Biosimilar User Fee Rates for Fiscal Year 2021, 47220-47225 [2020-16858]
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Federal Register / Vol. 85, No. 150 / Tuesday, August 4, 2020 / Notices
most often found as a liquid solution,
but it may be sold as a powder, tablet,
blotter paper, or pellet. In 2018,
flubromazolam, clonazolam, and
dicalazepam were all identified by law
enforcement in driving under the
influence of drugs cases in the United
States. Flubromazolam, clonazolam, and
diclazepam are not approved for
medical use in the United States and are
not controlled substances under the
CSA.
3-MeO-PCP (3methoxyphencyclidine; chemical name:
1-(1-(3methoxyphenyl)cyclohexyl)piperidine)
is a novel N-methyl-D-aspartate (NMDA)
receptor antagonist with structural and
biochemical similarities to
phencyclcycidine (PCP) and other
arylcyclohexylamines. 3-MeO-PCP is
classified as an arylcyclohexylamine
and produces dissociative anesthetic
and hallucinogenic effects. Use of this
substance is associated with
intoxication and published case reports
of both fatal and non-fatal overdose. 3MeO-PCP is encountered by law
enforcement in drug seizure reports. 3MeO-PCP is an analogue of the
Schedule II hallucinogen PCP. There is
no approved medical use for 3-MeOPCP in the United States. 3-MeO-PCP is
not a controlled substance under the
CSA. If intended for human
consumption, 3-MeO-PCP may be
treated as a ‘‘controlled substance
analogue’’ under the CSA pursuant to 21
U.S.C 802(32) (A) and 813.
DIPHENIDINE (chemical name: 1-(1,2diphenylethyl) piperidine) is a noncompetitive NMDA receptor antagonist
classified as a diarylethylamine and
produces dissociative anesthetic and
hallucinogenic effects. It was originally
synthesized in the 1920s, but reports of
abuse started in the last decade. Use of
this substance is associated with
intoxication and published case reports
of both fatal and non-fatal overdose
outside of the United States.
DIPHENIDINE is encountered by law
enforcement in drug seizure reports.
DIPHENIDINE is not approved for
medical use in the United States and is
not a controlled substance under the
CSA.
2-MeO-DIPHENIDINE (2-methoxydiphenidine, methoxphenidine) is a
non-competitive NMDA receptor
antagonist classified as a
diarylethylamine and produces
dissociative anesthetic and
hallucinogenic effects that may produce
effects similar to high doses of
dextromethorphan. Use of this
substance is associated with
intoxication and non-fatal overdose in
published case reports outside the
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United States. 2-MeO-DIPHENIDINE is
encountered by law enforcement in drug
seizure reports. There is no approved
medical use for 2-MeO-DIPHENIDINE in
the United States and 2-MeODIPHENIDINE is not a controlled
substance under the CSA.
5-MeO-DALT (chemical name: N,NDiallyl-5-methoxytryptamine) is a
tryptamine hallucinogen and is an
agonist of the serotonin (5–HT) 5–HT2A
receptor. 5-MeO-DALT appears to
produce hallucinogenic effects similar
to other tryptamine hallucinogens and
fully substituted for 2,5-dimethoxy-4methylamphetamine (DOM) in DOMtrained rats. 5-MeO-DALT is an
analogue of the Schedule I controlled
substance 5methoxy-N,Ndiisopropyltryptamine (5-MeO-DiPT). 5MeO-DALT has been encountered by
law enforcement in drug seizure reports.
5-MeO-DALT is not approved for
medical use in the United States and is
not controlled under the CSA.
3-FLUOROPHENMETRAZINE (3FPM) (chemical name: 1-(3fluorophenyl)-2-(methylamino)propan1-one) shares substantial chemical
structural similarity to phenmetrazine, a
Schedule II controlled substance that
was prescribed as an appetite
suppressant before being withdrawn
from the pharmaceutical drug market in
the United States because of its abuse
potential. 3-FPM, which is similar to
phenmetrazine and other stimulant
drugs of abuse, increases extracellular
concentrations of the neurotransmitter
dopamine by inhibiting the uptake of
this neurotransmitter at the dopamine
transporter. Elevated extracellular
dopamine concentrations have been
implicated in the mechanism of action
of stimulant drugs of abuse. There is no
approved medical use for 3-FPM in the
United States and 3-FPM is not a
controlled substance under the CSA.
IV. Opportunity To Submit Domestic
Information
As required by paragraph (d)(2)(A) of
the CSA, FDA, on behalf of HHS, invites
interested persons to submit comments
regarding the 11 drug substances. Any
comments received will be considered
by HHS when it prepares a scientific
and medical evaluation for drug
substances that is responsive to the
WHO Questionnaire for these drug
substances. HHS will forward such
evaluation of these drug substances to
WHO, for WHO’s consideration in
deciding whether to recommend
international control/decontrol of any of
these drug substances. Such control
could limit, among other things, the
manufacture and distribution (import/
export) of these drug substances and
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could impose certain recordkeeping
requirements on them.
Although FDA is, through this notice,
requesting comments from interested
persons, which will be considered by
HHS when it prepares an evaluation of
these drug substances, HHS will not
now make any recommendations to
WHO regarding whether any of these
drugs should be subjected to
international controls. Instead, HHS will
defer such consideration until WHO has
made official recommendations to the
Commission on Narcotic Drugs, which
are expected to be made in late-2020.
Any HHS position regarding
international control of these drug
substances will be preceded by another
Federal Register notice soliciting public
comments, as required by paragraph
(d)(2)(B) of the CSA.
Dated: July 29, 2020.
Lowell J. Schiller,
Principal Associate Commissioner for Policy.
[FR Doc. 2020–16905 Filed 8–3–20; 8:45 am]
BILLING CODE 4164–01–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Food and Drug Administration
[Docket No. FDA–2019–N–3560]
Biosimilar User Fee Rates for Fiscal
Year 2021
AGENCY:
Food and Drug Administration,
HHS.
ACTION:
Notice.
The Food and Drug
Administration (FDA) is announcing the
rates for biosimilar user fees for fiscal
year (FY) 2021. The Federal Food, Drug,
and Cosmetic Act (FD&C Act), as
amended by the Biosimilar User Fee
Amendments of 2017 (BsUFA II),
authorizes FDA to assess and collect
user fees for certain activities in
connection with biosimilar biological
product development; review of certain
applications for approval of biosimilar
biological products; and each biosimilar
biological product approved in a
biosimilar biological product
application. BsUFA II directs FDA to
establish, before the beginning of each
fiscal year, the amount of initial and
annual biosimilar biological product
development (BPD) fees, the
reactivation fee, and the biosimilar
biological product application and
program fees for such year. These fees
apply to the period from October 1,
2020, through September 30, 2021.
FOR FURTHER INFORMATION CONTACT:
Andrew Bank, Office of Financial
SUMMARY:
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Management, Food and Drug
Administration, 4041 Powder Mill Rd.,
Rm. 62019A, Beltsville, MD 20705–
4304, 301–796–0292.
SUPPLEMENTARY INFORMATION:
I. Background
Sections 744G, 744H, and 744I of the
FD&C Act (21 U.S.C. 379j–51, 379j–52,
and 379j–53), as amended by BsUFA II
(title IV of the FDA Reauthorization Act
of 2017, Pub. L. 115–52), authorize the
collection of fees for biosimilar
biological products. Under section
744H(a)(1)(A) of the FD&C Act, the
initial BPD fee for a product is due
when the sponsor submits an
investigational new drug (IND)
application that FDA determines is
intended to support a biosimilar
biological product application or within
5 calendar days after FDA grants the
first BPD meeting, whichever occurs
first. A sponsor who has paid the initial
BPD fee is considered to be participating
in FDA’s BPD program for that product.
