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| MARKETING ZOMAX When Zomax was withdrawn from the market in 1983, it had been sold for only 28 months, yet its manufacturer, J&J subsidiary McNeil Pharmaceutical, had received hundreds of reports of severe allergic reactions from this prescription painkiller. The FDA believes that Zomax was probably a factor in 14 deaths. Seniors who were suffering from arthritis were the main users of this drug. The company used protective orders and confidentiality agreements to prevent disclosure of information the company had given during numerous lawsuits filed by Zomax victims. A Washington Post article published several years after the recall noted that documents that were still being kept secret included "indications during pre-marketing that Zomax might cause a severe allergic reaction...which can lead to seizures and respiratory failure." The Post reported that, while notice about the danger was included nine months after the drug went on the market, "one internal memorandum to the company's president criticized the company for not acting sooner". The wife of one person who died said she had settled her case without knowing about a meeting where McNeil doctors had "declared their lack of confidence in Zomax's safety". In an article on the use of secrecy agreements to settle claims against McNeil Pharmaceuticals for injuries linked to its painkiller Zomax, the Washington Post quoted an attorney for one of the patients candidly summing up the dilemma lawyers confront: "The problem is that they have a gun to your head. The client is concerned about being compensated in full. The lawyer must abide by the concerns and wishes of his client....not the fact that [information will remain secret or] other victims may be injured." Another attorney told the Post: "What they [Johnson & Johnson] are trying to do is not be accountable to the vast majority of the public for what they've done.... They paid my clients a ton of money for me to shut up."
JOHNSON & JOHNSON: NEW WOE By PAMELA G. HOLLIE NYT - March 9, 1983 At about 1 P.M. last Friday, the chairman and president of Johnson & Johnson were meeting at the company's headquarters in New Brunswick, N.J., to watch a tape of a television interview shown the night before. In it a Syracuse doctor described his severe reaction to the company's prescription pain reliever Zomax. As they met, the stock market was apparently having its reaction. At 1:17 P.M., when the share price had fallen by $2.25, the New York Stock Exchange halted trading. Later that day the company issued a statement: Of 15 million users, 1,100 had experienced side-effects and five had died. It also announced a recall that will cost $20 million in after-tax earnings this year. For Johnson & Johnson, it was all too familiar. Last fall, news that poisoned Tylenol capsules had killed seven people in the Chicago area also battered the company's stock and forced a recall, at a cost of $100 million. Those deaths were linked to the poisoning of the capsules on store shelves. The company had just started to recover with aggressive promotion and new packaging. But the problem with Zomax -which like Tylenol is made by Johnson & Johnson's McNeil Pharmaceutical unit - may be more difficult to solve. Two of the five deaths are directly attributable to the use of Zomax. And even though these deaths may be the result of misuse, the incidence of adverse reactions is above normal, according to Christopher Smith, a spokesman at the Food and Drug Administration. Because the deaths raise a question about the safety of Zomax, it is possible it may not be reintroduced, particularly if doctors lose confidence in it. Zomax had a number of competitors, including UpJohn & Company's Motrin, which has the lion's share of the market; Merck & Company's Clindril, and the Syntex Corporation's Annaprox. Johnson & Johnson itself is awaiting F.D.A. approval of a drug called Suprofen, which is chemically related to Zomax. Until discussions with the F.D.A. over labeling are completed, a spokesman for Johnson & Johnson said, the company could not say when Zomax would return to the market. In the meantime, the company is spending $40 million to buy back supplies of Zomax from pharmacies, hospitals and patients. The company said that containers with less than six months left on the expiration date would be destroyed. Mailgrams and letters are also going out to doctors, dentists and retail outlets where the drug is available. And for consumers who have questions, McNeil opened a special telephone line last Friday. The Strength of Morphine The problems with Zomax are a grave disappointment for Johnson & Johnson. It had promoted the drug as one of the best developed by McNeil in the last decade. Introduced in November 1980, Zomax offered the pain-relieving strength of morphine without being addictive. True to predictions, last year Zomax - the chemical zemepirac