The National Biodefense Science Board (NBSB), a Federal Advisory Committee to the Secretary; Request for Public Comment, 40189-40199 [E9-19199]

Download as PDF Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Notices following changes are made to Form 323: The instructions have been revised to incorporate a definition of ‘‘eligible entity,’’ which will apply to the Commission’s existing Equity Debt Plus (‘‘EDP’’) standard, one of the standards used to determine whether interests are attributable. The instructions have also been revised to update citations to the Commission’s media ownership rules. In addition, on April 8, 2009, the Commission adopted a Report and Order and Fourth Further Notice of Proposed Rulemaking (the ‘‘323 Order’’) in MB Docket Nos. 07–294, 06–121, 02– 277, 01–235, 01–317, 00–244, 04–228; FCC 09–33. Consistent with actions taken by the Commission in the 323 Order, the following changes are made to Form 323: The instructions have been revised to state the Commission’s revised Biennial filing requirements adopted in the 323 Order. The instructions and questions in all sections of the form have been significantly revised. Many questions on the form have been reworked or reordered in order to (1) Clarify the information sought in the form; (2) simplify completion of the form by giving respondents menu-style or checkbox-style options to select rather than submit a separate narrative exhibit; and (3) make the data collected on the form more adaptable for use in database programs used to prepare economic and policy studies relating to media ownership. Federal Communications Commission. Marlene H. Dortch, Secretary. [FR Doc. E9–19222 Filed 8–10–09; 8:45 am] of the Board of Governors. Comments must be received not later than August 26, 2009. A. Federal Reserve Bank of Atlanta (Steve Foley, Vice President) 1000 Peachtree Street, N.E., Atlanta, Georgia 30309: 1. Don Arthur Barnette, Jonesboro, Georiga; to acquire additional voting shares of CCB Financial Corporation, and thereby indirectly acquire additional voting shares of Community Capital Bank, both of Jonesboro, Georgia. 2. Odric Gregory, individually, and as Chief Manager of Gregory Investments LLC, both of Gallatin, Tennessee; to acquire additional voting shares of Macon Banctrust, Inc., and thereby indirectly acquire additional voting shares of Macon Bank and Trust Company, both of Lafayette, Tennessee. B. Federal Reserve Bank of Dallas (E. Ann Worthy, Vice President) 2200 North Pearl Street, Dallas, Texas 75201– 2272: 1. Harold Ira Kane, Corpus Christi, Texas; to retain voting shares of Charter Bancshares, Inc., and thereby indirectly retain voting shares of Charter Alliance Bank (de novo), both of Corpus Christi, Texas, Charter IBHC, Inc., Wilmington, Delaware, and Charter Bank, Corpus Christi, Texas. Board of Governors of the Federal Reserve System, August 6, 2009. Jennifer J. Johnson, Secretary of the Board. [FR Doc. E9–19172 Filed 8–10–09; 8:45 am] BILLING CODE 6210–01–S FEDERAL MARITIME COMMISSION BILLING CODE 6712–01–P Notice of Agreements Filed; Correction FEDERAL RESERVE SYSTEM sroberts on DSKD5P82C1PROD with NOTICES Change in Bank Control Notices; Acquisition of Shares of Bank or Bank Holding Companies The notificants listed below have applied under the Change in Bank Control Act (12 U.S.C. 1817(j)) and § 225.41 of the Board’s Regulation Y (12 CFR 225.41) to acquire a bank or bank holding company. The factors that are considered in acting on the notices are set forth in paragraph 7 of the Act (12 U.S.C. 1817(j)(7)). The notices are available for immediate inspection at the Federal Reserve Bank indicated. The notices also will be available for inspection at the office of the Board of Governors. Interested persons may express their views in writing to the Reserve Bank indicated for that notice or to the offices VerDate Nov<24>2008 20:51 Aug 10, 2009 Jkt 217001 Federal Maritime Commission. Citation of Previous Notice of Agreements Filed: 74 FR 37709, July 29, 2009. Previous Notice of Agreements Filed Dated: July 24, 2009. Correction to the Notice of Agreements Filed: All of the Filing Parties and the complete Synopsis of Agreement No. 201204 were not printed in the original Notice. The complete Notice should read as follows: Agreement No.: 201204. Title: Port of Houston Authority and Houston Marine Terminal Operators/ Freight Handlers Agreement. Parties: Port of Houston Authority; Ceres Gulf, Inc.; Chaparral Stevedoring Company of Texas, Inc.; CT Stevedoring, Inc. dba Cooper/T. Smith Stevedoring Co.; Ports America Texas, Inc.; GP Terminals LLC; Shippers AGENCY: PO 00000 Frm 00035 Fmt 4703 Sfmt 4703 40189 Stevedoring Company; and SSA Gulf, Inc. Filing Party: Erik A. Eriksson, Esq.; Port of Houston Authority; Executive Office; 111 East Loop; Houston, TX 77029–4327. Synopsis: The agreement authorizes the Port of Houston Authority and seven affiliated freight handlers to discuss and voluntarily agree on matters of common interest at the Port of Houston. Contact Person for More Information: Karen V. Gregory, Secretary, (202) 523– 5725. Tanga S. FitzGibbon, Assistant Secretary. [FR Doc. E9–19208 Filed 8–10–09; 8:45 am] BILLING CODE 6730–01–P DEPARTMENT OF HEALTH AND HUMAN SERVICES The National Biodefense Science Board (NBSB), a Federal Advisory Committee to the Secretary; Request for Public Comment AGENCY: Department of Health and Human Services, Office of the Secretary. ACTION: Request for public comment. SUMMARY: The U.S. Department of Health and Human Services is hereby giving notice that the National Biodefense Science Board (NBSB) Medical Countermeasure Markets and Sustainability Working Group is requesting public comment to their working document, ‘‘Inventory of Issues Constraining or Enabling Industry Involvement in Medical Countermeasure Efforts’’. The inventory (or grid) includes factors that may discourage industry involvement or partnering with the U.S. Government in medical countermeasure development efforts, reported constraints to industry involvement, and potential solutions for relief from a particular constraint. The inventory has been catalogued by financial, legislative, scientific, human capital, regulatory, and societal elements. The Working Group wishes to solicit comment, feedback, and guidance from members of industry, other government agencies, and the public at large for consideration by the Working Group to strengthen and refine the document prior to its public presentation to the NBSB at the scheduled Fall 2009 public meeting of the Board. DATES: The public is asked to submit comments by October 30, 2009, to the NBSB e-mail box (NBSB@hhs.gov) in order to be considered by the Working Group in preparing the final document. E:\FR\FM\11AUN1.SGM 11AUN1 40190 Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Notices ADDRESSES: Availability of Materials: Requests for a copy of the Inventory and accompanying ‘‘Comment Revision Form’’ should be made to the NBSB’s email box at NBSB@hhs.gov with ‘‘M&S– WG Inventory Request’’ in the subject line. All comments and/or recommendations for improvement to the Inventory should be made on the ‘‘Comment Revision Form’’ enclosed with the inventory document. Procedures for Providing Public Input: Interested members of the public may submit written comments and/or suggestions, using the ‘‘Comment Revision Form,’’ to the NBSB’s e-mail box at NBSB@hhs.gov, with ‘‘M&S–WG Inventory Comments’’ in the subject line and should be received no later than October 30, 2009. Individuals providing comment or suggestions will be asked to provide their name, title, and organization. All comments received will be posted without change to https:// www.hhs.gov/aspr/omsph/nbsb/, including any personal or commercial information provided. FOR FURTHER INFORMATION, CONTACT: Donald Malinowski, M.Sc., HHS/ASPR/ NBSB, 330 C St., SW., #5118, Washington, DC 20201, 202–205–4761, donald.malinowski@hhs.gov. Pursuant to section 319M of the Public Health Service Act (42 U.S.C. 247d–7f) and section 222 of the Public Health Service Act (42 U.S.C. 217a), the Department of Health and Human Services established the National Biodefense Science Board. The Board shall provide expert advice and guidance to the Secretary on scientific, technical, and other matters of special interest to the Department of Health and Human Services regarding current and future chemical, biological, nuclear, and radiological agents, whether naturally occurring, accidental, or deliberate. The Board may also provide advice and guidance to the Secretary on other matters related to public health emergency preparedness and response. sroberts on DSKD5P82C1PROD with NOTICES SUPPLEMENTARY INFORMATION: VerDate Nov<24>2008 20:51 Aug 10, 2009 Jkt 217001 Dated: July 29, 2009. Nicole Lurie, Assistant Secretary for Preparedness and Response, Rear Admiral, U.S. Public Health Service. National Biodefense Science Board Markets & Sustainability Working Group Working Document ‘‘Inventory of Issues Constraining or Enabling Industrial Involvement With Medical Countermeasure Development’’ Request for Public Comment Published in Federal Register June 1, 2009. Inventory of Issues Constraining or Enabling Industrial Involvement with Medical Countermeasure Development Introduction: The National Biodefense Science Board (NBSB) Medical Countermeasure Markets and Sustainability Working Group (M&S– WG) has posted a request for public comment in the Federal Register to solicit comment, feedback, and guidance from members of industry, other government agencies, and the public at large on their working document, ‘‘Inventory of Issues Constraining or Enabling Industry Involvement in Medical Countermeasure Efforts.’’ Posting of the working document in the Federal Register will serve to solicit and obtain public comment for consideration by the Working Group to strengthen and refine the document. The Working Group plans to present the document to the NBSB at the scheduled Fall 2009 public meeting of the Board. Background: There exists a variety of limitations and barriers to biotechnology and pharmaceutical companies’’ involvement in the biosecurity and biodefense efforts of the U.S. Government (USG), most notably medical countermeasure advanced research and development programs coordinated by the Department of Defense (DoD) and the Department of Health and Human Services (DHHS). Make-up of the medical countermeasure development efforts has been called fragmented, with confusing approaches used. To delineate and simplify the complexities of USG endeavors in medical countermeasure development, and the interactions between government agencies and private industry, the NBSB Markets & Sustainability Working Group (M&S– WG) assembled the enclosed inventory (or grid) of issues. This inventory includes factors that may discourage industry involvement or partnering with the USG in medical countermeasure development efforts, reported PO 00000 Frm 00036 Fmt 4703 Sfmt 4703 constraints to industry involvement, and potential solutions for relief from a particular constraint. The inventory has been catalogued by financial, legislative, scientific, human capital, regulatory, and societal elements. The public is encouraged to consider submitting comments and/or recommendations on the content of this inventory. Requests for a copy of the inventory and accompanying Comment Revision Form should be sent to the NBSB’s e-mail box at NBSB@hhs.gov with ‘‘M&S–WG Inventory Request’’ in the subject line. All comments and/or recommendations for improvement to the inventory grid should be made on the Comment Revision Form enclosed with the inventory document. Comments and/or recommendations are to be submitted to the NBSB’s e-mail box at NBSB@hhs.gov with ‘‘M&S–WG Inventory Comments’’ in the subject line and should be received no later than October 30, 2009. NBSB Markets & Sustainability Work Group 18 May 09 Observations, Adapted From June 08 NBSB Meeting Business Planning: 0 Contracting with some portions of the USG can be slow, unwieldy, expensive, and opaque. 0 Lack of clarity increases industry risk. 0 Procurement size, warm-base requirements, length of review, etc. 0 Lack of transparency increases industry risk. 0 Contract review process, rate of issuance of new proposals, requirement generation. 0 With a contract in place, situation improves. 0 HHS viewed as cooperative, helpful, responsible and responsive. 0 Perceived lack of coordination between development activities and regulatory responsibilities remains a concern to industry. Regulatory: 0 Lack of clarity regarding usable product definitions, seeming differences in FDA approaches to providing guidance to industry. 0 Industry reliance upon USG for key components of licensure submissions can lead to lack of accountability. 0 Disease studies, toxicology reports, etc. Funding, Stability, Reliability, Predictability: 0 Advanced Development needs more dedicated funding, separate from BioShield funding. 0 BioShield remains a funded procurement device, not an advanceddevelopment mechanism. E:\FR\FM\11AUN1.SGM 11AUN1 40191 Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Notices 0 Advanced development efforts would benefit from contracting flexibility. 0 Cost-plus-fee contracting flexibility is appropriate for advanced development and would reduce risk. 0 Multiyear funding. 0 Drug development and corporate investment/planning is long-term process, multiyear funding with carryover authority, with multi-year contracting authority would signal USG commitment and increase industry sense of long-term stability. 0 Project BioShield expires in 2013 and will need to be reauthorized and funded. 0 Five years not a long time in drugdevelopment process. 0 BioShield funds should not be diverted to fund other initiatives. 0 Inadequate funding delays the journey to MCM licensure. 0 Initiate additional program against emerging diseases, modeled after pandemic program. Next Steps for WG : 0 Continue to identify obstacles to greater industry participation in MCM development. 0 Make recommendations where appropriate. 0 Identify incentives to encourage greater industry participation in MCM development. 0 Make recommendations where appropriate. 0 Consider alternative models for MCM development. 0 Do other models ensure national and public-health security while more efficiently using limited resources? Barriers Hindering Partnership: Opportunity cost (distractions from commercial business), economics (e.g. margins, volumes), product liability, uncertainty over sustained funding, ambiguous governance, competing public-health alternatives (e.g., needs of developing world), finite human capital, complexity of working with USG, obligations during crisis. Incentives Encouraging Partnership: Reliable access to excess capacity (e.g., for redundant capacity or developingworld projects), tax credits, patent-term extensions, grants, priority-review vouchers, preferred customer/vendor status with USG, product licensing rights, larger pool of scientists and engineers, public good, long-term contracts, intellectual-property development. INVENTORY OF ISSUES CONSTRAINING OR ENABLING INDUSTRIAL INVOLVEMENT WITH MEDICAL COUNTERMEASURE DEVELOPMENT 18 MAY 09 Problem/category Potential solution Approach/ advantages/ action Problem/limitation Column #1 Row # Column #2 Column #3 Column #4 Financial Elements 1 .......... Row 1; Column 1 ...................... Capital requirements to establish safety, efficacy, validated manufacture. Row 1; Column 2 ...................... Increase financial return after risking capital to industrystandard rates. Reduce requirement for private capital for advanced development. Row 1; Column 3 ...................... Increased federal funding for advanced development, in the form of cost-reimbursement contracts and rewarding private-capital investments with milestone payments and at procurement. Row 1; Column 4. Risk of distraction of large industry partners from commercial mission or dilution of effort [potential conflict with fiduciary responsibility to shareholders of publicly traded companies]. 2 .......... Row 2; Column 1 ...................... Risk of technical failure of vaccine development effort. Row 2; Column 2a .................... Decentralized discovery/centralized development and manufacture. Row 2; Column 3a .................... Reimbursement of development costs at cost +15%, with return-on-working-capital at 22%, and cost-of-money-forcapital at 15%. Row 2; Column 3b. Provides support early in process. Row 2; Column 4. Lack of interest, given opportunity costs Congressional tolerance for anticipatable frustrations is unknown. Row 2; Column 2b .................... Evaluation of whether indirectcost reimbursement greater than 100% may be appropriate. Assistance with calculating indirect cost rates (for companies that have never done so before).. sroberts on DSKD5P82C1PROD with NOTICES 3 .......... 4 .......... Row 3; Column 1 ...................... Tax incentives ........................... Row 4; Column 1 ...................... VerDate Nov<24>2008 20:51 Aug 10, 2009 Jkt 217001 Row 3; Column 2a .................... Enhance current incremental R&D tax credit (increase, make refundable). Row 3; Column 2b .................... New investment tax credit (20%) for construction of new R&D and manufacturing facilities for biosecurity and emerging-infectious disease purposes (with refundable and/or transferable provisions). Row 3; Column 3a. Currently, 20% for qualified R&D expenses and 50% for clinical-trial expenses. Row 3; Column 3b .................... Enhance net revenue ............... Row 3; Column 4. Not yet authorized. Row 4; Column 2 ...................... Row 4; Column 3 ...................... Row 4; Column 4. PO 00000 Frm 00037 Fmt 4703 Sfmt 4703 E:\FR\FM\11AUN1.SGM 11AUN1 40192 Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Notices INVENTORY OF ISSUES CONSTRAINING OR ENABLING INDUSTRIAL INVOLVEMENT WITH MEDICAL COUNTERMEASURE DEVELOPMENT 18 MAY 09—Continued Problem/category Potential solution Approach/ advantages/ action Problem/limitation Column #1 Column #2 Column #3 Column #4 Revenue enhancements based on Intellectual Property. Enhance current product or use patent-term restoration and/ or extension (revise formula). Allow full patent-term extension for licensed products that gain CBRN or emerging disease application (akin to adding pediatric indication). Allow transfer of patent-term extension to another product or company (‘‘wildcard’’). Market exclusivity: Increase term of market exclusivity to ∼ 12–15 years and extend it to biologicals (as does Orphan Drug Act). Current statutory formula: Patent extension supplemented by [1⁄2 time from IND to filing BLA + full time from BLA filing to FDA approval/licensure]. Currently, 5 years of market exclusivity is provided to New Chemical Entities (NCEs) but not biologicals via HatchWaxman Act and 7 years of market exclusivity is provided via Orphan Drug Act. Note: Orphan drug tax credit applies to vaccines only if less than 200,000 vaccinated recipients anticipated. 5 .......... Row 5; Column 1 ...................... Priority-Review Vouchers (PRV). Row 5; Column 2 ...................... Make applicable to biosecurity products. Row 5; Column 3 ...................... A PRV is a tradable certificate awarded to a developer of a treatment for a neglected tropical disease that gains licensure from FDA. It entitles holder to a priority review (a speedier review time) for a future product of their choosing, potentially shortening the review process by 6 to 12 months. First PRV awarded to Novartis for Coartem malaria treatment (artemether and lumefantrine) in Apr 09. Row 5; Column 4. Predictability: Would a priorityreview voucher simply accelerate a ‘‘no’’ or ‘‘not yet’’ response? 2007 law: Text at: https:// www.bvgh.org/documents/ HR3580-CompromiseFDAPDUFABill.pdf Draft FDA guidance: https://www.fda.gov/ cber/gdlns/ tropicaldisease.htm. 6 .......... Row 6; Column 1 ...................... Limited market size (development costs >> market potential). Row 6; Column 2a .................... Acquisition RFPs should state minimum quantities (total and to each successful awardee) to increase market certainty to potential bidders and their investors. Row 6; Column 3a .................... Publication of requirements along with advanced-development RFPs. It may be possible to more widely describe procurement requirements, in contrast to the more sensitive value of treatment requirements. Row 6; Column 2b .................... Contract terms allowing manufacturers access to allied foreign governments and other authorized customers outside the US, as well as civilian first responders, hospitals, and travel-vaccine providers within the US. Row 6; Column 2c .................... Add biodefense and other adult vaccines to Standardized Equipment List (SEL) and Authorized Equipment List (AEL), so state and local first-responders can use federal (DHS) grant funds to pay for vaccinations. Row 6; Column 3b .................... Treaty allies represent additional markets. Row 6; Column 4a. Requirements are not static and can be expected to change based on threat assessments and discoveries during product development. Requirements may signal USG threat recognition, so may not be appropriate for public release. Row 6; Column 4b. Allies have not made substantial independent purchases to date. Some may hope/expect USG to share stockpile when attack occurs. Row 7; Column 2 ...................... Row 7; Column 3 ...................... sroberts on DSKD5P82C1PROD with NOTICES Row # 7 .......... Row 7; Column 1 ...................... VerDate Nov<24>2008 20:51 Aug 10, 2009 Jkt 217001 PO 00000 Frm 00038 Fmt 4703 Row 6; Column 4c. Currently only drugs, antidotes, and various treatments are covered, but not vaccines for prophylaxis in the first place. Sfmt 4703 E:\FR\FM\11AUN1.SGM 11AUN1 Row 7; Column 4. 