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October 7, 2005


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In this Issue


FDA Acting Commissioner Takes Additional Steps


Avian Influenza Inspires Flurry of Legislation


Durbin Offers, Withdraws Stimulants Amendment


House Passes Cancer Care Demonstration Resolution


Health IT Community Holds First Meeting


FDA Proposes Changes to Its BSE Feed Rule Focusing On SRM Removal


Johanns Lays Out Thoughts on Next Farm Bill


Truck “Safe Food” Transport Authority Given To FDA


ITC Reverses Self on Canadian Wheat Board


Japan Cites Report as “Bright Outlook” for Beef Trade with U.S.; EU Lifts Ban on T-Bone Steaks

Senate Ag $3-Billion Budget Reconciliation Plan Unveiled; Battles Ensue


Doha Reps Begin Talks About Specific Subsidy Cut Numbers


New Bills

 

FDA Acting Commissioner Takes Additional Steps

Presumably in part to respond to concerns raised after he was named acting FDA commissioner, Dr. Andrew von Eschenbach has taken specific action. Several members of Congress indicated concern that, if he remained in his post as director of the National Cancer Institute (NCI), von Eschenbach would not be able to devote the time and effort needed to head FDA. Additionally, it was suggested a potential for conflicts of interest existed with regard to NCI-sponsored/conducted studies under FDA’s regulatory purview.

In a memorandum sent to FDA employees September 30, von Eschenbach stated while serving as acting FDA commissioner, he will not manage the day-to-day operations of NCI. Instead, Dr. John Niederhuber, currently the Institute’s deputy director for translational & clinical sciences, will serve as NCI chief operating officer. This will free von Eschenbach to operate full-time as acting FDA head. The memo stated further that von Eschenbach “will not participate in certain FDA matters in which NCI is a party, unless the Department requests that I participate on a case-by-case basis.” This will include, he says, activities related to applications for approval submitted by NCI or where an NCI scientist is a principal investigator for the relevant studies and adverse event report oversight in NCI-related studies.

The Administration has indicated its commitment to name a candidate as permanent FDA commissioner as soon as possible, although in statements responding to press inquiries, HHS Secretary Michael Leavitt noted there is no specific timetable for the decision.

After a meeting with von Eschenbach October 4, Sen. Mike Enzi (R-WY), chair of the Senate Health, Education, Labor & Pensions (HELP) Committee, expressed his confidence in the appointee and also noted the importance of ensuring FDA continue its important public health mission. He urged the nomination of a permanent commissioner be quick, stating, “It is vital that the Senate confirm a qualified nominee in an atmosphere free from political agendas as quickly as possible.”

 

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Avian Influenza Inspires Flurry of Legislation

In response to reports of increased risk from avian influenza and the possibility of a flu pandemic, members of Congress have introduced legislation designed to assist the government in addressing the matter and removing disincentives to the development of vaccines.

S. 1821, the Pandemic Preparedness and Response Act was introduced by Senate Minority Leader Harry Reid (D-NV) and other Democratic senators.

This bill would:
• require the President to appoint a National Director of Pandemic Preparedness and Response;
• establish a Pandemic Influenza Preparedness Policy Coordinating Committee;
• condition state receipt of bioterrorism funds on the state’s having an acceptable flu response plan;
• require procurement for the national stockpile of antivirals sufficient to treat 50% of the population and vaccines sufficient to vaccinate health and public health officials and others on the “front line;”
• require the development of a national tracking and distribution system for these and other necessary medications; and,
• require other actions related to international coordination, health professions training, research and public education.

With regard to the purchase of vaccines, the bill would require the HHS secretary to contract with manufacturers to make additional doses as determined necessary and to include in the contracts provisions related to compensating manufacturers equitably for doses that, while requested, were not purchased. In addition, the bill would require manufacturers to notify the secretary in advance of a decision to discontinue manufacture of a flu vaccine. The bill also would make it illegal, during a public health emergency related to pandemic flu, for anyone to take “unfair advantage of the circumstances” by increasing prices or to charge an “unconscionable excessive” price for a drug or medical device related to treating or preventing the disease.

S. 1828, the Influenza Vaccine Security Act, was introduced by Sens. Hillary Clinton (D-NY) (also a cosponsor of S. 1821) and Pat Roberts (R-KS). Among other provisions, the bill would authorize HHS to set yearly targets for flu vaccine production, with manufacturers; to stockpile and have buy-back programs and to provide technical assistance to manufacturers, including facilitating approval and distribution of flu vaccine. HHS also would be required to conduct additional training of FDA employees in regulating vaccines, establish a vaccine tracking system, develop a coordinated federal-state team of health care workers, and provide grants to states and state agencies for projects to increase vaccination.

