← The Peter Attia Drive

#71 - Katherine Eban: Widespread fraud in the generic drug industry

Sep 16, 2019 2h 41m 49 insights
<p class="p1">In this episode, Katherine Eban, investigative journalist and author of Bottle of Lies, illuminates the prevalence of fraud in generic drug manufacturing which brings into question the idea that generics are identical to brand-name drug as we are lead to believe. Katherine walks us through how this widespread corruption came to be, including the shocking story of one particularly egregious (and unfortunately not uncommon) example of an Indian drug company, Ranbaxy, whose business model was completely dependent on falsifying data in their drug applications to the FDA. We then discuss the subsequent investigation into Indian and Chinese drug manufacturing plants which revealed that nearly 80% of them are tainted with fraud. We conclude this discussion on a positive note with i) how individuals can investigate their own drugs to protect themselves ii) an innovative pharmacy attempting to disrupt the market and iii) some ideas on how to reform to the regulations around generic drugs, the FDA, and more.</p> <p class="p2"> </p> <p class="p1">We discuss:</p> <ul class="ul1"> <li class="li1">How Peter found Katherine's book, and what convinced her to investigate the generic drug industry [5:45];</li> <li class="li1">Branded vs. generic drugs: Why they aren't the same thing [11:15];</li> <li class="li1">The Food and Drug Administration: Why it was originally created and what it does today [20:45];</li> <li class="li1">How the generic drug industry really got its start in the U.S., and the flaw of the Hatch-Waxman Act [28:20];</li> <li class="li1">PEPFAR: How a well-intentioned plan to help Africa with the AIDS epidemic laid the groundwork for corruption [36:30];</li> <li class="li1">The story of Ranbaxy: An Indian drug company whose business model was fraud and deceit [40:45];</li> <li class="li1">How the FDA approves drugs, the impact of "first to file", and Peter's tangent on moral corruption [47:30];</li> <li class="li1">A booming generic drug market and the FDA struggling to keep up [57:15];</li> <li class="li1">Dinesh's internal investigation finds widespread fraud and falsified data inside Ranbaxy [1:00:15];</li> <li class="li1">Presenting the famous SAR document to Ranbaxy's board of directors which spells out the company-wide fraud [1:09:15];</li> <li class="li1">Dinesh blows the whistle on Ranbaxy which leads to a raid on their US plant [1:19:45];</li> <li class="li1">Formal investigation of Ranbaxy is launched, but the FDA keeps approving Ranbaxy drug applications [1:33:30];</li> <li class="li1">What role does the culture in India play in the high prevalence of fraud in the drug industry? [1:41:00];</li> <li class="li1">The extreme prevalence of data fraud/manipulation in foreign generic drug factories [1:52:30];</li> <li class="li1">Concluding the Ranbaxy story [2:06:15];</li> <li class="li1">How concerned should you be when buying a generic drug from your local pharmacy? [2:11:15];</li> <li class="li1">How to investigate your own drugs for quality to ensure you are getting what you need [2:18:30];</li> <li class="li1">An innovative pharmacy that tests all its drugs for quality [2:24:45];</li> <li class="li1">Reforming the FDA and generic drug industry: Why we need reform and ideas on how to do it [2:27:45];</li> <li class="li1">The importance of taking individual ownership and not waiting for Congress to bail us out [2:34:00];</li> <li class="li1">Closing thoughts from Katherine [2:36:50]; and</li> <li class="li1">More.</li> </ul> <p>Learn more: <a href="https://peterattiamd.com/">https://peterattiamd.com/</a><br /> <br /> Show notes page for this episode:</p> <p class="p1"><span class="s1"><a href="https://peterattiamd.com/katherineeban/">https://peterattiamd.com/katherineeban/</a></span></p> <p class="p1"><br /> Subscribe to receive exclusive subscriber-only content: <a href="https://peterattiamd.com/subscribe/">https://peterattiamd.com/subscribe/</a><br /> <br /> Sign up to receive Peter's email newsletter: <a href="https://peterattiamd.com/newsletter/">https://peterattiamd.com/newsletter/</a><br /> <br /> Connect with Peter on <a href="http://Facebook.com/PeterAttiaMD"><u>Faceboo</u></a><u>k</u> | <a href="http://Twitter.com/PeterAttiaMD"><u>Twitter</u></a> | <a href="http://Instagram.com/PeterAttiaMD"><u>Instagram</u></a>.<br /> <br /></p>
Actionable Insights

1. Investigate Your Own Drugs

Utilize Catherine Eban’s website guide (CatherineEban.com) to learn how to investigate your own medications, beginning with identifying the manufacturer of your specific drug.