40193 Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Notices INVENTORY OF ISSUES CONSTRAINING OR ENABLING INDUSTRIAL INVOLVEMENT WITH MEDICAL COUNTERMEASURE DEVELOPMENT 18 MAY 09—Continued Problem/category Potential solution Approach/ advantages/ action Problem/limitation Column #1 Column #2 Column #3 Column #4 Surge issues ............................. Compensation if commercial product(s) displaced during emergencies (e.g., lost sales, market share, delayed licensing). Define ‘‘compensation’’ in initial contract or agree to a dispute-resolution mechanism. Potential compensation may need to include delay of a new product or loss of market share to a competitor. Level difficult to determine a priori. Row # Legislative Elements 8 .......... Row 8; Column 1 ...................... Predictability, consistency adequacy of Congressional appropriations. Row 8; Column 2a .................... Increase annual NIAID appropriation increases for earlystage MCM development to offset flat funding since 2001 anthrax attacks. Insufficient funds now allocated for advanced development for CBRN. Increase BARDA appropriations for advanced development of CBRN MCMs and continued long-term funding for both CBRN and pandemic countermeasues, to offset recent funding shortfalls. Row 8; Column 2b .................... Need significantly expanded federal funding under BioShield for advanced development and procurement activities (BioShield reauthorization and funding). Stop and reverse Congressional diversion of BioShield Reserve Fund for other initiatives ($412M in FY09 = $137M for pandemic + $275M for PAHPA implementation), Need long-term funding for acquisition of FDA-approved/licensed MCMs for Strategic National Stockpile. Row 8; Column 3a .................... Multi-year contracting authority (for large molecules, due to complex manufacturing and limited use) and multi-year funding with carry-over authority for R&D and procurement initiatives. Row 8; Column 4a. Limited track record. Partial analogies: Aerospace industry in early 1940s. Consistent procurement of aircraft carriers since 1940s. Manage funding as a ‘‘national portfolio’’ that mitigates risk by a broad set of target products, with multiple MCMs per disease. Base metrics on portfolio performance, rather than individual candidate countermeasures. Long-term funding and ongoing government procurement (10 years or longer) is essential to maintain warm-base MCM manufacturing and surge capacity. Row 8; Column 3b. Solution: a blend of indefinite mandatory funding authority with caveats to assure goodfaith performance and sufficient ongoing discretionary appropriations. Congressional long-term recognition of threat (natural and malicious) and tolerance for MCM technical failure unknown. sroberts on DSKD5P82C1PROD with NOTICES 9 .......... Row 9; Column 1 ...................... Funding stream ......................... Row 9; Column 3 ...................... Provide for greater flexibility in milestone-driven payment schedules under PAHPA and BioShield, to account for the unpredictability of vaccine R&D technical difficulties and progress. Row 9; Column 3 ...................... Row 9; Column 4. PAHPA (2006) authorized $1B Would likely require BARDA to to BARDA for advanced deuse Other Transaction Auvelopment of MCMs, in addithority (OTA) (not used to tion to BioShield Reserve date). Fund. Avoids rPA102 scenario (risk of repayment upon cancellation). 10 ........ Row 10; Column 1 .................... Row 10; Column 2 .................... Row 10; Column 3.. VerDate Nov<24>2008 20:51 Aug 10, 2009 Jkt 217001 PO 00000 Frm 00039 Fmt 4703 Sfmt 4703 E:\FR\FM\11AUN1.SGM 11AUN1 40194 Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Notices INVENTORY OF ISSUES CONSTRAINING OR ENABLING INDUSTRIAL INVOLVEMENT WITH MEDICAL COUNTERMEASURE DEVELOPMENT 18 MAY 09—Continued Problem/category Potential solution Approach/ advantages/ action Problem/limitation Column #1 Column #2 Column #3 Column #4 Untrodden development pathways. Cooperative R&D Agreements (CRADAs) allow collaboration with respect for intellectual property. US Gov’t and sponsor agree on defined development pathway at early stages to achieve a target product profile. Enhanced recognition that changes in product requirements can be expected to increase the cost and time required to achieve a useable product. Requires enhanced integration of efforts by each USG entity (notably BARDA, NIAID, CDC, FDA, DoD, InterAgency Board). Row 11; Column 1 .................... Facilitating technology transfer from basic to advanced development. Row 11; Column 2 .................... Streamline process to support integration of disciplines needed for successful scaleup of manufacturing processes. Increase U.S. Gov’t funding for applied bioscience, material sciences and biopharmaceutical processes. Row 11; Column 3 .................... Offer innovator an option of (a) a milestone payment (‘‘prize’’) as a single fee to license the intellectual property for further development or (b) continue involvement in development in exchange for the possibility of royalties after FDA licensure achieved. Row # 11 ........ Row 11; Column 4. Milestone payments could be used on a multiple of private paid-in capital (variable) or a fixed amount per drug. Human Capital Elements Row 12; Column 1 .................... Human capital within industry .. Row 12; Column 2 .................... Grow the pool of science and engineering talent pool within industry needed to develop and manufacture MCMs within the US. Row 12; Column 3 .................... Increased range of scientific programs offers additional career-development for industrial scientists and engineers. DARPA model assumes industry-standard compensation rates. Congress authorized large increases for NIH grants for researcher awards, but a longterm approach is needed to sustain the industrial base.. 13 ........ sroberts on DSKD5P82C1PROD with NOTICES 12 ........ Row 13; Column 1 .................... Complex, evolving regulatory requirements. Row 13; Column 2a .................. Clarify expectations early in product development and minimize changes in expectations in application review (e.g., requirements under ‘‘animal rule’’). Row 13; Column 2b .................. Implement best practices for quality/regulatory systems for biosecurity products. Row 13; Column 3a. Spill-over benefits to commercial sphere via enhanced dialog with FDA. Row 13; Column 2c .................. Collaboration with FDA to meet evolving (more stringent) standards for development, manufacture, clinical trials, and ‘‘animal-rule’’ pathways. Row 13; Column 2d. Accelerated FDA review. 14 ........ Row 14; Column 1 .................... Administrative requirements to comply with USG contracts. VerDate Nov<24>2008 20:51 Aug 10, 2009 Jkt 217001 Row 14; Column 2 .................... Contracting reform to relieve the regulatory and reporting burden. PO 00000 Frm 00040 Fmt 4703 Row 12; Column 4 Additional flexibility needed in USG agency authority to provide competitive compensation to critical employees. Row 13; Column 3b .................. Partner with experienced biopharma organization to gain access to either staff or quality systems. Row 13; Column 3c. Centralized advanced development and manufacturing to facilitate cross-product learning and system development. Row 13; Column 4b. Companies with extensive FDA experience not currently engaged with MCM development or manufacture. Row 14; Column 3 .................... Waive nonessential accounting requirements and other components of the Federal Acquisition Regulation (FAR). Row 14; Column 4 Familiarity with Federal Acquisition Regulations (FAR) (or relief from them). Sfmt 4703 E:\FR\FM\11AUN1.SGM 11AUN1 40195 Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Notices INVENTORY OF ISSUES CONSTRAINING OR ENABLING INDUSTRIAL INVOLVEMENT WITH MEDICAL COUNTERMEASURE DEVELOPMENT 18 MAY 09—Continued Problem/category Potential solution Approach/ advantages/ action Problem/limitation Column #1 Row # Column #2 Column #3 Column #4 BARDA should identify opportunities to use Other Transaction Authority (OTA) to enhance R&D contracts (akin to DARPA).. Explore Cooperative R&D Agreement (CRADA) approaches. 15 ........ Row 15; Column 1 .................... Adequacy of review and consultation resources at FDA. Row 15; Column 2 .................... Increase appropriations to enhance FDA review and consultation. Row 15; Column 3. More medical reviewers needed, plus research and assay development within FDA. Increase percentage of personnel eligible for enhanced bonus payments or supergrades. Societal Elements 16 ........ Row 16; Column 1 .................... Contribution to national security.. Row 16; Column 2 .................... Exploration of biosecurity MCMs is likely to have spillover benefits to ‘‘natural’’ infectious diseases as well. Row 16; Column 3 .................... Enhanced corporate reputation. Row 16; Column 4 Increased public attention during crisis. Legal Elements Row 17; Column 1 .................... Product liability ......................... Row 17; Column 2 .................... Expand coverage of PREP Act to additional MCMs for which Material Threat Assessments (MTAs) exist. Row 17; Column 3 .................... Indemnification via Public Readiness & Emergency Preparedness (PREP) Act of 2005 (PL 109–148, Dec 30, 2005). 18 ........ sroberts on DSKD5P82C1PROD with NOTICES 17 ........ Row 18; Column 1 .................... Antitrust Provisions ................... Row 18; Column 2 .................... Assess need for, plan, and implement antitrust waiver authority under PAHPA 2006 for R&D and preparedness activities to allow nominally competing parties to collaborate during a public health emergency or to conduct contingency exercises before a public-health emergency. Involve DoJ and Attorney General in supervisory/compliance role. Row 18; Column 3. Need ability to develop contingency plans and preliminary communication and technical consultation. Continue and expand efforts such as those underway with pandemic influenza vaccine and adjuvant ‘‘mix-andmatch’’ studies to assess safety and efficacy. Corollary Elements 19 ........ Row 19; Column 1 .................... VerDate Nov<24>2008 20:51 Aug 10, 2009 Jkt 217001 Row 19; Column 2 .................... PO 00000 Frm 00041 Fmt 4703 Row 19; Column 3. Sfmt 4703 E:\FR\FM\11AUN1.SGM 11AUN1 Row 17; Column 4. Not tested in practice or litigated. https://www. pandemicflu.gov/plan/federal/ prep_act.html Public Law 109–148. PHS Act Section 319(f)(3). 