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April 22, 2005

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In this Issue


Hatch, Colleagues Re-Introduce Stem Cell Bill


DEA Cracks Down on Illicit Internet Pharmacy


Drug Imporation Takes Center Stage in Senate HELP Hearing


Internet Pharmacy Bill Introduced in House


"Assembly of Scientists" Opposing NIH Ethics Rules


House Passes Energy Bill with RFS; Senate Confrontation Looms


USDA Wants Comment on EQIP Priorities


Portman Offers to Negotiate CAFTA Sugar Provision


Conner Nomination on Hold Over Cuba


Jeffords Announces He Will Retire


BSE UPDATE:


New Bills
 

Hatch, Colleagues Re-Introduce Stem Cell Bill

On April 21, Sens. Orrin Hatch (R-UT), Dianne Feinstein (D-CA), Arlen Specter (R-PA), Ted Kennedy (D-MA), and Tom Harkin (D-IA) introduced S.876, the "Human Cloning Ban & Stem Cell Research Protection Act of 2005." The bill is essentially identical to S.303 from the 108th Congress.

The bill would make it illegal for anyone to “conduct or attempt” human cloning, establishing criminal and civil penalties for these actions; establish certain ethical requirements for stem cell (nuclear transplantation) research, including requiring informed consent, prohibiting the sale of cells, and prohibiting the maintenance of an embryo created through somatic cell nuclear transfer beyond 14 days.

At a press conference of bill sponsors, Hatch emphasized the importance of federal legislation to ensure this research — which he stated is extremely important — is maintained under appropriate controls, namely under ethical guidelines set by NIH. Saying his Utah constituents tell him the legislation is “the right thing” to do, Hatch said “support is building across the country, and we must act. If we do not seize this opportunities, other countries could take the leading role in medicine’s next great advance. We will lose the chance to set ethical guidelines, we will lose doctors to overseas research institutions, and most importantly, we will lose the chance to offer new hope to American and other patients ….”

Feinstein, calling stem cell research “the bright new frontier of medicine,” noted not only other countries but also states are taking matters into their own hands, appropriating funds for such research and establishing their own rules. This, she said, is leading to a dangerous patchwork of ethical requirements that could result in activities that end up not being in patients’ best interests.

It is unclear whether this highly controversial topic will be dealt with by Congress via enactment of this or similar legislation.

 

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DEA Cracks Down on Illicit Internet Pharmacy

In a nationally publicized raid, agents from several law enforcement agencies, headed by the Drug Enforcement Administration (DEA), arrested 20 individuals in the U.S. and overseas, bringing to a head a lengthy investigation of illegal sales of controlled substances via the Internet. According to the allegations, cyber sales of numerous pharmaceutical controlled substances, including amphetamines, anabolic steroids, and narcotics, were made without regard to the age of the purchasers or a legitimate reason to receive these drugs, such as a prescription.

The organization heading this Internet pharmacy operation appeared to be based in India, with an Indian physician among the drug supply sources. The drugs apparently were sold through more than 200 websites and often were re-packaged and sent without any identifying information regarding the products’ appropriate or safe use, or even information identifying the product. According to DEA, more than two million doses of controlled substances have been sold each month in approximately the last two years.

The DEA administrator called the Internet “an open medicine cabinet” from which “a vast array” of controlled substances are “doled out.” John Walters, director of National Drug Control Policy, called attention to the serious problem of prescription drug abuse, noting young people and addicts are being targeted by Internet purveyors attempting to “subvert our medical prescription system.” John Taylor, head of the FDA Office of Compliance, reiterated the position FDA has taken throughout years on congressional discussion of legalizing prescription drug importation: “Consumers ordering prescription drugs from a website they’re not familiar with put themselves in a ‘buyer beware’ situation.”

Interestingly, at nearly the same moment this large-scale effort was under way, the Senate Health, Education, Labor & Pensions Committee was holding another hearing on legislation to legalize prescription drug importation (see article). The prognosis for this effort is not clear, although it seems likely both the House and the Senate will take up measures, in some form, before the end of the year. Legislation also has been introduced in previous congresses to regulate sale of pharmaceutical products online, but none of these bills has been successful. It is unclear whether the face of the debate will change as a result of strong law enforcement interest in this issue and evidence prescription drug abuse among teens is growing at an alarming rate and Internet traffic in controlled substances targets teens and younger purchasers.

