HomeAbout UsServicesClient AchievementsNewsStaffContact Us

April 29, 2005

Back to News

In this Issue


Energy & Commerce Chair Muscles in on Steroids


Grassley, Dodd Introduce Drug Safety Bill


“Bioshield II” Introduced


House Subcommittee Acts on Four Health Bills


New Guidelines for Human Embryonic Stem Cell Research


House Ag Subcommittee Hears Recommendations on Soybean Rust


Conner Approved as Deputy USDA Secretary


Portman Clears Senate to be New Special Trade Rep


Johnson Confirmed As EPA Administrator


Dorr Confirmation Hearing Brings Out Harkin Opposition -- Again


Cuba Trade Battle Focus of New Coalition


Craig Introduces Railroad Competition Act Of 2005


BSE UPDATE:


New Bills
 

Energy & Commerce Chair Muscles in on Steroids

In a statement April 26, House Energy & Commerce Committee Chair Joe Barton (R-TX) applauded the introduction of the “Drug-Free Sports Act,” H.R.1862, signaling the Committee will act on the legislation this year.

H.R.1862 was introduced by Rep. Cliff Stearns (R-FL) and cosponsored by Reps. Charlie Bass (R-NH), Marsha Blackburn (R-TN), Fred Upton (R-MI), and Gene Green (D-TX), all members of the Committee to which the bill is referred. It is also referred to the committee on Education & the Workforce; Blackburn and Upton are also members of this committee. Barton stated steroid use has “tarnished baseball for a generation of fans,” and the legislation is needed to spur action in professional sports to address problems there and also to “put us on the right path” to stop steroid use among young people hoping to be better athletes or models.

The bill would require the Secretary of Commerce to establish and enforce drug-testing policies for professional sports, including requiring annual random testing and testing for all substances listed by the World Anti-Doping Agency and other substances identified by the Secretary and establishing mandatory penalties to include lifetime suspension for a second offense. Sports associations that did not comply with the requirements could be fined $5 million for the initial offense and $1 million per day for each subsequent day of non-compliance. The bill also would require the Government Accountability Office (GAO) to study and report on drug testing policies of high schools and colleges, and recommend whether similar legislation is needed for them.

The Energy & Commerce subcommittee on Commerce, Trade, and Consumer Protection, chaired by Stearns, will hold a hearing on the legislation on May 5.

 

Return to top


Grassley, Dodd Introduce Drug Safety Bill

Sens. Chuck Grassley (R-IA) and Chris Dodd (D-CT) made good on their promise April 27 to introduce legislation to improve FDA’s focus and activities related to drug safety. S.930 would amend the Food, Drug & Cosmetic Act to establish a new Center for Postmarket Drug Evaluation & Research (CPDER) in the office of the FDA Commissioner. The Center would be responsible for all postmarket activities related to approved drugs and be authorized to require product sponsors to conduct postmarket studies and to “take corrective action” if the Center Director determines the product may pose an “unreasonable risk [when considering risk compared to benefit] to the health of patients or the general public.”

The bill would require the director of CPDER to review all applications and analyses associated with applications at the pre-market phase, continuing this review regardless of whether an application is approved in the interim, but would not permit the review to delay the approval. As a result of this review, as well as at any time after the product is on the market, the director would be authorized to require post-market studies. Sponsors would be required to submit post-market study progress reports at least every 90 days; FDA would be required to publish, at least every 90 days, a list of required and pending post-market studies and their status and results. Civil monetary penalties would be established for failure to conduct the required post-market studies and the product could be misbranded. Based on the results of such studies, or on other information, the Center director would be authorized to “order a corrective action.” Consultation with the Director of the Center for Drug Evaluation & Research (CDER) and/or the Director of the Center for Biologics Evaluation & Research (CBER) would be required.

“Corrective actions” could include label changes (sponsors would be required to change the label as directed, by a specified date), restricted distribution, patient registries, additional (or new) patient informed consent, monitoring sales and use of the product, and risk management plans. In addition, limitations would be placed on promotion of the product. Civil money penalties also would be authorized for failure to take a required corrective action, and the product could be misbranded.

If a product is determined to pose “unreasonable risk,” promotional materials would need to be pre-cleared by FDA and could be required to present information about the risk and about corrective actions under way, outstanding post-market studies, and information about other products (if any) that could treat the condition and have a more favorable benefit-to-risk profile. Similar requirements also would be authorized for new products during the first two years on the market.

The CPDER director would be authorized to take the ultimate “corrective action,” removal of a product from the market, under expedited procedures to be outlined in regulations promulgated within one year of enactment. Consultation with the director of CDER and/or CBER, and public notification of the action and the reasons for it, would be required.