42 U.S.C. 247d– 6d. [See also Support Antiterrorism by Fostering Effective Technologies (SAFE-T) Act of 2002 [within Homeland Security Act, Pub. L. 107–296].] 40196 Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Notices INVENTORY OF ISSUES CONSTRAINING OR ENABLING INDUSTRIAL INVOLVEMENT WITH MEDICAL COUNTERMEASURE DEVELOPMENT 18 MAY 09—Continued Problem/category Potential solution Approach/ advantages/ action Problem/limitation Column #1 Column #2 Column #3 Column #4 Attractiveness of commercial vaccine market for support of future R&D and manufacturing. Implement national policies to provide adequate reimbursement for vaccines and their administration in both the public and private sectors, to help underwrite and sustain the industrial base needed for biosecurity and globalhealth products. Consolidate Medicare coverage of all vaccines within Part B (not Part D). Row # Increase administration reimbursement rates under Medicaid and Vaccines for Children (VFC) beneficiaries with federal subsidies to offset increased State costs. Third-party payers to provide first-dollar coverage for FDAlicensed vaccines and their administration under healthcare reform. 20 ........ Row 20; Column 1 .................... Approaches suitable for developing-world situations (perhaps useful by analogy). Row 20; Column 2 .................... Advanced Market Commitments (AMC) separately for existing vaccines and global health vaccines at R&D stage. Row 20; Column 3.. Examples: Guarantee a market in developing countries for pneumococcal vaccines to prevent deadly respiratory infections in children and as an incentive for development of vaccines that currently do not exist against infectious disease threats in those countries, but which may be imported into the U.S. or threaten global security. Other Benefits to Involvement With Biosecurity Initiative Row 21; Column 1 .................... Competitive situation ................ 22 ........ Row 22; Column 1 .................... New intellectual property .......... Row 22; Column 3 .................... IP developed in course of government contract remains with discoverer. Row 22; Column 4. U.S. Gov’t has step-in rights if patent arising from federal government-funded research not exploited [Bayh-Dole Act of 1980 (or University & Small Business Patent Procedures Act), codified in 35 U.S.C. 200–212[1], implemented by 37 CFR 401[2]]. 23 ........ sroberts on DSKD5P82C1PROD with NOTICES 21 ........ Row 21; Column 2 .................... Don’t put all eggs in one basket, allow multiple technologies and product candidates to progress simultaneously through development pathways. Row 23; Column 1 .................... Staying abreast of advancing sciences. Row 23; Column 3 .................... Access to state-of-art process analytics for wide variety of biological products. Row 23; Column 4. Need to understand exclusivity of access. Citations: Project BioShield Act of 2004: Public Law 108–276, https://frwebgate.access.gpo.gov/cgi- VerDate Nov<24>2008 20:51 Aug 10, 2009 Jkt 217001 Row 21; Column 3. Participation by manufacturer with U.S. Gov’t withholds scientific, financial, and humancapital benefit to competitors. bin/getdoc.cgi?dbname=108_cong_public_ laws&docid=f:publ276.108.pdf. BioShield II (2005): PAHPA, PL 109–417, Dec 19, 2006. PO 00000 Frm 00042 Fmt 4703 Sfmt 4703 Bibliography: Matheny J, Mair M, Mulcahy A, Smith BT. Incentives for biodefense countermeasure E:\FR\FM\11AUN1.SGM 11AUN1 Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Notices sroberts on DSKD5P82C1PROD with NOTICES development. Biosecur Bioterror 2007 Sep;5(3):228–38. Animal Rule = U.S. Food and Drug Administration. New drug and biological drug products; evidence needed to VerDate Nov<24>2008 20:51 Aug 10, 2009 Jkt 217001 demonstrate effectiveness of new drugs when human efficacy studies are not ethical or feasible. Final rule. FR 2002 May 31;67(105):37988–98. https://frwebgate5. access.gpo.gov/cgi-bin/PDFgate.cgi? PO 00000 Frm 00043 Fmt 4703 Sfmt 4703 WAISdocID=483712496781+5+2+0& WAISaction=retrieve. BILLING CODE 4150–37–C E:\FR\FM\11AUN1.SGM 11AUN1 40197 VerDate Nov<24>2008 Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Notices 20:51 Aug 10, 2009 Jkt 217001 PO 00000 Frm 00044 Fmt 4703 Sfmt 4703 E:\FR\FM\11AUN1.SGM 11AUN1 EN11AU09.038</GPH> sroberts on DSKD5P82C1PROD with NOTICES 40198 Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Notices [FR Doc. E9–19199 Filed 8–10–09; 8:45 am] BILLING CODE 4150–37–C DEPARTMENT OF HEALTH AND HUMAN SERVICES National Institutes of Health Submission of OMB Review; Comment Request; Investigator Registration and Financial Disclosure for Investigational Trials in Cancer Treatment (NCI) SUMMARY: In compliance with the requirement of section 3507(a)(1)(D) of the Paperwork Reduction Act of 1995, for opportunity for public comment on proposed data collection projects, the National Cancer Institute, (NIH) has submitted to the Office of Management and Budget (OMB) a request for review and approval of the information collected below. This proposed information collection was previously published in the Federal Register on June 10, 2009 (74 FR 27552), and allowed 60 days for public comment. One public comment was received regarding pharmaceutical testing. The submitter responded to the e-mail. The purpose of this notice is to allow an additional 30 days for public comment. The National Institutes of Health may not conduct or sponsor, and the respondent is not required to respond to, an information collection that has been extended, revised, or implemented on or after October 1, 1995, unless it displays a valid OMB control number. Proposed Collection: Title: Investigator Registration and Financial Disclosure for Investigational Trials in Cancer Treatment (NCI). Type of Information Collection Request: Existing Collection in Use without an OMB Number. Need and Use of Information Collection: Food and Drug Administration (FDA) regulations require sponsors to obtain information from the investigator before permitting the investigator to begin participation in investigational studies. The National Cancer Institute, (NCI) as a sponsor of investigational drug trials, has the responsibility to assure the FDA that investigators in its clinical trials program are qualified by training and experience as appropriate experts to investigate the drug. In order to fulfill these requirements, a standard Statement of Investigator (FDA Form 1572 modified), Supplemental Investigator Data Form, Financial Disclosure Form and Curriculum vitae (CV) are required. The NCI will accept 40199 the investigator’s CV in any format. All investigators maintain a CV as part of their academic and professional practice. The data obtained from these forms allows the NCI to evaluate the qualifications of the investigator, identify appropriate personnel to receive shipment of investigational agent, ensure supplies are not diverted for inappropriate protocol or patient use and identify financial conflicts of interest. Comparisons are done with the intention of ensuring protocol, patient safety and drug compliance for patient and drug compliance for patient safety and protections. Frequency of Response: Annually. Affected Public: Public sector, businesses or other for-profit that will include Federal agencies or employees, non-profit institutions and a very small number of private practice physicians. Type of Respondents: Investigators. The annual reporting burden is limited to those physicians who choose to participate in NCI sponsored investigational trials to identify new medicinal agents to treat and relieve those patients suffering from cancer. The annualized respondents’ burden for record keeping is estimated to require 8,564 hours (see table below). TABLE—ESTIMATES OF ANNUAL BURDEN Type of respondents Form Investigators and Designee ... Statement of Investigator ..... 17,128 1 Supplemental Investigator .... 17,128 1 Financial Disclosure ............. 17,128 1 ............................................... 17,128 ........................ sroberts on DSKD5P82C1PROD with NOTICES Totals .............................. There are no capital costs, operating costs, and maintenance cost. Request for Comments: Written comments and/or suggestions from the public and affected agencies are invited on one or more of the following points: (1) Whether the proposed collection of information is necessary for the proper performance of the function of the agency, including whether the information will have practical utility; (2) The accuracy of the agency’s estimate of the burden of the proposed collection of information; including the validity of the methodology and assumptions used; (3) Ways to enhance the quality, utility and clarity of the information to be collected; and (4) Ways to minimize the burden of the collection of information on those who are to respond, including the use of VerDate Nov<24>2008 21:15 Aug 10, 2009 Jkt 217001 Number of respondents Frequency of response appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology. Direct Comments to OMB: Written comments and/or suggestions regarding the item(s) contained in this notice, especially regarding the estimated public burden and associated response time, should be directed to the Attention: NIH Desk Officer, Office of Management and Budget, at OIRA_submission@omb.eop.gov or by fax to 202–395–6974. To request more information on the proposed project or to obtain a copy of the data collection plans and instruments, contact Charles L. Hall, Jr., Chief, Pharmaceutical Management Branch, Cancer Therapy Evaluation Program, Division of the Cancer Treatment and Diagnosis, and PO 00000 Frm 00045 Fmt 4703 Sfmt 4703 Average time per response Total hour burden 0.25 ....................................... (15 minutes) .......................... 0.167 ..................................... (10 minutes) .......................... 0.083 ..................................... (5 minutes) ............................ 4,282 ............................................... 8,564 2,855 1,427 Centers, National Cancer Institute, Executive Plaza North, Room 7148, 9000 Rockville Pike, Bethesda, MD 20892 or call non-toll-free number 301–496–5725 or E-mail your request, including your address, to: Hallch@mail.nih.gov. Comments Due Date: Comments regarding this information collection are best assured of having their full effect if received within 30 days following the date of this publication. Dated: August 5, 2009. Vivian Horovitch-Kelley, NCI Project Clearance Liaison, National Institutes of Health. [FR Doc. E9–19207 Filed 8–10–09; 8:45 am] BILLING CODE 4140–01–P E:\FR\FM\11AUN1.SGM 11AUN1