 

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Drug Imporation Takes Center Stage in Senate HELP Hearing

Tuesday morning the Senate Health, Education, Labor & Pensions (HELP) Committee held a hearing on “S.334: An Approach to Drug Importation.” Chair Sen. Mike Enzi (R-WY) held the hearing at the request of bill sponsor Sen. Byron Dorgan (D-ND). In the hearing, Enzi promised “we will do something on drug reimportation." He later added drug companies may have gotten the message it is a good idea to have lower drug prices in the U.S.

David A. Kessler, former FDA commissioner, came out for the first time in support of drug importation. Saying the “current system is out of control,” he asked Congress to take steps to protect consumers from the current unregulated importation system. Kessler commended the Dorgan bill for requiring a carefully implemented phased approach with sufficient resources.

Bill co-sponsor Sen. Olympia Snowe (R-ME) said this legislation addresses the two biggest concerns about importation: Safety and effectiveness. She argued this bill would be effective, based on recent comments on a similar European Union (E.U.) system by Dr. Peter Rost, vice-president of marketing from Pfizer. Countering this statement, Graham Satchwell, managing director of Proco Solutions in the UK, emphatically noted Ross has been proven wrong numerous times.

Also appearing before the committee, Sen. David Vitter (R-LA) discussed his bill (S.109) as a slightly different approach then the Dorgan/Snowe legislation, but said he stands “shoulder to shoulder” with his colleague and would support their bill if it came up for a vote. Vitter’s bill places limitations on the types of drugs allowed, for example, none that must be refrigerated. He also said it would be a mistake to limit access to only one country, like Canada.

Sen. Judd Gregg (R-NH) went on the offense, setting off a heated exchange with Dorgan and Snowe. Gregg said he has serious reservations about their bill and is submitting 20 pages into the record on his specific concerns. He said the way the bill is written, it takes 100 years of law and essentially replaces it with 40 pages that “you won’t explain … creating a Russian roulette regime.”

Both Gregg and Sen. Patty Murray (D-WA) expressed concern over how this legislation would create new burdens on FDA. Murray asked if a provision existed in the bill to suspend importation if the new costs to FDA are unrealized.

 

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Internet Pharmacy Bill Introduced in House

“The Safe Online Drug Act of 2005” (SODA) was introduced yesterday in the House by Reps. Greg Walden (R-OR) and Jim Davis (D-FL). The legislations aims to create a uniform certification standard for Internet pharmacies to ensure all U.S.-based Internet pharmacies meet FDA safety standards and adhere to state regulations for operating a pharmacy. Current Internet pharmacy safety standards are voluntary.

In a statement, Davis said this bill “will take steps to crack down on prescription drug abuse by prohibiting certified Internet pharmacies from dispensing drugs without a valid prescription. This legislation provides the best of both worlds by protecting consumers’ access to the convenience of online pharmacies while removing the risk of receiving illegal or counterfeit drugs.”

Additional restrictions in the bill would prohibit Internet search engines from accepting advertisements from online pharmacies that are not properly certified. FDA certification for online pharmacies allows only consumers with valid prescriptions to order medications and pharmacies must provide for authentication and security of prescription orders. The legislation would also prevent credit card payments to online pharmacies that do not meet certification standards, a provision similar to the prohibition on credit card payments to illegal off-shore gambling sites.

 

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"Assembly of Scientists" Opposing NIH Ethics Rules

A group of NIH scientists who are fighting new ethics rules that would end their financial ties to the drug industry have hired Washington, D.C. law and lobbying firm Arent Fox.

According to reports, in an e-mail to NIH employees on Tuesday, a group calling themselves the "Assembly of Scientists" said it has"mounted a legal and government relations campaign to challenge the new conflict-of-interest rules.”

Contending the new restrictions impose unfair financial burdens on them and will harm NIH's ability to recruit and retain top talent, the scientists call for rescinding the stock-divestiture requirement and allowing agency researchers to take consulting fees from the companies.

