NE Compounding Center Owner Fights Fraud Claim
A part owner of the New England Compounding Center (NECC) is asking a Massachusetts federal judge to dismiss the only charge against him — fraud on FDA — since the agency has admitted that the law differentiating compounding firms from drug manufacturers was not clear. Gregory Conigliaro is arguing that charging someone with conspiracy to do something that isn’t illegal is a “pure legal impossibility,” according to a Law360 report.
Federal prosecutors have alleged that the NECC positioned itself as a compounding pharmacy, although it actually was a drug manufacturer, depriving FDA of its ability to regulate it. According to prosecutors, the lack of stringent safety standards led to the contamination of steroid injections and an outbreak of fungal meningitis that killed at least 64 people.
Federal judge Richard Stearns said during a March hearing that it was “hard for me to see what FDA was defrauded of.”
When then-FDA commissioner Margaret Hamburg was called to testify before Congress on the NECC incident, she said that the line between drug manufacturers and compounding pharmacies was not entirely clear, Law360 says. “Speaking to the complexity of the issue and the changing, evolving industry overlaid on top of a fragmented and ambiguous legal framework, it is important to understand that this notion of sort of black and white, compounder or manufacturer, you know, it just is trying to fit a square peg into a round hole,” Hamburg testified.
“Since there was no law that differentiated between the two … the government’s claims are based on allegations that people plotted to do something that was not illegal,” Conigliaro said.