The bill would require biannual meetings of the Drug Safety and Risk Management Advisory Committee, to discuss ongoing and completed studies, specific risk assessments, and general drug safety issues, and make recommendations to FDA. Among the recommendations would be whether and which products pose an “unreasonable risk.”

Finally, the bill would require FDA to submit a report to Congress on processes for post-market surveillance of devices, including recommendations for change and identification of necessary legislation.

All drug safety functions would be transferred from CDER and CBER to CPDER under this bill. Funds would be authorized to carry out the provisions of the bill: $50, 75, 100, 125, and 150 million for FY 2005-2010.

While several public interest groups praised the legislation, Senate Health, Education, Labor, & Pensions (HELP) Committee Chair Mike Enzi (R-WY) expressed concern, stating drug safety functions should not be separated from review functions at FDA. This, he said, would result in confusion for doctors and patients, as a result of measuring the risks and benefits of products “on two separate scales.”

Since S.930 is referred to the HELP Committee, support of the committee chair presumably would be an important criterion for getting action. So, the prognosis appears doubtful for this specific bill, although not necessarily for drug safety legislation per se.


Return to top

“Bioshield II” Introduced

On April 28, Sens. Orrin Hatch (R-UT), Joe Lieberman (D-CT), and Sam Brownback (R-KS) introduced S.975 (Bioshield II), to “provide incentives to increase research by private sector entities to develop medical countermeasures to prevent, detect, identify, contain, and treat illnesses, including those associated with biological, chemical, nuclear, or radiological weapons attack or an infectious disease outbreak.”

This bill is essentially the same as one introduced in the last Congress by Hatch and Lieberman, and would provide for tax incentives, intellectual property protections, and liability protections for companies to help attract and maintain private sector investment in the development of countermeasures, as well as new antibiotics and vaccines for biological threats such as infectious diseases, genetically manipulated materials, and antibiotic-resistant organisms.

In his discussion of the bill, Lieberman noted the intention to shift from a “defense contractor model” of private companies working with the government, to a model under which the federal government is a “reliable partner.” This, he said, is the only way to attract successful companies that have brought products to market. The rewards under the legislation would be achieved only if a company participating in a project with the government is successful in developing the necessary product.

Incentives/rewards for success include the following:

A choice of tax incentives – (1) allowing establishment of an R&D Limited Partnership, where all partners receive the tax advantages; (2) allowing a special class of stock to be issued for which investors would receive a zero capital gains tax rate for any capital gains; or (3) a special tax credit pertinent to the research

A choice of patent incentives – (1) the product’s patent life would equal the patent term at the time of issue (no loss of time from FDA review, for example) or (2) the company would be allowed a two-year extension on the patent of any of its products (“wild card” extension), if the company has $750 million or less in paid-in capital.

In addition, the bill would establish a 10-year market exclusivity for the countermeasure and provide for liability protections for the company that develops a countermeasure.

There have been discussions in the Senate about beginning consideration of a “Bioshield II,” but it is not clear which provisions of already introduced legislation (S.3 as well as S.975 to date) or new bills would be included in a “final” package. Sen. Richard Burr (R-NC), new chair of the Health, Education, Labor, & Pensions subcommittee on Bioterrorism and Public Health Preparedness, has indicated he wants to hold hearings and begin consideration of legislation at some point this year. No discussions are reported in the House.

 

Return to top

House Subcommittee Acts on Four Health Bills

On April 27, the House Energy & Commerce subcommittee on Health considered and reported to the full committee H.R.869, 184, and 1812 and H.Res.169.

H.R.869 would amend the Controlled Substances Act (CSA) to remove the 30-patient limitation on prescribing opiates to treat opiate dependence, for physicians in group practices.

H.R.184, the Controlled Substances Export Reform Act, would amend the CSA to allow for the export of certain controlled substances with subsequent further export from the receiving country.

H.R.1812, the Patient Navigator Outreach & Chronic Disease Prevention Act, would authorize grants under the Public Health Service Act for the development and operation of patient navigator programs and the training of individuals to serve in that capacity. A patient navigator is defined as an individual who assists patients in navigating the health care system, including helping with coordination of care, informing patients of availability of clinical trials, helping patients communicate effectively with health care providers, reaching out to community organizations to provide additional services to patients, etc. This would be a demonstration program requiring a report to Congress.

H.Res.169 is a resolution to recognize the importance of sun safety to prevent skin cancer.

The bills passed through the subcommittee uneventfully, with an expectation they will be taken up by the full committee shortly.

 

Return to top

New Guidelines for Human Embryonic Stem Cell Research

This week the National Academies of Science released a report on guidelines for embryonic stem cell research, with the main recommendation being all institutions studying stem cells should establish oversight committees that include members of the public, as well as experts in scientific, legal, and ethical issues. The 131-page report contains more than 50 specific recommendations covering everything from good recordkeeping to ensuring future stem-cell medicines are accessible to all racial groups.

