On the heels of consumer watchdog group, Public Citizen, calling for a ban of diet drug Alli, we see that GlaxoSmithKline (GSK)—makers of well-known type 2 and last-resort diabetes drug, Avandia—has chosen to offload the once golden weight loss wonder.
Apparently, Alli is not so golden anymore. GSK just reported on their first quarter earnings for 2011, and Alli sales were not exactly stellar. Case in point, Alli sales in Europe were down £14 million in first quarter 2011 vs prior year. And in the US? That’s a bit more ambiguous, though GSK does report “The USA grew 1% to £241 million, with strong performances from Sensodyne, Tums, Poligrip, Biotene, and Breathe offsetting lower sales of alli and Aquafresh.” Translation: Alli pooped in the US (no pun intended, see below).
Ok, financials are one thing—but there’s more to the Alli story than declining sales. And it begs the question, why would Sanofi-Aventis—if rumors are true—be considering buying Alli from GSK?
Let’s recall that Alli was only approved for sale in 2007. That’s not all that long ago. Then by April, 2009 Alli was the subject of conversation with the CDER Drug Safety Oversight Board—over concerns of an Alli link to possible severe liver injury.
In August, 2009 the FDA sent out its Early Communication to alert consumers that Alli was indeed under review for severe liver injury risk.
By May, 2010 the FDA announced a revised label for Alli (and Xenical) that would include a warning about “rare reports of sever liver injury”.
Fast forward to Public Citizen’s call for a ban on Alli this month—which draws attention to some digging consumer watchdog group did over at the FDA’s AERS database that found Alli to “have been associated with 47 cases of acute pancreatitis and 73 cases of kidney stones”.
In addition to being linked to serious liver injury, Alli is not exactly a dieter’s dream. We covered Alli’s rather gross side effects in an earlier story—and since then it’s not hard to find Alli users online who apparently have no shame in sharing stories of “oily orange stuff” dripping down their legs. GSK themselves recommended wearing dark clothes or carry additional clothes in case of an accident.
Seriously—possible Alli side effects reportedly include fatty or oily stools, oily spotting, intestinal gas with discharge, an increased number of bowel movements, or poor bowel control.
So given Alli’s recent sales decline, the potential for more serious adverse events to occur while taking Alli, the outcry for a ban on Alli—and the fact that it’s really not a pleasant way to lose weight—why would anyone want to buy the Alli brand?
Well, regardless of whether it’s Sanofi-Aventis or someone else, I hope their business plans include cross-promotion with Depends and Subtle Butt…
It seems that every month practically, one pharmaceutical company or another makes the news for bending rules around marketing. Mis-marketing, which could also be called consumer fraud, can result in serious, if not life-changing consequences for people making decisions about their health.
Recently, I came across a list of the largest settlements paid by 11 pharmaceutical companies for bending the rules. The fines total a staggering $6 billion. The more frequent offender, according to the company that compiled the list, is Eli Lilly. They paid more than $1.4 billion in fines all for various violations for just one drug—Zyprexa.
And then there’s Pfizer, who paid $2.3 billion for ‘mis-marketing’ a number of drugs including Bextra, Geodon, Lyrica and Zyvox.
These drugs are used to treat everything from schizophrenia to epilepsy to diabetes, and the consequences of not having the correct information may have resulted in serious adverse health events, possibly even death for some.
Not surprisingly, people tend to be very interested when the big boys get caught behaving badly, for a variety of reasons, not the least of which being that we feel our trust has been betrayed. We trust drug companies, and the medical profession in general, to give us the straight goods because it’s a matter of life and death. Why would you not be straight about that? Well, the answer is, not surprisingly, money. And lots of it. But eventually the offenders do get caught. And that leads to drug lawsuits, criminal investigations and ultimately, very large fines.
So, without further ado—here’s a list of the big offenders—who took them on, what for and how much they paid, with acknowledgement to FiercePharma.com who actually did the homework on this.
