into the market and eventually was sold as product in the European Union (EU). The European Commission estimates about 1,000 metric tons of animal feed, corn flour and corn oil entered the EU. The Commission has also written an “open letter of protest” to Syngenta asking for its cooperation in tracking down suspect products, a spokesman said, but added that beyond that action, “it’s a matter for U.S. authorities.”

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Harkin Calls for Investigation into Livestock Concentration

Renewing the Iowa Senate call of the last three Congresses, Sen. Tom Harkin (D-IA) this week said a “rapidly consolidating livestock industry” calls for an investigation of how USDA is carrying out its responsibilities under the Packers & Stockyards Act. It’s this law that prevents anti-competitive, unfair and deceptive practices in the livestock and poultry markets.

Harkin sent a letter asking USDA’s Inspector General to look into how aggressively and accurately USDA is examining and reporting anti-competitive and unfair market practices.

“In Iowa and across the country, many of our family-sized livestock producers are disappearing as large, corporate, vertically integrated operations grow. This trend is very disturbing and lack of attention given to this issue by USDA is unacceptable,” said Harkin in his letter.


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Conner Confirmation Hearing as USDA Deputy Secretary Goes Smoothly

The confirmation hearing this week for White House ag guru Chuck Conner to be deputy secretary of agriculture went smoothly, with Senate Agriculture Committee members from both sides of the aisle praising Conner. At the same time, Conner, currently special assistant to the President for food, agriculture and trade policy, pledged to be the “reconciliation person” between Congress and the Bush White House on ag budget issues.

Conner is former staff director of the Senate Agriculture Committee under Sen. Richard Lugar (R-IN), and was a long-time Hill staffer.

Sen. Saxby Chambliss (R-GA), committee chair, told Conner he had “no dialogue” with the Bush White House during budget discussions following the President’s recommendation that the ag budget be cut by billions. Several members of the panel also cited the budget cuts as a major bone of contention, but Conner defended budget trimming as the only way to maintain the financial success of agriculture.

Sen. Max Baucus (D-MT) called Conner’s statement about the wellbeing of agriculture use of “the tyranny of averages,” saying there are several pockets of financial trouble throughout rural America. Other issues brought to Conner’s attention included improving locks and dams on the Mississippi River, the purchase of bio-based products by the federal government, and quick resolution to GATT trade disputes.

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ITC Goes Against Pork Producers; Canada to Hit U.S. with Tariff on Hogs

The International Trade Commission (ITC) this week ruled 5-0 against the National Pork Producers Council (NPPC), saying U.S. producers are not being injured by Canadian live hog imports. At the same time, the Canadian government announced it will impose a 15% tax on live hogs, some fish products and cigarettes imported from the U.S. beginning May 1.

The ITC vote followed an affirmative finding by the U.S. Department of Commerce that Canadians were dumping live hogs in the U.S. market, but Commerce refused to impose a countervailing duty. U.S. producers contend Canada is dumping thousands of hogs into the U.S. market, animals raised on “generous federal and provincial subsidies.”

The Canadian action comes as a result of the World Trade Organization’s (WTO) decision in August that the U.S. Byrd Amendment is an unfair subsidy, clearing the way for affected countries to apply trade sanctions. The Byrd Amendment provides for the annual distribution of collected antidumping and countervailing duties to "affected domestic producers” to defray damages. An "affected domestic producer" is defined as a manufacturer, producer, farmer, rancher, or worker representative, including associations.


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BSE UPDATE

Taiwan Reopens Market to U.S. Beef; Canada Gets OK from Cuba

As expected, the government of Taiwan this week announced it is lifting its ban on U.S. boneless beef from animals under 30 months of age, effective April 16. Taiwan was a $76-million market for U.S. beef in 2003. At the same time, the Cuban government announced it will resume purchasing live cattle from Canada, following last December’s decision to start buying beef and beef products. Tunisia and Lebanon have also begun buying Canadian beef, officials said.

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Japanese Government, Consumers in Beef Over U.S. Exports

While the Japanese government continues to grind slowly through its regulatory process along with its umpteenth review of agreed-to animal testing procedures, nearly 1.2 million Japanese consumers submitted a petition to the Japanese Ministry of Agriculture this week demanding the government drop its ban on U.S. beef imports.

“We want U.S. beef back so we can enjoy dishes like gyu-don (beef and rice) and barbecued tongue,” said a petition drive spokesman. “Americans are eating U.S.-grown beef with confidence about its safety – then why can’t we? American beef tastes good, almost like homegrown beef.” Reports indicate U.S. beef is important to restaurants which serve such low-cost dishes as they use parts of the animal that are cheap to import.

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Japan Confirms 17th Case of BSE

Another Holstein cow has been diagnosed with BSE in Japan, bringing to 17 the number of cases confirmed in that country. The four-and-a-half year-old cow was kept in Otofuke, Hokkaido, and was born in 2000, the year before the Japanese imposed their feed ban.

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New Bills

A number of new bills have been introduced. Click here to send a request for a copy of the text or more information about the bill.

S.729
Sen. Richard Durbin (D-IL) introduced a bill that would establish the Food Safety Administration to protect the public health by preventing food-borne illness, ensuring the safety of food, improving research on contaminants leading to food-borne illness, and improving security of food from intentional contamination.

S.742
A bill offered by Sen. Olympia Snowe (R-ME) would amend the Federal Food, Drug, and Cosmetic Act to preserve the effectiveness of medically important antibiotics used in the treatment of human and animal diseases.

H.R.1507
Rep. Rosa DeLauro (D-CA) introduced legislation that would establish the Food Safety Administration to protect the public health by preventing food-borne illness, ensuring the safety of food, improving research on contaminants leading to food-borne illness, and improving security of food from intentional contamination.

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Inside Track is produced as a service to clients of Policy Directions, Inc., a Washington, DC-based government relations/strategic government communications firm founded in 1995, specializing in customized advocacy on health care; food; biomedical research; biotechnology, human drug, and medical device regulation; federal nutrition policy and programs; and environmental policies and programs. For more information about PDI, please e-mail info@poldir.com.

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