Additional guidelines cover areas such as researchers not paying donors for eggs or other human tissues, and not injecting human stem cells into monkey embryos.

The guidelines, while not binding, are expected to help states and private research institutes move forward with research plans despite the continuing debate in Washington over federal funding for stem-cell research.

A Wall Street Journal article cited how adopting these recommendations could prove onerous to small biotechnology companies. Robert Lanza, medical director of Advanced Cell Technology Inc., based in Worcester, MA., said despite some concerns over the report's wording, he agreed there was a need for national guidelines. "Right now you can do anything, and the potential abuse in this area is very considerable," he said.

 

Return to top

House Ag Subcommittee Hears Recommendations on Soybean Rust

With the USDA announcement of the first soybean rust detection in 2005 in Georgia, trade groups told a joint House Agriculture Committee subcommittees hearing this week that while much has been done to prepare for a wide scale outbreak of the plant disease, more government action is needed.

The subcommittees on Conservation, Credit, Rural Development and Research, and General Farm Commodities and Risk Management met jointly April 27 to hear testimony on what actions are needed to contain a U.S. outbreak of soybean rust, a fungal disease that stunts or kills soybean and other plants. Soybean rust has devastated soy crops in Latin America in recent years.

The American Soybean Assn. (ASA) told the hearing its main concern is there may not be enough fungicide to deal adequately with an outbreak, a situation complicated by distribution problems and a lack of application equipment and custom applicators. Both industry and government are working to ensure a variety of fungicides are registered to treat soybean rust.

ASA wants USDA to coordinate with manufacturers and distributors first to determine available supplies and then to make sure farmers have access to the chemicals nationwide. ASA is also asking Congress to appropriate $2.1 million for soybean rust research in FY2006.

 

Return to top

Conner Approved as Deputy USDA Secretary

Chuck Conner’s nomination to be deputy secretary of USDA was approved by the full Senate this week after Sen. Larry Craig (R-ID) lifted his hold on the nomination. Conner, previously Special Assistant to the President for Food, Agriculture and Trade, had sailed through his Senate Agriculture Committee confirmation hearing, only to be sidetracked when Craig, frustrated by the Administration’s ongoing finagling with the payment rules on U.S. agricultural sales to Cuba, tried to get the White House’s attention by putting a hold on the Conner nomination.

 

Return to top

Portman Clears Senate to be New Special Trade Rep

Rep. Rob Portman (R-OH) was confirmed by the Senate this week to be the new U.S. Trade Representative, fulfilling Senate Finance Committee Chair Chuck Grassley’s (R-IA) promise to have Portman in his new role in time for a mini-ministerial GATT meeting May 2 in Europe. Last week during his confirmation hearing, Portman promised to negotiate controversial sugar provisions in the stalled CAFTA treaty.

 

Return to top

Johnson Confirmed As EPA Administrator

Acting EPA Administrator Stephen Johnson's nomination to become permanent head of the agency was finally approved by the Senate this week. The nomination had been blocked from a Senate vote by Sen. Thomas Carper (D-DE) because of his frustration with EPA and the White House’s alleged foot-dragging over a request for technical analyses of the environmental, health and economic benefits of competing air quality proposals, including Bush's and Carper's plans. Carper said he supported Johnson’s nomination, and that his frustration was with the White House “and its continued refusal to provide me with information on my clean air bill and other proposals before Congress.”


Return to top


Dorr Confirmation Hearing Brings Out Harkin Opposition -- Again

Iowa farmer and businessman Tom Dorr has been nominated twice to be USDA undersecretary for rural affairs and both times Sen. Tom Harkin (D-IA) has come out against the nomination in a major way. This week, during Dorr’s second confirmation hearing, both men stuck to their guns, with Harkin leveling the same list of allegations about misuse of USDA farm programs and racial attitudes, and Dorr denying them.

Dorr dismissed Harkin’s allegations and refused a Harkin offer during questioning to state his regret publicly for past public statements. Dorr said he never misrepresented his farming operations to USDA, though USDA did disallow a Dorr family farm filing that ultimately required the repayment of some farm program payments.

Dorr served as acting undersecretary during the first Bush term after the President gave him a recess appointment. When that expired, Dorr served as a special advisor to Secretary of Agriculture Ann Veneman, a position he still holds with Secretary Mike Johanns.

 

Return to top

Cuba Trade Battle Focus of New Coalition

About 30 U.S. companies and trade associations from 19 states have banded together to create a new coalition to battle for liberalization of trade with Cuba, protecting current trade rules and eventually establishing full trade between the two countries.