2. Ask Pharmacist for Generic Manufacturer

When picking up a generic prescription, always ask your pharmacist for the manufacturer’s name and inquire about other available manufacturers, as this information is crucial for informed choices.

3. Prioritize Authorized Generics

When available, prioritize ‘authorized generics’ because they are produced by a generic company in partnership with the brand-name manufacturer, often using the original drug recipe, which may indicate higher quality.

4. Use Independent Pharmacy for Dialogue

Opt for an independent brick-and-mortar pharmacy to facilitate direct conversations with a pharmacist about drug manufacturers and quality, which can be more challenging with large chain pharmacies.

5. Perform Due Diligence on Generic Drugs

Medical practices should perform thorough due diligence on all prescribed generic drugs by identifying manufacturers, researching public filings, and creating a ‘probabilistic heat map’ to inform safer prescribing choices.

6. Diagnose Drug Supply, Not Just Patients

Physicians should expand their diagnostic approach to include the quality of the drug supply, especially when patients become unstable after switching from brand-name to generic medications.

7. Investigate Unexpected Generic Drug Response

Physicians should investigate when objective lab results do not respond as expected to a generic drug, considering if the patient is taking the medication or if the generic itself is ineffective.

8. Monitor Generic Extended-Release Efficacy

Patients and physicians should be aware that generic extended-release drugs may not work as effectively or could cause different side effects compared to their branded counterparts.

9. Exercise Caution with Overseas Drugs

Exercise extreme caution regarding drug quality from manufacturing plants in India and China, as extensive inspections revealed endemic data fraud and manipulation in four-fifths of facilities.

10. Take Ownership of Drug Supply Knowledge

Take personal responsibility for understanding your medication supply by actively paying attention to who manufactures your drugs and how they are intended to function, rather than assuming equivalence.

11. Price Compare Drugs with GoodRx

Utilize apps like GoodRx to compare medication prices across various pharmacies, which can be particularly useful when opting for independent brick-and-mortar pharmacies.

12. Request Specific Generic Manufacturer

If you have a preferred generic drug manufacturer based on your research, ask your pharmacist if they can order that specific product from their wholesalers.

13. Beware Endemic Overseas Data Fraud

Be aware that egregious forms of data fraud, including shredding documents, employing data fabrication teams, and conducting secret tests, are endemic in Indian and Chinese drug manufacturing plants.

14. Beware ‘Too Perfect’ Data

Be suspicious of data that appears ’too perfect’ or exactly matches expected results, as this can be a significant red flag for manipulation or fraud.

15. Guard Against Minor Moral Infractions

Be vigilant against minor infractions and their rationalizations, as they can lead individuals and organizations down a ‘slippery moral slope’ towards significant corruption and unethical behavior.

16. Act on Conscience for Public Health

If you uncover severe ethical violations that compromise public health, follow your conscience and take action, even if it entails personal risk or difficulty.

17. Understand Global Drug Supply Chain

Recognize that 80% of active ingredients and the majority of generic drugs in the U.S. supply, including antibiotics, are sourced from overseas, primarily India and China.

18. Foster Strong Compliance Culture

Cultivate a strong ‘culture of compliance’ within organizations through consistent training, ethical reinforcement, and the presence of vigilant regulatory oversight to ensure adherence to rules and standards.

19. Advocate for Regulatory Agency Funding

Advocate for increased funding, resources, and authority for critical regulatory bodies like the FDA, as they are often under-resourced despite safeguarding a significant portion of the economy and public health.

20. Grant Subpoena Power to Regulators

Advocate for granting subpoena authority to regulatory agencies like the FDA, as their current lack of this power can significantly hinder investigations into corporate misconduct.

21. Hold Brand Companies Accountable for Generics

Advocate for a system that holds brand-name companies responsible for the quality and authenticity of their authorized generic products, creating a dual layer of oversight beyond regulatory bodies.

22. Support Congressional Drug Supply Oversight

Support ongoing congressional efforts to investigate and address problems within the drug supply chain, particularly when FDA findings of egregious conditions are reportedly downgraded.

23. Support Podcast for Exclusive Content

Become a member to support the podcast and gain access to exclusive benefits, including full show notes, downloadable transcripts, AMA episodes, and deals on products Peter loves.

24. Explore Podcast Resources

Visit peteratiyahmd.com to find more information on current and past episodes, along with other relevant topics.

25. Share Genuine Product Enthusiasm

Feel free to openly share your enthusiasm for products you genuinely love and use, even without financial affiliation, as Peter Atiyah does with Topo Chico.

