Cater Wallace Accused Of Ethics Breach

24 October 1994

Carter-Wallace is being accused of a breach of ethics in its plans to sell asthma sufferers a newly formulated version of Organudin in the USA, at a cost of $50 per bottle, which contains the same main ingredient as many common over-the-counter cough remedies that sell for about $5.

The drug company said it has complied with all the rules by telling the doctors about the formula change, but Sydney Wolfe of Public Citizen said that the public is being defrauded since the main new ingredient - guaifenesin - is in the proposed prescription medicine in the same strength as in OTC products such as Robitussin DM and Vicks Formula 44E.

Peter Rheinstein, who is in charge of drug information sent to doctors at the US Food and Drug Administration, said that since companies are allowed to sell drugs with the same ingredient both in prescription and OTC products there is nothing the FDA can do as it boils down to price, which the agency does not regulate. A spokesperson for the company said that it was careful to inform doctors that the two formulations are not the same.

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