P. M. BRIEFING : Report on Generic Drug Firms Finds Fraud but No ‘Poison Pills’

At least seven of the nation’s top 20 generic drug firms show signs of fraud or serious manufacturing flaws, but tests of leading generic drugs turned up no “poison pills,” the Food and Drug Administration said today.

FDA Commissioner Frank Young, who will step down from his post next month, reported results of special inspection efforts to a House Energy and Commerce subcommittee investigating the generic drug scandal.

“At least as far as we have looked, the top 30 generic drugs, constituting 76% of the market, are safe,” Young said.

“Poison pills were not approved even though we had some substantial, terrible problems” with companies trying to deceive the FDA, he added.

Since the stepped-up inspection drive began this summer, the FDA said, it has completed its checks at eight of the 20 top drug makers.

No serious problems were found at four firms--Martech, Mutual, Mylan and Roxanne. But Young said “clear evidence” of fraud was found at one firm, Quantum Pharmacics of Amityville, N.Y., and signs of possible fraud were turned up at the three other firms, which were not identified.