Looking at the Horizon: Current & Future Regulatory Issues for the Medical Device, Drug and Food Industries 1 1 Our Team Washington, DC Chicago Research Triangle Park Portland 2 The HHS and FDA Leadership Team Under the Obama Administration Gary L. Yingling Partner Washington, DC 2 Secretary of the U.S. Dept. of Health and Human Services - Kathleen Sebelius Confirmed by Senate (65-31) and Sworn In by President on April 28th Background: Governor, Kansas ( 02 April 09) State Insurance Commissioner ( 94 02) State Legislator ( 87 94) Dir. of Kansas Trial Lawyers Association ( 78 86) Priorities (based on comments made during Confirmation hearings): Health care reform Food Safety Working Group Will co-chair group and advise President on methods for examining and upgrading food safety laws, and enforcing existing and new laws Creating a pathway for the approving of follow-on biologics Increase foreign drug inspections Improving FDA s regulation of medical product promotion 4 Deputy Secretary of HHS Bill Corr Confirmed by Senate (unanimous consent) on May 6th Background: Executive Director, Campaign for Tobacco-Free Kids (anti-tobacco organization that advocates FDA regulation of tobacco) ( 00 May 09) Chief Counsel and Policy Director, Senator Daschle ( 98 00) Deputy Assistant Secretary, HHS ( 93 to 96); Chief of Staff, HHS ( 96 - 98) Staffer, Senator Metzenbaum ( 88 93) Staffer, Representatives Rogers and Waxman ( 77 88) Worked to limit the exclusivity provisions of the Orphan Drug Act Priorities: Will focus on health care reform During confirmation, assured members of his recusal from tobacco-related issues under the Obama Administration s ethics guidelines 5 3 FDA Commissioner - Dr. Margaret Peggy Hamburg Confirmed by Senate (voice vote) on May 18th Background: Physician (Internal Medicine) Sr. Scientist, Nuclear Threat Initiative's Biological Programs ( 01 Assistant Secretary for Policy and Evaluation, HHS ( 97 May 09) 01) Health Commissioner, New York City ( 91 - 97) Assistant Director, The National Institute of Allergy and Infectious Diseases, AIDS Research ( 89 - 90) 6 Dr. Hamburg Priorities (outlined during confirmation hearings): Review FDA s work on the H1N1 influenza outbreak to evaluate the agency s preparation and response. Improve food safety by shifting to a prevention-first policy, focusing on import safety and working more closely with our international allies. Encourage advances in product safety by building safety considerations into every aspect of product development, with close postmarket monitoring. Foster industrial innovation, striving to appropriately balance this with regulation. Assure accountability (FDA s work must be driven by the best possible science and is undertaken with integrity, openness and credibility ). 7 4 FDA Principal Deputy Commissioner - Dr. Joshua Josh Sharfstein Appointed on March 14th / Joined agency March 30th Confirmation not required. Background: Pediatrician Baltimore Health Commissioner ( 05 March 09) Petitioned FDA to ban some pediatric OTC cough / cold meds. Health Policy Advisor and Staffer, Rep. Henry Waxman and House Government Reform and Oversight Committee ( 01 05) Advocate for putting the tobacco industry under the regulation of the FDA. Priorities: Drug Safety Food Safety (Orchestrated FDA s efforts with pistachio recalls) 8 Senior Counsel to Deputy Commissioner - David Dorsey, Esq. Appointed by Sharfstein on 4/14/09. Will oversee Office of Legislatives Affairs. Will help develop agency policy and liaise with Congress. Background: Staffer, Sen. Kennedy (01/01 04/09) Served as Senior Fellow on the Senate Health, Education, Labor, and Pensions Committee Worked on various pieces of legislation. Associate Chief Counsel, FDA Focused on medical devices, labeling and dietary supplements. Has been on detail from FDA to Kennedy s staff. 