Agencies

[Federal Register Volume 74, Number 153 (Tuesday, August 11, 2009)]
[Notices]
[Pages 40189-40199]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-19199]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HEALTH AND HUMAN SERVICES


The National Biodefense Science Board (NBSB), a Federal Advisory 
Committee to the Secretary; Request for Public Comment

AGENCY: Department of Health and Human Services, Office of the 
Secretary.

ACTION: Request for public comment.

-----------------------------------------------------------------------

SUMMARY: The U.S. Department of Health and Human Services is hereby 
giving notice that the National Biodefense Science Board (NBSB) Medical 
Countermeasure Markets and Sustainability Working Group is requesting 
public comment to their working document, ``Inventory of Issues 
Constraining or Enabling Industry Involvement in Medical Countermeasure 
Efforts''. The inventory (or grid) includes factors that may discourage 
industry involvement or partnering with the U.S. Government in medical 
countermeasure development efforts, reported constraints to industry 
involvement, and potential solutions for relief from a particular 
constraint. The inventory has been catalogued by financial, 
legislative, scientific, human capital, regulatory, and societal 
elements. The Working Group wishes to solicit comment, feedback, and 
guidance from members of industry, other government agencies, and the 
public at large for consideration by the Working Group to strengthen 
and refine the document prior to its public presentation to the NBSB at 
the scheduled Fall 2009 public meeting of the Board.

DATES: The public is asked to submit comments by October 30, 2009, to 
the NBSB e-mail box (NBSB@hhs.gov) in order to be considered by the 
Working Group in preparing the final document.

[[Page 40190]]


ADDRESSES: 
    Availability of Materials: Requests for a copy of the Inventory and 
accompanying ``Comment Revision Form'' should be made to the NBSB's e-
mail box at NBSB@hhs.gov with ``M&S-WG Inventory Request'' in the 
subject line. All comments and/or recommendations for improvement to 
the Inventory should be made on the ``Comment Revision Form'' enclosed 
with the inventory document.
    Procedures for Providing Public Input: Interested members of the 
public may submit written comments and/or suggestions, using the 
``Comment Revision Form,'' to the NBSB's e-mail box at NBSB@hhs.gov, 
with ``M&S-WG Inventory Comments'' in the subject line and should be 
received no later than October 30, 2009. Individuals providing comment 
or suggestions will be asked to provide their name, title, and 
organization. All comments received will be posted without change to 
https://www.hhs.gov/aspr/omsph/nbsb/, including any personal or 
commercial information provided.

FOR FURTHER INFORMATION, CONTACT: Donald Malinowski, M.Sc., HHS/ASPR/
NBSB, 330 C St., SW., 5118, Washington, DC 20201, 202-205-
4761, donald.malinowski@hhs.gov.

SUPPLEMENTARY INFORMATION: Pursuant to section 319M of the Public 
Health Service Act (42 U.S.C. 247d-7f) and section 222 of the Public 
Health Service Act (42 U.S.C. 217a), the Department of Health and Human 
Services established the National Biodefense Science Board. The Board 
shall provide expert advice and guidance to the Secretary on 
scientific, technical, and other matters of special interest to the 
Department of Health and Human Services regarding current and future 
chemical, biological, nuclear, and radiological agents, whether 
naturally occurring, accidental, or deliberate. The Board may also 
provide advice and guidance to the Secretary on other matters related 
to public health emergency preparedness and response.

    Dated: July 29, 2009.
Nicole Lurie,
Assistant Secretary for Preparedness and Response, Rear Admiral, U.S. 
Public Health Service.

National Biodefense Science Board

Markets & Sustainability Working Group Working Document

``Inventory of Issues Constraining or Enabling Industrial Involvement 
With Medical Countermeasure Development''
    Request for Public Comment Published in Federal Register June 1, 
2009.

Inventory of Issues Constraining or Enabling Industrial Involvement 
with Medical Countermeasure Development

    Introduction: The National Biodefense Science Board (NBSB) Medical 
Countermeasure Markets and Sustainability Working Group (M&S-WG) has 
posted a request for public comment in the Federal Register to solicit 
comment, feedback, and guidance from members of industry, other 
government agencies, and the public at large on their working document, 
``Inventory of Issues Constraining or Enabling Industry Involvement in 
Medical Countermeasure Efforts.'' Posting of the working document in 
the Federal Register will serve to solicit and obtain public comment 
for consideration by the Working Group to strengthen and refine the 
document. The Working Group plans to present the document to the NBSB 
at the scheduled Fall 2009 public meeting of the Board.
    Background: There exists a variety of limitations and barriers to 
biotechnology and pharmaceutical companies'' involvement in the 
biosecurity and biodefense efforts of the U.S. Government (USG), most 
notably medical countermeasure advanced research and development 
programs coordinated by the Department of Defense (DoD) and the 
Department of Health and Human Services (DHHS). Make-up of the medical 
countermeasure development efforts has been called fragmented, with 
confusing approaches used. To delineate and simplify the complexities 
of USG endeavors in medical countermeasure development, and the 
interactions between government agencies and private industry, the NBSB 
Markets & Sustainability Working Group (M&S-WG) assembled the enclosed 
inventory (or grid) of issues. This inventory includes factors that may 
discourage industry involvement or partnering with the USG in medical 
countermeasure development efforts, reported constraints to industry 
involvement, and potential solutions for relief from a particular 
constraint. The inventory has been catalogued by financial, 
legislative, scientific, human capital, regulatory, and societal 
elements.
    The public is encouraged to consider submitting comments and/or 
recommendations on the content of this inventory. Requests for a copy 
of the inventory and accompanying Comment Revision Form should be sent 
to the NBSB's e-mail box at NBSB@hhs.gov with ``M&S-WG Inventory 
Request'' in the subject line. All comments and/or recommendations for 
improvement to the inventory grid should be made on the Comment 
Revision Form enclosed with the inventory document. Comments and/or 
recommendations are to be submitted to the NBSB's e-mail box at 
NBSB@hhs.gov with ``M&S-WG Inventory Comments'' in the subject line and 
should be received no later than October 30, 2009.