sodium, a nonsteroidal anti-inflammatory agent - had sales of $83 million worldwide, $60 million of that in the United States. In 1982, when Johnson & Johnson's basic business earned $2.54 a share, Tylenol lost 12 cents and Zomax added 10 cents. But now, Joseph Riccardo of Bear, Stearns & Company, estimates that Zomax will cost Johnson & Johnson 10 cents a share in 1983. Most analysts believe that the company's quick action on Zomax kept the stock from dropping further. It fell to $45 a share last Friday. After the Tylenol scare, it had dropped to $39. But as Tylenol recovered, the stock rose as high as $51. When trading was halted last Friday, company representatives began conferring with officals of the Food and Drug Adminstration almost immediately. And Johnson & Johnson wasted no time in getting out the first of two press releases, which explained that the company believed that the Syracuse interview had been the reason for the stock activity. After less than an hour and a half, trading in the stock had resumed. It closed yesterday at $45.875, down 37.5 cents. Some analysts suggest that the market overreacted to the news about Zomax and that Johnson & Johnson was forced to do more than was necessary to maintain its image and reassure its customers. ''I think Johnson & Johnson took the most prudent approach to the problem by making the recall, but it was probably not necessary,'' Mr. Riccardo at Bear, Sterns said. Though several analysts suggest that Johnson & Johnson will overcome the Zomax problem, others believe it will hurt the company. ''There is something apparently wrong here,'' said David Saks, an analyst at A.G. Becker Inc. ''It's one thing to have side-effects, but its another thing to have a fatality.'' Excerpts from Drug Fiends Zomax was on the market for 28 months before McNeil suddenly recalled it. But by that time, so many physicians had been gulled into believing the painkiller to be both safe and useful that they had prescribed it for nearly 15 million people. By the Food and Drug Administration's (FDA) accounting, the drug had contributed to at least 14 deaths. These deaths followed so-called "anaphylactoid reactions," allergic or hypersensitive responses that commonly lead to a drop in blood pressure, difficulty in breathing, facial swelling, rashing, and itching. Patients going into anaphylactic shock can also lose consciousness. In addition to the 14 who died, more than 2,200 other Zomax users suffered allergic reactions, including 403 for whom the reactions were life-threatening. (It is conventional scientific wisdom that adverse drug reactions are grossly underreported.) In addition, the FDA from the start considered Zomax, the first nonsteroidal anti-inflammatory drug it approved, to be the only drug of its kind to pose a possible cancer risk to humans. Based on an independent review of an animal study, Dr. M. Adrian Gross, a former FDA toxicologist, rated the cancer risk of Zomax "highly significant." Yet the public has heard little about this. Why? In good part because J&J has worked damn hard to keep it from us. Although more than 600 Zomax product-liability lawsuits were filed in 43 states, McNeil used gag orders to bury damaging information that it had been compelled to turn over to plaintiffs. Washington Post reporters Benjamin Weiser and Elsa Walsh disclosed in October 1988 that McNeil "has taken only three cases to trial, choosing instead to settle cases outside the courtroom without admitting any liability. As part of these settlements, it obtained confidentiality agreements that prohibit opposing lawyers and their clients from revealing what they have learned about Zomax." What were McNeil's attorneys trying to hide? Documents and testimony suggest that the company knew for years about the possibility of serious allergic reactions to Zomax but suppressed the information to preserve the drug's sales. In the Bible, Leviticus admonishes that one must not "put a stumbling block before the blind." You rarely hear it from the clergy, but a drug company that deceives physicians by knowingly failing to inform them fully and promptly of the hazards of a prescription drug is doing just that. The blind are of course the doctors' patients, nearly all of whom are ignorant of the complex pros and cons of the drug. So they must - blindly - trust their physicians, and perhaps pay with their health, safety, even their lives. That may have happened in the case of Zomax. According to McNeil internal documents, during premarket testing of Zomax in the seventies, the company received reports that several users had suffered severe but nonlethal allergic reactions. These reactions should have been recognized as anaphylactic almost immediately, because Zomax is almost identical to Tolectin, a McNeil prescription arthritis drug that accounts for an extraordinary share of anaphylactic reactions among drugs in its class. But McNeil's testers neither