Significantly, S. 1828 includes provisions to authorize liability protections for manufacturers of flu vaccines, as well as distributors and health care providers. The government would assume liability for injury or death associated with qualified flu vaccines, and claims would be adjudicated under the Federal Tort Claims Act. While time - and product - limited, these liability protections appear somewhat of a breakthrough for a Democratic Senator.

H.R. 3970, introduced by Rep. Darrell Issa (R-CA), deals directly with the liability issue. This bill strictly amends title 28 of the U.S. Code to provide liability protections for manufacturers and others, related to vaccines and countermeasures associated with pandemics and other health emergencies.

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Durbin Offers, Withdraws Stimulants Amendment

During consideration of the Department of Defense appropriations bill, Sen. Richard Durbin (D-IL) offered an amendment on stimulants, similar to one he has offered previously. The amendment would prohibit the use of DOD funds for a military base store, commissary or exchange that sells dietary supplements containing stimulants, unless the manufacturers of the products submit all reports of serious adverse events to FDA.

In speaking about his amendment, Durbin emphasized he was “not on the warpath against a daily vitamin tablet.” He noted some supplement products containing stimulants are dangerous and discussed manufacturers who receive adverse event reports, but refuse to disclose them.

Citing ephedra as one of his major concerns, Durbin discussed a recent court ruling that FDA had overstepped its bounds by withdrawing all ephedra products from the market. Durbin cited how immediately following the court ruling retailers and others began promoting “ephedra is back” and selling products that not only contained the small dosages of ephedra about which the court ruled, but also products containing much larger and potentially dangerous doses. Durbin said while ephedra has famously caused serious injury, it is not the only stimulant ingredient about which there should be concerned.

According to Durbin, military personnel are susceptible to claims that supplement products will enhance their performance and give them more energy, as they constantly strive to be at peak performance. The amendment is a way, he said, to ensure these personnel get accurate information about the risks of any of these products they decide to purchase.

Sen. Mike Enzi (R-WY) asked Durbin to withdraw his amendment, noting the underlying legislation the amendment seeks to address indirectly, the Dietary Supplement Health & Education Act (DSHEA), is in his HELP committee’s jurisdiction. He said matters of supplement adverse events reporting is a high priority for the committee and he would work with Durbin and others to address it. The exigencies of hurricane Katrina, he said, have put many HELP committee issues on a back burner, but they would deal with them as soon as possible.

Durbin asked for assurance the HELP committee would hold hearings on the issue; Enzi assured Durbin the committee will deal with it, though he did not commit to holding hearings. Durbin stated, “If the Senator from Wyoming will give me his assurance that this is a priority, that he will try to bring it up before his committee in a timely way when appropriate, I understand he has other priorities, if he will give me that assurance, I will withdraw this amendment. I hope we can work together from this point forward.”

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House Passes Cancer Care Demonstration Resolution

By a voice vote October 6, the House passed H.Res. 261, a “resolution expressing the sense of the House of Representatives that the Centers for Medicare & Medicaid Services should be commended for implementing the Medicare demonstration project to assess the quality of care of cancer patients undergoing chemotherapy, and should extend the project through 2006, subject to any appropriate modifications.”

The resolution is particularly directed to the program assessing quality of care for Medicare beneficiaries receiving community-based cancer care. Introduced in May by Rep. Ralph Hall (R-TX) and others, the resolution is supported by oncologists, especially those treating patients in an outpatient/non-hospital setting, whose reimbursement for drugs is affected by the change (in the MMA) from an AWP-based to an ASP-based system. Prior to the new system going into effect, oncologists argued strongly for – and achieved – a “transitional” payment system recognizing quality indicators and additional costs associated with providing drug therapies covered under Medicare Part B. The ongoing demonstration program provided this, but initially was intended to last for one year.

The resolution urges that the program continue for an additional year and be evaluated to determine what is the appropriate reimbursement methodology to ensure cancer patients receive the highest quality care. In addition, the resolution also urges the evaluation of quality indicators, including the “clinical context in which chemotherapy is administered, and patient outcomes.”

The legislation was supported strongly in statements made on the House floor by Hall, Rep. Nathan Deal (R-GA), chair of the Energy & Commerce Health subcommittee, Rep. Sherrod Brown (D-OH), subcommittee ranking Democrat, Rep. Nancy Johnson, chair of the Ways & Means Health subcommittee, and Reps. Gene Green (D-TX), Sheila Jackson-Lee (D-TX) and Mike Ferguson (R-NJ).

