Food and Drug Administration (FDA) Biased By Drug Industry User Fees.  FDA, Food and Drug Administration Corruption.  FDA influenced by drug industry money.   FDA receives significant funding by brand name drug industry.  Congress passes law allowing drug industry to financially control FDA.  FDA acting in best interest of drug industry.  FDA allows deadly drugs due to drug industry funding.  FDA now funded by drug industry.  FDA no longer safeguarding citizens due to conflict of interest created by drug industry funding.

Impact of User Fees (i.e. Drug Industry Money)
on Changes within the FDA”

University of La Verne, School of Public Administration
Gary W. Lawson, DPA - May 2005 Doctoral Thesis

Public Administration Doctoral Thesis

In 1992, Congress authorized the FDA to collect funds directly from the drug manufacturers.  My research thesis offers information that can help citizens, media representatives, legal analysts and policy makers to better evaluate the impact of drug industry fees on the FDA. The fact that the FDA is dependent on drug industry money is, at minimum, a conflict of interest and more likely, financial dependence on the drug manufacturers represents the corruption of a public agency. The FDA receiving funding from the organizations that they are mandated to monitor is similar to the FBI receiving funding from the mafia.  In my opinion, the FDA is not protecting and safeguarding Americans.  In August 2005, I completed a study as my thesis to obtain my doctorate in public administration.  

FDA Should Disclose Their Dependence On Drug Industry Funding

I have been a senior healthcare executive for more than 20 years. When I first started my thesis research I had no idea that the FDA was receiving a significant portion of its funding from the drug industry.  At the time I started the study, even if I had known of the FDA's financial relationship to the drug industry, I wouldn't have believed that the FDA could be corrupted or influenced by this funding method. After two-years of investigation, I am convinced that the FDA's dependence on drug industry fees has created a deadly, unethical alliance and caused a principal-agent, pro-drug industry shift that puts millions of innocent Americans at risk.  In my opinion, due to its dependence on drug industry fees, the FDA's actions related to prescription drugs are suspect, and the Agency can no longer be trusted to act in its traditional capacity as a legitimate, objective, consumer protection agency.

Although it is an unthinkable situation that citizens can no longer trust the FDA, I believe the more immediate issue is the need for full disclosure and informed consent. Citizens need to know and understand that the FDA is now dependent on the brand name drug industry for a large portion of their budget.  Citizens need to know that the FDA's pro-drug industry positions may be based on financial rather than safety, efficacy or humanitarian considerations. Before taking prescription drugs, citizens MUST be informed that the financial relationship between the regulators and the regulated could help explain why Americans are paying the highest FDA monopoly protected world prices for medications that could be no better than what already exists and for medications that could cause them harm.

Due to its dependence on drug industry user fees, the FDA's objectivity is now questionable. To protect and safeguard Americans, the FDA needs to provide consumers with a full disclosure explaining the potential risks of the FDA's financial relationship with the brand name drug industry.  "Proposed" RX Disclosure Statement... The FDA and key staff therein have SIGNIFICANT financial ties to the brand name drug industry.  Therefore, when taking FDA newly approved prescription drugs you will, most likely, be paying the highest prices in the world for medications with unknown, untested or unlisted adverse drug reactions.  The financial relationship between the FDA and the brand name drug industry may be harmful to your health up to and including death.

Drug Industry Has Financial Leverage Over the FDA

The Food and Drug Administration (FDA) is responsible for protecting the public health by assuring the safety and effectiveness of medicines.
  • In recent months, the FDA has received and continues to receive negative media attention related to drug safety issues. 
  • In late 2005 a FDA whistleblower accused the FDA of shifting to a pro-drug industry position.
  • The FDA was accused of deliberately hiding the link between anti-depressants and adolescent suicides.
  • It took more than four years, and more than 100,000 deaths to pull Vioxx off the market, and the company, rather than the FDA, initiated the withdrawal.
  • Drugs with known deadly side-effects that have been withdrawn by other countries remain on the market in the U.S.
  • After 60 years of looking the other way regarding allowing the personal importation of lower cost medications,  the FDA is now aggressively siding with the drug companies' profit motives to minimize lower cost medication imports.

