Tuesday, February 26, 2008

Another setback for the Cabilly patent

Genentech the owner of the Cabilly patent announced on Monday February 25, 2008 that it has received notification from USPTO that the patentability of the claims in the Cabilly patent has been rejected.  This is a high stake game with millions of royalty payment at stake.

As discussed in my previous blogs, the Cabilly patent (also known as the Cabilly II patent for this particular case) covers the method of making monoclonal antibodies and antibody fragments.  Genentech in addition to using the technology to make it own drugs (Avastin, Herceptin and Rituxan) also license the technology to other companies.  Many billion dollar drugs such as Humira and Remicade for rheumatoid arthritis (Abbot and J&J) and Erbitux for colorectal cancer (Imclone) need the Cabilly patent for their manufacture.

This notification is in the form of a Final Office Action does not mean the end of the Cabilly patent.  Because of the huge amount of royalty is affected, Genentech will no doubt appeal the decision to the Board of Appeals of USPTO.  In the meantime the patent is deemed to be still valid pending the Appeal and this may take up to 2 to 3 years and Genentech can continue to enforce the patent and collect royalties.

Read my previous posts on Cabilly Patents
Cabilly I
Cabilly II

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Sunday, February 17, 2008

Impending Changes on the Promotion of Off-Label Use

FDA is an agency within the United States Department of Health and Human Services and is mandated to regulate through its subdivisions Center for Devices and Radiological Health (CDHR) for medical devices and Center for Drug Evaluation and Research (CDER) for drugs with respect to safety and efficacy.  In addition to safety and efficacy, FDA regulates almost every facet of prescription drugs and use of medical devices, including testing, manufacturing, labeling, advertising and marketing.   The intent is to protect the public against fraudulent claims and to ensure safety of the consumers.  The intent of FDA is not to regulate the practice of medicine.  Within this context, a drug or medical device that has been approved by FDA for a specific use can at the discretion of the physician be legally used for conditions other than those approved by FDA.  Such practice is called the off-label use of an FDA approved product and the rules of the game are changing, at least for the companies. 

C
ompanies have in the past have been prohibited to promote drugs or medical devices for uses that have not been specifically approved by FDA.  The leeway for companies to make such promotions may widen slightly.  The new guidelines (draft for public comments) would permit manufacturers and companies to distribute reprints from peer-reviewed journal articles.  Several categories of reprints are prohibited under this guideline including special supplements, letters to the editor, early-stage trials in healthy patients, and articles that are “inconsistent with the weight of credible evidence.”

This move by FDA is not without controversy.  As reported in WSJ Health Blog Randall Lutter, FDA deputy commissioner for policy stated that  ”Articles that discuss unapproved uses of FDA-approved drugs and devices can contribute to the practice of medicine and may even constitute a medically recognized standard of care,”.  Lutter maintained that “This guidance also safeguards against off-label promotion.”

Not everyone agrees with this latest intended move by FDA to what some deemed as facilitation of off-label use.  A particularly vocal opponent of this FDA initiative is Congressman Henry Waxman, a California Democrat.  He wrote a cautionary letter to the FDA citing danger of such a move as potentially short circuiting the FDA regulatory process and opens the door to abusive marketing.  He quoted Senator Estes Kefauver warning that if promotion of unapproved uses was allowed, “the expectation would be that the initial claim would tend to be quite limited, which, of course, would expedite approval of the new drug application.”  The implication here is that companies would then “promote” and “widen” the unapproved indications through the distribution of reprints from peer-reviewed journal articles touting the off-label use of such drug or device.  The controversy remains if this is after all necessarily a bad thing and not to the interest of the public.

Wall Street Journal has an excellent article on this issue.

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Sunday, February 10, 2008

Market Failure of the US Health Care System

There is a marked contrast between the US and Canadian health care systems.  Having worked in both systems, I have often compared them staying as in Days Inn as the only choice (for Canadians) as opposed to the US system where you have a choice of staying either at the Hilton and or the Budget Motel.  The freedom to choose comes at a price and some may say too much.  An opinion piece published in the prestigious New England Journal of Medicine on Feb 7, 2008 blaming the failure of market forces to deliver optimal health care is surely going raise this issue to the next level of debate in this election year.  This article is written by Robert Kuttner, a well known and well respected left-leaning liberal writer-commentator.  He is the co-founder and co-editor of The American Prospect,  “an authoritative magazine of liberal ideas,” according to its mission statement.

He crafted very cogent arguments for his point of view against a backdrop of the US health care system being an outlier against international practices.  Medicare statistics indicate that the average cost of health care for every person in the United States is $7,000 and this amounts to over $2.1 trillion.  He offered an alternative interpretation how the US health care system ended in the current extreme state of failure.  He stated that the pervasive commercialization of health care not only did not create an efficient market but has unintended consequences contributing to the massive market failure.   Kuttner claims that market forces for cost containment are generally targeted at maximizing shareholder values and the burden has fallen on the primary care physicians with increased case load, relying on tests rather than hands on diagnostic skill and referring to specialists when none is necessary.

Read more…

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