26. Acknowledge Strong Emotions

Recognize that it’s normal to still experience strong emotions like anger, even if you practice mindfulness, as exemplified by Sam Harris.

27. Investigate Widespread Product Complaints

If you receive consistent and numerous complaints about a product or service, especially when official explanations are dismissive, consider engaging investigative resources to uncover the truth.

28. Trust Investigative Intuition

When a credible source presents a significant and intriguing problem, trust your intuition if it suggests there’s substantial depth to the issue, prompting further investigation.

29. Evaluate Process for Product Quality

When assessing product quality, especially for complex items like drugs, prioritize evaluating the integrity and control of the manufacturing process, as ’the process is the product.’

30. Deep Dive Beyond Checklists

For effective inspection or auditing, move beyond simple checklists to scrutinize underlying procedures and critical operational parameters, rather than just visible outcomes.

31. Consider Full Supply Chain Oversight

Recognize that effective regulatory oversight and quality control should extend to all raw materials and components entering a manufacturing process, not just the final production site.

32. Choose IP Protection Strategy

When protecting intellectual property, evaluate whether to use trade secrets for perpetual secrecy or patents for limited-term protection with disclosure, considering the long-term implications for your business.

33. Create Robust Patent Protection

Brand-name companies should strategically patent multiple aspects of a drug, including formulations and manufacturing steps, to create a comprehensive ‘patent thicket’ for extended protection.

34. Employ Reverse Engineering for Generics

Generic drug manufacturers can legally circumvent existing patents by reverse engineering branded drugs and reordering manufacturing steps to achieve the same end product.

35. Develop Generic Formulations Independently

Generic drug manufacturers must independently develop their formulations, including excipients, dissolution profiles, and stability data, as the proprietary ‘drug master files’ of brand-name companies are not disclosed.

36. Understand Generic Drug Approval Process

Be aware that generic drug approval involves both a review of submitted data in an Abbreviated New Drug Application (ANDA) and a pre-approval inspection of the manufacturing facility.

37. Prioritize First-to-File Generic Strategy

Generic drug companies should prioritize being the first to file and secure approval for a drug, as this grants a lucrative six-month market exclusivity period allowing for significant profitability.

38. Investigate Suspected Regulatory Corruption

If you suspect regulatory corruption or unfair competitive practices, consider hiring private detectives to uncover evidence, as Mylan did when facing unusual drug approval delays.

39. Implement Strict Application Integrity Policies

Regulatory bodies should implement stringent pre-approval inspections and an ‘application integrity policy’ to remove applications and halt pipelines of companies found to be falsifying data.

40. Recognize Skewed Corporate Morality

Understand that some corporate cultures may disproportionately punish minor infractions while overlooking or even rewarding severe ethical breaches that jeopardize public safety.

41. Use Pseudonym for Whistleblowing

If you need to blow the whistle on corporate misconduct, consider using a pseudonym and a burner email account to protect your identity, especially when facing potential retaliation.

42. Persist and Escalate Serious Reports

If your initial reports of serious issues are dismissed, persist in communicating the problem and escalate it to higher authorities, clearly articulating the crime and its urgency.

43. Recognize Regulatory Silos

Understand that large regulatory agencies may have internal silos where different departments operate independently, potentially leading to a lack of coordinated action on critical issues.

44. Utilize Full Regulatory Enforcement

Regulatory bodies should fully utilize their existing enforcement tools, such as the ‘application integrity policy,’ to suspend or revoke approvals for companies engaged in systemic fraud.

45. Prepare for FOIA Inefficiency

When attempting to obtain information from government agencies, be aware that Freedom of Information Act (FOIA) requests can be slow and often ineffective, necessitating alternative strategies like cultivating internal sources.

46. Question Regulatory Information Hiding

Be critical when regulatory bodies appear to withhold crucial investigative information from oversight committees, as this behavior might suggest political pressure or deeper systemic issues.

47. Understand Cultural Business Influences

Recognize how cultural concepts, such as ‘Jugaad’ in India (achieving goals by any means necessary), can influence corporate behavior and potentially lead to disregard for regulations and ethical standards.

48. Audit QC Labs and Metadata

For effective inspections, particularly in overseas manufacturing plants, focus on auditing quality control laboratories and analyzing computer metadata to detect data manipulation and deletion, rather than relying solely on provided physical documents.

49. Follow Catherine Eban’s Work

Follow Catherine Eban on Twitter (@CatherineEban), LinkedIn, and visit her website (CatherineEban.com) for ongoing information and insights on drug quality and related topics.