Charter members of the U.S.-Cuba Trade Association include Cargill, Inc., ADM, Caterpillar, USARice Federation, North Dakota Farm Bureau, Louisiana Department of Economic Development, Port Manatee Commerce Center and the Virginia Department of Agriculture.

The group strongly supports legislation introduced in Congress to expand trade with Cuba, and also has thrown its backing behind legislation introduced this week to relax travel restrictions to the island nation.

On a conference call this week between the group and Pedro Alvarez Borrego, chair of the Cuban food import agency Alimport, the Cuban official said U.S. farmers and companies have lost out on $300 million in food sales since February when the Bush Administration imposed new strict payment rules on U.S.-Cuban food/agriculture transactions. Borrego said “uncertainty of supply and financial losses” forced his agency to “detour” purchases to other foreign markets.

Alimport has imported $179.4 million in U.S. food products this year, about the same as in recent years; however, the new Cuban trade group said business is not growing this year.

 

Return to top

Craig Introduces Railroad Competition Act Of 2005

Sen. Larry Craig (R-ID), along with Sen. Conrad Burns (R-MT), introduced this week the Railroad Competition Act of 2005, a bill they said will foster rail competition in areas of the country underserved by major railroads, by streamlining the process of resolving rate and service disputes.

The bill would require rail customers to receive rate quotes for movements between various points on a rail system; free regional and short line rails to access major systems; provide captive rail customers who can’t afford to buy into rate challenge proceedings access to arbitration and direct the Surface Transportation Board (STB) to adopt a more “realistic and workable rate reasonableness standard.”

Craig said areas of the country served by only one or two carriers suffer from lack of competition, resulting in producers passing higher costs of production back to consumers. “This bill seeks to return the power to the customers and bring capitalism back into many regions where rail shipping has strayed into monopoly,” Craig said.

Return to top

BSE UPDATE

U.S. Team Sees Japan Moving Toward Reopening Markets, But Slowly

Press reports out of Japan this week indicate the U.S. technical team meeting with officials in Japan and Korea see progress toward reopening beef trade, but they continue to be frustrated with the pace at which the process is moving. Chuck Lambert, the USDA deputy under secretary who led the team, told Associated Press that all technical conditions for resumption of Japanese beef imports have been met.

“We’re seeing signs of progress in the right direction,” he said. “We believe the progress is painfully slow.”

Return to top

Kansas Study Says Private Cow Testing Could Be Valuable

A Kansas Department of Agriculture economic study released this week says voluntary BSE testing could provide economic gain to the beef industry despite additional test costs. The study also showed the U.S. beef industry has lost $3.2-4.7 billion over the last year.

Slow progress in reopening the Japanese market will also mean these numbers will expand significantly, said state Secretary of Agriculture Adrian Polansky. The report, which looked at regulator costs, losses and consumer reactions after the 2003 discovery of a BSE cow in Washington State, showed profits from beef exports would more than pay for voluntary testing, estimated to cost about $640 million for all cattle slaughtered in the U.S.

Return to top


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.CON.RES.30
Sen. Richard Durbin (D-IL) offered a concurrent resolution to express the sense of Congress concerning the provision of health insurance coverage to all Americans.

S.908
Sen. Mitch McConnell (R-KY) introduced the “Commonsense Consumption Act of 2005'' to allow “Congress, State legislatures, and regulatory agencies to determine appropriate laws, rules, and regulations to address the problems of weight gain, obesity, and health conditions associated with weight gain or obesity.”

S.930
A bill offered by Sens. Chuck Grassley (R-IA) and Chris Dodd (D-CT) would amend the Food, Drug, and Cosmetic Act to establish a new Center for Postmarket Drug Evaluation and Research (CPDER) in the office of the FDA Commissioner.

S.934
Sens. Russell Feingold (D-WI) and Lindsey Graham (R-SC) offered legislation to “establish an expedited procedure for congressional consideration of health care reform legislation.”

S.969
Sen. Barack Obama (D-IL) introduced a bill on “preparation for an influenza pandemic, including an avian influenza pandemic.”

S.975
Sens. Orrin Hatch (R-UT), Joe Lieberman (D-CT), and Sam Brownback (R-KS) introduced “Bioshield II” to “provide incentives to increase research by private sector entities to develop medical countermeasures to prevent, detect, identify, contain, and treat illnesses, including those associated with biological, chemical, nuclear, or radiological weapons attack or an infectious disease outbreak.”

 

Return to top


 

 

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.

All material © 2005 Policy Directions.

Policy Directions Inc | 818 Connecticut Ave NW Suite 950 | Washington, DC 20006 | (202) 776-0071 | info@poldir.com