Pharmaceutical Product Development and Liability With Chantix®: A Teaching Case

DOIhttp://doi.org/10.1111/rmir.12037
AuthorBrenda Wells
Published date01 September 2015
Date01 September 2015
Risk Management and Insurance Review
C
Risk Management and Insurance Review, 2015, Vol.18, No. 2, 297-314
DOI: 10.1111/rmir.12037
EDUCATIONAL INSIGHTS
PHARMACEUTICAL PRODUCT DEVELOPMENT AND LIABILITY
WITH CHANTIX R:ATEACHING CASE
Brenda Wells
ABSTRACT
In 2006, Pfizer introduced Chantix Rto the American medical marketplace.
Touted as an effective tool for smoking cessation, the drug experienced first-
year sales of just under $900 million. Withsmokers costing employers thousands
of dollars more each year than nonsmokers, and with public pressure to give
up cigarettes, many embraced Chantix Ras a miracle drug. What many did not
understand was that the drug was rushed to market before extensive testing
and clinical trials could be conducted to prove its safety for a wide variety
of users, especially those with psychiatric conditions. This case tells the story
of ChantixR: how it works, how it came to market, and the more than 2,700
lawsuits that were filed as a result of injuries claimed to be caused by the
drug. Students are given the opportunity to consider the ramifications of risk
management decisions made throughout the development and marketing of
the drug, as well as how litigation involving the medication might have been
handled.
INTRODUCTION
Smoking is the single largest preventable cause of death in the United States (Centers for
Disease Control, 2008). A recent study shows that employees who smoke actually cost
the employer more per year than nonsmokers. Employee wellness programs offered
in the workplace often encourage smoking cessation and have generally been shown
to be good investments for employers (Pelletier, 2005; Baicker et al., 2010). However,
not every approach to smoking cessation is having the positive outcome one might
expect.
In 2006, drug manufacturer Pfizer launched ChantixR, which promised to alleviate the
pains of nicotine withdrawal. ChantixRoffered smokers a chance to kick the expensive
and unhealthy habit and was touted as a medical miracle in the mainstream press. Two
years later, the first of 2,700 lawsuits was filed against Pfizer claiming that ChantixR
caused serious injuries and in some cases, death. Pfizer paid out over $275 million in
settlement funds, yet the drug was not recalled and remains on the market today.
Brenda Wells isat East Carolina University; e-mail: wellsbr@ecu.edu.
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298 RISK MANAGEMENT AND INSURANCE REVIEW
SMOKING,NICOTINE,AND MENTAL HEALTH
The compelling need for a smoking cessation product that truly works can be best
understood by first acknowledging and understanding the prevalence of smoking in the
United States and its associated costs. This section begins with facts about smoking and is
followed by a layman’s explanation of how nicotine works on the brain. Understanding
the chemistry of smoking will be necessary to understand how ChantixRoperates on the
brain. This section concludes with a discussion of smoking and its relationship to mental
illness, which is critical for understanding the seriousness of the side effects claimed to
be caused by the drug.
Smoking in the United States
The deleterious health effects of smoking are well documented. Smoking is linked to
countless health effects including at least 11 types of cancer and numerous reproductive
consequences. Smoking is responsible for one in five deaths each year, more than HIV,
illegal drug use, alcohol use, motor vehicle injuries, suicides, and murders combined
(Centers for Disease, 2004, 2008).
As a result, tobacco has a major impact on national health expenditures. During 2000
to 2004, cigarette smoking was estimated to be responsible for $193 billion in economic
losses in the United States: $96 billion in direct medical costs and $97 billion in lost
productivity (Centers for Disease Control and Prevention, 2008).
Nearly 20 percent of the U.S. population smokes cigarettes (Centers for Disease Control,
2012). While this percentage is on the decline—it was 25 percent in 1993—it still repre-
sents a significant number of people (Centers for Disease Control, 2004). The publication
of the 1964 Surgeon General’s report on smoking and health was the start of a national
antismoking campaign. Since that time, antismoking initiatives and bans on smoking in
public places and work places have drastically reduced cigarette consumption (Pacheco,
2011).
Employees who smoke are estimated to cost an employer $6,000 more per year than a
nonsmoking employee (Berman et al., 2013). As a result, many employers have made
their work campuses smoke-free. Through employee benefit plans, employers also offer
support and resources to help employees quit smoking. About 36 percent of employers
offer rewards for employee participation in a smoking cessation program, and 42 per-
cent surcharge employees who smoke. A small but growing number of employers are
adopting “no-hire” policies for smokers (Towers Watson, 2013).
The Chemistry of Smoking
As nicotine enters the body via a cigarette, it permeates very quickly,crossing the blood–
brain barrier and reaching maximum concentration just 10–20 seconds after inhalation
(Le Houezec, 2003). Nicotine works by binding to brain receptors called nicotinic acetyl-
choline receptors, or nAChRs. The nAChRs with the highest affinity for nicotine contain
two α4andthreeβ2 subunits. The highest concentrations of the high-affinity α4β2
nAChRs exist in the mesolimbic dopaminergic system, which is also commonly known
as the reward center of the brain.
When stimulated by nicotine, these α4β2 nAChRs trigger release of the neurotransmitter
dopamine. Dopamine is a critical element involved in the brain’s reward and pleasure

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