Wednesday, August 24, 2011

Pharma companies must compensate victims of clinical trial errors

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Drug companies looking to test their experimental drugs on Indians will not find human lives cheap any more. According to an amendment to the relevant law being planned by the health ministry, the onus of proving that clinical trials did not cause death or injury will now lie with the drug company concerned. Further, in case of death or injury from such trials, the company will have an explicit legal obligation to financially compensate the victims. Currently, India has no clear, enforceable law that mandates a drug company to provide financial compensation to the affected party or his or her dependents in case of injury or death during clinical trials. Neither the Indian Council of Medical Research’s Ethical Guidelines for Biomedical Research nor the Good Clinical Practices guidelines that deal with the subject have the status of law. These guidelines spell out the obligation of the trial sponsor in case the participant incurs physical or psychological injury, but do not delve into how to deal with complications that might arise in such cases.

According to sources, the health ministry is set to mandate payment of compensation to volunteers participating in clinical trials in case of a trial-related death or injury by amending the Drugs and Cosmetics Rules.

“Under the proposed rule, it would be the responsibility of the trial sponsor on behalf of the pharma company to prove before the ethics committee that the injury or death is not on account of clinical trial within 30 days of receiving the report of the injury or death from investigator, failing which the sponsor shall be liable to pay the compensation within 60 days or as decided by the ethics committee,” a health ministry official said. The amount of compensation will be decided on a case-to-case basis by the ethics committee.

The Drug Controller General of India’s (DCGI) office has already proposed the policy changes to make drug companies and other agencies accountable in conducting clinical trials. Further, the Drug Technical Advisory Board (DTAB), the highest decision-making body on such matters, has also endorsed the proposal to make companies liable to duly compensate people suffering from trial related injuries. The DTAB, however, added that DCGI should also consider the feasibility of setting up a tribunal comprising physicians, retired judges and civil society members to decide on disputes and fix the minimum compensation. Also, the time-frame for claiming compensation could also be determined, the board suggested. The health ministry move follows an investigation earlier this year by the ministry which found that most firms undertaking clinical trials had not paid compensation to the relatives of the persons who died during the trials. Of the 671 reported deaths during clinical trials in 2010, compensation was paid only in three cases. Subsequently, the ministry sent show cause notices to over 40 drug firms including Pfizer, Bayer, Novartis and Eli Lilly seeking an explanation. When the DCGI summoned some of these firms to explain their cases in June, they reportedly opted to pay up. While most drug companies which FE contacted refused to come on record on the issue, saying it would be inappropriate to comment on a law which is still in the making, three MNCs said they adhered to internal protocols to decide the compensation once it is proven that a death or injury resulted from the trial and most cases of alleged non-payment was due to oversight of ethics committees. One of them, however, objected to the move to shift the burden of proof to the companies. “There are times when terminally ill patients enroll themselves for such trials after intimation from doctors about the seriousness of their illness. In those cases, it may become very difficult for us to establish a causal relation (between the clinical trials and the death of the patient).”

The Indian clinical research market is estimated to be between $300 to $500 million in 2010. The Indian clinical trial market which offers 30-40% savings to pharma companies compared to the US and EU (E&Y estimate of 2005), is projected to grow annually at a rate of 20%, according to Visiongain, which sees it becoming one of the most-favoured clinical trial destinations along with China by 2015.

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