Under section 744H(a)(1)(B) of the
FD&C Act, once a sponsor has paid the
initial BPD fee for a product, the annual
BPD fee is assessed beginning with the
next fiscal year. The annual BPD fee is
assessed for the product each fiscal year
until the sponsor submits a marketing
application for the product that is
accepted for filing or the sponsor
discontinues participation in FDA’s
BPD program for the product.
Under section 744H(a)(1)(D) of the
FD&C Act, if a sponsor has discontinued
participation in FDA’s BPD program and
wants to re-engage with FDA on
development of the product, the sponsor
must pay a reactivation fee to resume
participation in the program. The
sponsor must pay the reactivation fee by
the earlier of the following dates: No
later than 5 calendar days after FDA
grants the sponsor’s request for a BPD
meeting for that product or upon the
date of submission by the sponsor of an
IND describing an investigation that
FDA determines is intended to support
a biosimilar biological product
application for that product. The
sponsor will be assessed an annual BPD
fee beginning with the first fiscal year
after payment of the reactivation fee.
BsUFA II also authorizes fees for
certain biosimilar biological product
applications and for each biosimilar
biological product identified in an
approved biosimilar biological product
application (section 744H(a)(2) and (3)
of the FD&C Act). Under certain
conditions, FDA will grant a small
business a waiver from its first
biosimilar biological product
application fee (section 744H(d)(1) of
the FD&C Act).
For FY 2018 through FY 2022, the
base revenue amounts for the total
revenues from all BsUFA fees are
established by BsUFA II. For FY 2021,
the base revenue amount is the FY 2020
inflation adjusted fee revenue amount of
$41,922,873. The FY 2021 base revenue
amount is to be adjusted for inflation
and may be reduced, as appropriate, for
long-term financial planning purposes.
Beginning in FY 2021, the inflationadjusted base revenue amount is also
adjusted to reflect changes in the
resource capacity needs for the process
for the review of biosimilar biological
product applications.
This document provides fee rates for
FY 2021 for the initial and annual BPD
fee ($102,494), for the reactivation fee
($204,988), for an application requiring
clinical data ($1,746,745), for an
application not requiring clinical data
($873,373), and for the program fee
($304,162). These fees are effective on
October 1, 2020, and will remain in
effect through September 30, 2021. For
applications that are submitted on or
after October 1, 2020, the new fee
schedule must be used.
II. Fee Revenue Amount for FY 2021
The base revenue amount for FY 2021
is $41,922,873 prior to adjustments for
inflation, resource capacity, and
operating reserves (see section
744H(c)(1), (c)(2), and (c)(3) of the FD&C
Act).
A. FY 2021 Statutory Fee Revenue
Adjustments for Inflation
BsUFA II specifies that the
$41,922,873 is to be adjusted for
inflation increases for FY 2021 using
two separate adjustments—one for
personnel compensation and benefits
(PC&B) and one for non-PC&B costs (see
section 744H(c)(1) of the FD&C Act).
The component of the inflation
adjustment for payroll costs shall be one
plus the average annual percent change
in the cost of all PC&B paid per full-time
equivalent (FTE) positions at FDA for
the first 3 of the preceding 4 FYs,
multiplied by the proportion of PC&B
costs to total FDA costs of the process
for the review of biosimilar biological
product applications for the first 3 of the
preceding 4 FYs (see section
744H(c)(1)(B) of the FD&C Act).
Table 1 summarizes the actual cost
and FTE data for the specified FYs and
provides the percent changes from the
previous FYs and the average percent
changes over the first 3 of the 4 FYs
preceding FY 2021. The 3-year average
is 1.2644 percent.
TABLE 1—FDA PC&B EACH YEAR AND PERCENT CHANGES
Fiscal year
2017
Total PC&B ......................................................................................
Total FTE .........................................................................................
PC&B per FTE .................................................................................
Percent Change From Previous Year .............................................
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The statute specifies that this 1.2644
percent be multiplied by the proportion
of PC&B costs to the total FDA costs of
the process for the review of biosimilar
2018
$2,581,551,000
17,022
$151,660
2.8845%
$2,690,678,000
17,023
$158,061
4.2206%
biological product applications. Table 2
shows the PC&B and the total
obligations for the process for the
review of biosimilar biological product
2019
$2,620,052,000
17,144
$152,826
¥3.3120%
3-Year average
............................
............................
............................
1.2644%
applications for the first 3 of the
preceding 4 FYs.
TABLE 2—PC&B AS A PERCENT OF TOTAL COST OF THE PROCESS FOR THE REVIEW OF BIOSIMILAR BIOLOGICAL
PRODUCT APPLICATIONS
Fiscal year
2017
Total PC&B ......................................................................................
Total Costs .......................................................................................
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2018
$30,707,050
$55,814,043
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2019
$35,477,032
$62,604,122
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$32,946,252
$65,210,467
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3-Year average
............................
............................
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TABLE 2—PC&B AS A PERCENT OF TOTAL COST OF THE PROCESS FOR THE REVIEW OF BIOSIMILAR BIOLOGICAL
PRODUCT APPLICATIONS—Continued
Fiscal year
2017
PC&B Percent ..................................................................................
The payroll adjustment is 1.2644
percent from Table 1 multiplied by
54.0695 percent (or 0.6837 percent).
The statute specifies that the portion
of the inflation adjustment for nonpayroll costs is the average annual
percent change that occurred in the
Consumer Price Index (CPI) for urban
consumers (Washington-Baltimore, DCMD-VA-WV; not seasonally adjusted; all
items; annual index) for the first 3 years
of the preceding 4 years of available
data multiplied by the proportion of all
costs other than PC&B costs to total
costs of the process for the review of
2018
55.0167%
2019
56.6688%
biosimilar biological product
applications for the first 3 years of the
preceding 4 FYs (see section
744H(c)(1)(B) of the FD&C Act). As a
result of a geographical revision made
by the Bureau of Labor and Statistics in
January 2018,1 the ‘‘WashingtonBaltimore, DC-MD-VA-WV’’ index was
discontinued and replaced with two
separate indices (i.e., ‘‘WashingtonArlington-Alexandria, DC-VA-MD-WV’’
and ‘‘Baltimore-Columbia-Towson,
MD’’). In order to continue applying a
CPI which best reflects the geographic
region in which FDA is headquartered
3-Year average
50.5230%
54.0695%
and which provides the most current
data available, the WashingtonArlington-Alexandria index will be used
in calculating the relevant adjustment
factors for FY 2020 and subsequent
years. Table 3 provides the summary
data for the percent changes in the
specified CPI for the WashingtonArlington-Alexandria area. The data are
published by the Bureau of Labor
Statistics and can be found on its
website at: https://data.bls.gov/pdq/
SurveyOutputServlet?data_
tool=dropmap&series_
id=CUURS35ASA0,CUUSS35ASA0.
TABLE 3—ANNUAL AND THREE-YEAR AVERAGE PERCENT CHANGE IN CPI FOR WASHINGTON-ARLINGTON-ALEXANDRIA
AREA
Year
2017
Annual CPI ......................................................
Annual Percent Change ..................................
The statute specifies that this 1.4726
percent be multiplied by the proportion
of all costs other than PC&B to total
costs of the process for the review of
biosimilar biological product
applications obligated. Since 54.0695
percent was obligated for PC&B (as
shown in Table 2), 45.9305 percent is
the portion of costs other than PC&B
(100 percent minus 54.0695 percent
equals 45.9305 percent). The nonpayroll adjustment is 1.4726 percent
times 45.9305 percent, 0.6764 percent.
