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Plus: A corporate climate pullback
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Earlier this year, Sam Hornblower wrote for Bloomberg Businessweek about the FDA’s role in igniting the opioid epidemic. That article is back in the news, and today in collaboration with the Prognosis newsletter we’re publishing his explanation why. Plus: Companies retreat from their environmental goals, and nicotine pouches are bedazzled for a new market.

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FDA Commissioner Marty Makary laid out his priorities for the agency in a piece published in JAMA Network Open on June 10. He promised to take conflict-of-interest issues seriously, writing that the agency “will never forget one of the worst self-inflicted wounds of US health care—the Food and Drug Administration’s illegal approval of OxyContin for chronic pain based on a 14-day study.”

It marked the first time the agency has said this was an “illegal approval.” In doing so, Makary added a footnote that linked to my article from April. 

My story in Businessweek and our Wall Street Week piece traced FDA decisions on Purdue Pharma’s OxyContin and other opioids that broke with scientific and regulatory standards. At the time, a culture of rule-bending at the agency prevailed—one division assigned itself the number 007 and joked it had a “license to kill” bureaucracy.

In December 1994, the FDA approved OxyContin. This opened the door for Purdue to broadly market the drug at higher doses and for long-term use—well beyond the scope of the original trial data. And the agency’s OK for chronic pain, instead of just acute pain, was worth billions to the pharmaceutical industry.

My Businessweek investigation also uncovered a pattern of the FDA bowing to political pressure and being reluctant to revisit past errors. And the FDA reviewer who cleared OxyContin’s approval later took a job at Purdue.

Photo illustration: Joan Wong; Photos: AP Photo, DEA, Getty Images (2)

At 60 Minutes, I had reported on the tactics of opioid salespeople, pill mill doctors, the failures of federal regulators to rein in drug distributors—all factors in the US epidemic. I also dug into the FDA’s record. Regulatory filings, internal correspondence, litigation discovery and interviews pointed to a pattern: The agency repeatedly approved opioids and labeled them for non-cancer chronic pain without sufficient data.

Where were FDA lawyers at that time? “Surprisingly, legal reviews are not routine,” Seth Ray, former counsel in the FDA’s Office of Chief Counsel, said this week. “At a high level, they don’t think they need to be bound by law or the office of chief counsel. Lawyers can be seen as an obstacle.” Ray, whose concerns were echoed by other former top attorneys in the office I spoke to, said he hopes Makary will now implement a system of legal review.

But former FDA Chief Counsel Peter Barton Hutt suggests Makary’s use of the word “illegal” is a political move. In practice, he says, the agency can approve anything it wants without strictly following the statutes. If the FDA rigorously followed regulations such as the one requiring “adequate and well-controlled trials,” hundreds of approved oncology and rare disease drugs would have to come off the market. He worries that the FDA has squandered its credibility.

Edwin Thompson, founder of Pharmaceutical Manufacturing Research Services, says he’s at a loss as to what the agency does next on prescription opioids. “I don’t know how a commissioner can put that in writing and not take the drug off the market,” he says. “The commissioner says his agency illegally approved the drug. If I were selling that drug right now, I wouldn’t ship another tablet.”

Sign up for the Prognosis newsletter to get the latest in health, medicine and science—and what it means for you. You can read today’s featured story online here

In Brief

When Climate Pledges Aren’t Enough

Illustration: Cameron Galley for Bloomberg Businessweek

Peter Ford has seen the promise—and the pitfalls—of corporate climate pledges up close. The 40-year-old Briton recently spent five years at Hennes & Mauritz AB trying to cut emissions from Cambodian sewing lines, Vietnamese dye houses and other stops in the Swedish fashion giant’s vast supply chain. He met with hundreds of suppliers, pushed for energy efficiency upgrades and urged the elimination of coal boilers. And, to its credit, H&M invested about $200 million a year in these efforts and recently reported a 24% cut in its supply chain emissions.

But Ford isn’t celebrating. “As an industry, it’s not working out yet,” he says bluntly. Apparel emissions are still growing—and could expand an additional 30% this decade, according to McKinsey & Co. While a few brands are doing a lot of work, Ford says, most of the industry “would much rather sit there and wait for things to happen.” That mismatch isn’t unique to fashion. From airlines to banks to retailers, the story is the same: Over the past few decades, more than 4,000 companies have made big climate pledges, but results are scant and emissions continue to rise.

Worse, we’re now seeing a retreat. In the past year companies around the world have been canceling their climate commitments, some only a few years old. BP Plc is pulling back on renewables and drilling more oil. Coca-Cola Co. and PepsiCo Inc. abandoned or weakened promises they made in 2021 to slash their use of new plastics. Big banks such as Wells Fargo & Co. and HSBC Holdings Plc walked back various plans to reduce their emissions. Walmart Inc. admits it’s behind on its climate targets, while FedEx Corp. says it will likely miss its goal to go electric on half of its delivery truck purchases by 2025. This corporate retrenchment has been particularly acute in the US, where the Trump administration has been busy rolling back climate regulations and withdrawing from international treaties such as the Paris Agreement.

If there’s an upside to all gloom, Ben Elgin writes, the setbacks could force investors, lawmakers, academics and the broader public to accept that voluntary corporate action was never going to stave off climate disaster: As Companies Abandon Climate Pledges, Is There a Silver Lining?

Related: Europe Is Stepping Up to Be the World’s Climate Sheriff

Nicotine Pouches for Her

Photographer: Ohni Lisle for Bloomberg Businessweek

At Odenplan Square in central Stockholm, high school students move in packs, enjoying a day off and the early spring weather. Even though graduation is still weeks away, some seniors are already sporting their celebratory caps, per Swedish tradition. One of them is 19-year-old Olivia Persson, who, in addition to wearing the sailor-style hat, carries a bright tin of nicotine pouches. So do most of the other girls in her crew, each in turn showing off colorful containers with peach and apple-mint flavors tucked into pockets and purses.

“It’s just fun,” Persson says of the Chiclet-size packets, or tobacco-free snus, that users slip between their gums and lips for a quick hit of nicotine. “You feel more alert, and everyone does it, so it’s easy to think, ‘How bad can it be?’”

Nicotine pouches—think Zyn, Velo or countless others—have surged in popularity around the world, with men behind much of the boom in major markets such as the US. But in Sweden, the first country to officially go “smoke free” (meaning less than 5% of adults smoke anymore), it’s young women’s uptake that has companies taking notice. Female consumers are more quickly becoming daily users of the pouches, with about 15% of women age 16-29 reporting using the tobacco-free pouches every day in 2024, according to the country’s public-health agency. That’s almost 5 percentage points higher than men in that age range and a 57% increase from just two years ago.

Jonas Ekblom writes about this market shift: The $7 Billion Nicotine-Pouch Market’s Next Target? Women

Where to Invest

$1 million
Bloomberg News asked four wealth advisers what they’d do if they had $1 million to invest right now. The answers included global plays in infrastructure, real estate and health care—and a family trip to the Galápagos

Space Supremacy

“If we elect to say we no longer want to understand our origins, or we no longer want to challenge ourselves to see if there’s life out in the cosmos, that is the equivalent of turning our heads down and burying ourselves in our cell phones when we’re standing at the edge of the Grand Canyon.”
Casey Dreier
Chief of space policy for the Planetary Society
The White House’s spending plans would further NASA’s evolution toward becoming an incubator for private industry. Read the full story here.

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