identified the reactions correctly nor reported them in FDA-required labeling. According to a report by Patrick Seay, the company's regulatory affairs chief, one McNeil official complained around that time that the company was "reporting too many adverse reactions on our drugs." But the company had a more palatable explanation when later questioned by the Post. The premarketing evidence, they said, had been inconclusive. The FDA apparently agreed. Despite investigators' concerns about the possible cancer risk, the drug received federal approval in October 1980, a decision based largely on the belief among key agency personnel that the painkiller was as effective as morphine. Did the FDA cite a study to justify that crucial belief? No, FDA officials later admitted - no such study existed. Nevertheless, the drug immediately went on sale, and the carcinogen question was brushed aside. Within four months, Zomax had captured 11 percent of the prescription painkiller market. Determining cancer risks may take awhile, but allergic reactions are easier to see. Shortly after marketing began, McNeil received reports of several more reactions. So in July 1981 - nine months after it started promoting the drug - McNeil revised the prescribing instructions to disclose that "anaphylactoid reactions have been reported." But the disclosure was tucked away in the "precautions" section, not in the more conspicuous "warnings" section - a decision that one of McNeil's own executives later decried as a triumph of sales over safety. Seay, the regulatory affairs chief, noted in a 1984 overview of marketing strategy that the marketing division had gained "a greater role in the content and changes of the package insert" at the expense of the medical side. "We resisted too much and waited too long," he wrote. And he was right. But package labeling wasn't the half of it. Association (JAMA) of a case of anaphylactic shock in a Zomax user, a directive to play down the report went out to McNeil's sales force. "This information is being sent to you so you will be fully prepared to respond to a physician or pharmacist who initiates discussion on the article," the memo said. "You should not bring up the subject." The memo may as well have been a cue to the FDA, which looked into the matter after the JAMA report but did nothing. Inside McNeil itself, however, the subject wouldn't die. Later that year, a McNeil researcher reviewing the 178 known reactions to Zomax discovered a pattern: Many of the reactions occurred in people who took the drug intermittently. Intermittent users were Zomax's largest market, about 75 percent; any adverse reactions among this group of casual users would unquestionably slow sales. So under the guise of informing the public, McNeil did a little damage control. In the spring of 1982, it drafted a "Dear Physician" letter to 200,000 doctors specifying that reactions might occur in intermittent users. By the time the letter was mailed, however, it consisted of a single, and singularly vague, sentence: "Hypersensitivity upon reexposure or extended use cannot be ruled out." The word "intermittent" had been excised. But McNeil appeared to be apprehensive even about that mild statement. Just seven days after the mailing, the company launched a new, high-pressure sales campaign. "We're calling it |Operation 111,'" sales vice president Thomas H. Odiorne said in an April 16 mailgram. "Now, if that sounds like war, well, in our world of selling that's what it is." Explaining the name "Operation 111," the mailgram said that McNeil hoped to reap $111 million in annual sales of sister drugs Zomax and Tolectin. For the next 10 weeks, the mailgram instructed, the sales force was to concentrate exclusively on the two products. Not everyone at McNeil was happy with that war cry. The tension between profits and public safety came to a head in two days of meetings in February 1983 at McNeil headquarters in Spring House, Pennsylvania. Three of the firm's top physicians, including Dr. James A. Dale, an associate medical director, told the company president that they were so concerned about the safety of Zomax that they themselves would not prescribe it. But McNeil executives, accountable to James Burke, refused to recall the drug, deciding instead to strengthen the warning in the labeling. In the company's view, this was the prudent course, given what was known at the time. But while the new warning was being prepared, McNeil learned of fatal anaphylactic shock in three Zomax users. Another jolt followed quickly: Several nonfatal anaphylactic reactions in Syracuse, New York, were reported by a local television station that featured a Syracuse physician's account of his own life-threatening reaction to Zomax. This was the first bad publicity for Zomax to appear in the lay press, and it was such publicity that McNeil most feared. The next day, March 4, McNeil announced it was recalling the drug