Next, we add the payroll adjustment
(0.6837 percent) to the non-payroll
adjustment (0.6764 percent), for a total
inflation adjustment of 1.3601 percent
(rounded) for FY 2021.
We then multiply the base revenue
amount for FY 2021 ($41,922,873) by
one plus the inflation adjustment
(1.013601), yielding an inflationadjusted amount of $42,493,000
(rounded to the nearest thousand).
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B. FY 2021 Statutory Fee Revenue
Adjustments for Capacity Planning
The statute specifies a process to
establish and implement a capacity
planning adjustment (CPA) to adjust the
1 The Bureau of Labor Statistics’ announcement of
the geographical revision can be viewed at https://
www.bls.gov/cpi/additional-resources/geographicrevision-2018.htm.
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256.221
1.1045%
2018
261.445
2.0389%
2019
264.777
1.2745%
3-Year average
1.4726%
total revenue amount to reflect changes
in the resource capacity needs for the
process for the review of biosimilar
biological product applications (see
section 744H(c)(2) of the FD&C Act).
As a first step toward implementing
the new methodology, FDA committed
to establish modernized time reporting
and a resource capacity planning
capability. Modernized time reporting
was implemented in CBER in 2018 and
in CDER in 2019. A resource capacity
planning capability was established in
both CDER and CBER in 2020. In the
statute, FDA was directed to
commission an independent report
evaluating options and
recommendations for a methodology to
accurately assess changes in the
resource and capacity needs of the
process for the review of biosimilar
biological product applications,
informed by personnel time reporting
data as an input, and to publish the
report for public comment. The
evaluation was conducted by Booz
Allen Hamilton and published on the
FDA website in April 2020.2 A docket
was then opened to receive public
comment.3 After having reviewed the
evaluation and the public comment,
FDA is establishing and implementing
the CPA methodology for the setting of
FY 2021 fee amounts.
The new CPA methodology consists
of four steps:
1. Forecast workload volumes:
Predictive models estimate the volume
of workload for the upcoming fiscal
year. Workload categories for BsUFA
include biosimilar biological product
applications, participating BPD
programs, supplements, and formal
industry meetings scheduled (biosimilar
initial advisory (BIA) and BPD Type 1–
4 meetings,4 including BIA and BPD
Type 2 written-response only meetings)
2. Forecast the resource needs:
Forecast algorithms are generated
utilizing time reporting data. These
algorithms estimate the required
demand in FTEs for direct reviewrelated efforts. This is then compared to
current available resources for the direct
review workload.
3. Assess the resource forecast in the
context of additional internal factors:
Program leadership examines
operational, financial, and resourcing
data to assess whether the FDA will be
2 See: https://www.fda.gov/media/136606/
download.
3 See: https://www.regulations.gov/docket
Browser?rpp=50&so=DESC&sb=postedDate&po=
0&dct=PS&D=FDA-2020-N-0989.
4 The BsUFA II commitment letter defines these
meeting types in section 1.I.: https://www.fda.gov/
media/100573/download.
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significant data collection and analysis
has been completed. Going forward, the
Agency intends to refine its data and
estimates for the core review activities
to improve their accuracy, and also, as
feasible, to apply the new methodology
to all major activities that impact the
resource needs of the process for the
review of biosimilar biological product
applications under BsUFA, potentially
including, for example, post-market
safety activities and some subsets of
policy and guidance development. This
iterative, continuous improvement
approach to the CPA methodology was
able to utilize additional funds during
the fiscal year and the funds are
required to support additional review
capacity. FTE amounts are adjusted, if
needed.
4. Convert the FTE need to dollars:
Utilizing the FDA’s fully-loaded FTE
cost model, the final feasible FTEs are
converted to an equivalent dollar
amount.
Further, FDA is adopting an iterative,
continuous improvement approach as
part of its CPA methodology. For FY
2021, FDA is applying the methodology
to core review activities, for which
recommended by the independent
evaluation and in the public comments.
FDA believes that its estimates will be
continuously improved over time as
more robust data becomes available to
more fully account for total BsUFA
program resource needs.
The following section outlines the
major components of the FY 2021
BsUFA CPA. Table 4 summarizes the
forecasted workload volumes for BsUFA
in FY 2021 based on predictive models,
as well as historical actuals from FY
2019 for comparison.
TABLE 4—BSUFA ACTUAL FY 2019 WORKLOAD VOLUMES & PREDICTED FY 2021 WORKLOAD VOLUMES
FY 2019
actuals
Workload category
Efficacy Supplements ..............................................................................................................................................
Labeling Supplements .............................................................................................................................................
Manufacturing Supplements ....................................................................................................................................
Biosimilar Biological Product Applications ...............................................................................................................
BsUFA Industry Meetings (BIA, BPD Type 1–4) ....................................................................................................
Participating BPD Programs ....................................................................................................................................
Utilizing the resource forecast
algorithms, the forecasted workload
volumes for FY 2021 were then
converted into estimated FTE needs for
FDA’s BsUFA direct review-related
work. The resulting expected FY 2021
FTE need for BsUFA was compared to
current onboard capacity for BsUFA
FY 2021
predictions
12
10
58
6
114
95
8
7
90
8
102
119
direct review-related work to determine
the FY 2021 resource delta, as
summarized in Table 5.
TABLE 5—FY 2021 BSUFA RESOURCE DELTA
Current resource capacity
FY 2021
resource forecast
Predicted FY 2021
FTE delta
61.7
88.3
26.5
The projected 26.5 FTE delta was then
assessed by FDA in the context of
additional operational and internal
factors to ensure that a fee adjustment
is only made for resources which can be
utilized in the fiscal year and for which
funds are required to support additional
review capacity. After accounting for
the range of recent years’ historical net
FTE gains and one remaining previously
funded BsUFA vacancy, FDA
determined that the realistic expected
net FTE gains could be funded through
the expected FY 2021 collections
amount without a further adjustment
from the CPA. In summary, after
accounting for these internal factors,
FDA determined that in FY 2021 the
BsUFA fee amounts did not need
adjustment from the CPA to provide
funds for the realistic estimated net FTE
gains.
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TABLE 6—FY 2021 BSUFA CPA
Additional FTEs for
FY 2021
Cost for each
additional FTE
FY 2021
BsUFA CPA
26.5
$301,701
$0
adjust the fee revenue and fees for any
given fiscal year during BsUFA II, after
FY 2018, to maintain an appropriate
operating reserve of carryover user fees.
Beginning in FY 2019, FDA may reduce
the fee revenue and fees for long-term
financial planning purposes. Once the
capacity planning adjustment is
effective, FDA also may, if necessary,
increase the fee revenue and fees to
maintain not more than 21 weeks of
operating reserve of carryover user fees.
As described in the BsUFA II
commitment letter, Biosimilar Biological
Product Reauthorization Goals and
Procedures Fiscal Years 2018 Through
2022,5 FDA is committed to reducing
the BsUFA carryover reserve to an
Although an adjustment to the fee
amounts for resource needs by the CPA
will not be made in FY 2021, FDA will
evaluate the need for a fee adjustment
from the CPA in future fiscal years and
will make adjustments as warranted.
C. FY 2021 Statutory Fee Revenue
Adjustments for Operating Reserve
BsUFA II provides for an operating
reserve adjustment to allow FDA to
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5 See: https://www.fda.gov/media/100573/
download.
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amount no greater than 21 weeks of
operating reserve of carryover user fees
by the end of FY 2022. FDA has
determined that it shall not apply an
operating reserve adjustment to lower
the FY 2021 target revenue amount as
FDA appears on track to reduce the
carryover reserve to the committed
level.
