Biosimilar User Fee Rates for Fiscal Year 2021, 47220-47225 [2020-16858]

Download as PDF jbell on DSKJLSW7X2PROD with NOTICES 47220 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 VerDate Sep<11>2014 18:14 Aug 03, 2020 Jkt 250001 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 PO 00000 Frm 00061 Fmt 4703 Sfmt 4703 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: E:\FR\FM\04AUN1.SGM 04AUN1 47221 Federal Register / Vol. 85, No. 150 / Tuesday, August 4, 2020 / Notices 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 ............................................. jbell on DSKJLSW7X2PROD with NOTICES 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 ....................................................................................... VerDate Sep<11>2014 18:14 Aug 03, 2020 Jkt 250001 PO 00000 Frm 00062 Fmt 4703 2018 $30,707,050 $55,814,043 Sfmt 4703 2019 $35,477,032 $62,604,122 E:\FR\FM\04AUN1.SGM $32,946,252 $65,210,467 04AUN1 3-Year average ............................ ............................ 47222 Federal Register / Vol. 85, No. 150 / Tuesday, August 4, 2020 / Notices 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). jbell on DSKJLSW7X2PROD with NOTICES 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. VerDate Sep<11>2014 18:14 Aug 03, 2020 Jkt 250001 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. PO 00000 Frm 00063 Fmt 4703 Sfmt 4703 E:\FR\FM\04AUN1.SGM 04AUN1 47223 Federal Register / Vol. 85, No. 150 / Tuesday, August 4, 2020 / Notices 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. jbell on DSKJLSW7X2PROD with NOTICES 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 VerDate Sep<11>2014 18:14 Aug 03, 2020 Jkt 250001 PO 00000 Frm 00064 Fmt 4703 Sfmt 4703 5 See: https://www.fda.gov/media/100573/ download. E:\FR\FM\04AUN1.SGM 04AUN1 47224 Federal Register / Vol. 85, No. 150 / Tuesday, August 4, 2020 / Notices 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. jbell on DSKJLSW7X2PROD with NOTICES 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 VerDate Sep<11>2014 18:14 Aug 03, 2020 Jkt 250001 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 PO 00000 Frm 00065 Fmt 4703 Sfmt 4703 E:\FR\FM\04AUN1.SGM 04AUN1 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 PO 00000 Frm 00066 Fmt 4703 Sfmt 4703 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]


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

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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \5\ See: https://www.fda.gov/media/100573/download.
---------------------------------------------------------------------------

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
------------------------------------------------------------------------
                                                          Fee rates  for
                      Fee category                            FY 2021
------------------------------------------------------------------------
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
------------------------------------------------------------------------

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
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