1. New Sheriff on the Block State Prescription Drug Marketing Disclosure Laws Rep. Sharon Treat (Maine) Executive Director, National Legislative Association on Prescription Drug Prices March 6, 2009 First Annual Summit on Disclosure Washington, D.C.

2. Sharon Treat, NLARx - March 6, 2009 2 What is NLARx? State legislators working together across state lines to reduce drug costs and expand access to medicines since 2000 Funded by states and grants not pharma Legislators from Hawaii to Maine Check out our website and biweekly newsletter: www.reducedrugprices.org Partnering with The Prescription Project/Community Catalyst on payment & gift disclosure issues

3. Overview Context for state legislation History of state initiatives Lessons learned from the states Current status of legislative efforts 2009 Emerging & unresolved issues; future policies Sharon Treat, NLARx - March 6, 2009 3

4. 4 State policies addressing drug marketing Reporting on gifts, marketing & advertising Gift bans Regulating misleading marketing tactics and setting standards for drug detailers Restricting data mining of prescriber information for marketing purposes Regulating E-prescribing software marketing & privacy Posting clinical trials data Prescriber education (“academic detailing”)

5. Sharon Treat, NLARx - March 6, 2009 5 Why do we care? Public health Preserving doctor-patient relationship Health care costs Health care access

6. Sharon Treat, NLARx - March 6, 2009 6 Initial focus on drug prices Pharmaceutical costs out of control Consumers, government and other payers can’t afford drugs Clearest linkage in WV law: “find out what’s spent on marketing & deduct from reference price” Interest in VT, ME in exposing $$ spent on marketing rather than R&D to support efforts to require discounts in MaineRx, Vermont program

7. Sharon Treat, NLARx - March 6, 2009 7 Newer focus on medical care, conflicts of interest Minnesota data has had powerful impact on legislators, public… concerns about Out of control industry marketing Industry influence in medicine Industry influence in government Quality of care compromised

8. Sharon Treat, NLARx - March 6, 2009 8 A recent study published in the New England Journal of Medicine indicates that 94% of physicians have received food, drug samples or other payments or reimbursements from the industry. Campbell, E.G. et al., NEJM, “A National Survey of Physician-Industry Relationships,” 4/26/07, 356(17):1742-1750.

9. Sharon Treat, NLARx - March 6, 2009 9 “The current influence of market incentives in the United States is posing extraordinary challenges to the principles of medical professionalism.” Brenna, Rothman, Blank, et al., JAMA, “Health Industry Practices that Create Conflicts of Interest,” Vol. 295, No. 4, 1/25/06, pg 430.

10. Sharon Treat, NLARx - March 6, 2009 10 Gift reporting and bans Approximately a dozen states have had bills each year since 2007 New or enhanced gift ban and disclosure legislation is under consideration this year in about a dozen states. Enacted laws in MN (reporting/ban), VT (reporting), ME (reporting), D.C. (reporting/limited ban), WV (reporting), MA (reporting/ban)

11. Sharon Treat, NLARx - March 6, 2009 11 “The Nightmare’s Coming True”

12. Sharon Treat, NLARx - March 6, 2009 12 Reporting on Marketing Reporting by Manufacturer or Labeler: Date of Payment/Gift Recipient Value Type of payment (e.g., book, cash or check, donation, food, grant, lodging, transportation, samples) Purpose (e.g., consulting, professional education, charitable grant, speaker fee or payment)

13. Sharon Treat, NLARx - March 6, 2009 13 Gift Reporting Continued Public reporting aggregates data except in Minnesota, where prescribers receiving gifts are individually listed in public data Vermont has 5 years of data on AG website Reporting also on advertising & marketing spending (including DTC) in most state laws Massachusetts only law to include medical devices

14. Sharon Treat, NLARx - March 6, 2009 14 Minnesota Got Things Started 151.461 GIFTS TO PRACTITIONERS PROHIBITED. It is unlawful for any manufacturer or wholesale drug distributor, or any agent thereof, to offer or give any gift of value to a practitioner. A medical device manufacturer that distributes drugs as an incidental part of its device business shall not be considered a manufacturer, a wholesale drug distributor, or agent under this section 1993 Slide courtesy Pete Wyckoff, The Prescription Project Attorney General Skip Humphrey

15. Sharon Treat, NLARx - March 6, 2009 15 Minnesota Rx Gift Reporting MN has had a gift ban in place since 1993, but it has many exceptions. MN began collecting data on gifts on January 1, 2002. Pharmacy Board only receives the data and does not report it to the public. MN only state to require physician’s name.

16. Sharon Treat, NLARx - March 6, 2009 16 Minnesota (cont’d) First 3 years’ of data was photocopied and analyzed by researchers for a 2007 article in JAMA. For 2002-04 MN payments were $30.9 million Amgen made over $4 million in payments in one year.

17. Sharon Treat, NLARx - March 6, 2009 17 Minnesota (cont’d) Eight companies made over $1 million in payments 2002-04 GlaxoSmithKline paid $5.8 million 2002-04 Top speaking fees was $154,188 for one physician in one year Top research payment was $922,239 for one physician in one year Calendar year 2007 manufacturer reports now on the web as received, still not user friendly.