III. Fee Amounts for FY 2021
Under section 744H(b)(3)(A) of the
FD&C Act, FDA must determine the
percentage of the total revenue amount
for a fiscal year to be derived from: (1)
Initial and annual BPD fees and
reactivation fees; (2) biosimilar
biological product application fees; and
(3) biosimilar biological product
program fees. In establishing the fee
amounts for the fourth year of BsUFA II,
FDA considered how best to balance the
fee allocation to provide stable funding
and reasonable fee amounts. In future
years, FDA will consider the most
appropriate means of allocating the fee
amounts to collect the adjusted target
revenue amount, subject to the relevant
statutory provisions.
A. Application Fees
In establishing the biosimilar
biological product application fee
amount for FY 2021, FDA utilized an
average of the 3 most recently
completed fiscal years (i.e., fiscal years
2017–2019) of biosimilar biological
product application submissions. Based
on the available information, FDA
estimates it will receive 8 biosimilar
biological product applications
requiring clinical data for approval in
FY 2021.
FDA will maintain the biosimilar
biological product application fee for FY
2021 at the same level as FY 2020,
which is $1,746,745. This is estimated
to provide a total of $13,973,960
representing 33 percent (rounded to the
nearest whole number) of the FY 2021
target revenue amount.
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B. Biosimilar Biological Product
Program Fee
Under BsUFA II, FDA assesses
biosimilar biological product program
fees (‘‘program fees’’). An applicant in a
biosimilar biological product
application shall not be assessed more
than five program fees for a fiscal year
for biosimilar biological products
identified in a single biosimilar
biological product application (see
FD&C Act section 744H(a)(3)(D)).
Applicants are assessed a program fee
for a fiscal year only for biosimilar
biological products identified in a
biosimilar biological product
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application approved as of October 1 of
such fiscal year.
Based on available information, FDA
estimates that 54 program fees will be
invoiced for FY 2021, including
currently approved products and
products with the potential to be
approved in pending applications with
goal dates in FY 2020. For products
invoiced in the FY 2021 regular billing
cycle, FDA anticipates that zero
program fees will be refunded.
FDA will maintain the biosimilar
biological product program fee for FY
2021 at the same level as FY 2020,
which is $304,162. This is estimated to
provide a total of $16,424,748,
representing 39 percent (rounded to the
nearest whole number) of the FY 2021
target revenue amount.
TABLE 7—FEE SCHEDULE FOR FY
2021—Continued
Fee category
Not requiring clinical data
Program ................................
Fee rates
for FY 2021
873,373
304,162
V. Fee Payment Options and
Procedures
A. Initial BPD, Reactivation, and
Application Fees
The fees established in the new fee
schedule apply to FY 2021, i.e., the
period from October 1, 2020, through
September 30, 2021. The initial BPD fee
for a product is due when the sponsor
submits an IND that FDA determines is
intended to support a biosimilar
C. Initial and Annual BPD Fees,
biological product application for the
Reactivation Fees
product or within five calendar days
after FDA grants the first BPD meeting
To estimate the number of BPD fees
for the product, whichever occurs first.
to be paid in FY 2021, FDA must
Sponsors who have discontinued
consider the number of new BPD
participation in the BPD program for a
programs, the number of current BPD
product and seek to resume
programs, and the number of BPD
programs that will be reactivated. These participation in such program must pay
the reactivation fee by the earlier of the
estimates provide information that,
when aggregated, allows FDA to set BPD following dates: No later than five
calendar days after FDA grants the
fees (initial BPD fees, annual BPD fees,
sponsor’s request for a BPD meeting for
reactivation fees).
that product or upon the date of
FDA uses internal data and a survey
submission by the sponsor of an IND
of BPD sponsors to estimate the total
describing an investigation that FDA
number of BPD programs for FY 2021.
determines is intended to support a
In FY 2021, FDA estimates 32 new BPD
biosimilar biological product
programs, no reactivations (a single
application for that product.
reactivation is weighted as two BPD
The application fee for a biosimilar
fees), and 86 BPD programs to be
biological product is due upon
invoiced for the annual BPD fee, for a
submission of the application (see
total equivalent of 118 BPD fees
section 744H(a)(2)(C) of the FD&C Act).
assessed in FY 2021.
To make a payment of the initial BPD,
The remainder of the target revenue of
reactivation, or application fee,
$12,094,292, or 28 percent (rounded to
complete the Biosimilar User Fee Cover
the nearest whole number), is to be
Sheet, available on FDA’s website
collected from the BPD fees. Dividing
(https://www.fda.gov/bsufa) and
this amount by the estimated 118 BPD
fees to be paid equals an initial BPD and generate a user fee identification (ID)
number. Payment must be made in U.S.
annual BPD fee amount of $102,494.
currency by electronic check, check,
The reactivation fee is set at twice the
initial/annual BPD amount at $204,988. bank draft, U.S. postal money order, or
wire transfer. The preferred payment
This represents a reduction of the BPD
method is online using electronic check
fees from the FY 2020 levels.
(Automated Clearing House (ACH) also
IV. Fee Schedule for FY 2021
known as eCheck) or credit card
(Discover, VISA, MasterCard, American
The fee rates for FY 2021 are
Express). FDA has partnered with the
displayed in Table 7.
U.S. Department of the Treasury to use
Pay.gov, a web-based payment
TABLE 7—FEE SCHEDULE FOR FY
application, for online electronic
2021
payment. The Pay.gov feature is
Fee rates
available on the FDA website after the
Fee category
for FY 2021
user fee ID number is generated. Secure
electronic payments can be submitted
Initial BPD .............................
$102,494
Annual BPD ..........................
102,494 using the User Fees Payment Portal at
Reactivation ..........................
204,988 https://userfees.fda.gov/pay (Note: Only
full payments are accepted. No partial
Applications:
Requiring clinical data .......
1,746,745 payments can be made online). Once
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E:\FR\FM\04AUN1.SGM
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Federal Register / Vol. 85, No. 150 / Tuesday, August 4, 2020 / Notices
jbell on DSKJLSW7X2PROD with NOTICES
you search for your invoice, click ‘‘Pay
Now’’ to be redirected to Pay.gov.
Electronic payment options are based on
the balance due. Payment by credit card
is available for balances that are less
than $25,000. If the balance exceeds this
amount, only the ACH option is
available. Payments must be made using
U.S bank accounts as well as U.S. credit
cards.
If a check, bank draft, or postal money
order is submitted, make it payable to
the order of the Food and Drug
Administration and include the user fee
ID number to ensure that the payment
is applied to the correct fee(s). Payments
can be mailed to: Food and Drug
Administration, P.O. Box 979108, St.
Louis, MO 63197–9000. If a check, bank
draft, or money order is to be sent by a
courier that requests a street address,
the courier should deliver your payment
to: U.S. Bank, Attention: Government
Lockbox 979108, 1005 Convention
Plaza, St. Louis, MO 63101. (Note: This
U.S. Bank address is for courier delivery
only. If you have any questions
concerning courier delivery, contact
U.S. Bank at 314–418–4013. This
telephone number is only for questions
about courier delivery.) Please make
sure that the FDA post office box
number (P.O. Box 979108) and ID
number is written on the check, bank
draft, or postal money order.
For payments made by wire transfer,
include the unique user fee ID number
to ensure that the payment is applied to
the correct fee(s). Without the unique
user fee ID number, the payment may
not be applied. The originating financial
institution may charge a wire transfer
fee. Include applicable wire transfer fees
with payment to ensure fees are fully
paid. Questions about wire transfer fees
should be addressed to the financial
institution. The following account
information should be used to send
payments by wire transfer: U.S.