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Health IT Community Holds First Meeting

This week the newly formed American Health Information Community (the Community) held its first meeting in Washington, DC. The Community has been established to advise the secretary of HHS and recommend specific actions to achieve a common interoperability framework for health information technology (IT) and serve as a forum for participation from a broad range of stakeholders to provide input on achieving interoperability of health IT.

The Community has 17 members including secretary of HHS Michael Leavitt who serves as the chair. The remaining 16 members, selected by Leavitt, represent a combination of key leaders in the public and private sectors. Leavitt said he will be asking members of the Community to chair work groups that will be tasked with very specific assignments. By the end of the year, he would like the Community to have three to four working groups established with specific goals, deadlines and a relationship with contractors.

Planning to meet every four to six weeks, the Community is moving forward with a short-term agenda that includes the following:
• establishing a public health working group on the need for a national bio-surveillance system;
• extensive active discussions on moving forward with quality monitoring and reporting;
• establishing a chronic disease monitoring group;
• holding a briefing on e-prescribing, and
• forming a working group on consumer driven electronic regulations.

The Community is also seeking the names of organizations and entities with established health IT programs in order to have a full picture of the current state of health IT and what potential exists.

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FDA Proposes Changes to Its BSE Feed Rule Focusing On SRM Removal

FDA this week published its long-awaited proposed changes to its BSE ruminant feed rule, focusing as expected on specified risk material (SRM) removal in all feeds, but backing dramatically away from the proposals contained in last year’s advanced notice of proposed rulemaking.

The following list of SRMs to be removed from all livestock and poultry feed is taken from FDA’s press release:

“These high risk cattle materials prohibited in the new proposed rule include:

1. the brains and spinal cords from cattle 30 months of age and older,
2. the brains and spinal cords from cattle of any age not inspected and passed for human consumption,
3. the entire carcass of cattle not inspected and passed for human consumption if the brains and spinal cords have not been removed,
4. tallow that is derived from the materials prohibited by this proposed rule if the tallow contains more than 0.15 percent insoluble impurities,
5. mechanically separated beef that is derived from the materials prohibited by this proposed rule.”

Industry anticipated the abbreviated list of SRMs to be removed from cattle feed, and most organizations in the industry support the action at this point. The decision to remove these materials from all feeds is FDA’s attempt to curb any possible cross-contamination of feeds and on-farm feeding.

It is also hoped at political levels the FDA proposal will give comfort to the Canadian government to repropose or modify its proposed feed rule to harmonize the two country’s actions more closely. Sources in Canada confirmed that while the ag minister has been briefed on public comment on their proposal, he has been presented no formal options paper. Further, government sources indicate no action on the Canadian rule is expected before December.

The proposal is silent on restrictions on the use of bovine blood/blood products and does not ban feeding of poultry litter and plate waste. Further, it does not require dedication of facilities, lines or transportation. FDA said the removal of SRMs from all feeds makes these actions unnecessary. In the case of blood/blood products, FDA said science and recent actions by the OIE (World Animal Health Organization) show these products are not routes of BSE infectivity.

However, the removal of all nonambulatory and dead animals from the feed chain (points 2 and 3) has some segments concerned such action removes all economic incentives for most independent renderers to pick up on-farm deadstock without charging significantly higher fees to do so, and that removing younger animals that are nonambulatory or feedlot deadstock is unnecessary. Most independent renderers are not equipped to remove brains and spinal cords from deads and downers. The upshot, some predict, will be a step back from deadstock pickups for any species by independent renders who cannot justify the costs of running trucks to pick up material that has no value.

At the same time, the proposed rule asks several questions about the dead/downer sections of the proposal, as well as trying to gather additional information about the environmentally safe disposal of the millions of pounds of SRM material that will be generated if the rule is finalized as proposed.

Most consumer activist groups said the rule does not go far enough and should have banned all SRMs – the long list of central nervous system tissues banned for human consumption and in consumer products – from all feeds. Further, these groups also want FDA to ban all poultry litter, plate waste and blood and blood products from feed.

The comment period on the rule runs 75 days and will close on Dec. 19. The full text of the proposed rule can be found at www.fda.gov/OHRMS/DOCKETS/98fr/02n-0273-npr0001.pdf.

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Johanns Lays Out Thoughts on Next Farm Bill

Secretary of Agriculture Mike Johanns yesterday told a Washington, DC, ag audience that based on USDA Farm Bill Forums in 26 states, it’s his opinion “the current farm bill … (is) perhaps the most high-risk approach we could take for our nation’s farmers and ranchers in the future.” Johanns stressed the department has done no formal analysis of comments received at the forums, and his address to a joint meeting of the Commodity Club and Food Group should not be considered an outline of farm policy for the next farm bill.