18. Sharon Treat, NLARx - March 6, 2009 18 by GARDINER HARRIS: “Doctors’ Ties to Drug Makers Are Put on Close View” - March 21 “Psychiatrists, Children and Drug Industry’s Role” – May 10 “After Sanctions, Doctors Get Drug Company Pay” – June 3 “Minnesota Limit on Gifts to Doctors May Catch On” - October 12 2007 series of articles focused attention on Minnesota data

19. Sharon Treat, NLARx - March 6, 2009 19 Minnesota Board of Pharmacy Gardiner Harris – March 21,2007 Health Care Providers in Minnesota received at least $57 million from Drug Companies from 1997 to 2005 25 % reported Slide Courtesy Pete Wyckoff, The Prescription Project National Attention to MN Gifting Law- 2007

20. Sharon Treat, NLARx - March 6, 2009 20 Minnesota Board of Pharmacy by Gardiner Harris – May 10,2007 Psychiatrists, Children and Drug Industry’s Role Slide Courtesy Pete Wyckoff, The Prescription Project National Attention to MN Gifting Law- 2007

21. Sharon Treat, NLARx - March 6, 2009 21 Vermont Rx Gift Reporting VT began collecting data on July 1, 2002 First of five annual reports issued by the VT Attorney General on Feb. 25, 2004 Most comprehensive reporting and analysis of any state, but individual physicians are not named. Gift ban and enhanced disclosure including public reporting of disaggregated data under consideration (S48).

22. Sharon Treat, NLARx - March 6, 2009 22 Vermont (cont’d) 2007 JAMA article also analyzed VT data In most recent year (2007), $3.1 million total payments 33% increase over 2006 Psychiatrists in top 100 group averaged almost $57,000 apiece Two top VT cardiovascular docs’ avg. payment was $156,440 in 2007 Cash payments exceed meals and trinkets

23. Sharon Treat, NLARx - March 6, 2009 23 Vermont (cont’d) Exclusion for “trade secrets” is problem Used by 30 out of 68 companies 61% of total payments were excluded as “trade secrets” in first two years Information not entitled to trade secret status under usual standards Public policy favors disclosure

24. Sharon Treat, NLARx - March 6, 2009 24 Maine Disclosure Law Law enacted in 2004 Implementation delayed until 2007 with govt & PhRMA support Broad non-compliance: 116 companies did not file reports (or explain why not) in 2007; 96 did Annual reports of data by DHHS starting 2007 with biannual analysis starting 2008 No reports publicly posted Only state law to require reporting and public disclosure of clinical trials results data

25. Sharon Treat, NLARx - March 6, 2009 25 Maine Data Total direct to consumer advertising & marketing expenditures reported 2007: $1.6 million 1440 health care professionals received cash for travel, speaking, materials at lectures Top recipient received $118,540 Of $1.271,921 reported as “education” spending, $982,786 was for speaker fees Food & gifts: $1.3 M Product samples: $7.3 M Salaries of drug reps and other marketers: $63 M

26. Sharon Treat, NLARx - March 6, 2009 26 D.C. Rx Gift Reporting Reporting requirement effective January 1, 2006 First detailed analysis released April 30, 2008 Report includes advertising, marketing and aggregate expenditures 101 companies reported $145.5 million

27. Sharon Treat, NLARx - March 6, 2009 27 District of Columbia (cont’d) Individual companies not named in report Apparent variability in the interpretation of the reporting requirements makes comparisons difficult 20 companies paid out over $1 million each Total Advertising = $10.8 million Total Marketing = $34.4 million Total “Aggregate” = $100.1 million

28. Sharon Treat, NLARx - March 6, 2009 28 D.C. (cont’d) 2008 D.C. law also enacted a limited gift ban applicable to gifts to “medication advisory committees”

29. Sharon Treat, NLARx - March 6, 2009 29 West Virginia Rx Gift Reporting First report issued July 7, 2008 based on 6 months data only showed 14,933 gifts and payments; Only information reported is the total number of prescribers receiving > $100 No enforcement mechanism, data not accessible Governor announced support of enhanced disclosure to close loopholes

30. Sharon Treat, NLARx - March 6, 2009 30 Massachusetts Law Requires drug and medical device companies to disclose payments to health care providers >$50 Establishes a prescriber education program Gives Dept of Public Health power to establish regulations at least as strong as PhRMA Code which prohibits small gifts, travel payments, & extravagant restaurant meals to doctors Includes enforcement mechanism, penalties Flashpoint: Disclosure of Research Payments???

31. Sharon Treat, NLARx - March 6, 2009 31 Update on Status of Pending Legislation New or enhanced gift ban and disclosure legislation is under consideration this year in AZ, CT, IA (voted out of committee this week), IL (hearing next week), MD (hearing held), ME, MN (hearing this month), NY (in Governor’s budget), OR (hearing next week), TX and VT (hearing held). Legislation has been defeated this year in CO, NM

32. Sharon Treat, NLARx - March 6, 2009 32 Rx Gift and Payment Reporting – Ongoing Issues Ban vs. Reporting The public interest requires that we simply ban any cash payments from drug manufacturers to doctors. Just as a judge should not be on the payroll of a law firm, a doctor should not be on the payroll of a drug manufacturer.