Department of the Treasury, TREAS
NYC, 33 Liberty St., New York, NY
10045, Acct. No.: 75060099, Routing
No.: 021030004, SWIFT: FRNYUS33.
FDA’s tax identification number is 53–
0196965.
B. Annual BPD and Program Fees
FDA will issue invoices with payment
instructions for FY 2021 annual BPD
and program fees under the new fee
schedule in August 2020. Payment will
be due on October 1, 2020. If sponsors
join the BPD program after the annual
BPD invoices have been issued in
August 2020, FDA will issue invoices in
December 2020 to firms subject to fees
for FY 2021 that qualify for the annual
BPD fee after the August 2020 billing.
FDA will issue invoices in December
VerDate Sep<11>2014
18:14 Aug 03, 2020
Jkt 250001
2020 for any annual program fees for FY
2021 that qualify for fee assessments
and were not issued in August 2020.
Dated: July 29, 2020.
Lauren K. Roth,
Associate Commissioner for Policy.
[FR Doc. 2020–16858 Filed 7–30–20; 4:15 pm]
BILLING CODE 4164–01–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Food and Drug Administration
[Docket No. FDA–2020–N–1693]
Outsourcing Facility Fee Rates for
Fiscal Year 2021
AGENCY:
Food and Drug Administration,
HHS.
ACTION:
Notice.
The Food and Drug
Administration (FDA) is announcing the
fiscal year (FY) 2021 rates for the
establishment and re-inspection fees
related to entities that compound
human drugs and elect to register as
outsourcing facilities under the Federal
Food, Drug, and Cosmetic Act (FD&C
Act). The FD&C Act authorizes FDA to
assess and collect an annual
establishment fee from outsourcing
facilities, as well as a re-inspection fee
for each re-inspection of an outsourcing
facility. This document establishes the
FY 2021 rates for the small business
establishment fee ($5,695), the nonsmall business establishment fee
($18,837), and the re-inspection fee
($17,085) for outsourcing facilities;
provides information on how the fees
for FY 2021 were determined; and
describes the payment procedures
outsourcing facilities should follow.
These fee rates are effective October 1,
2020, and will remain in effect through
September 30, 2021.
FOR FURTHER INFORMATION CONTACT:
For more information on human drug
compounding and outsourcing facility
fees: Visit FDA’s website at: https://
www.fda.gov/Drugs/Guidance
ComplianceRegulatoryInformation/
PharmacyCompounding/default.htm.
For questions relating to this notice:
Lola Olajide, Office of Financial
Management, Food and Drug
Administration, 4041 Powder Mill Rd.,
Rm. 61077B, Beltsville, MD 20705–
4304, 240–402–4244.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
The Drug Quality and Security Act
contains important provisions relating
to the oversight of compounding human
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47225
drugs. Title I of this law, the
Compounding Quality Act, created a
new section 503B in the FD&C Act (21
U.S.C. 353b). Under section 503B of the
FD&C Act, a human drug compounder
can become an ‘‘outsourcing facility.’’
Outsourcing facilities, as defined in
section 503B(d)(4) of the FD&C Act, are
facilities that meet all of the conditions
described in section 503B(a), including
registering with FDA as an outsourcing
facility and paying an annual
establishment fee. If the conditions of
section 503B are met, a drug
compounded by or under the direct
supervision of a licensed pharmacist in
an outsourcing facility is exempt from
three sections of the FD&C Act: (1)
Section 502(f)(1) (21 U.S.C. 352(f)(1))
concerning the labeling of drugs with
adequate directions for use; (2) section
505 (21 U.S.C. 355) concerning the
approval of human drug products under
new drug applications (NDAs) or
abbreviated new drug applications
(ANDAs); and (3) section 582 (21 U.S.C.
360eee–1) concerning drug supply chain
security requirements. Drugs
compounded in outsourcing facilities
are not exempt from the requirements of
section 501(a)(2)(B) of the FD&C Act (21
U.S.C. 351(a)(2)(B)) concerning current
good manufacturing practice
requirements for drugs.
Section 744K of the FD&C Act (21
U.S.C. 379j–62) authorizes FDA to
assess and collect the following fees
associated with outsourcing facilities:
(1) An annual establishment fee from
each outsourcing facility and (2) a reinspection fee from each outsourcing
facility subject to a re-inspection (see
section 744K(a)(1) of the FD&C Act).
Under statutorily defined conditions, a
qualified applicant may pay a reduced
small business establishment fee (see
section 744K(c)(4) of the FD&C Act).
FDA announced in the Federal
Register of November 24, 2014 (79 FR
69856), the availability of a final
guidance for industry entitled ‘‘Fees for
Human Drug Compounding Outsourcing
Facilities Under Sections 503B and
744K of the FD&C Act.’’ The guidance
provides additional information on the
annual fees for outsourcing facilities
and adjustments required by law, reinspection fees, how to submit payment,
the effect of failure to pay fees, and how
to qualify as a small business to obtain
a reduction of the annual establishment
fee. This guidance can be accessed on
FDA’s website at: https://www.fda.gov/
media/136683/download.
E:\FR\FM\04AUN1.SGM
04AUN1
Agencies
[Federal Register Volume 85, Number 150 (Tuesday, August 4, 2020)]
[Notices]
[Pages 47220-47225]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-16858]
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DEPARTMENT OF HEALTH AND HUMAN SERVICES
Food and Drug Administration
[Docket No. FDA-2019-N-3560]
Biosimilar User Fee Rates for Fiscal Year 2021
AGENCY: Food and Drug Administration, HHS.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Food and Drug Administration (FDA) is announcing the rates
for biosimilar user fees for fiscal year (FY) 2021. The Federal Food,
Drug, and Cosmetic Act (FD&C Act), as amended by the Biosimilar User
Fee Amendments of 2017 (BsUFA II), authorizes FDA to assess and collect
user fees for certain activities in connection with biosimilar
biological product development; review of certain applications for
approval of biosimilar biological products; and each biosimilar
biological product approved in a biosimilar biological product
application. BsUFA II directs FDA to establish, before the beginning of
each fiscal year, the amount of initial and annual biosimilar
biological product development (BPD) fees, the reactivation fee, and
the biosimilar biological product application and program fees for such
year. These fees apply to the period from October 1, 2020, through
September 30, 2021.
FOR FURTHER INFORMATION CONTACT: Andrew Bank, Office of Financial
[[Page 47221]]
Management, Food and Drug Administration, 4041 Powder Mill Rd., Rm.
62019A, Beltsville, MD 20705-4304, 301-796-0292.
SUPPLEMENTARY INFORMATION:
I. Background
Sections 744G, 744H, and 744I of the FD&C Act (21 U.S.C. 379j-51,
379j-52, and 379j-53), as amended by BsUFA II (title IV of the FDA
Reauthorization Act of 2017, Pub. L. 115-52), authorize the collection
of fees for biosimilar biological products. Under section 744H(a)(1)(A)
of the FD&C Act, the initial BPD fee for a product is due when the
sponsor submits an investigational new drug (IND) application that FDA
determines is intended to support a biosimilar biological product
application or within 5 calendar days after FDA grants the first BPD
meeting, whichever occurs first. A sponsor who has paid the initial BPD
fee is considered to be participating in FDA's BPD program for that
product.
Under section 744H(a)(1)(B) of the FD&C Act, once a sponsor has
paid the initial BPD fee for a product, the annual BPD fee is assessed
beginning with the next fiscal year. The annual BPD fee is assessed for
the product each fiscal year until the sponsor submits a marketing
application for the product that is accepted for filing or the sponsor
discontinues participation in FDA's BPD program for the product.