NBSB Markets & Sustainability Work Group 18 May 09

Observations, Adapted From June 08 NBSB Meeting

    Business Planning:
    [mshbox] Contracting with some portions of the USG can be slow, 
unwieldy, expensive, and opaque.
    [mshbox] Lack of clarity increases industry risk.
    [mshbox] Procurement size, warm-base requirements, length of 
review, etc.
    [mshbox] Lack of transparency increases industry risk.
    [mshbox] Contract review process, rate of issuance of new 
proposals, requirement generation.
    [mshbox] With a contract in place, situation improves.
    [mshbox] HHS viewed as cooperative, helpful, responsible and 
responsive.
    [mshbox] Perceived lack of coordination between development 
activities and regulatory responsibilities remains a concern to 
industry.
    Regulatory:
    [mshbox] Lack of clarity regarding usable product definitions, 
seeming differences in FDA approaches to providing guidance to 
industry.
    [mshbox] Industry reliance upon USG for key components of licensure 
submissions can lead to lack of accountability.
    [mshbox] Disease studies, toxicology reports, etc.
    Funding, Stability, Reliability, Predictability:
    [mshbox] Advanced Development needs more dedicated funding, 
separate from BioShield funding.
    [mshbox] BioShield remains a funded procurement device, not an 
advanced-development mechanism.

[[Page 40191]]

    [mshbox] Advanced development efforts would benefit from 
contracting flexibility.
    [mshbox] Cost-plus-fee contracting flexibility is appropriate for 
advanced development and would reduce risk.
    [mshbox] Multiyear funding.
    [mshbox] Drug development and corporate investment/planning is 
long-term process, multiyear funding with carry-over authority, with 
multi-year contracting authority would signal USG commitment and 
increase industry sense of long-term stability.
    [mshbox] Project BioShield expires in 2013 and will need to be 
reauthorized and funded.
    [mshbox] Five years not a long time in drug-development process.
    [mshbox] BioShield funds should not be diverted to fund other 
initiatives.
    [mshbox] Inadequate funding delays the journey to MCM licensure.
    [mshbox] Initiate additional program against emerging diseases, 
modeled after pandemic program.
    Next Steps for WG :
    [mshbox] Continue to identify obstacles to greater industry 
participation in MCM development.
    [mshbox] Make recommendations where appropriate.
    [mshbox] Identify incentives to encourage greater industry 
participation in MCM development.
    [mshbox] Make recommendations where appropriate.
    [mshbox] Consider alternative models for MCM development.
    [mshbox] Do other models ensure national and public-health security 
while more efficiently using limited resources?
    Barriers Hindering Partnership: Opportunity cost (distractions from 
commercial business), economics (e.g. margins, volumes), product 
liability, uncertainty over sustained funding, ambiguous governance, 
competing public-health alternatives (e.g., needs of developing world), 
finite human capital, complexity of working with USG, obligations 
during crisis.
    Incentives Encouraging Partnership: Reliable access to excess 
capacity (e.g., for redundant capacity or developing-world projects), 
tax credits, patent-term extensions, grants, priority-review vouchers, 
preferred customer/vendor status with USG, product licensing rights, 
larger pool of scientists and engineers, public good, long-term 
contracts, intellectual-property development.

 Inventory of Issues Constraining or Enabling Industrial Involvement With Medical Countermeasure Development 18
                                                     May 09
----------------------------------------------------------------------------------------------------------------
                                                                   Approach/  advantages/
  Row        Problem/category       Potential solution             action           Problem/limitation
                   Column 1.....  Column 2.....  Column 3.....  Column 4
----------------------------------------------------------------------------------------------------------------
                                               Financial Elements
----------------------------------------------------------------------------------------------------------------
1................  Row 1; Column 1.......  Row 1; Column 2.......  Row 1; Column 3.......  Row 1; Column 4.
                   Capital requirements    Increase financial      Increased federal       Risk of distraction
                    to establish safety,    return after risking    funding for advanced    of large industry
                    efficacy, validated     capital to industry-    development, in the     partners from
                    manufacture.            standard rates.         form of cost-           commercial mission
                                           Reduce requirement for   reimbursement           or dilution of
                                            private capital for     contracts and           effort [potential
                                            advanced development.   rewarding private-      conflict with
                                                                    capital investments     fiduciary
                                                                    with milestone          responsibility to
                                                                    payments and at         shareholders of
                                                                    procurement.            publicly traded
                                                                                            companies].
----------------------------------------------------------------------------------------------------------------
2................  Row 2; Column 1.......  Row 2; Column 2a......  Row 2; Column 3a......  Row 2; Column 4.
                   Risk of technical       Decentralized           Reimbursement of        Lack of interest,
                    failure of vaccine      discovery/centralized   development costs at    given opportunity
                    development effort.     development and         cost +15%, with         costs Congressional
                                            manufacture.            return-on-working-      tolerance for
                                                                    capital at 22%, and     anticipatable
                                                                    cost-of-money-for-      frustrations is
                                                                    capital at 15%.         unknown.
                                           Row 2; Column 2b......  Row 2; Column 3b......
                                           Evaluation of whether   Provides support early
                                            indirect-cost           in process.
                                            reimbursement greater
                                            than 100% may be
                                            appropriate.
                                           Assistance with
                                            calculating indirect
                                            cost rates (for
                                            companies that have
                                            never done so
                                            before)..
----------------------------------------------------------------------------------------------------------------
3................  Row 3; Column 1.......  Row 3; Column 2a......  Row 3; Column 3a......
                   Tax incentives........  Enhance current         Currently, 20% for
                                            incremental R&D tax     qualified R&D
                                            credit (increase,       expenses and 50% for
                                            make refundable).       clinical-trial
                                                                    expenses.
                                           Row 3; Column 2b......  Row 3; Column 3b......  Row 3; Column 4.
                                           New investment tax      Enhance net revenue...  Not yet authorized.
                                            credit (20%) for
                                            construction of new
                                            R&D and manufacturing
                                            facilities for
                                            biosecurity and
                                            emerging-infectious
                                            disease purposes
                                            (with refundable and/
                                            or transferable
                                            provisions).
----------------------------------------------------------------------------------------------------------------
4................  Row 4; Column 1.......  Row 4; Column 2.......  Row 4; Column 3.......  Row 4; Column 4.

[[Page 40192]]

 
                   Revenue enhancements    Enhance current         Current statutory       Note: Orphan drug tax
                    based on Intellectual   product or use patent-  formula: Patent         credit applies to
                    Property.               term restoration and/   extension               vaccines only if
                                            or extension (revise    supplemented by [\1/    less than 200,000
                                            formula).               2\ time from IND to     vaccinated
                                           Allow full patent-term   filing BLA + full       recipients
                                            extension for           time from BLA filing    anticipated.
                                            licensed products       to FDA approval/
                                            that gain CBRN or       licensure].
                                            emerging disease       Currently, 5 years of
                                            application (akin to    market exclusivity is
                                            adding pediatric        provided to New
                                            indication).            Chemical Entities
                                           Allow transfer of        (NCEs) but not
                                            patent-term extension   biologicals via Hatch-
                                            to another product or   Waxman Act and 7
                                            company                 years of market
                                            (``wildcard'').         exclusivity is
                                           Market exclusivity:      provided via Orphan
                                            Increase term of        Drug Act.
                                            market exclusivity to
                                            ~ 12-15 years and
                                            extend it to
                                            biologicals (as does
                                            Orphan Drug Act).
----------------------------------------------------------------------------------------------------------------
5................  Row 5; Column 1.......  Row 5; Column 2.......  Row 5; Column 3.......  Row 5; Column 4.
                   Priority-Review         Make applicable to      A PRV is a tradable     Predictability: Would
                    Vouchers (PRV).         biosecurity products.   certificate awarded     a priority-review
                                                                    to a developer of a     voucher simply
                                                                    treatment for a         accelerate a ``no''
                                                                    neglected tropical      or ``not yet''
                                                                    disease that gains      response?
                                                                    licensure from FDA.    2007 law: Text at:
                                                                    It entitles holder to   https://www.bvgh.org/
                                                                    a priority review (a    documents/HR3580-
                                                                    speedier review time)   CompromiseFDA-
                                                                    for a future product    PDUFABill.pdf Draft
                                                                    of their choosing,      FDA guidance: https://
                                                                    potentially             www.fda.gov/cber/
                                                                    shortening the review   gdlns/
                                                                    process by 6 to 12      tropicaldisease.htm.
                                                                    months.
                                                                   First PRV awarded to
                                                                    Novartis for Coartem
                                                                    malaria treatment
                                                                    (artemether and
                                                                    lumefantrine) in Apr
                                                                    09.
----------------------------------------------------------------------------------------------------------------
6................  Row 6; Column 1.......  Row 6; Column 2a......  Row 6; Column 3a......  Row 6; Column 4a.
                   Limited market size     Acquisition RFPs        Publication of          Requirements are not
                    (development costs >>   should state minimum    requirements along      static and can be
                    market potential).      quantities (total and   with advanced-          expected to change
                                            to each successful      development RFPs. It    based on threat
                                            awardee) to increase    may be possible to      assessments and
                                            market certainty to     more widely describe    discoveries during
                                            potential bidders and   procurement             product development.
                                            their investors.        requirements, in        Requirements may
                                                                    contrast to the more    signal USG threat
                                                                    sensitive value of      recognition, so may
                                                                    treatment               not be appropriate
                                                                    requirements.           for public release.
                                           Row 6; Column 2b......  Row 6; Column 3b......  Row 6; Column 4b.
                                           Contract terms          Treaty allies           Allies have not made
                                            allowing                represent additional    substantial
                                            manufacturers access    markets.                independent
                                            to allied foreign                               purchases to date.
                                            governments and other                           Some may hope/expect
                                            authorized customers                            USG to share
                                            outside the US, as                              stockpile when
                                            well as civilian                                attack occurs.
                                            first responders,
                                            hospitals, and travel-
                                            vaccine providers
                                            within the US.
                                           Row 6; Column 2c......                          Row 6; Column 4c.
                                           Add biodefense and                              Currently only drugs,
                                            other adult vaccines                            antidotes, and
                                            to Standardized                                 various treatments
                                            Equipment List (SEL)                            are covered, but not
                                            and Authorized                                  vaccines for
                                            Equipment List (AEL),                           prophylaxis in the
                                            so state and local                              first place.
                                            first-responders can
                                            use federal (DHS)
                                            grant funds to pay
                                            for vaccinations.
----------------------------------------------------------------------------------------------------------------
7................  Row 7; Column 1.......  Row 7; Column 2.......  Row 7; Column 3.......  Row 7; Column 4.

