AUGUST 2005 Life Sciences Pharmaceutical Industry Adopts Voluntary Guidelines For Direct To Consumer Advertising On August 2, 2005, the Pharmaceutical Research and Manufacturers of America (PhRMA) announced the adoption of “PhRMA Guiding Principles – Direct to Consumer Advertisements About Prescription Medicines,” a set of voluntary restrictions on direct-toconsumer (DTC) advertising of prescription drugs. These Principles come amidst Congressional calls for more stringent controls over DTC advertising by pharmaceutical companies, particularly in the wake of the controversies over the heavily advertised prescription drugs Vioxx and Celebrex. The Principles, which expand upon the FDA’s ‘Guidance for Industry - Consumer-Directed Broadcast Advertisements’ drafted in 1997 and finalized in 1999, were approved by PhRMA’s Board of Directors on July 29 and go into effect in January 2006. All of PhRMA’s 23 members have agreed to adopt them. The Principles state that they are designed to encourage informed conversations between patients and health care professionals about the usage and risks of prescription drugs. The Principles recognize that FDA regulations already require that DTC ads be accurate and not misleading, should make claims only when supported by substantial evidence, should reflect a balance between risks and benefits, and should be consistent with FDA-approved labeling. The Principles and a question-and-answer section included with them go further and suggest that signatory companies implement the following steps, among others: ■ Educate health care professionals for an “appropriate amount of time” about new prescription drugs or new therapeutic indications for prescription drugs before commencing the first DTC ads. These educational efforts are intended to provide health care professionals with information about these new drugs or new uses to foster responsible communication with patients likely to have questions generated by DTC advertisements. Companies are also to continue these educational efforts upon receipt of additional, valid and reliable information regarding these drugs; ■ Submit all new DTC television ads to the FDA a reasonable time before they are broadcast and inform the FDA of the earliest date the ads are scheduled to air; ■ Ensure that DTC television ads for a named product state clearly the medical condition for which the drug has been approved for use and the major risks associated with it; ■ Ensure that DTC television and print ads state in clear, understandable language the risks associated with use of a drug and, working with the FDA, alter or pull DTC ads when new and reliable information indicates a serious, previously unknown safety risk; ■ Target DTC print and television ads to avoid ageinappropriate audiences (e.g., ads for erectile dysfunction drugs should be aired only when the audience is approximately 80% adult); ■ Establish internal processes to ensure compliance with the Principles. Under the Principles, PhRMA will also establish an Office of Accountability to receive comments from the public and health care professionals regarding DTC ads by signatory companies, which includes any company which publicly states that it will follow the Principles. It will provide comments reasonably related to compliance with the Principles to the affected companies and will issue periodic reports to the FDA and to the public regarding the nature of the comments received and company responses. In January 2007, the Office of Accountability will also appoint an independent panel to review the prior year’s reports, examine trends in the industry relating to the Principles, and make recommendations in accordance with the Principles. Life Sciences clients should pay close attention to the Principles and to what happens next. Even though the Principles will be followed by PhRMA members, which include some of the country’s largest pharmaceutical manufacturers, it is nonetheless difficult to assess how the Principles will work in practice, as several interpretative and implementation issues remain. For instance, there is no set period over which a company must educate health care professionals about new drugs or uses before broadcasting DTC ads. That “appropriate time” is to be determined by each company in light of factors identified in the Principles, which include the importance of alerting patients of the availability of the new drug, the complexity of its risk-benefit profile, and the health care field’s knowledge of the condition being treated. Nor is it possible to predict Congressional response to the Principles and, in particular, what effect they may have in forestalling further government action. Senate Majority Leader Bill Frist had sought a voluntary two-year moratorium on new drug advertising. Although the Principles do not call for such a moratorium, two PhRMA members have at least adopted the concept — Bristol-Meyers Squibb announced it will hold off on DTC ads for a minimum of 12 months following a new product launch, and Pfizer announced it will not begin DTC ads for new drugs for at least six months. Frist has called on the Government Accountability Office to study of the FDA’s oversight of DTC advertising. For its part, the FDA, according to published reports, is expected to review its regulations governing DTC advertising. ABOUT K&LNG’S BIOPHARMA COMPLIANCE TASK FORCE As the above suggests, the already treacherous legal landscape confronting the pharmaceutical, biotechnology, health care and medical device industries is changing. K&LNG’s Life Sciences practice group was formed to assist clients in addressing these and other legal issues confronting these industries. To better serve these clients, the Life Sciences practice group announces the creation of the BioPharma Compliance Task Force. The Task Force is comprised of corporate, regulatory, white collar criminal defense and trial lawyers. It is designed to address comprehensively the increasing regulatory oversight and the ever-present risk of civil and criminal investigation and enforcement of an array of federal and state standards in the biotech, pharmaceutical, health care and medical device fields. Eileen Smith Ewing 671.951.9227 eewing@klng.com Michael D. Ricciuti 617.951.9094 mricciuti@klng.com 2 AUGUST 2005 KIRKPATRICK & LOCKHART NICHOLSON GRAHAM LLP If you have questions about K&LNG’s BioPharma Compliance Task Force, please contact one of our lawyers listed below: BOSTON Eileen Smith Ewing Michael D. Ricciuti John A. Wortmann, Jr. Michael DeMarco Barbara A. Jones 617.951.9227 617.951.9094 617.951.9095 617.951.9111 617.951.9096 eewing@klng.com mricciuti@klng.com jwortmann@klng.com mdemarco@klng.com barbara.jones@klng.com NEWARK John A. Azzarello John J. Farmer, Jr. 973.848.4126 973.848.4021 jazzarello@klng.com jfarmer@klng.com MIAMI William J. Spratt, Jr. 305.539.3320 wspratt@klng.com www w.. k l n g . c o m BOSTON DALLAS HARRISBURG LONDON LOS ANGELES MIAMI NEWARK NEW YORK PALO ALTO PITTSBURGH SAN FRANCISCO WASHINGTON ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Kirkpatrick & Lockhart Nicholson Graham LLP (K&LNG) has approximately 1,000 lawyers and represents entrepreneurs, growth and middle market companies , capital markets participants, and leading FORTUNE 100 and FTSE 100 global corporations nationally and internationally. K&LNG is a combination of two limited liability partnerships, each named Kirkpatrick & Lockhart Nicholson Graham LLP, one qualified in Delaware, U.S.A. and practicing from offices in Boston, Dallas, Harrisburg, Los Angeles, Miami, Newark, New York, Palo Alto, Pittsburgh, San Francisco and Washington and one incorporated in England practicing from the London office. This publication/newsletter is for informational purposes and does not contain or convey legal advice. The information herein should not be used or relied upon in regard to any particular facts or circumstances without first consulting a lawyer. Data Protection Act 1988 - We may contact you from time to time with information on Kirkpatrick & Lockhart Nicholson Graham LLP seminars and with our regular newsletters, which may be of interest to you. We will not provide your details to any third parties. Please e-mail cgregory@klng.com if you would prefer not to receive this information. © 2005 KIRKPATRICK & LOCKHART NICHOLSON GRAHAM LLP. ALL RIGHTS RESERVED.