Under section 744H(a)(1)(D) of the FD&C Act, if a sponsor has
discontinued participation in FDA's BPD program and wants to re-engage
with FDA on development of the product, the sponsor must pay a
reactivation fee to resume participation in the program. The sponsor
must pay the reactivation fee by the earlier of the following dates: No
later than 5 calendar days after FDA grants the sponsor's request for a
BPD meeting for that product or upon the date of submission by the
sponsor of an IND describing an investigation that FDA determines is
intended to support a biosimilar biological product application for
that product. The sponsor will be assessed an annual BPD fee beginning
with the first fiscal year after payment of the reactivation fee.
BsUFA II also authorizes fees for certain biosimilar biological
product applications and for each biosimilar biological product
identified in an approved biosimilar biological product application
(section 744H(a)(2) and (3) of the FD&C Act). Under certain conditions,
FDA will grant a small business a waiver from its first biosimilar
biological product application fee (section 744H(d)(1) of the FD&C
Act).
For FY 2018 through FY 2022, the base revenue amounts for the total
revenues from all BsUFA fees are established by BsUFA II. For FY 2021,
the base revenue amount is the FY 2020 inflation adjusted fee revenue
amount of $41,922,873. The FY 2021 base revenue amount is to be
adjusted for inflation and may be reduced, as appropriate, for long-
term financial planning purposes. Beginning in FY 2021, the inflation-
adjusted base revenue amount is also adjusted to reflect changes in the
resource capacity needs for the process for the review of biosimilar
biological product applications.
This document provides fee rates for FY 2021 for the initial and
annual BPD fee ($102,494), for the reactivation fee ($204,988), for an
application requiring clinical data ($1,746,745), for an application
not requiring clinical data ($873,373), and for the program fee
($304,162). These fees are effective on October 1, 2020, and will
remain in effect through September 30, 2021. For applications that are
submitted on or after October 1, 2020, the new fee schedule must be
used.
II. Fee Revenue Amount for FY 2021
The base revenue amount for FY 2021 is $41,922,873 prior to
adjustments for inflation, resource capacity, and operating reserves
(see section 744H(c)(1), (c)(2), and (c)(3) of the FD&C Act).
A. FY 2021 Statutory Fee Revenue Adjustments for Inflation
BsUFA II specifies that the $41,922,873 is to be adjusted for
inflation increases for FY 2021 using two separate adjustments--one for
personnel compensation and benefits (PC&B) and one for non-PC&B costs
(see section 744H(c)(1) of the FD&C Act).
The component of the inflation adjustment for payroll costs shall
be one plus the average annual percent change in the cost of all PC&B
paid per full-time equivalent (FTE) positions at FDA for the first 3 of
the preceding 4 FYs, multiplied by the proportion of PC&B costs to
total FDA costs of the process for the review of biosimilar biological
product applications for the first 3 of the preceding 4 FYs (see
section 744H(c)(1)(B) of the FD&C Act).
Table 1 summarizes the actual cost and FTE data for the specified
FYs and provides the percent changes from the previous FYs and the
average percent changes over the first 3 of the 4 FYs preceding FY
2021. The 3-year average is 1.2644 percent.
Table 1--FDA PC&B Each Year and Percent Changes
----------------------------------------------------------------------------------------------------------------
Fiscal year 2017 2018 2019 3-Year average
----------------------------------------------------------------------------------------------------------------
Total PC&B.............................. $2,581,551,000 $2,690,678,000 $2,620,052,000 ................
Total FTE............................... 17,022 17,023 17,144 ................
PC&B per FTE............................ $151,660 $158,061 $152,826 ................
Percent Change From Previous Year....... 2.8845% 4.2206% -3.3120% 1.2644%
----------------------------------------------------------------------------------------------------------------
The statute specifies that this 1.2644 percent be multiplied by the
proportion of PC&B costs to the total FDA costs of the process for the
review of biosimilar biological product applications. Table 2 shows the
PC&B and the total obligations for the process for the review of
biosimilar biological product applications for the first 3 of the
preceding 4 FYs.
Table 2--PC&B as a Percent of Total Cost of the Process for the Review of Biosimilar Biological Product
Applications
----------------------------------------------------------------------------------------------------------------
Fiscal year 2017 2018 2019 3-Year average
----------------------------------------------------------------------------------------------------------------
Total PC&B.............................. $30,707,050 $35,477,032 $32,946,252 ................
Total Costs............................. $55,814,043 $62,604,122 $65,210,467 ................
[[Page 47222]]
PC&B Percent............................ 55.0167% 56.6688% 50.5230% 54.0695%
----------------------------------------------------------------------------------------------------------------
The payroll adjustment is 1.2644 percent from Table 1 multiplied by
54.0695 percent (or 0.6837 percent).
The statute specifies that the portion of the inflation adjustment
for non-payroll costs is the average annual percent change that
occurred in the Consumer Price Index (CPI) for urban consumers
(Washington-Baltimore, DC-MD-VA-WV; not seasonally adjusted; all items;
annual index) for the first 3 years of the preceding 4 years of
available data multiplied by the proportion of all costs other than
PC&B costs to total costs of the process for the review of biosimilar
biological product applications for the first 3 years of the preceding
4 FYs (see section 744H(c)(1)(B) of the FD&C Act). As a result of a
geographical revision made by the Bureau of Labor and Statistics in
January 2018,\1\ the ``Washington-Baltimore, DC-MD-VA-WV'' index was
discontinued and replaced with two separate indices (i.e.,
``Washington-Arlington-Alexandria, DC-VA-MD-WV'' and ``Baltimore-
Columbia-Towson, MD''). In order to continue applying a CPI which best
reflects the geographic region in which FDA is headquartered and which
provides the most current data available, the Washington-Arlington-
Alexandria index will be used in calculating the relevant adjustment
factors for FY 2020 and subsequent years. Table 3 provides the summary
data for the percent changes in the specified CPI for the Washington-
Arlington-Alexandria area. The data are published by the Bureau of
Labor Statistics and can be found on its website at: https://data.bls.gov/pdq/SurveyOutputServlet?data_tool=dropmap&series_id=CUURS35ASA0,CUUSS35ASA0.
---------------------------------------------------------------------------
\1\ The Bureau of Labor Statistics' announcement of the
geographical revision can be viewed at https://www.bls.gov/cpi/additional-resources/geographic-revision-2018.htm.
Table 3--Annual and Three-Year Average Percent Change in CPI for Washington-Arlington-Alexandria Area
----------------------------------------------------------------------------------------------------------------
Year 2017 2018 2019 3-Year average
----------------------------------------------------------------------------------------------------------------
Annual CPI............................ 256.221 261.445 264.777 ........................
Annual Percent Change................. 1.1045% 2.0389% 1.2745% 1.4726%
----------------------------------------------------------------------------------------------------------------
The statute specifies that this 1.4726 percent be multiplied by the
proportion of all costs other than PC&B to total costs of the process
for the review of biosimilar biological product applications obligated.
Since 54.0695 percent was obligated for PC&B (as shown in Table 2),
45.9305 percent is the portion of costs other than PC&B (100 percent
minus 54.0695 percent equals 45.9305 percent). The non-payroll
adjustment is 1.4726 percent times 45.9305 percent, 0.6764 percent.
Next, we add the payroll adjustment (0.6837 percent) to the non-
payroll adjustment (0.6764 percent), for a total inflation adjustment
of 1.3601 percent (rounded) for FY 2021.
