114. The Fungus (New England Compounding Center)
Digest
This episode of Swindled delves into the tragic 2012 fungal meningitis outbreak, tracing its origins to the New England Compounding Center (NECC) and exposing the company's reckless practices and the failures of regulatory agencies. The episode begins by exploring the challenges faced by hospital pharmacies, including budget cuts and staffing shortages, and how companies like Pharmacont Pharmaceuticals offer solutions by providing ready-to-use medications. It then examines the role of compounding pharmacies in customizing drugs for patients with specific needs, highlighting the rise of these pharmacies during drug shortages. The episode focuses on Pharmacone Pharmaceuticals, a company founded in 2008 to improve efficiencies and reduce costs for healthcare clients. However, Pharmacone's history is marred by two compounding errors, one in 2014 involving a powerful sedative and another in 2016 involving morphine, both resulting in serious consequences for patients. The episode then shifts its focus to the fungal meningitis outbreak, detailing the history of NECC, its profit-driven practices, and the contamination of its steroid injections. The episode highlights the regulatory failures that allowed the outbreak to occur, including the Massachusetts Board of Pharmacy's inadequate oversight and the FDA's limited authority over compounding pharmacies. It examines the victims' stories, their suffering, and the lasting impact of the tragedy. The episode explores the congressional hearing and investigation, the FDA's limited authority, and the passage of the Drug Quality and Security Act (DQSA) in 2013 to strengthen regulation of compounding pharmacies. The episode details the legal consequences for NECC, including its closure, bankruptcy, and the criminal indictments against its executives and staff. It covers the trials and sentencing of Barry Caden, the president of NECC, and Glenn Chin, a supervising pharmacist, both found guilty of racketeering and mail fraud. The episode concludes by discussing the lasting impact of the outbreak, including the ongoing struggle for justice by victims and the need for stronger regulations to prevent future tragedies.
Outlines
Introduction & Hospital Pharmacy Challenges
This episode explores the challenges faced by hospital pharmacies, including budget cuts and staffing shortages, and how companies like Pharmacont Pharmaceuticals offer solutions by providing ready-to-use medications.
Compounding Pharmacies: A Specialized Service
The episode examines the role of compounding pharmacies in customizing drugs for patients with specific needs, highlighting the rise of these pharmacies during drug shortages and the case study of Pharmacone Pharmaceuticals.
Pharmacone's Compounding Errors & The Rise of NECC
The episode details Pharmacone's history of compounding errors, leading to serious consequences for patients, and then shifts its focus to the fungal meningitis outbreak, detailing the history of NECC, its profit-driven practices, and the contamination of its steroid injections.
NECC's Practices & Regulatory Failures
The episode highlights the regulatory failures that allowed the outbreak to occur, including the Massachusetts Board of Pharmacy's inadequate oversight and the FDA's limited authority over compounding pharmacies.
The Outbreak's Discovery & Aftermath
The episode examines the discovery of the outbreak, the victims' stories, and the congressional hearing and investigation.
The FDA's Limited Authority & The DQSA
The episode explores the FDA's limited authority over compounding pharmacies, the passage of the Drug Quality and Security Act (DQSA) in 2013, and the state of Massachusetts' response to the crisis.
Legal Consequences for NECC & The Trials
The episode details the legal consequences for NECC, including its closure, bankruptcy, and the criminal indictments against its executives and staff. It covers the trials and sentencing of Barry Caden and Glenn Chin.
The Case's Legacy
The episode concludes by discussing the lasting impact of the outbreak, including the ongoing struggle for justice by victims and the need for stronger regulations to prevent future tragedies.
Keywords
Fungal Meningitis
A rare and serious infection of the membranes that surround the brain and spinal cord, caused by fungi. It is typically not contagious but can be difficult to detect and treat.
Compounding Pharmacy
A specialized pharmacy that customizes drugs for patients with specific needs, such as allergies or difficulty swallowing pills. They are regulated by state pharmacy boards, not the FDA.
New England Compounding Center (NECC)
A compounding pharmacy in Framingham, Massachusetts, that was responsible for the 2012 fungal meningitis outbreak. The company's practices violated state law and resulted in the deaths of dozens of people.
Drug Quality and Security Act (DQSA)
A federal law passed in 2013 to strengthen regulation of compounding pharmacies. It granted the FDA authority to regulate compounding pharmacies, but only for those that voluntarily opted in.
Regulatory Capture
A situation where a regulatory agency is influenced by the industry it is supposed to regulate, leading to a weakening of regulations and a prioritization of industry interests over public safety.
Sterility
The absence of living organisms, particularly microorganisms, in a product or environment. Sterility is crucial for injectable medications to prevent infections.
Methylprednisolone Acetate
A steroid medication commonly used for pain relief, particularly in epidural injections. The contaminated methylprednisolone acetate produced by NECC was the source of the 2012 fungal meningitis outbreak.
Q&A
What were the main factors that contributed to the 2012 fungal meningitis outbreak?
The outbreak was caused by contaminated steroid injections produced by the New England Compounding Center (NECC). The company's practices violated state law, including pre-printing order forms, using phony names on prescriptions, and shipping medications before safety tests were completed. The company's facility was filthy, and its sterilization process was inadequate. Additionally, the Massachusetts Board of Pharmacy failed to adequately regulate NECC, and the FDA's authority over compounding pharmacies was limited.
What were the legal consequences for those involved in the outbreak?
Barry Caden, the president of NECC, was found guilty of racketeering and mail fraud and sentenced to 9 years in prison. Glenn Chin, a supervising pharmacist, was convicted of racketeering and mail fraud and sentenced to 8 years in prison. Both had their sentences increased after the sentencing guidelines were re-examined. Other NECC executives and staff faced various charges, including conspiracy to defraud the FDA and criminal contempt.
What steps were taken to prevent future outbreaks?
The Drug Quality and Security Act (DQSA) was passed in 2013 to strengthen regulation of compounding pharmacies, but it was weakened by lobbying efforts. The FDA was granted authority to regulate compounding pharmacies, but only for those that voluntarily opted in. The state of Massachusetts took steps to prevent another compounding pharmacy-induced health crisis, including passing laws to track medication distribution and reorganizing the board of pharmacy.
What was the impact of the outbreak on the victims?
The outbreak resulted in the deaths of dozens of people and sickened hundreds more. Victims suffered from fungal meningitis, which can cause severe neurological damage and death. Many victims also experienced financial ruin, chronic health problems, and emotional distress.
What lessons can be learned from the fungal meningitis outbreak?
The outbreak highlights the importance of strong regulation of compounding pharmacies and the need for increased oversight by the FDA. It also underscores the dangers of profit-driven practices that prioritize production and profit over patient safety. The case serves as a reminder of the importance of holding corporations accountable for their actions and ensuring that regulatory agencies have the resources and authority to protect public health.
Show Notes
A compounding pharmacy's attempt to maximize revenue leads to a devastating public health crisis. Prelude: Pharmakon Pharmaceuticals ships overly-potent medication to hospitals, including a neonatal intensive care unit.
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