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B-257122 1 (1994-10-19)

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              United States
GAD           General Accounting Office
              Washington, D.C. 20U48                                          10461910

              Office of the General Counsel, .>  , - ..  . L .. ....


              B-257122

              Octobec 19, 1994



              The Honorable George E. Brown, Jr.
              Chairman, Committee on Science. Space
                and Technology
                House of Representatives

                The Honorable David Obey
                House of Representatives

                The Honorable Bernard Sanders
                House of Representatives


     rcJ       This is in response to your letter dated April 15, 1994. You asked us to
               examine alleged conflicts of interest on the part of three Food and Drug
             ^,_Administration employees in the approval of Monsanto's Posilac and the
             ( related issuance of voluntary milk labeling guidance. You also asked
               that we determine whether any FDA employees involved in the approval
               'of Posilac had an appearance of the loss of impartiality because of a
               prior relationship with Monsanto.

            To conduct our investigation, we reviewed more than 40,000 pages of
               documents; conducted 54 interviews with current and former FDA and
               Department of Health and Human Services employees, attorneys.
               Monsanto officials, and editors of scientific Journals; reviewed the
               financial disclosure and conflict-of-interest statements of all Center for
               Veterinary Medicine employees who played a significant role in Posilac's
               approval, and reviewed the relevant ethical standards.

               On the basis of our review of the law, examination of documents and
               interviews, we conclude that there were no conflicting financial interests
               with respect to the drug's approval or the voluntary milk labeling
               guidance. With respect to the approval of Posilac, we noted only one
               minor deviation from now-superseded FDA regulations. Finally, with
               respect to Monsanto's application for Posilac, we identified several

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