We then multiply the base revenue amount for FY 2021 ($41,922,873)
by one plus the inflation adjustment (1.013601), yielding an inflation-
adjusted amount of $42,493,000 (rounded to the nearest thousand).
B. FY 2021 Statutory Fee Revenue Adjustments for Capacity Planning
The statute specifies a process to establish and implement a
capacity planning adjustment (CPA) to adjust the total revenue amount
to reflect changes in the resource capacity needs for the process for
the review of biosimilar biological product applications (see section
744H(c)(2) of the FD&C Act).
As a first step toward implementing the new methodology, FDA
committed to establish modernized time reporting and a resource
capacity planning capability. Modernized time reporting was implemented
in CBER in 2018 and in CDER in 2019. A resource capacity planning
capability was established in both CDER and CBER in 2020. In the
statute, FDA was directed to commission an independent report
evaluating options and recommendations for a methodology to accurately
assess changes in the resource and capacity needs of the process for
the review of biosimilar biological product applications, informed by
personnel time reporting data as an input, and to publish the report
for public comment. The evaluation was conducted by Booz Allen Hamilton
and published on the FDA website in April 2020.\2\ A docket was then
opened to receive public comment.\3\ After having reviewed the
evaluation and the public comment, FDA is establishing and implementing
the CPA methodology for the setting of FY 2021 fee amounts.
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\2\ See: https://www.fda.gov/media/136606/download.
\3\ See: https://www.regulations.gov/docketBrowser?rpp=50&so=DESC&sb=postedDate&po=0&dct=PS&D=FDA-2020-N-0989.
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The new CPA methodology consists of four steps:
1. Forecast workload volumes: Predictive models estimate the volume
of workload for the upcoming fiscal year. Workload categories for BsUFA
include biosimilar biological product applications, participating BPD
programs, supplements, and formal industry meetings scheduled
(biosimilar initial advisory (BIA) and BPD Type 1-4 meetings,\4\
including BIA and BPD Type 2 written-response only meetings)
---------------------------------------------------------------------------
\4\ The BsUFA II commitment letter defines these meeting types
in section 1.I.: https://www.fda.gov/media/100573/download.
---------------------------------------------------------------------------
2. Forecast the resource needs: Forecast algorithms are generated
utilizing time reporting data. These algorithms estimate the required
demand in FTEs for direct review-related efforts. This is then compared
to current available resources for the direct review workload.
3. Assess the resource forecast in the context of additional
internal factors: Program leadership examines operational, financial,
and resourcing data to assess whether the FDA will be
[[Page 47223]]
able to utilize additional funds during the fiscal year and the funds
are required to support additional review capacity. FTE amounts are
adjusted, if needed.
4. Convert the FTE need to dollars: Utilizing the FDA's fully-
loaded FTE cost model, the final feasible FTEs are converted to an
equivalent dollar amount.
Further, FDA is adopting an iterative, continuous improvement
approach as part of its CPA methodology. For FY 2021, FDA is applying
the methodology to core review activities, for which significant data
collection and analysis has been completed. Going forward, the Agency
intends to refine its data and estimates for the core review activities
to improve their accuracy, and also, as feasible, to apply the new
methodology to all major activities that impact the resource needs of
the process for the review of biosimilar biological product
applications under BsUFA, potentially including, for example, post-
market safety activities and some subsets of policy and guidance
development. This iterative, continuous improvement approach to the CPA
methodology was recommended by the independent evaluation and in the
public comments. FDA believes that its estimates will be continuously
improved over time as more robust data becomes available to more fully
account for total BsUFA program resource needs.
The following section outlines the major components of the FY 2021
BsUFA CPA. Table 4 summarizes the forecasted workload volumes for BsUFA
in FY 2021 based on predictive models, as well as historical actuals
from FY 2019 for comparison.
Table 4--BsUFA Actual FY 2019 Workload Volumes & Predicted FY 2021
Workload Volumes
------------------------------------------------------------------------
FY 2019 FY 2021
Workload category actuals predictions
------------------------------------------------------------------------
Efficacy Supplements.................... 12 8
Labeling Supplements.................... 10 7
Manufacturing Supplements............... 58 90
Biosimilar Biological Product 6 8
Applications...........................
BsUFA Industry Meetings (BIA, BPD Type 1- 114 102
4).....................................
Participating BPD Programs.............. 95 119
------------------------------------------------------------------------
Utilizing the resource forecast algorithms, the forecasted workload
volumes for FY 2021 were then converted into estimated FTE needs for
FDA's BsUFA direct review-related work. The resulting expected FY 2021
FTE need for BsUFA was compared to current onboard capacity for BsUFA
direct review-related work to determine the FY 2021 resource delta, as
summarized in Table 5.
Table 5--FY 2021 BsUFA Resource Delta
----------------------------------------------------------------------------------------------------------------
Current resource capacity FY 2021 resource forecast Predicted FY 2021 FTE delta
----------------------------------------------------------------------------------------------------------------
61.7 88.3 26.5
----------------------------------------------------------------------------------------------------------------
The projected 26.5 FTE delta was then assessed by FDA in the
context of additional operational and internal factors to ensure that a
fee adjustment is only made for resources which can be utilized in the
fiscal year and for which funds are required to support additional
review capacity. After accounting for the range of recent years'
historical net FTE gains and one remaining previously funded BsUFA
vacancy, FDA determined that the realistic expected net FTE gains could
be funded through the expected FY 2021 collections amount without a
further adjustment from the CPA. In summary, after accounting for these
internal factors, FDA determined that in FY 2021 the BsUFA fee amounts
did not need adjustment from the CPA to provide funds for the realistic
estimated net FTE gains.
Table 6--FY 2021 BsUFA CPA
----------------------------------------------------------------------------------------------------------------
Additional FTEs for FY 2021 Cost for each additional FTE FY 2021 BsUFA CPA
----------------------------------------------------------------------------------------------------------------
26.5 $301,701 $0
----------------------------------------------------------------------------------------------------------------
Although an adjustment to the fee amounts for resource needs by the
CPA will not be made in FY 2021, FDA will evaluate the need for a fee
adjustment from the CPA in future fiscal years and will make
adjustments as warranted.
C. FY 2021 Statutory Fee Revenue Adjustments for Operating Reserve
BsUFA II provides for an operating reserve adjustment to allow FDA
to adjust the fee revenue and fees for any given fiscal year during
BsUFA II, after FY 2018, to maintain an appropriate operating reserve
of carryover user fees. Beginning in FY 2019, FDA may reduce the fee
revenue and fees for long-term financial planning purposes. Once the
capacity planning adjustment is effective, FDA also may, if necessary,
increase the fee revenue and fees to maintain not more than 21 weeks of
operating reserve of carryover user fees.
As described in the BsUFA II commitment letter, Biosimilar
Biological Product Reauthorization Goals and Procedures Fiscal Years
2018 Through 2022,\5\ FDA is committed to reducing the BsUFA carryover
reserve to an
[[Page 47224]]
amount no greater than 21 weeks of operating reserve of carryover user
fees by the end of FY 2022. FDA has determined that it shall not apply
an operating reserve adjustment to lower the FY 2021 target revenue
amount as FDA appears on track to reduce the carryover reserve to the
committed level.
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\5\ See: https://www.fda.gov/media/100573/download.
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III. Fee Amounts for FY 2021
Under section 744H(b)(3)(A) of the FD&C Act, FDA must determine the
percentage of the total revenue amount for a fiscal year to be derived
from: (1) Initial and annual BPD fees and reactivation fees; (2)
biosimilar biological product application fees; and (3) biosimilar
biological product program fees. In establishing the fee amounts for
the fourth year of BsUFA II, FDA considered how best to balance the fee
allocation to provide stable funding and reasonable fee amounts. In
future years, FDA will consider the most appropriate means of
allocating the fee amounts to collect the adjusted target revenue
amount, subject to the relevant statutory provisions.