from the U.S. market. The decision was made by Burke himself. Your FDA on drugs Where was the FDA during all this? A report released the previous year by the General Accounting Office (GAO) provides a glimpse of the investigative team charged with safeguarding America's health from greedy corporations. It took the agency an average of 13 weeks - and sometimes more than a year - to enter reports of adverse reactions into its computer tracking system. A later GAO report found that 102 of 198 new drugs approved by the FDA between 1976 and 1985 caused serious reactions that often were not detected or disclosed by the agency until several years after approval. The Zomax case followed that trend. While 2,000 allergic reactions had been reported to the FDA, a House subcommittee that oversees the agency, chaired by Ted Weiss, later found that it had been "unaware" of most of them. As for the risk to intermittent users, an FDA official later testified that he'd known about those reactions as early as March 1982. Yet it wasn't until 11 months later - a month before McNeil withdrew the product altogether, and after 14 people had died - that the FDA advised McNeil even to warn doctors about possible reactions. By the time McNeil ceased sales in the United States, it had sold $100 million worth of Zomax here, although the company admitted it knew of five Zomax-related deaths and of 1,100 reports of allergic reactions. Still, J&J was not going to give up its millions so easily. After the recall, McNeil sought FDA approval to remarket the drug with a strict new package insert, saying it was approved only for chronic pain, and even then as a last resort. And it continued to sell the drug abroad - another stumbling block before the blind - well into the following year. Burke told the The Washington Post he was proud of his company's handling of Zomax, rejecting suggestions that J&J should have withdrawn the drug immediately after the February meetings in Pennsylvania. Once the company decided to recall the drug, he said, "I think we did a good thing - I don't see how you could do it any faster." Dr. Dale wasn't quite so proud. The deaths "were avoidable," he told the Post. "They were avoidable side effects. . . . I feel guilty. . . . We met and had the opportunity to take action. . . . We could have done something sooner." Despite his devastating perspective on J&J's marketing of Zomax, Dale has never testified in a Zomax lawsuit. In the several cases in which his testimony was sought - testimony in which he would reveal the advice of McNeil's three top physicians at the February 1983 meetings - J&J did what it has done in numerous embarrassing law suits: It settled, on condition that the court files be sealed forever. Congressional Report: FDA Unable to Protect Public from J&J Drugs Senate Report 110-439 - SUNSHINE IN LITIGATION ACT OF 2008 A. EXAMPLES OF COURT SECRECY1. Zomax The popular painkiller Zomax, manufactured by McNeil Pharmaceuticals and linked to a dozen deaths and more than 400 severe allergic reactions, was taken off the market only after McNeil settled dozens of lawsuits with sealed settlements. In 1990, Devra Lee Davis testified before the Subcommittee on Courts and Administrative Practice about how she nearly died from taking this legally prescribed drug. She later learned that the company had known that the drug could kill some people and used judicially sanctioned secrecy to keep the information from the public and from others injured by the drug ZOMAX Zomax was an arthritis pain reliever, manufactured by McNeil Laboratories, that caused acute and sometimes fatal allergic reactions in many consumers in the early 1980s. In the numerous lawsuits filed against the manufacturer in 43 states, the company insisted on protective orders and confidential settlements, keeping information secret that could have alerted Zomax users of its dangers. By the time the FDA recalled the drug in 1985, the agency believed that Zomax was probably a factor in 14 deaths and 403 life-threatening allergic reactions. One lawyer representing several clients who settled confidentially, told The Washington Post, "What they are trying to do is not be accountable to the vast majority of the public for what they've done ... They paid my clients a ton of money for me to shut up." Another said, "The problem is that they have a gun to our head..." Devra Davis, a toxicologist who nearly died from using Zomax, said she believes court secrecy impairs "free scientific inquiry and the right of the public to know specific information about drugs it consumes."(Eye to Eye with Connie Chung, CBS News, Oct. 10, 1994; Benjamin Weiser & Elsa Walsh, Drug Firm's Strategy: Avoid Trial, Ask Secrecy, Washington Post, Oct. 25, 1988. See also, Daniel C. Carson, 'Hired guns' aim to keep veil of secrecy on product dangers, San Diego Union-Tribune, May 4, 1991.) | |
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