In a February
2007 press release, Abraxis
BioScience reported record revenue of $765 million in 2006 versus $521 million
for 2005. They made that money selling a new version of an old
cancer drug at $4,200 per dose.
That new drug is
called Abraxane and it has pushed Abraxis BioScience stock from $5 in 2002 to
$27 in 2007. The lofty stock price has made Abraxis CEO and Chairman, Dr.
Patrick Soon-Shiong a billionaire; Dr. Soon-Shiong owns 84 percent of the
stock, today worth about $3.8 billion.
Dr. Patrick
Soon-Shiong has been criticized for hyping his research results and he has been
accused of ripping off investors. Even his own brother, an early backer, sued
him for fraud and fired him -- twice -- from the company they started. Their
fight lasted two years and destroyed their relationship. But in the end, it is
Dr. Soon-Shiong who has prevailed.
Today, Dr.
Soon-Shiong is making money hand over fist. After all, his �new� drug costs 25
times more than an older, generic version (paclitaxel). There is, however,
little difference between the new drug and the older therapy; in fact, they
both use the same active molecule. The only difference is that in Abraxane
paclitaxel is bound to a protein, to make it easier to inject. But Abraxane
doesn�t help patients live longer than the old, generic, version of the drug.
It is also
noteworthy that an independent
review article of Abraxane and similar drugs in �Annals of Oncology�
concluded, �do these agents represent anything more than old wine in a new
bottle? With currently available data, we have to say, �not really.��
So how has
Abraxis BioScience been able to sell so much of a drug that isn�t really much
better than the old version and how has Dr. Patrick Soon-Shiong been able to
get so rich?
Some AstraZeneca
oncology sales reps think they have part of the answer. They claim that those
rapidly escalating sales may have been built upon off-label marketing.
AstraZeneca
co-promotes Abraxane with Abraxis BioScience, and those sales representatives
claim that at a joint sales meeting between AstraZeneca and Abraxis, which took
place in December 2006 in Pittsburgh, things went awfully wrong.
The meeting was
led by AstraZeneca Regional Sales Director Mike Zubillaga, who has since been
terminated by AstraZeneca, together with an Abraxis medical science liaison
(MSL) and two district sales managers; one from Abraxis and one from
AstraZeneca.
Eight AstraZeneca
oncology sales reps and eight Abraxis reps participated in the training, and
they received the assistance of a whopping seven oncologists, who made some
extra cash, tutoring the 16 sales reps.
According to some
of those AstraZeneca sales reps, the Abraxis medical science liaison made it
known that the Abraxis MSLs were available for off-label discussions (such as
lung cancer) with oncology doctors, and that the AstraZeneca reps should use
them as a resource. Then the Abraxis district sales manager allegedly pointed
out that coordination of these meetings should be done by cell phone only, and
that email or voicemail should be avoided.
If these
allegations are true, this all sounds very familiar.
In May 2004,
Pfizer�s subsidiary Warner-Lambert paid a $430 million fine for off-label
promotion of Neurontin. The Department of Justice stated that Warner-Lambert �utilized
�Medical Liaisons,� who represented themselves (often falsely) as scientific
experts in a particular disease, to promote off-label uses for Neurontin.�
And the sales
efforts for Abraxane are clearly paying off. Over 20,000 people have been
treated with Abraxane, and sales are expected to reach $1 billion by 2010.
But that may not
be how things play out.
Because those
concerned AstraZeneca sales reps who participated in the meeting with Abraxis
BioScience didn�t stay silent. They claim a �Code of Conduct report was
submitted through the AstraZeneca hotline shortly thereafter.� They also told
me that, �thus far we are not aware of any investigation or interviews by AZ.
No official response from them as of today.�
So when
AstraZeneca took no visible action, and did not respond, the AstraZeneca
oncology sales reps decided to talk to me. And that�s the reason you�re reading
this story today.
UPDATE:
AstraZeneca has now responded to the sales reps. Five months after the first
report was made, they finally left a message on the hotline for their internal
whistleblowers, AFTER the story was leaked to the press.
Peter Rost, M.D., is
a former Vice President of Pfizer. He is the author of �The
Whistleblower, Confessions of a Healthcare Hitman.� He also writes the daily Dr. Peter Rost blog.