Johanns said while USDA heard unanimous support for rural development programs, “tremendous support” for USDA conservation programs and “a lot” about U.S. competitive and expanded overseas markets, there is a wide range of opinion on farm support programs. Small and minority farmers expressed frustration about the “lion’s share” of federal support payments going to large operations. Johanns said 3% of farmers receive nearly 30% of payments; medium and large producers ($250 - 500,000+ in annual sales) make up 8% of all farms, but receive 50% of government payments.

He said non-program crop farmers complained support programs protect some crops more than others. Johanns said in 2005, USDA spent $15.2 billion on program crops and less than $500 million on all other commodities covered by price and income support programs. Put another way, 92% of commodity program spending was spent on five crops – corn, wheat, soybeans, cotton and rice. Two thirds of all farmers received little support from federal programs.

In discussing the impact of the on-going World Trade Organization (WTO) negotiations on U.S. farm bill policy development, Johanns said the U.S. must use the WTO to force open export markets for U.S. products, but stressed “the WTO will not write our next farm bill.”

Johanns also said the notion of a farm income “safety net” needs to be examined. “A true safety net … is much more than subsidies,” he said. “It is good farm policy that opens … substantial market access. A true safety net is also good tax policy, trade policy, sanitary and phytosanitary policies and investment in new markets.”

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Truck “Safe Food” Transport Authority Given To FDA

Tucked into the federal highway program reauthorization signed in August by President Bush is the “Sanitary Food Transportation Act of 2005.” This legislation shifts transport sanitation responsibility to the Department of Health & Human Services (HSS) and expands previously enacted law to ensure contract carriers hauling food are taking the appropriate steps to ensure other shipments do not contaminate food shipments.

In 1990, Congress enacted similar legislation after a spate of media reports showed contract truckers delivering food to supermarkets and backhauling trash and, in some cases, garbage and other non-food loads. This legislation instructed DOT to set rules for clean-out, backhauling, etc., but DOT, claiming a lack of expertise, attempted to contract with FDA to write the rules. FDA said it lacked the resources to take on the task. Finally, in 2004, DOT proposed a rule that said shippers had to comply with applicable USDA and FDA rules.

The new law requires the Secretary of HHS to issue rules setting up sanitary food transport practices that would bind shippers, motor vehicle and rail carriers, receivers and others engaged in land transport of food and specifies that food shipped or offered for shipment that doesn’t meet these rules would be considered adulterated. The rules would cover sanitation, packaging, isolation and protective measures, limits on vehicle use, information that carriers and shippers must disclose to one another on food shipments and recordkeeping. The new law also says DOT must consult with HHS and USDA to set up procedures for food transport safety inspections that would identify contamination or adulteration and cites conforming requirements under several meat and meat processing laws.

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ITC Reverses Self on Canadian Wheat Board

The International Trade Commission (ITC) ruled October 6 that the U.S. wheat industry is not injured by the Canadian Wheat Board under the dumping and countervailing duty statutes, reversing a 2003 ruling. Rep. Earl Pomeroy (D-ND) reacted to the ITC decision, saying, “This decision is clearly wrong. The International Trade Commission has ignored the obvious damage that our producers have suffered by the trading practices of the Canadian Wheat Board. This goes to show that NAFTA is flawed and is not adequately protecting the interests of our producers, putting yet another hurdle in front of our family farmers.”

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Japan Cites Report as “Bright Outlook” for Beef Trade with U.S.; EU Lifts Ban on T-Bone Steaks

An as-yet unfinished report done for the Japanese Food Safety Commission is being touted by some Japanese officials as offering a “bright outlook” for Japanese resumption of beef trade with the U.S. The report says the danger of BSE from U.S. beef is extremely low if proper safeguards are followed, including that U.S. beef destined to Japan must be from animals under 21 months old, that certain central nervous tissues must be removed, and that Japan-specific export inspection criteria must be followed.

The Japanese statement comes as the call for increased U.S. trade sanctions against Japan is picking up support in Congress. Sen. Ben Nelson (D-NE) said he was cautiously optimistic about news from Japan. However, as the author of a successful Senate ag appropriations amendment to stop USDA rulemaking that would allow high-end Japanese beef to enter the U.S. unless the Japanese lift their ban on U.S. beef sale, he’s warned Japanese officials that other members are preparing legislation to impose stricter trade sanctions on Japan.