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House Passes Energy Bill with RFS; Senate Confrontation Looms

Taking seriously President Bush’s admonition to “get off the dime” and pass a comprehensive energy bill, and with the input of five separate committees, the House this week approved a bill including a Renewable Fuel Standard (RFS). The bill strongly resembles last session’s conference report, including a number of controversial provisions almost guaranteeing a confrontation with the Senate version of omnibus energy legislation.

The RFS included in the "Energy Policy Act of 2005" would require five billion gallons of ethanol and biodiesel to be in the marketplace by 2010. The ethanol and motor fuels section also bans the use of the gasoline additive MTBE by the end of 2014, but also provides for limited liability protections to manufacturers. This issue also guarantees a replay of last sessions’ confrontation in the Senate, especially after the House GOP this week beat back Democratic amendments to remove the protection.

The National Corn Growers Assn. (NCGA) called the House action “a major step forward.” Other high points for NCGA include clarification of liquefied natural gas siting requirements by the federal government, and creating and publishing a list of existing “boutique” fuels by the EPA for use in setting caps.

The bill also permits “improved access to federal lands” for energy exploration which translates, in part, into permission to drill in the Arctic National Wildlife Reserve (ANWR), another hold-over issue from last session’s bill that sets up a major conference committee fight with the Senate.

The bill would require at least 80% of all dollars appropriated from the Leaking Underground Storage Tank (LUST) trust fund to be sent to the states to help run state underground tank programs, and after a period of adjustment for the states to clear their backlogs, would require onsite inspections of underground storage tanks every three years. There are several other requirements on underground storage tanks, including state reporting to EPA.

 

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USDA Wants Comment on EQIP Priorities

USDA is asking for public comment on “national priorities and emerging issues” for the Environmental Quality Incentives Program (EQIP), and will hold a national listening session May 5 in Washington, DC. EQIP was authorized in the 2002 Farm Bill, and provides financial and technical assistance to farmers and ranchers “who face threats” to soil, water and air, and related natural resources issues. The voluntary program offers up to 75% cost share to help producers reduce soil erosion, improve water use and protect grazing land by installing conservation practices. Full information on the listening session can be found at www.nrcs.usda.gov/programs/eqip.

 

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Portman Offers to Negotiate CAFTA Sugar Provision

Special U.S. Trade Representative-designate Rep. Bob Portman (R-OH) this week offered during his Senate Finance Committee confirmation hearing to negotiate implementation of a controversial sugar provision of the Central America Free Trade Agreement (CAFTA), according to reports. Specifically the provision would allow the U.S. to compensate CAFTA member countries, if the U.S. limits sugar imports, to prevent any effect on the U.S. sugar program.

Portman, when asked by Sen. Larry Craig (R-ID) if the sugar portions of CAFTA were negotiated properly, said the agreement was crafted with care. “It won’t affect the sugar program or open up the Farm Bill,” he said. But CAFTA’s compensation language is unique, and Portman offered to sit down with concerned Senators and work out details “that make sense.”

Sen. Charles Grassley (R-IA), chair of the finance panel, said he’d call for a vote on the Portman nomination April 26. He said he wants him confirmed before a May 2 mini-ministerial meeting on GATT to be held in Paris so that Portman can attend that meeting in his new capacity. Sen. Evan Bayh (D-IN) has a hold on the nomination, hoping to force a vote on a measure to impose countervailing duties on subsidized imports from non-market economies, including China.

 

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Conner Nomination on Hold Over Cuba

Sen. Larry Craig (R-ID) placed on a hold on the nomination of Chuck Conner to be deputy secretary of agriculture over the Administration’s continuing efforts to complicate – some argue derail – U.S. ag trade with Cuba. Conner, whose confirmation hearing went smoothly, is special assistant to the President for food, agriculture and trade policy.

At issue is the Administration’s interpretation of rules requiring payment by Cuban purchasers of U.S. ag goods to pay in cash prior to receipt. Secretary of Agriculture Mike Johanns was asked by reporters this week if he had called Craig. Johanns said he hasn’t called the Senator, but added he "can't wait until Chuck gets over at USDA" because "his farm policy strengths are needed at USDA."

