Session 3-4: Financial Conflict of Interest in Academic Research

M. D. Anderson Cancer Center
Date: February - April, 2008
Duration: 0 / 26:55

Michael Rosenblum, Ph.D., Professor, Department of Experimental Therapeutics, M. D. Anderson Cancer Center

Narrator:

All right at this point again it's my very much...big pleasure introducing Michael Rosenblum.  He has a very, very long title.  He works here at M. D. Anderson and out of that long title just remember one word it says Chair, so he's an important person.  Mike and I go back we had a start-up company in fact together, right?

Right.

And he owns the Beach Isle and the water that goes to that beach so we're okay you know so we have a past year and we think back a lot.  Mike is the incoming chair of the Conflict of Interest Committee here at M. D. Anderson and so he has as well a start-up company himself and where are you, phase 2 trials right now?

Just getting ready to sort phase 1.

Okay.  So, phase 1 trial so he knows all the whole gamete.  He's an inventor.  His patent is hanging in his office and he is a start-up guy raised the money.  We golfed and team together and his company is still in California.

California, that's right.

Okay.  So here we have one that really has done it from A-Z and now is even the incoming chair of the Conflict of Interest Committee.  So, with that, please the last 25 minutes of today we'll see what we can do, what we're allowed to do and what we're not allowed to do.  The only one word I wanna say before I let him go, we just heard, the only start-up opportunities is a 100 million and bigger.  I personally don't believe that so if you have start-up companies there.  He's got but he knows.  We have an open discussion on that so if you have another opportunity you still want to so your start-up and you think its only 10 million or five million, please come to us.  We'll talk about it because that's how start-up start.  What we call start-ups.  Okay.  So, just I have said that.

Michael Rosenblum:

Thanks Oli.  I appreciate the opportunity to talk to you guys today.  A lot of the new rules and regulations were in place when I first started doing this and so hearing about all of this is a little terrifying, at least to me you know, hearing it all in one Bell's roof I mean who's scared you know hearing all these stuff.  I mean it's a little intimidating yeah.  So  Oli he asked me to present today issues of conflict of interest and the reason that I was asked to do that is to prevent that "oh, boy moment" that Elizabeth talked about from turning to an "oh no" moment because there are lot of issues regarding conflict of interest in academic research today.  It's become a major buzz word and as you know there have been some egregious problems with conflict of interest.  Our job in the conflict of interest committee is to prevent you from falling into some of the traps and some of the problems and the best way to do that is by educating you as to what we can and can't do and why.  So a lot of this information is available on our web site but good luck in trying to find something on our web site.  I will, at the end, provide you contact information somebody to contact you know, can we do this?  Can we do that?  You know, e-mails were fine.  No problem.  As Oli I said I'm the incoming vice-chair or I'm the vice-chair and the chair-elect of the M. D. Anderson Conflict of Interest Committee.  This is a faculty committee.  It's composed of faculty.  We have a lot of institutional members who help staff it but this is a committee run by the faculty itself.  One of the issues regarding conflict of interest, I don't know if you remember this, this was about eight years ago.  There was a doctor who absolutely insisted in a publication that zinc lozenges would speed the recovery from colds.  Now, what they didn't disclose and what the New York Times found out was that this guy had stock in the company and that was before this paper was published.  So the question is, knowing this now, are you sure of the objectivity of this data?  Wouldn't you have rather seen the information in the study that he owned part of, you know, that he had a financial interest in this.  And so our job again is to help you...is to help prevent the New York Times from publishing about investigators at M. D. Anderson or something like this.  And so I'm gonna throw in some quotes.  This is a presentation that conflict of interest group actually will come around and make two various departments.  If you ask, they'll come out and present.  So one of the issues about conflict of interest is that it's the perception that one's judgment can be influenced by personal interest and that ended up itself interferes with that person's judgment.  It's the perception that becomes a reality.  So that's something that's very, very important in terms of conflict of interest and that's something that we really need to be careful about.  There was a med analysis done in JAMA, in 37 studies of conflict of interest.  About a quarter of the investigators had industry affiliations.  No that's not necessarily a bad thing and as you'll see in a minute industry affiliations are, you know, a lot of people do it and why?  That's where the money is, right?  It's not at the NIH anymore it's within industry.  Two-thirds of the institutions involved in this conflict of interest analysis had equity interest in start-ups and I will tell you that institutional conflict of interest not just your conflict of interest.  Not from a personal standpoint but institutional conflict of interest is starting to get front and center press in a lot of newspapers and magazines and the lay public is very worried about that and so should we all been.  There has been a correlation between industry sponsorship and pro-industry conclusions and that's something that really worries us.  Industry restricts publication and data sharing.  As you know, if you have a materials transfer agreement with industry, there will be likely a clause in that MTA that says you are not likely able to publish something for 30 or 60 days until the company has an opportunity to review your publication for likely patentability or conflicts within their own research so there will be restriction.  In fact, it may be a permanent restriction for new publishing and I urged you not to try to include those kinds of documents if you can avoid them that restrict your right to publish documents.  This can be seen in a vacuum.  This is an important aspect we understand that here at M. D. Anderson, we cannot avoid conflict of interest.  The issue is how do we manage it?  Number one is transparency and number two is disclosure.  Those are two major ways that we manage conflict of interest but this has to be seen in a complete environment in which there are decreasing revenues to academic medical centers.  We all know that that's happening.  Managed Cares made major in-roads but there is a big change in the Paramex, a decrease medicare reimbursement.  There are a lot of uninsured that come in.  The Byh-Dole Act has actually increased the interaction between industry and academia through a great extent.  The rise of technology transfer--that's mainly a good thing but it can create some conflicts for you and for the institution.  The issue is how do we manage that?  Also, everybody's got a company.  I think that's kind of cute if they put that in but everybody's got a company.  I have a company.  Oli has a company and several of us.  Dr. Metha has a company, several companies.  He's a serial entrepreneur.  There's also a demand for science that benefits men and women rather than mankind.  And the last but not the least, in fact, this should be first is greed--both personal and institutional level because of all the other issues that are above.  So, we have a major issue in erosion of the public state in the reliability of scientific findings that may be one of the greatest harms that result from the strengthening of the ties between industry and academia and I believe that Dr. Harrington was absolutely correct when he published this.  So this is a major problem that we have to address.  So, what are the final interactions that we have as faculty members here at M. D. Anderson?  Well, one is research support.  We all have the opportunity of having research support from commercial groups.  You can be a consultant.  You can serve on an advisory board.  You can serve on a speaker bureau.  You can get royalties and licenses.  You can actually go straight if you really want.  You can have a promotion at sponsored symposiums.  You can have your way paid.  Go to Merck-based presentation.  There are a number of gifts and trips that are available and equity and options that you can get from industry.  Few more facts, 70 percent of the money from clinical trials in the US now comes from industry.  Big money, big bucks involved.  Community physicians' officers are replacing academic medical centers.  This is a true fact as the site of choice.  This threatens the revenue stream for academia.  