[[Page 40193]]

 
                   Surge issues..........  Compensation if         Define                  Potential
                                            commercial product(s)   ``compensation'' in     compensation may
                                            displaced during        initial contract or     need to include
                                            emergencies (e.g.,      agree to a dispute-     delay of a new
                                            lost sales, market      resolution mechanism.   product or loss of
                                            share, delayed                                  market share to a
                                            licensing).                                     competitor. Level
                                                                                            difficult to
                                                                                            determine a priori.
----------------------------------------------------------------------------------------------------------------
                                              Legislative Elements
----------------------------------------------------------------------------------------------------------------
8................  Row 8; Column 1.......  Row 8; Column 2a......  Row 8; Column 3a......  Row 8; Column 4a.
                   Predictability,         Increase annual NIAID   Multi-year contracting  Limited track record.
                    consistency adequacy    appropriation           authority (for large    Partial analogies:
                    of Congressional        increases for early-    molecules, due to      Aerospace industry in
                    appropriations.         stage MCM development   complex manufacturing   early 1940s.
                                            to offset flat          and limited use) and   Consistent
                                            funding since 2001      multi-year funding      procurement of
                                            anthrax attacks.        with carry-over         aircraft carriers
                                            Insufficient funds      authority for R&D and   since 1940s.
                                            now allocated for       procurement
                                            advanced development    initiatives.
                                            for CBRN.
                                           Increase BARDA          Manage funding as a     Congressional long-
                                            appropriations for      ``national              term recognition of
                                            advanced development    portfolio'' that        threat (natural and
                                            of CBRN MCMs and        mitigates risk by a     malicious) and
                                            continued long-term     broad set of target     tolerance for MCM
                                            funding for both CBRN   products, with          technical failure
                                            and pandemic            multiple MCMs per       unknown.
                                            countermeasues, to      disease.
                                            offset recent funding  Base metrics on
                                            shortfalls.             portfolio
                                                                    performance, rather
                                                                    than individual
                                                                    candidate
                                                                    countermeasures.
                                                                   Long-term funding and
                                                                    ongoing government
                                                                    procurement (10 years
                                                                    or longer) is
                                                                    essential to maintain
                                                                    warm-base MCM
                                                                    manufacturing and
                                                                    surge capacity.
                                           Row 8; Column 2b......  Row 8; Column 3b......
                                           Need significantly      Solution: a blend of
                                            expanded federal        indefinite mandatory
                                            funding under           funding authority
                                            BioShield for           with caveats to
                                            advanced development    assure good-faith
                                            and procurement         performance and
                                            activities (BioShield   sufficient ongoing
                                            reauthorization and     discretionary
                                            funding).               appropriations.
                                           Stop and reverse
                                            Congressional
                                            diversion of
                                            BioShield Reserve
                                            Fund for other
                                            initiatives ($412M in
                                            FY09 = $137M for
                                            pandemic + $275M for
                                            PAHPA
                                            implementation),
                                           Need long-term funding
                                            for acquisition of
                                            FDA-approved/licensed
                                            MCMs for Strategic
                                            National Stockpile.
----------------------------------------------------------------------------------------------------------------
9................  Row 9; Column 1.......  Row 9; Column 3.......  Row 9; Column 3.......  Row 9; Column 4.
                   Funding stream........  Provide for greater     PAHPA (2006)            Would likely require
                                            flexibility in          authorized $1B to       BARDA to use Other
                                            milestone-driven        BARDA for advanced      Transaction
                                            payment schedules       development of MCMs,    Authority (OTA) (not
                                            under PAHPA and         in addition to          used to date).
                                            BioShield, to account   BioShield Reserve
                                            for the                 Fund.
                                            unpredictability of    Avoids rPA102 scenario
                                            vaccine R&D technical   (risk of repayment
                                            difficulties and        upon cancellation).
                                            progress.
----------------------------------------------------------------------------------------------------------------
10...............  Row 10; Column 1......  Row 10; Column 2......  Row 10; Column 3......

[[Page 40194]]

 
                   Untrodden development   Cooperative R&D         Enhanced recognition
                    pathways.               Agreements (CRADAs)     that changes in
                                            allow collaboration     product requirements
                                            with respect for        can be expected to
                                            intellectual property.  increase the cost and
                                           US Gov't and sponsor     time required to
                                            agree on defined        achieve a useable
                                            development pathway     product.
                                            at early stages to     Requires enhanced
                                            achieve a target        integration of
                                            product profile.        efforts by each USG
                                                                    entity (notably
                                                                    BARDA, NIAID, CDC,
                                                                    FDA, DoD, InterAgency
                                                                    Board).
----------------------------------------------------------------------------------------------------------------
11...............  Row 11; Column 1......  Row 11; Column 2......  Row 11; Column 3......  Row 11; Column 4.
                   Facilitating            Streamline process to   Offer innovator an      Milestone payments
                    technology transfer     support integration     option of (a) a         could be used on a
                    from basic to           of disciplines needed   milestone payment       multiple of private
                    advanced development.   for successful scale-   (``prize'') as a        paid-in capital
                                            up of manufacturing     single fee to license   (variable) or a
                                            processes.              the intellectual        fixed amount per
                                           Increase U.S. Gov't      property for further    drug.
                                            funding for applied     development or (b)
                                            bioscience, material    continue involvement
                                            sciences and            in development in
                                            biopharmaceutical       exchange for the
                                            processes.              possibility of
                                                                    royalties after FDA
                                                                    licensure achieved.
----------------------------------------------------------------------------------------------------------------
                                             Human Capital Elements
----------------------------------------------------------------------------------------------------------------
12...............  Row 12; Column 1......  Row 12; Column 2......  Row 12; Column 3......  Row 12; Column 4
                   Human capital within    Grow the pool of        Increased range of      Additional
                    industry.               science and             scientific programs     flexibility needed
                                            engineering talent      offers additional       in USG agency
                                            pool within industry    career-development      authority to provide
                                            needed to develop and   for industrial          competitive
                                            manufacture MCMs        scientists and          compensation to
                                            within the US.          engineers.              critical employees.
                                                                   DARPA model assumes
                                                                    industry-standard
                                                                    compensation rates.
                                                                   Congress authorized
                                                                    large increases for
                                                                    NIH grants for
                                                                    researcher awards,
                                                                    but a long-term
                                                                    approach is needed to
                                                                    sustain the
                                                                    industrial base..
----------------------------------------------------------------------------------------------------------------
13...............  Row 13; Column 1......  Row 13; Column 2a.....  Row 13; Column 3a.....
                   Complex, evolving       Clarify expectations    Spill-over benefits to
                    regulatory              early in product        commercial sphere via
                    requirements.           development and         enhanced dialog with
                                            minimize changes in     FDA.
                                            expectations in
                                            application review
                                            (e.g., requirements
                                            under ``animal
                                            rule'').
                                           Row 13; Column 2b.....  Row 13; Column 3b.....  Row 13; Column 4b.
                                           Implement best          Partner with            Companies with
                                            practices for quality/  experienced biopharma   extensive FDA
                                            regulatory systems      organization to gain    experience not
                                            for biosecurity         access to either        currently engaged
                                            products.               staff or quality        with MCM development
                                                                    systems.                or manufacture.
                                           Row 13; Column 2c.....  Row 13; Column 3c.....
                                           Collaboration with FDA  Centralized advanced
                                            to meet evolving        development and
                                            (more stringent)        manufacturing to
                                            standards for           facilitate cross-
                                            development,            product learning and
                                            manufacture, clinical   system development.
                                            trials, and ``animal-
                                            rule'' pathways.
                                           Row 13; Column 2d.....
                                           Accelerated FDA review
----------------------------------------------------------------------------------------------------------------
14...............  Row 14; Column 1......  Row 14; Column 2......  Row 14; Column 3......  Row 14; Column 4
                   Administrative          Contracting reform to   Waive nonessential      Familiarity with
                    requirements to         relieve the             accounting              Federal Acquisition
                    comply with USG         regulatory and          requirements and        Regulations (FAR)
                    contracts.              reporting burden.       other components of     (or relief from
                                                                    the Federal             them).
                                                                    Acquisition
                                                                    Regulation (FAR).