9 5 Deputy Commissioner for Scientific and Medical Programs Jesse Goodman Appointed by Sharfstein on 4/13/09. Background: Physician Center Director, CBER ( 03- April 09) Deputy Director, CBER ( 01- 03) Sr. Advisor to FDA Commissioner Henney (1998) Professor of Medicine and Chief of Infectious Diseases, University of Minnesota 10 Acting Chief Counsel - Michael Landa, Esq. Appointed by Sharfstein on 4/10/09. Background Regulatory Affairs Deputy Director, CFSAN (8/04 4/09) Deputy Chief Counsel, FDA (1/00 - 7/04) Acting Chief Counsel, FDA (3/01 - 8/01) Partner, Heller Ehrman White & McAuliffe ( 93 99). Associate, FDA s Chief Counsel Office (various periods between 78 93) 11 6 Medical Devices: Recent Developments and Regulatory Challenges Suzan Onel Partner Washington, DC Center for Devices and Radiological Health (CDRH) 2008-2009 Operative Words: Upheaval Under Siege 13 7 Snapshot Recent GAO Reports Related to Medical Devices Status of 510(k) Review Program and Current Controversies Financial Conflicts of Interest- Federal and State Activity Federal Preemption Pending Legislation CDRH Enforcement Trends Review Time Trends Other Notable Developments 14 2009 GAO Reports Medical Devices: FDA Should Take Steps to Ensure that High-Risk Device Types Are Approved Through the Most Stringent Premarket Review Process GAO Adds FDA Oversight of Medical Products to its 2009 High Risk List 15 8 510(k) Review Program Review Process Slower decisions and more questions Brain drain Fewer experienced reviewers- 70% new hires since 2005 Shuffling of reviewers within CDRH Divisions Increased emphasis on clinical trials Increased complexity of devices Increased scrutiny of science and predicates 16 510(k) Review Program CDRH whistleblower letters to Hill and Administration question the scientific basis for clearance decisions and integrity of review process and leadership Increased scrutiny of applications Less open to creative predicates 17 9 510(k) Review Program- Current Controversies 25 Class III Pre-Amendment Devices- Call for Data Deadline: August 7, 2009 Currently allowed on market with 510(k); potential reclassification to Class II or III Modification Decisions Edwards Lifescience Myxo ETlogix 5100 treatment for degenerative mitral valve Choices of Predicates Vaginal Sling Ophthalmic Lasers Potential Rescission of 510(k)s ReGen Biologics Menaflex Meniscus Collagen Scaffold for knee repair 18 Conflicts of Interest Recent Federal and State Activity Current FDA Disclosure Requirements Voluntary Codes of Ethics IOM Report Recommends Congress create a national program requiring device makers and foundations to report payments to healthcare providers Recent NJ Attorney General Activity Synthes - settlement Stryker - ongoing investigation Proposed Federal Legislation State Activity: Massachusetts, Vermont; pending legislation in Texas and Oregon 19 10 Federal Preemption Potentially Challenged? Medical Device Amendments of 1976 Express preemption recognized for PMA devices, not 510(k) devices Riegel v. Medtronic, Inc. (2008) Increasing interest in reversing precedent by legislation 20 Legislation Affecting Medical Devices The Physician Payment Sunshine Act of 2009, S. 301 The Medical Device Safety Act of 2009, H.R. 1346 and S. 540 The National Pain Care Policy Act of 2009, H.R. 756 and S. 660 The Patient Access to Critical Lab Tests Act, H.R. 1699 The Protection for Participants in Research Act of 2009, H.R. 1715 The FDA Globalization Act of 2009, H.R. 759 The National Nanotechnology Initiative Amendments of 2009, H.R. 554 The Patent Reform Act of 2009, S. 515 and H.R. 1260 The National Neurotechnology Initiative Act, S. 589, H.R. 1483 21 11 CDRH Enforcement Trends Fiscal 2008 No seizures No injunctions No civil money penalty cases 134 warning letters 2472 recalls Fiscal 2007 4 seizures 4 injunctions 1 civil money penalty case 155 warning letters 1279 recalls 22 FDA Decisions and Average Review Time Trends 510(k) FY 2008: FY 2007: FY 2006: FY 2005: Data not available 3168 decisions; review time unavailable 3447 decisions; 95 days (54 FDA days) 3344 decisions; 87 days (54 FDA days) PMA FY 2008: FY 2007: FY 2006: FY 2005: Data not available 35 decisions; review time unavailable 50 decisions; 335 days (283 FDA days) 51 decisions; 438 days (366 FDA days) 23 12 Other Notable Developments CDRH to move to White Oak Campus by July 31 Address, Phone, and Fax will change ClinicalTrials.gov- registration of applicable device clinical trials as of September 2008 Certification form (FDA-3674) must accompany FDA submissions that include clinical trials Penalties for failure to register 24 Any questions or comments? Suzan Onel, Partner (DC) (202) 778-9134 (ph) (202) 778-9100 (fax) suzan.onel@klgates.com 25 13 Short Break Next Presentation: Looking Backward & Looking Ahead: NDAs, ANDAs, DESI Drugs Looking Backward & Looking Ahead: NDAs, ANDAs, DESI Drugs Rebecca L. Dandeker Of Counsel Washington, DC 14 NDA REVIEWS PAST Collaborative User Fee System Creates Stakeholders NOW Congress highlighting safety problems Industry viewed as bad actors Media hyping FDA s lost reputation = No Collaboration But Sharfstein reported to be collaborator will it trickle down to reviewers? 