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Jeffords Announces He Will Retire

Sen. Jim Jeffords (I-VT), the Senate’s only independent and the man whose party shift out of GOP ranks handed the Senate to the Democrats for 19 months, announced this week he will not seek reelection in 2006. He said he and his wife both have health concerns. His announcement sets up a likely race for the Vermont seat between Rep. Bernie Sanders (I-VT) and Gov. Jim Douglas, a Republican, insiders said. Neither man has declared for the seat, but Sanders has made it known over time he’d run if the opportunity presented itself.

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BSE UPDATE

Johanns Willing to Reconsider Downer Cattle Policy

Secretary of Agriculture Mike Johanns reportedly said this week he is considering relaxing USDA’s strict policy of not allowing non-ambulatory livestock – no matter the cause – from entering the food chain. Johanns said a young animal with a broken leg is not a BSE risk. Activist groups, including the Humane Society of the U.S. and Farm Sanctuary, decried the potential action, with both groups contending to relax the ban means increased inhumane handling of livestock and a greater potential that diseased meat will reach consumers.

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U.S. Technical Team in Japan, Korea

A team of USDA BSE technical experts traveled to Japan and Korea this week, part of continuing U.S. efforts to reopen key Asian beef markets. The delegation was led by Deputy Undersecretary Chuck Lambert, with a goal of further explaining U.S. BSE mitigation programs and urging both governments to adopt import regulations that track more closely recommendations from the World Organization for Animal Health (OIE). Following the U.S. visits, first to Korea, then Japan, both nations are expected to send similar teams to the U.S. to review beef production and processing systems.

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U.S. Groups File Amicus Brief in Appeal of Canada Border Injunction; Canadian Conservative Party MPs to Seek Intervenor Status

Seven major U.S. meat processing and retail groups this week filed a friend of the court brief in support of USDA’s appeal of a March 2 federal injunction against a rule that would have opened the Canadian border to live cattle and expanded beef trade. The injunction was granted at the request of R-CALF.

At the same time, Canadian Conservative Party members of Parliament (MPs) said this week they will ask the U.S. federal judge to allow them to participate in a July court hearing as intervenors. The ruling Liberal Party in Canada sought and was denied friend of the court status. If granted intervenor status, the MPs will participate in the hearing, not just file written briefs. Liberal government leaders stood behind their earlier strategy and speculated the intervenor request will likely be unsuccessful.

The U.S. groups filing their brief are the American Meat Institute, the North American Meat Processors Assn., Southwestern Meat Processors Assn., Eastern Meat Packers Assn., American Association of Meat Processors, National Restaurant Assn., and the United Food & Commercial Workers, the union for slaughter/processing plant employees.

The brief argues the Montana District Court abused its discretion by mandating continued closure of the border. U.S. and international law require open borders unless there is a threat of disease introduction and scientific evidence “makes clear” the border closure is unnecessary.

The National Cattleman’s Beef Association and the American Farm Bureau Federation - along with 19 state farm bureaus - also filed amicus briefs with the U.S. Ninth Circuit Court to demonstrate to the court USDA’s minimal risk rule is based on science showing beef is safe from BSE. On April 21, Tyson Foods, the world’s largest meat packer, filed a friend of court brief, calling the court decision bad law and bad for consumers.

 

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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.813
Sen. Arlen Specter (R-PA) introduced a bill to authorize the Secretary of Health & Human Services to negotiate for lower prices for Medicare prescription drugs.

S.818
A bill offered by Sen. Chuck Grassley (R-IA) would make it unlawful for a packer to own, feed, or control livestock intended for slaughter.

S.838
Sen. Russ Feingold (D-WI) introduced “Democracy for Dairy Producers Act of 2005” that would allow modified bloc voting by cooperative associations of milk producers in connection with a referendum on federal milk marketing order reform.

S.869
Feingold also introduced “Federal Milk Marketing Reform Act of 2005” to prohibit the Secretary of Agriculture from basing minimum prices for Class I milk on the distance or transportation costs from any location that is not within a marketing area.

H.R.1802
Rep. Dennis Rehberg (R-MT) offered legislation to on the marketing of imported live bovine animals.

H.R.1808
Rep. Greg Walden (R-OR) introduced a bill to regulate Internet pharmacies.

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