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Plus: More players in sterile injectables?
April 3, 2013
By: Gil Roth
President, Pharma & Biopharma Outsourcing Association
Well, I was planning to write all about the Cyprus financial crisis, the grounding of the Dreamliner 787 fleet and the patent issues hamstringing biosimilars development — it was going to be called Bailouts, Boeing and BIO — but last issue’s article on the Generic Drug User Fee Amendments, Generic Manufacturing: GDUFA & CMOs, seems to have struck a chord with readers, so I thought I’d share some of their comments with you. (And feel free to leave your own comments on our online edition, or e-mail me directly, if you want remarks to be kept anonymous.) A commenter who referred to him/herself as “Primary Packager” left the following comment on our site:
Another dimension to the pitfalls of GDUFA is industry participants misidentifying themselves. I know of several small primary contract packagers in particular who have identified themselves as [secondary packagers], which are exempt from any fees, when in fact they are primary packagers and are named as such in ANDAs. That’s a $380,000 advantage in calendar 2013 (paying the fee for FY 2013 in March 2013, and FY 2014 on October 1, 2013), and $205,000 in the following year, over primary contract packagers identifying themselves correctly. Who is policing this? The FDA has audited at least two of these facilities in the past 12 months, and never raised a concern about registration as a repackager versus a primary packager. Why should we expect they will detect and enforce this down the road? There needs to be a way to — at a minimum — keep the playing field fair! With $380,000 in fees this year, that’s between 5% and 15% of top-line revenues for most contract packaging firms. I see only one eventual end to this, and that’s consolidation and more layoffs. The FDA says they particularly considered small businesses, but it’s quite apparent that they did not.
We are quite frustrated with the fees and honestly, learned most of the information you wrote about just before the March 4 payment deadline. The real concern here is that 80% of the drugs on the FDA’s shortage list are sterile injectables. These fees, in my opinion, will only make matters worse. Further, the 80/20 split on Final Dosage Form vs. API sites makes no sense. Lastly, the fact that pure-play CMOs are now paying fees as if they were receiving benefits from the approval process of our clients products is ridiculous. In fact, we don’t even get a letter from the FDA telling us our site is approved — it goes to the license holder!
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