28 PRODUCT DEVELOPMENT PAST NDAs Long IND Times Short Review Times 10-12 Month Approval Times ANDAs Short Development Times Long Review Times 17-24 Month Approval Times Domestic Inspections NOW NDAs = same ANDAs = same More Pressure for User Fees Industry Can t Withstand the Delays Anymore OGD Reported a 17 Month Median Time to Approval in 2006 Then Stopped Reporting Foreign Inspections 29 15 RISK MANAGEMENT PAST Adverse Events collected, reviews were slow FDA struggles with its authority Cautious Implementation Approvals with Labeling Limitations NOW Adverse Events reviewed, more FDA-initiated labeling changes Full Statutory Authority of REMS But Pendulum will still swing between company-sponsored product withdrawals vs. Use of REMS 30 BASIC APPROVAL PROOFS FOR THE MARKET (BEYOND FDA) PAST NOW Safety & Efficacy State Formulary Inclusion Pharmacy Benefit Managers Pediatric Data Past Items, Plus: Post-market studies Reimbursement Decisions (CMS and Private Insurers) Comparative Effectiveness REMS 31 16 NON-NDA DRUGS PAST Slow Movement on DESI drugs, whether approval or enforcement action NOW Increased enforcement actions to remove DESI drugs Significant efforts to convert DESI drugs to approved NDAs Product development requirements? 32 OTC MONOGRAPH DRUGS PAST 10-20 Years with Monographs Ongoing (Tentative Final Monograph) Very slow progress NOW More Activity, but still slow Finalizing Monographs (or parts), e.g., cough cold combos, pediatric labeling, internal analgesics 33 17 PACE OF FDA WORK PAST Slow Then slightly faster due to Congressional interest Via efficiencies but not a change in FDA culture White House oversight NOW Sharfstein Fast Pace 24/7 blackberries Quick decisions on enforcement actions Faster turnaround for documents (NDA, guidance, press releases, letters) Collapse the Timeline 34 SAFETY-RELATED ENFORCEMENT ACTIONS PAST Voluntary Recalls, Followed By Negative Publicity from FDA Recall Announcements viewed by pharmacists, some physicians NOW More Pressure for Recalls from FDA More Negative Publicity by FDA Recall Announcements viewed by many more, e.g., shareholders, media, competitors, contractors, customers 35 18 PURPOSEFUL ADULTURATION (ECONOMIC) PAST Not on FDA s Radar More concerned about counterfeiting Government led investigations NOW DMF, Source Material (foreign) Bad Actors are expected by FDA Highlighted by Congress Industry s responsibility to investigate and guard against, per suppliers 36 PhRMA PAST Accepted Then Watched and Reported but Permitted Patient Groups as Proponents of Change PHYSICIAN TIES NOW Automatically Suspect Ties Being Cut With States Leading in enforcement and change Congress Also a Proponent of Change Sharfstein also a proponent of change (?) 37 19 TRANSPARENCY PAST Lip Service Only FDA would not disclose confidential and proprietary product information, NDAs NOW Announced Goal of Obama Administration (?) FDAAA of 2007 FDA must post drug labeling, drug approval package, clinical trial registry data summaries, brand/generic agreements (authorized generics) 38 CONGRESSIONAL FOCUS PAST Faster Drug Approvals Underrepresented Patients (Orphans) Industry As Useful NOW Safety, REMS Limitation to Patients Industry as Detrimental FDA failing to fulfill its mission of protecting the public 39 20 CHANGES TO STATUTE PAST NOW Infrequent 1906, 1938, 1962, 1984 Frequent 1992, 1996, 1997, 2002, 2003, 2006, 2007, 2008 But takes FDA 5 years to implement each change Unfunded mandates 40 CONCLUSION Pendulum swings throughout history between an emphasis on safety, and an emphasis on finding and approving new therapies quickly Successful companies will accept this fact, and move projects back and forth between short term and long term categories, based on the pendulum 41 21 Any questions or comments? Rebecca Dandeker, Of Counsel (DC) (202) 778-9409 (ph) (202) 778-9100 (fax) rebecca.dandeker@klgates.com 42 Lunch and Speaker Introduction: George Burditt, K&L Gates, Chicago Lunch Speaker: Scott MacIntire, District Director, Food & Drug Administration 22