Novartis
With: U.S. Attorney’s office for the Eastern District of Pennsylvania
When: Sept. 30, 2010
Why: Novartis agreed to a $422.5 million settlement with the Eastern District of Pennsylvania for its off-label promotion of Trileptal and other allegations against Diovan, Exforge, Sandostatin, Tekturna and Zelnorm. (oh, and ps, Novartis is recruiting for a Senior Brand Manager for Prevacid…)
Forest Labs
With: Dept. of Justice
When: Sept. 15, 2010
Why: After marketing Levothroid, an unapproved thyroid drug, Forest Labs received a $313 million penalty. The settlement also covered Forest’s off-label use of Celexa for children’s use.
Allergan
With: Dept. of Justice
When: Sept. 1, 2010
Why: Allergan’s was fined $600 million by the Department of Justice. The settlement was broken into two parts: $375 million in fines and $225 milion in civil penalties, all of which stemmed from its off-label use of Botox for headaches, pain management and cerebral palsy.
Elan
With: U.S. Attorney’s Office in Massachusetts
When: July 15, 2010
Why: Elan received a $203.5 million fine for its marketing of Zonegran, an epilepsy drug.
Johnson & Johnson
With: Department of Justice
When: April 29, 2010
Why: Though J&J is most recently famous or a rash of phantom recalls, two of the troubled drugmaker’s subsidiaries received a $81 million penalty for off-label promotions of Topamax, an epilepsy drug.
AstraZeneca
With: U.S. Attorney’s office in Philadelphia
When: April 27, 2010
Why: In the same week as the J&J settlement, AstraZeneca was fined $520 million misleading doctors and patients about the safety of its antipsychotic drug Seroquel.
Abbott
With: Twenty-three states
When: Jan. 7, 2010
Why: In a case involving 23 different states, Abbott Laboratories and its partner, Fournier Industrie et Sante, were ordered to pay $22.5 million for blocking the states from obtaining a cheaper alternative for its cholesterol drug, TriCor. (btw, Abbott Labs is the one who brought you beetle parts in Similac, causing the recent Similac recall…)
Eli Lilly
With: Connecticut
When: Sept. 29, 2009
Why: A total of 13 states total had filed suit against Eli Lilly for Zyprexa marketing issues, but the company was ordered to pay $25 million to Connecticut in this ruling.
Eli Lilly
With: West Virginia Attorney General
When: August 21, 2009
Why: In another Zyprexa case, West Virginia Attorney General Darrell McGraw levied $2 billion in fines against Eli Lilly. In the end, the company agreed to $22.5 million in fines.
Merck
With: 35 states’ attorney offices
When: July 15, 2009
Why: Following a 35 state investigations into the Enhance study of Vytorin, Merck paid $5.4 million in fines, without admitting fault in the cases.
Sanofi-Aventis
With: Department of Justice
When: May 28, 2009
Why: In an agreement with the federal government, Sanofi paid $95.5 million total, to the federal government, state Medicaid agencies and other public health service agencies, all for its subsidiary Aventis’ nasal spray price inflation between 1995 and 2000.
GlaxoSmithKline
With: U.S. Attorney’s office in Colorado
When: Jan. 29, 2009
Why: After seven years of off-label promotion on nine of its best-selling drugs, GlaxoSmithKline (GSK) was ordered to pay $400 million to the U.S. Attorney’s office in Colorado.
Pfizer
With: Department of Justice
When: Jan. 26, 2009
Why: Right after acquiring Wyeth, Pfizer dropped a bombshell in its fourth quarter earnings report; the company was charged $2.3 billion for off-label promotions of its COX-2 drugs.
Eli Lilly
With: Department of Justice
When: Jan. 15, 2009
Why: In the first Zyprexa settlement (and one of three on our list), the Department of Justice levied $1.4 billion in fines against Eli Lilly. Also, as part of the settlement, the company pled guilty to a misdemeanor: violating the Food, Drug and Cosmetic Act.