Food and Drug Law Institute Understanding cGMPs: What attorneys need to know July 10, 2013 Carmen M. Shepard* *All views contained in this presentation reflect the personal views of the presenter only. They do not necessarily reflect the views or position of Mylan Inc. and may not be attributed to Mylan Inc. Legal consequences − Criminal prosecutions: company and individual exposure − Seizures − Consent decrees − Warning letters − Navigating consequences of OAI Status 2 Ascertaining legal requirements and options − − − − − GMP requirements come from laws and regulations Appeal or litigation options Effect on other jurisdictions Disclosure obligations Privilege Issues 3 Company Settlement TAP Pharmaceutical Products $875 million Schering-Plough Country Violation(s) Year Product(s) Laws allegedly violated USA Medicare fraud/kickbacks 2001 Lupron False Claims Act/Prescription Drug Marketing Act $500 million USA Poor manufacturing practices 2002 Claritin FDA Current Good Manufacturing Practices AstraZeneca Pfizer $355 million $430 million Medicare fraud Off-label promotion 2003 2004 Zoladex Neurontin Prescription Drug Marketing Act False Claims Act/FDCA Schering-Plough $345 million UK USA USA Medicare fraud/kickbacks 2004 Claritin False Claims Act/Anti-Kickback Statute Serono $704 million Switzerland Off-label promotion/kickbacks/monopoly practices 2005 Serostim False Claims Act Schering-Plough $435 million USA Off-label promotion /kickbacks/Medicare fraud 2006 Temodar/ Intron A/ KDur/Claritin RediTabs False Claims Act/FDCA Purdue Pharma $601 million USA Off-label promotion 2007 Oxycontin False Claims Act 2007 Abilify/Serzone False Claims Act/FDCA Bristol-Myers Squibb $515 million USA Off-label promotion/kickbacks/Medicare fraud Merck $650 million USA Medicare fraud/kickbacks 2008 Zocor/Vioxx/Pepsid False Claims Act/Medicaid Rebate Statute Cephalon $425 million USA Off-label promotion 2008 Actiq/Gabitril/Provigil False Claims Act/FDCA Pfizer $2.3 billion USA Off-label promotion/kickbacks 2009 Bextra/Geodon/Zyvox/Lyrica False Claims Act/FDCA Eli Lilly $1.4 billion USA Off-label promotion 2009 Zyprexa False Claims Act/FDCA False Claims Act/FDCA GlaxoSmithKline $750 million UK Poor manufacturing practices 2010 Kytril/Bactroban/Paxil CR/Avandamet Allergan $600 million USA Off-label promotion 2010 Botox False Claims Act/FDCA AstraZeneca $520 million UK Off-label promotion/kickbacks 2010 Seroquel False Claims Act Novartis $423 million Switzerland Off-label promotion/kickbacks 2010 Trileptal False Claims Act/FDCA GlaxoSmithKline $3 billion UK Off-label promotion/failure to disclose safety data 2012 Avandia/Wellbutrin/Paxil False Claims Act/FDCA Abbott Laboratories $1.5 billion USA Off-label promotion 2012 Depakote False Claims Act/FDCA Amgen $762 million USA Off-label promotion/kickbacks 2012 Aranesp False Claims Act/FDCA Ranbaxy $500 million India Poor manufacturing practices/failure to timely file 2013 required reports/false statements Various False Claims Act/FDCA 4 Navigating product availability issues − Effect on contracts, bids • Company’s obligations to third parties • Third party obligations to company − Reporting requirements for shortages 5 Leadership needs − − − − How did we get here? What are the consequences? What is our strategy for dealing with this? How do we keep it from happening again? 6 Steps to take when an inspection is imminent − Check performance metrics, backlogs, repeating issues, policies • APRs completed • Investigations and deviations • Change controls, etc. − Status of previous inspection commitments − Awareness of current trends by regulatory entities − Inspection readiness audits − Use of third parties Data Integrity Issues 7 Corporate governance Maintaining state of control Culture of Quality Education in trends, the “c” in cGMP Evaluation of effectiveness Product robustness Early warning signs 8