33. Sharon Treat, NLARx - March 6, 2009 33 Ongoing Rx Issues (cont’d) “Research” payments (MA debate) Boston Globe, Jan. 22, 2009

34. Sharon Treat, NLARx - March 6, 2009 34 Massachusetts 2008 rulemaking would exclude “research” payments from gift ban and even from disclosure Industry threat to move new clinical trials out of Massachusetts Rulemaking awaiting final vote from the department of public health

35. Sharon Treat, NLARx - March 6, 2009 35 Ongoing Rx Issues (cont’d) Trade secrets loophole (VT lawsuit) Issue: Whether the size and nature of marketing expenditures is a “trade secret” and if so, whether the state is justified in compelling disclosure of that information?

36. Sharon Treat, NLARx - March 6, 2009 36 Trade Secrets – two main reasons why the industry argument fails: 1. The industry does not protect the information as a closely guarded secret 2. This is a highly regulated industry, and there is no reasonable expectation that this information would always be shielded from disclosure

37. Sharon Treat, NLARx - March 6, 2009 37 Ongoing Rx Issues (cont’d) Public Access Issue: Is Rx marketing information collected under state law reasonably accessible to the general public?

38. Sharon Treat, NLARx - March 6, 2009 38 Public access to data: Example: MN collected data, but for years it was only accessible by going to the agency and photocopying it. Example: WV created a spreadsheet, but the font was microscopic and it could not be enlarged. Example: Most states do not require disclosure of recipients of gifts.

39. Sharon Treat, NLARx - March 6, 2009 39 Public access to data: Solution: Posting on the web by a state agency in standard electronic format Analysis and reporting on data by state agency (VT) Any cost for public posting should be covered by industry fee

40. Sharon Treat, NLARx - March 6, 2009 40 Ongoing Rx Issues (cont’d) Free samples given to prescribers Issue: Whether to exempt free samples from gift ban and disclosure legislation? Recent academic studies show that free samples are more of a marketing tool than a philanthropic program. (Cutrona 2008; Symm 2006; Adair 2005)

41. Sharon Treat, NLARx - March 6, 2009 41 Ongoing Rx Issues Free samples (cont’d) Free samples are often available only for brand name drugs Poor or uninsured are less likely to receive free samples Free samples tend to move prescribers away from evidence-based practices Long term costs in clinics that used free samples were actually higher

42. Sharon Treat, NLARx - March 6, 2009 42 Ongoing Rx Issues (cont’d) Continuing Medical Education (CME) Issue: Whether industry payments for CME should be exempted from bans and disclosure?

43. Sharon Treat, NLARx - March 6, 2009 43 CME (cont’d) Is there a bona fide educational component, or is it a junket? (ACCME standards) Is the educational component unbiased? Is the CME funding separate from the selection of the topics to be discussed?

44. Sharon Treat, NLARx - March 6, 2009 44 “There’s a New Sheriff on the Block!”

45. Sharon Treat, NLARx - March 6, 2009 45 Some resources West Virginia reporting rule and first report: http://www.pharmacycouncil.wv.gov/rule/Pages/default.aspx Most recent Vermont disclosure data: http://www.atg.state.vt.us/upload/1215547635_2008_Pharm aceutical_Marketing_Disclosures_Report.pdf Summary of DC Reporting Data, initial report: http://www.davidcatania.com/publicdocuments/Pharm_Mar keting_Rpt_06.pdf Public Citizen Testimony on State Disclosure Laws before the Senate Special Committee on Aging, June 27, 2007: http://www.citizen.org/publications/release.cfm?ID=7531

46. Sharon Treat, NLARx - March 6, 2009 46 NLARx RESOURCES: Sign up for news releases and electronic newsletters: http://www.reducedrugprices.org/ Advertising & marketing web page: http://www.reducedrugprices.org/advertising.asp Report on 2008 state legislation relating to marketing: http://www.reducedrugprices.org/read.asp?news=2669 PRESCRIPTION PROJECT: State Policies: http://www.prescriptionproject.org/solutions/rrf?id=0001

47. Sharon Treat, NLARx - March 6, 2009 47 NCSL RESOURCES: State Laws on Pharmaceutical Marketing and Promotion: http://www.acponline.org/advocacy/state_policy/reports /pharm_market.htm 2008 Rx legislation: http://www.ncsl.org/programs/health/drugbill08.htm Advertising & marketing overview: http://www.ncsl.org/programs/health/rxads.htm

48. Sharon Treat, NLARx - March 6, 2009 48 More Info Rep. Sharon Anglin Treat (Maine District 79) Executive Director, National Legislative Association on Prescription Drug Prices P.O. Box 492 Hallowell, Maine 04347 Tel: 207-622-5597 Email: streat@reducedrugprices.org Website: www.reducedrugprices.org