Meanwhile, the European Union (EU) is reportedly about to lift a restriction on beef-on-the-bone imposed as part of the EU’s BSE restrictions. The action comes as the result of a European Commission (EC) endorsement of a draft proposal that would hike to 24 months the age limit for removing the spinal column from cattle. The previous ban applied to meat-on-the-bone cuts from animals over 12 months.

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Senate Ag $3-Billion Budget Reconciliation Plan Unveiled; Battles Ensue

Sen. Saxby Chambliss (R-GA), chair of the Senate Agriculture Committee, this week unveiled a bold five-year ag budget-cutting plan to cut ag spending by $3 billion. The plan would trim farm payments across the board by 2.5%, hold back conservation spending by nearly $1 billion, extend but reduce payments under the Milk Income Loss Contract (MILC) program so the program’s cost is $998 million and cut food stamps by $574 million, among other actions.

Committee ranking member Sen. Tom Harkin (D-IA), joined by some conservation, farm and nutrition groups, took shots at the Chambliss plan, saying to cut payments and programs when farmers “need help the most is a double-dose of bad news for rural America.” Chambliss also noted conservation programs were targeted for disproportionate cuts. He said the cuts were part of a broader Republican plan to extend the President’s tax cuts “for the most affluent Americans.” Chambliss postponed a scheduled Oct. 7 markup of the budget plan.

The agriculture panel, like all authorizing committees in Congress, is required under budget rules to bring program spending into line with the congressionally mandated budget resolution that sets an overall federal spending ceiling for government operations. Agriculture’s share of this reconciled spending reduction is $3 billion and Chambliss stressed, “This committee is still required to choose where $3 billion in five-year deficit reduction cuts will come from.”

On conservation spending, the Conservation Reserve Program would be cut $129 million and the Conservation Security Program would be limited to $2 billion and would limit its overall budget to $5.2 billion through FY2015. The Environmental Quality Incentive Program (EQIP) would take a $104 million hit and the plan would cut $227 million out of ag research programs.

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Doha Reps Begin Talks About Specific Subsidy Cut Numbers

Hoping to hammer out an agreement on how much developed and developing nations will cut trade-distorting farm subsidy programs before the Doha Round ministers meeting in December, the U.S. this week proposed to WTO members at a meeting in Geneva a tariff reduction formula that would divide current tariffs on ag products into four tiers, with higher reductions on the higher tariffs. Developing countries also would be subject to the four tiers, but with smaller cuts required. The U.S. also proposed that “sensitive products” such as sugar be shielded and enjoy longer periods for tariff cut implementation.

The European Union (EU) meanwhile proposed cutting its own domestic subsidies by 65%, saying Japan should do likewise and the U.S. could cut its trade-distorting payments by 55%. The EU also insisted that the U.S. cut its food aid shipments and that Australia, New Zealand and Canada curtail actions by their state trading enterprises.

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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.1821
Sen. Harry Reid (D-NV) proposed a bill to increase preparation for an influenza pandemic, including an avian influenza pandemic.

S.1822
Legislation introduced by Sen. Patty Murray (D-WA) would make improvements to the implementation of the Medicare prescription drug benefit.

S.1833
Sen. Mike Crapo (D-ID) proposed a bill to provide for health opportunity accounts under the Medicaid Program.

S.1840
Sen. John Thune (R-SD) introduced legislation to increase the affordability of inpatient drugs for Medicaid and safety net hospitals.

S.1841
A bill offered by Sen. Bill Nelson (D-FL) would provide extended and additional protection to Medicare beneficiaries who enroll for the Medicare prescription drug benefit during 2006.

H.R.3969
Rep. Roy Blunt (R-MO) offered a bill to designate a USDA disaster liaison to assist its state and local employees in coordination with other disaster agencies in responding to federally declared disasters.

H.R.3974
Rep. Frank Lucas (R-OK) proposed legislation to prohibit the closure or relocation of county or local Farm Service Agency offices pending the completion of the next omnibus agriculture law.

H.R.3998
A bill offered by Rep. Cynthia McKinney (D-GA) would provide farm debt and program relief to African-American farmers who suffered discrimination in the administration of USDA farm credit programs and other agriculture programs.

H.R.3980
Rep. John Dingell (D-MI) introduced legislation to improve the qualified Medicare beneficiary (QMB) and specified low-income Medicare beneficiary (SLMB) programs within the Medicaid Program.

H.R.4009
Legislation proposed by Rep. Bennie Thompson (D-MS) would direct the Secretary of Homeland Security to conduct comprehensive examinations of the human resource capabilities and needs, organizational structure, innovation and improvement plans, intelligence and information analysis capabilities and resources, infrastructure capabilities and resources, budget, and other elements of the homeland security program and policies of the United States.

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