I am convinced by my research that the events listed above and other recent pro-drug industry FDA changes can be, in part, explained by the influence of drug industry money  (i.e. hundreds of millions of dollars) paid yearly to the FDA. For a complete copy of the study, click on "Thesis" on side panel.

 Fast Track: FDA User Fees: Partial Impact Of Faster Review Times

Since, the Food and Drug Administration (FDA) began requiring applicants to pay significant user fees when filing applications in connection with new medical devices and biologics. Such user fees have long been required for drug-related applications, and now also are required for applications related to devices and biologics. In theory, user fees enable FDA to speed up application review time, but at what cost? User fees impose a significant financial burden on many biotechnological companies that produce regulated products, and the fees actually may not improve overall efficiency.

User fees provide the FDA with resources to hire additional reviewers in order to accelerate application reviews. However, FDA’s review of applications is only a small component in the lengthy product approval process. Many other actions, by both FDA and applicants, profoundly affect product approval time. Typically, the Food And Drug Administration requires a sponsor to submit several applications in sequence. Sponsors first submit applications for a series of clinical trials, and later, applications summarizing clinical evidence of safety and effectiveness. The weeks FDA spends reviewing any of these applications pales in comparison to the months, or even years, a sponsor may spend responding to FDA concerns, requests for additional clinical and non-clinical data, and facility inspections. Thus, improving efficiency in reviewing applications does not necessarily speed up the overall product approval process.

User fees may, in fact, be creating new problems. Large businesses can readily afford the substantial fees for filing applications with FDA, but to smaller firms, these fees are a sizeable burden. Consider, for example, that user fees can cost a sponsor of a new drug over $500,000 for a single application, and the fees associated with new medical devices and biologics can exceed $150,000. The strain on smaller businesses is significant, and an unintended consequence of user fees may be to weaken innovative start-up companies. Moreover, user fees have created a two-tiered review system, where FDA reviews fee-based applications preferentially. Although not every application requires a user fee (and smaller businesses should become familiar with these exceptions), FDA reviews fee-based applications first, before moving to applications that are exempt. Thus, user fees may not only be putting small companies at a competitive disadvantage, they may provide a disincentive for FDA to review important, but not fee-based, applications efficiently.

There is no doubt that the number of reviewers at FDA affects review times, however, there also is much other inefficiency within the agency. Recently, the directors of each of FDA’s Centers lamented that the Agency’s information management is woefully inadequate. Information is hoarded locally, and generally not shared across organizational lines. This may be because sharing information does not advance one’s career at FDA, whereas personal knowledge does. There are many other sources of inefficiency as well, including Congress’ addition of responsibilities to the Agency without providing more financial support. Although most businesses in FDA-regulated industries would welcome quicker product approvals, user fees alone will not solve the major inefficiencies at the Agency, but the fees are most likely an unethical, misuse of government funding by big business to control the Food And Drug Administration and minimize competition by smaller, up start biotech corporations.

YOU Can Make A Difference

  •     If you want to help, please click on "Now What"  
  •     Tell your friends, family, co-workers and neighbors about the problem.  Ask them to get involved.
  •     Ask your local media (ie. newspapers, magazines, radio, television stations) to cover the issue.
  •     Speak to your local politicians and ask them to announce "No Confidence" in the federal government's ability to protect and safeguard U.S. citizens regarding prescription drugs, and announce the "No Confidence" referendum to the media.

 


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© 2005 Gary W. Lawson, Ph.D., DPA.  Do not reproduce without permission.  **Note: The information, opinions and points of view expressed on this website are those of Gary W. Lawson, Ph.D., DPA, only. The content of this website is not meant to represent the opinion of any other organization, entity or individual.

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