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September 5, 2013
By: Gil Roth
President, Pharma & Biopharma Outsourcing Association
In August, the FDA calculated the 2014 Facility Fees for the Generic Drug User Fee Amendments (www.fda.gov/gdufa); domestic Final Dosage Form (FDF) facilities saw their fees jump $45,000 to $220,152, while fees for domestic API supply facilities rose $8,000 to $34,515. Non-U.S. facilities in both categories faced the same increases, along with a $15,000 charge for not being American: foreign FDF facilities were billed $235,152 and foreign API facilities were billed $49,515. The big increase was due — as I noted in our March issue — mainly to the one-time $50 million backlog fee in the 2013 budget. In its absence, the 748 FDF and Primary Packaging facilities on FDA’s Self-Identified Generic Drug Facilities, Sites and Organizations List are on the hook for an additional $28 million in 2014, in addition to covering $3.7 million in inflation costs (darn that cost of living!). The good news is that there are no major jumps for the final three years of GDUFA’s first term, just inflation increases based on FDA’s Personnel Compensation and Benefits calculation. So what’s it mean? One CMO has told me that it has already exited generic manufacturing due to the fees. Another has told me that it has left contract manufacturing completely, for the same reason. Several more have told me that they’re in a “holding pattern” and will have to evaluate whether it’s worth manufacturing these drugs. In addition, two CMOs have told me that they’ve been charged GDUFA Facility Fees for facilities that do not manufacture generics; in both cases, they contended that their sites ended up on the Self-Identified List because a third party listed them as a potential alternate manufacturer for a generic product, without their knowledge. Kafkaesquely (?), these companies had no idea why their sites were being charged GDUFA fees and, to date, have no idea how to get de-listed from the Self-Identified List. I’m beginning to think that FDA’s notion of “self” is very different from mine. . .
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