A. Application Fees
In establishing the biosimilar biological product application fee
amount for FY 2021, FDA utilized an average of the 3 most recently
completed fiscal years (i.e., fiscal years 2017-2019) of biosimilar
biological product application submissions. Based on the available
information, FDA estimates it will receive 8 biosimilar biological
product applications requiring clinical data for approval in FY 2021.
FDA will maintain the biosimilar biological product application fee
for FY 2021 at the same level as FY 2020, which is $1,746,745. This is
estimated to provide a total of $13,973,960 representing 33 percent
(rounded to the nearest whole number) of the FY 2021 target revenue
amount.
B. Biosimilar Biological Product Program Fee
Under BsUFA II, FDA assesses biosimilar biological product program
fees (``program fees''). An applicant in a biosimilar biological
product application shall not be assessed more than five program fees
for a fiscal year for biosimilar biological products identified in a
single biosimilar biological product application (see FD&C Act section
744H(a)(3)(D)). Applicants are assessed a program fee for a fiscal year
only for biosimilar biological products identified in a biosimilar
biological product application approved as of October 1 of such fiscal
year.
Based on available information, FDA estimates that 54 program fees
will be invoiced for FY 2021, including currently approved products and
products with the potential to be approved in pending applications with
goal dates in FY 2020. For products invoiced in the FY 2021 regular
billing cycle, FDA anticipates that zero program fees will be refunded.
FDA will maintain the biosimilar biological product program fee for
FY 2021 at the same level as FY 2020, which is $304,162. This is
estimated to provide a total of $16,424,748, representing 39 percent
(rounded to the nearest whole number) of the FY 2021 target revenue
amount.
C. Initial and Annual BPD Fees, Reactivation Fees
To estimate the number of BPD fees to be paid in FY 2021, FDA must
consider the number of new BPD programs, the number of current BPD
programs, and the number of BPD programs that will be reactivated.
These estimates provide information that, when aggregated, allows FDA
to set BPD fees (initial BPD fees, annual BPD fees, reactivation fees).
FDA uses internal data and a survey of BPD sponsors to estimate the
total number of BPD programs for FY 2021. In FY 2021, FDA estimates 32
new BPD programs, no reactivations (a single reactivation is weighted
as two BPD fees), and 86 BPD programs to be invoiced for the annual BPD
fee, for a total equivalent of 118 BPD fees assessed in FY 2021.
The remainder of the target revenue of $12,094,292, or 28 percent
(rounded to the nearest whole number), is to be collected from the BPD
fees. Dividing this amount by the estimated 118 BPD fees to be paid
equals an initial BPD and annual BPD fee amount of $102,494. The
reactivation fee is set at twice the initial/annual BPD amount at
$204,988. This represents a reduction of the BPD fees from the FY 2020
levels.
IV. Fee Schedule for FY 2021
The fee rates for FY 2021 are displayed in Table 7.
Table 7--Fee Schedule for FY 2021
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Fee rates for
Fee category FY 2021
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Initial BPD............................................. $102,494
Annual BPD.............................................. 102,494
Reactivation............................................ 204,988
Applications:
Requiring clinical data............................... 1,746,745
Not requiring clinical data........................... 873,373
Program................................................. 304,162
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V. Fee Payment Options and Procedures
A. Initial BPD, Reactivation, and Application Fees
The fees established in the new fee schedule apply to FY 2021,
i.e., the period from October 1, 2020, through September 30, 2021. The
initial BPD fee for a product is due when the sponsor submits an IND
that FDA determines is intended to support a biosimilar biological
product application for the product or within five calendar days after
FDA grants the first BPD meeting for the product, whichever occurs
first. Sponsors who have discontinued participation in the BPD program
for a product and seek to resume participation in such program must pay
the reactivation fee by the earlier of the following dates: No later
than five calendar days after FDA grants the sponsor's request for a
BPD meeting for that product or upon the date of submission by the
sponsor of an IND describing an investigation that FDA determines is
intended to support a biosimilar biological product application for
that product.
The application fee for a biosimilar biological product is due upon
submission of the application (see section 744H(a)(2)(C) of the FD&C
Act).
To make a payment of the initial BPD, reactivation, or application
fee, complete the Biosimilar User Fee Cover Sheet, available on FDA's
website (https://www.fda.gov/bsufa) and generate a user fee
identification (ID) number. Payment must be made in U.S. currency by
electronic check, check, bank draft, U.S. postal money order, or wire
transfer. The preferred payment method is online using electronic check
(Automated Clearing House (ACH) also known as eCheck) or credit card
(Discover, VISA, MasterCard, American Express). FDA has partnered with
the U.S. Department of the Treasury to use Pay.gov, a web-based payment
application, for online electronic payment. The Pay.gov feature is
available on the FDA website after the user fee ID number is generated.
Secure electronic payments can be submitted using the User Fees Payment
Portal at https://userfees.fda.gov/pay (Note: Only full payments are
accepted. No partial payments can be made online). Once
[[Page 47225]]
you search for your invoice, click ``Pay Now'' to be redirected to
Pay.gov. Electronic payment options are based on the balance due.
Payment by credit card is available for balances that are less than
$25,000. If the balance exceeds this amount, only the ACH option is
available. Payments must be made using U.S bank accounts as well as
U.S. credit cards.
If a check, bank draft, or postal money order is submitted, make it
payable to the order of the Food and Drug Administration and include
the user fee ID number to ensure that the payment is applied to the
correct fee(s). Payments can be mailed to: Food and Drug
Administration, P.O. Box 979108, St. Louis, MO 63197-9000. If a check,
bank draft, or money order is to be sent by a courier that requests a
street address, the courier should deliver your payment to: U.S. Bank,
Attention: Government Lockbox 979108, 1005 Convention Plaza, St. Louis,
MO 63101. (Note: This U.S. Bank address is for courier delivery only.
If you have any questions concerning courier delivery, contact U.S.
Bank at 314-418-4013. This telephone number is only for questions about
courier delivery.) Please make sure that the FDA post office box number
(P.O. Box 979108) and ID number is written on the check, bank draft, or
postal money order.
For payments made by wire transfer, include the unique user fee ID
number to ensure that the payment is applied to the correct fee(s).
Without the unique user fee ID number, the payment may not be applied.
The originating financial institution may charge a wire transfer fee.
Include applicable wire transfer fees with payment to ensure fees are
fully paid. Questions about wire transfer fees should be addressed to
the financial institution. The following account information should be
used to send payments by wire transfer: U.S. Department of the
Treasury, TREAS NYC, 33 Liberty St., New York, NY 10045, Acct. No.:
75060099, Routing No.: 021030004, SWIFT: FRNYUS33. FDA's tax
identification number is 53-0196965.
B. Annual BPD and Program Fees
FDA will issue invoices with payment instructions for FY 2021
annual BPD and program fees under the new fee schedule in August 2020.
Payment will be due on October 1, 2020. If sponsors join the BPD
program after the annual BPD invoices have been issued in August 2020,
FDA will issue invoices in December 2020 to firms subject to fees for
FY 2021 that qualify for the annual BPD fee after the August 2020
billing. FDA will issue invoices in December 2020 for any annual
program fees for FY 2021 that qualify for fee assessments and were not
issued in August 2020.
Dated: July 29, 2020.
Lauren K. Roth,
Associate Commissioner for Policy.
[FR Doc. 2020-16858 Filed 7-30-20; 4:15 pm]
BILLING CODE 4164-01-P