Now, I don't think we have a problem at M. D. Anderson than choosing M. D. Anderson or a smaller doctor's office versus M. D. Anderson, that's really not an issue.  It's mostly for smaller medical centers but this is a choice that some groups are making in terms of evaluating particular drugs.  Academic medical centers, offices of sponsored programs and IRBs take time.  There are months and months and months of delays at our IRB and that's why there are now four, count them, four IRBs, five, five?  Five, five IRBs?  Okay.  It's the other date.  I was wrong.  There are now five IRBs that try to take a load of.  I remember back in the day there was only one IRB.  It took like six months to get stuff through trials.  And everyday of delay can cost the company a million bucks or so.  Contract research organizations are playing a much larger role in industry sponsored trials.  What do industry sponsors do to influence study outcomes?  We'll they can opt not to do a post approval study and we've seen that in some of the major problems, some of the major drugs that have been recalled because there have not been post large post approval studies.  They fear that the results could negatively impact drug sales.  Particularly for something that has been approved.  Study designs could favor sponsors product.  Use of the younger population that is targeted for the drug or the dose of the competitor's comparison drug is too low.  So these are a number of the things that industry can do to change the competitor and make sure that their drug comes out on top.  Use of a surrogate endpoint.  This is a hot button item right now.  Some of these surrogate endpoints may not be reasonable--that is they may not correlate with meaningful clinical results and actually the agency of the NCI and the FDA are struggling with issues regarding surrogate endpoints.  Another thing that industry-sponsors do to control study outcomes, they control the data.  Participants don't get to examine all the results.  Some phase 1, phase 2, and phase 3 studies are multi-institutional.  The companies serve as the clearing outs for all of the study participants.  So all of the data goes to one central source and that is the company.  They also control publications including the order of authorships, I mean, who want to be stuck as 24th author in a 50-author publication.  I mean, you know, where do you get the benefit there?  Sometimes results don't get published at all.  We've actually seen that, right?  There have been some high profile studies that were done but never published or published in some obscure journal that nobody reads.  And lastly, which I have to giggle about is, some publications are ghostwritten by company authors and in fact sometimes we see people making presentations, faculty members, not necessarily from this faculty but other faculties making presentations for major company which the company supplies not only the slides but the analysis of the data and gives you sort of a list of things that they want you to say about these particular slides.  So ghostwriting, not only publications for presentations, really influences study outcomes.  We're primarily concerned just sort of bringing it back to us is a conflict of interest--that is, a set of conditions in which professional judgment concerning primary interest that is patient's welfare or the validity of research tends to be unduly influenced by a secondary influence and that is financial gain.  And what are the kinds of things that we're concerned about?  Gifts, hospitality subsidies offered by physicians and non-physicians, by the pharmaceutical industry should not be accepted if acceptance might influence or appear to others to influence the objectivity of clinical judgment.  I don't know if you know it or not but UT Health Science Center in San Antonio now has a zero-policy for acceptance of anything from industry--that is you can't walk around with a Merck pen or an M-gen part of paper of any value.  So there are groups that are really going overboard I think in terms of accepting gifts from industry such that the appearance of impropriety is completely ablated.  We are trying to avoid that.  So this discusses how could conflict of interests influence the oversight of human subject's research, inadequate disclosure of risks to patients, exaggeration of benefits, enrolling ineligible subjects.  We don't really have that problem here because we have an IRB which is very, very on top of things.  Failure to report adverse events and data manipulation, we really don't see that happening in these kinds of trials but it certainly is possible.  Failure to suspend or terminate a trial; actually our IRB is outstanding in terms of that.  Once you have reached enrollment number of patients there they jealously guard that number that you put in that you say that you're going to use.  So, in 2003, September 1, M. D. Anderson launched a new fairly inclusive and moderately restrictive policy.  This was a policy that was about eight months in the making but this was a policy that was, for the most part, driven by the faculty.  So, to a great extent, the faculty here at M. D. Anderson rewrote at the urging of others non-faculty members that we rewrote the entire conflict of interest policy.  The purpose, the number one purpose is to protect patient's safety and to safeguard the institutional reputation and integrity, that's the number one purpose.  We require disclosure of all potential conflicts, that is a disclosure from you of all potential conflicts and we will permit relationships with poor profit companies as long as it furthers the M. D. Anderson mission, okay.  So, this is a very important aspect.  Disclosure number 1C is probably the top number one thing that people are gonna get in trouble about, not disclosing.  The conflict of interest committee was then set up.  It was always in place but the COIC became responsible for assessing compliance that is looking at the compliance across the institution and reviewing conflict of interest management plans for people who were doing a sponsored research with companies to which they have an equity ownership and I will get into that in a minute.  Full time faculty member trainee or institutional decision maker, their primary employment responsibility is to the M. D. Anderson and that is one of the driving factors that cause the change the conflict interest policy. You cannot serve, as a member of the Board of Directors or officer of poor profit company or the competitor of the M. D. Anderson Cancer Center.  Now, as Tom Lee mentioned, if you really need to serve on the Board of Directors of start-up for instance, with presidential approval, you can request that.  It's not always granted, it is frequently granted.  But you have to have a darn good reason for it.  M. D. Anderson conflict management policy has set limits on the amount of consulting that you can do.  Fifty percent of your base salary in 12 months from all sources of consulting--that is if you make 10,000 dollars a year, only 5,000 dollars you can get from outside sources and only 25 percent of your base salary can come from any one source and that's because we don't want a major pharma or something having all of your...having you beholding to one major company for all of your consulting opportunities.  