[[Page 40195]]

 
                                                                   BARDA should identify
                                                                    opportunities to use
                                                                    Other Transaction
                                                                    Authority (OTA) to
                                                                    enhance R&D contracts
                                                                    (akin to DARPA)..
                                                                   Explore Cooperative
                                                                    R&D Agreement (CRADA)
                                                                    approaches.
----------------------------------------------------------------------------------------------------------------
15...............  Row 15; Column 1......  Row 15; Column 2......  Row 15; Column 3......
                   Adequacy of review and  Increase                More medical reviewers
                    consultation            appropriations to       needed, plus research
                    resources at FDA.       enhance FDA review      and assay development
                                            and consultation.       within FDA.
                                                                   Increase percentage of
                                                                    personnel eligible
                                                                    for enhanced bonus
                                                                    payments or super-
                                                                    grades.
----------------------------------------------------------------------------------------------------------------
                                                Societal Elements
----------------------------------------------------------------------------------------------------------------
16...............  Row 16; Column 1......  Row 16; Column 2......  Row 16; Column 3......  Row 16; Column 4
                   Contribution to         Exploration of          Enhanced corporate      Increased public
                    national security..     biosecurity MCMs is     reputation..            attention during
                                            likely to have spill-                           crisis.
                                            over benefits to
                                            ``natural''
                                            infectious diseases
                                            as well.
----------------------------------------------------------------------------------------------------------------
                                                 Legal Elements
----------------------------------------------------------------------------------------------------------------
17...............  Row 17; Column 1......  Row 17; Column 2......  Row 17; Column 3......  Row 17; Column 4.
                   Product liability.....  Expand coverage of      Indemnification via     Not tested in
                                            PREP Act to             Public Readiness &      practice or
                                            additional MCMs for     Emergency               litigated. https://
                                            which Material Threat   Preparedness (PREP)     www.pandemicflu.gov/
                                            Assessments (MTAs)      Act of 2005 (PL 109-    plan/federal/prep--
                                            exist.                  148, Dec 30, 2005).     act.html Public Law
                                                                                            109-148. PHS Act
                                                                                            Section 319(f)(3).
                                                                                            42 U.S.C. 247d-6d.
                                                                                           [See also Support
                                                                                            Antiterrorism by
                                                                                            Fostering Effective
                                                                                            Technologies (SAFE-
                                                                                            T) Act of 2002
                                                                                            [within Homeland
                                                                                            Security Act, Pub.
                                                                                            L. 107-296].]
----------------------------------------------------------------------------------------------------------------
18...............  Row 18; Column 1......  Row 18; Column 2......  Row 18; Column 3......
                   Antitrust Provisions..  Assess need for, plan,  Need ability to
                                            and implement           develop contingency
                                            antitrust waiver        plans and preliminary
                                            authority under PAHPA   communication and
                                            2006 for R&D and        technical
                                            preparedness            consultation.
                                            activities to allow    Continue and expand
                                            nominally competing     efforts such as those
                                            parties to              underway with
                                            collaborate during a    pandemic influenza
                                            public health           vaccine and adjuvant
                                            emergency or to         ``mix-and-match''
                                            conduct contingency     studies to assess
                                            exercises before a      safety and efficacy.
                                            public-health
                                            emergency. Involve
                                            DoJ and Attorney
                                            General in
                                            supervisory/
                                            compliance role.
----------------------------------------------------------------------------------------------------------------
                                               Corollary Elements
----------------------------------------------------------------------------------------------------------------
19...............  Row 19; Column 1......  Row 19; Column 2......  Row 19; Column 3......

[[Page 40196]]

 
                   Attractiveness of       Implement national      Consolidate Medicare
                    commercial vaccine      policies to provide     coverage of all
                    market for support of   adequate                vaccines within Part
                    future R&D and          reimbursement for       B (not Part D).
                    manufacturing.          vaccines and their
                                            administration in
                                            both the public and
                                            private sectors, to
                                            help underwrite and
                                            sustain the
                                            industrial base
                                            needed for
                                            biosecurity and
                                            global-health
                                            products.
                                                                   Increase
                                                                    administration
                                                                    reimbursement rates
                                                                    under Medicaid and
                                                                    Vaccines for Children
                                                                    (VFC) beneficiaries
                                                                    with federal
                                                                    subsidies to offset
                                                                    increased State costs.
                                                                   Third-party payers to
                                                                    provide first-dollar
                                                                    coverage for FDA-
                                                                    licensed vaccines and
                                                                    their administration
                                                                    under healthcare
                                                                    reform.
----------------------------------------------------------------------------------------------------------------
20...............  Row 20; Column 1......  Row 20; Column 2......  Row 20; Column 3......
                   Approaches suitable     Advanced Market         Examples: Guarantee a
                    for developing-world    Commitments (AMC)       market in developing
                    situations (perhaps     separately for          countries for
                    useful by analogy).     existing vaccines and   pneumococcal vaccines
                                            global health           to prevent deadly
                                            vaccines at R&D stage.  respiratory
                                                                    infections in
                                                                    children and as an
                                                                    incentive for
                                                                    development of
                                                                    vaccines that
                                                                    currently do not
                                                                    exist against
                                                                    infectious disease
                                                                    threats in those
                                                                    countries, but which
                                                                    may be imported into
                                                                    the U.S. or threaten
                                                                    global security.
----------------------------------------------------------------------------------------------------------------
                            Other Benefits to Involvement With Biosecurity Initiative
----------------------------------------------------------------------------------------------------------------
21...............  Row 21; Column 1......  Row 21; Column 2......  Row 21; Column 3......
                   Competitive situation.  Don't put all eggs in   Participation by
                                            one basket, allow       manufacturer with
                                            multiple technologies   U.S. Gov't withholds
                                            and product             scientific,
                                            candidates to           financial, and human-
                                            progress                capital benefit to
                                            simultaneously          competitors.
                                            through development
                                            pathways.
----------------------------------------------------------------------------------------------------------------
22...............  Row 22; Column 1......                          Row 22; Column 3......  Row 22; Column 4.
                   New intellectual                                IP developed in course  U.S. Gov't has step-
                    property.                                       of government           in rights if patent
                                                                    contract remains with   arising from federal
                                                                    discoverer.             government-funded
                                                                                            research not
                                                                                            exploited [Bayh-Dole
                                                                                            Act of 1980 (or
                                                                                            University & Small
                                                                                            Business Patent
                                                                                            Procedures Act),
                                                                                            codified in 35
                                                                                            U.S.C. 200-212[1],
                                                                                            implemented by 37
                                                                                            CFR 401[2]].
----------------------------------------------------------------------------------------------------------------
23...............  Row 23; Column 1......                          Row 23; Column 3......  Row 23; Column 4.
                   Staying abreast of                              Access to state-of-art  Need to understand
                    advancing sciences.                             process analytics for   exclusivity of
                                                                    wide variety of         access.
                                                                    biological products.
----------------------------------------------------------------------------------------------------------------

    Citations:
    Project BioShield Act of 2004: Public Law 108-276, https://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=108_cong_public_laws&docid=f:publ276.108.pdf.
    BioShield II (2005):
    PAHPA, PL 109-417, Dec 19, 2006.
    Bibliography:
    Matheny J, Mair M, Mulcahy A, Smith BT. Incentives for 
biodefense countermeasure

[[Page 40197]]

development. Biosecur Bioterror 2007 Sep;5(3):228-38.
    Animal Rule = U.S. Food and Drug Administration. New drug and 
biological drug products; evidence needed to demonstrate 
effectiveness of new drugs when human efficacy studies are not 
ethical or feasible. Final rule. FR 2002 May 31;67(105):37988-98. 
https://frwebgate5.access.gpo.gov/cgi-bin/
PDFgate.cgi?WAISdocID=483712496781+5+2+0&WAISaction=retrieve.
BILLING CODE 4150-37-C

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[[Page 40199]]


[FR Doc. E9-19199 Filed 8-10-09; 8:45 am]
BILLING CODE 4150-37-C
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