The New England Compounding Center (NECC) Dec. 21 announced that it has filed for Chapter 11 protection (In re New England Compounding Pharmacy Inc., d.b.a. New England Compounding Center, Bankr. D. Mass., No. 12-19882, petition filed 12/21/12).
In the filing, made in the U.S. Bankruptcy Court for the District of Massachusetts, the company said it seeks to establish a fund to compensate individuals and families affected by the nationwide fungal meningitis outbreak caused by contaminated drugs produced by NECC. In papers filed with the court, the company said its goal is to provide a greater, quicker, and fairer payout to its creditors than they could achieve through piecemeal litigation.
As of Dec. 17, the Centers for Disease Control and Prevention said 39 people had died in the fungal meningitis outbreak, with a total of 620 cases in 19 states. NECC, which is based in Framingham, Mass., also has been the target of litigation filed by patients.
“This will be a cooperative effort,” Lowey said. “We want to assemble a substantial fund, and then distribute it fairly and efficiently to those who are entitled to relief.”
Lowey said that NECC seeks to forge a consensual, comprehensive resolution of claims, which will be funded by agreements reached among the claimants, the company, its insurers, and other parties with potential liability for the meningitis cases. All such claims will be addressed in U.S. bankruptcy court.
“We want to confirm the Chapter 11 plan establishing the compensation fund as soon as possible,” Lowey said. “Many families across the U.S. have been impacted by this great tragedy, and it is difficult to comprehend the sense of loss so many people have experienced. Everyone associated with New England Compounding Center shares that sense of loss.”
Two bills have been introduced on compounding. Reps. Rosa DeLauro (D-Conn.) and Nita Lowey (D-N.Y.) Dec. 5 introduced a bill (H.R. 6638) to improve the regulatory framework governing compounding pharmacies. The proposed Supporting Access to Formulated and Effective (SAFE) Compounded Drugs Act also would clarify FDA's ability to oversee such pharmacies, DeLauro and Lowey said in a statement.
That bill follows legislation introduced in November by Rep. Edward J. Markey (D-Mass.), which also aims to strengthen federal regulations for compounding pharmacies. Markey said in a statement that his proposal, the Verifying Authority and Legality in Drug (VALID) Compounding Act (H.R. 6584), would give FDA clear, new authority to oversee compounding pharmacy practices throughout the country.
Full text of the Chapter 11 petition is available at: /uploadedFiles/Content/News/Legal_and_Business/Bloomberg_Law/Legal_Reports/NECC-Petition(1).pdf
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).