State resources such as M. D. Anderson property can't be used for any aspect of your consultancy or employment with an entity other than M. D. Anderson and the same is true with the M. D. Anderson name.  You can't use M. D. Anderson name inappropriately.  No research is permitted in which payment depends on specific outcome.  It sounds silly but believe me we've seen it.  Extramural leave, there's a 30-day limit on an outside interest.  This is using your extramural leave.  Outside of the 30 days you have to use your vacation time.  Additional time for extra mural leave could be granted by the president of your activities for which you are receiving no professional financial gain.  Financial relationships, full disclosure is required with the conflict of interest and that includes unfortunately families, spouses, dependent children, family trust or corporations or other known relationships.  Obviously, you can't disclose relationship if it's not known to you but all the known relationships of financial nature.  You need to do full disclosure and publications and oral presentations.  Almost all of us have now slides which say, you know, you're gonna hear some information on company X and by the way I'm a consultant for company X and I own, you know, stocks in company X.  So you really need to do that and in publications as well.  And in fact, many of the publications will ask those specific questions anymore and those will appear in your publications.  Another aspect, if you would have been asked to be an expert witness or medical consultant that money for that activity goes to physician's referral service by contract.  If you're involved in negotiations, you cannot negotiate with an outside entity when you're here at M. D. Anderson.  If you have an equity interest in that company, if you have a consultancy that is paying you greater than 10, 000 per year or if you serve on a scientific or advisory board for that particular company; this does not include research agreements.  Without human subjects faculty can hold equity in companies that sponsor your research.  A monitoring plan, a conflict of interest, a monitoring plan has to be in place to manage that interaction.  There are limits.  You can have more than 50% interest in a privately held company.  You can have more than 5% interest in a publicly-traded company and you have to have less than 20% interest in a private company at the IPO launch.  Trainee participation is voluntary in research programs if the supervisor, if your supervisor has both equity interest and receives or search support from that particular sponsor.  Any holdings in consultancy or consultancies have to be disclosed the entire research team annually.  My research team gets a letter from me, a hardcopy letter which discloses all the consultancies and equity interest that I hold.  They're asked to sign that that has been disclosed to them and I keep that on file that's required in my conflict management plan.  In terms of human subjects, you can't be paid for enrolling patients in the trial.  In fact, you can't be the principal investigator or primary physician for a patient on a trial if, here she has an equity interest in the sponsor or receives cash greater than 10,000 dollars a year.  This is a really critical issue that maintains the integrity of our clinical trials and that is the number one thing at the M. D. Anderson that were known for as our clinical trials and we are really zealous about the guardianship of this particular aspect.  So if you want to run a foul of any of the rules at M. D. Anderson, please don't run a foul of this one.  Any equity or cash received by non-PI members of research team, as an executive of the institution itself, should be disclosed in the consent document that is in the phase 1 or phase 2 or phase 3 consent documents.  The patients have a right to know what equity interest a physician or managing physician has in a particular study.  In terms of supervisory rule relationships, we've looked at that as well.  The direct supervisor can't oversee approval of another person's compliance with time commitment limits if the supervisor has equity or receives greater than 10,000 per year from an outside entity for which the supervisor has commitment.  This is really very important.  A supervisor may hold no equity interest greater than 10,000 dollars in an outside entity sponsoring research which is directed by a faculty member which reports to that supervisor.  Institutional decision makers--the leadership can't hold equity or receive cash greater than 10,000 a year from any outside entity sponsoring him in subject's research when M. D. Anderson faculty member is the PI.  Exception is if the trial is multi-institutional, PI is elsewhere, the data management is elsewhere and M. D. Anderson doesn't hold the R and D.  What are the types of business interests that we're talking about; pharmaceutical and medical device, biotechnology and software, chemicals, firms raised in capital for the above and M. D. Anderson competitors.  So, we have a lot of these in the data base.  We maintain a fairly sophisticated data base that cross-checks all conflict with faculty members particularly as they relate to the clinical IRBs and that probably the number one issue that we are concerned about is the integrity of clinical trials but we maintain this data base for faculty and trainees to submit disclosures and annual certifications.  I'm sure all of you, if you've been here at least a year, you've seen the annual certification that comes out I think in October.  You are asked to certify that you have or don't have or if you have these are the conflict of interest things that you do have.  We track and report these conflict in interest issues and circum plans with the federal state and local rules and believe me, if we don't, somebody else is gonna do it and they're going to impose rules and guidelines that are much more restrictive than what we have here at present.  It's not a complicated issue when you are in any doubt you need to disclose.  It's confidential and it's an automated process so please go ahead and disclose.  We think without this, as Cathy De Angelus said that the institutions where clinical research is based and faculty members who perform this are in grave danger--grave danger of losing the support and respect of the public.  We cannot lose that.  Without the support, trust and medical discoveries in their applications will not be forthcoming.  Medical research is doomed without this trust.  Matthew Davis and Laura Vincent in the Office of Research Administration, this is the phone number 792-3220, please give them a call.  You can pin me.  I'll be glad to help you if you have questions and I'll be happy to take any questions you have now.

You've mentioned 50% equity in private companies, is that the same for start-up companies?  Is that what you're pertaining to?

Yeah.  Right.  That's what we're talking about.

No questions now.