Termination of the Food and Drug Administration's Unapproved Drugs Initiative; Request for Information Regarding Drugs Potentially Generally Recognized as Safe and Effective, 75331-75334 [2020-26133]
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Federal Register / Vol. 85, No. 228 / Wednesday, November 25, 2020 / Notices
human consumption are not considered
prohibited cattle materials, and their use
does not render human food or
cosmetics adulterated. Sections 189.5(e)
and 700.27(e) provide that a country
seeking to be designated must send a
written request to the Director of the
Center for Food Safety and Applied
Nutrition. The information the country
is required to submit includes
information about a country’s BSE case
history, risk factors, measures to prevent
the introduction and transmission of
BSE, and any other information relevant
to determining whether SRMs, the small
intestine of cattle not otherwise
excluded from being a prohibited cattle
material, material from nonambulatory
disabled cattle, or MS beef from the
country seeking designation should be
considered prohibited cattle materials.
We use the information to determine
whether to grant a request for
designation and to impose conditions if
a request is granted.
Sections 189.5 and 700.27 further
state that countries designated under
§§ 189.5(e) and 700.27(e) will be subject
to future review by FDA to determine
whether their designations remain
appropriate. As part of this process, we
may ask designated countries to confirm
that their BSE situation and the
information submitted by them, in
support of their original application, has
remained unchanged. We may revoke a
country’s designation if we determine
that it is no longer appropriate.
Therefore, designated countries may
respond to periodic FDA requests by
submitting information to confirm their
designations remain appropriate. We
use the information to ensure their
designations remain appropriate.
Description of Respondents:
Respondents to this information
collection include manufacturers,
processors, and importers of FDA-
75331
regulated human food, including dietary
supplements, and cosmetics
manufactured from, processed with, or
otherwise containing material derived
from cattle, as well as, with regard to
§§ 189.5(e) and 700.27(e), foreign
governments seeking designation under
those regulations.
In the Federal Register of August 14,
2020 (85 FR 49657), we published a 60day notice requesting public comment
on the proposed collection of
information. Although some comments
were received, only one pertained to the
information collection. The comment
suggested requiring greater than a 2-year
retention period for records; however,
we believe that additional retention
requirements may impose undue burden
on respondents to the information
collection without providing greater
utility to the Agency.
We estimate the burden of this
collection of information as follows:
TABLE 1—ESTIMATED ANNUAL REPORTING BURDEN 1
Number of
responses per
respondent
Number of
respondents
21 CFR section; activity
Total annual
responses
Average burden per
response
Total hours
189.5(c)(6) and 700.27(c)(6); affirmation of compliance.
189.5(e) and 700.27(e); request for designation .....
189.5(e) and 700.27(e); response to request for review by FDA.
54,825
1
54,825
0.033 (2 minutes) ......
1,809
1
1
1
1
1
1
80 ..............................
26 ..............................
80
26
Total ..................................................................
........................
........................
........................
....................................
1,915
1 There
are no capital costs or operating and maintenance costs associated with this collection of information.
TABLE 2—ESTIMATED ANNUAL RECORDKEEPING BURDEN1
Number of
recordkeepers
Type of respondent
Total annual
records
Average burden per
recordkeeper
Total hours
Domestic facilities ....................................................
Foreign facilities .......................................................
697
916
52
52
36,244
47,632
0.25 (15 minutes) ......
0.25 (15 minutes) ......
9,061
11,908
Total ..................................................................
........................
........................
........................
....................................
20,969
1 There
are no capital costs or operating and maintenance costs associated with this collection of information.
Based on a review of the information
collection since our last request for
OMB approval, we have made no
adjustments to our burden estimate.
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Dated: November 18, 2020.
Lauren K. Roth,
Acting Principal Associate Commissioner for
Policy.
Termination of the Food and Drug
Administration’s Unapproved Drugs
Initiative; Request for Information
Regarding Drugs Potentially Generally
Recognized as Safe and Effective
[FR Doc. 2020–26059 Filed 11–24–20; 8:45 am]
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Number of
records per
recordkeeper
Food and Drug Administration
BILLING CODE 4164–01–P
Food and Drug Administration
(FDA), Department of Health and
Human Services (HHS).
AGENCY:
ACTION:
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Notice; request for information.
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The Department of Health and
Human Services is issuing this Notice to
withdraw FDA’s Marketed Unapproved
Drugs—Compliance Policy Guide, Sec.
440.100, Marketed New Drugs Without
Approved NDAs or ANDAs, and to
request information from the public
regarding drugs that may be
grandfathered or generally recognized as
safe and effective.
SUMMARY:
Part I of this Notice shall be
effective thirty days from the date of
publication in the Federal Register. To
be considered, responses and comments
related to Part II of this Notice must be
received electronically at the email
DATES:
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address listed below. The Department
will consider information submitted by
the public in response to Part II of this
Notice on a rolling basis, and until
further notice.
ADDRESSES: Responses to Part II must be
submitted electronically, and should be
addressed to Import@hhs.gov. In the
subject line of the email message,
submissions should include ‘‘GRASE
RFI Response.’’
FOR FURTHER INFORMATION CONTACT: Nick
Uehlecke, 200 Independence Ave. SW,
Washington, DC 20201; or by email at
Import@hhs.gov; or by telephone at 1–
877–696–6775.
SUPPLEMENTARY INFORMATION: The
Trump Administration, through the
Department of Health and Human
Services (HHS), is continuing its efforts
to reduce the price of prescription
drugs. This Notice addresses two related
but distinct issues: (1) The Food and
Drug Administration’s (FDA)
Unapproved Drugs Initiative (UDI) and
(2) the construction of the statutory
exemptions from the definition of ‘‘new
drugs’’ subject to FDA approval under
the federal Food, Drug, and Cosmetic
Act (FD&C Act), namely so-called pre1938 grandfathered drugs and drugs that
are ‘‘generally recognized as safe and
effective’’ or ‘‘GRASE.’’
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I. Unapproved Drugs Initiative
In 1938, Congress created the modern
scheme for federal regulation of drugs.
Before 1938, there was no requirement
under federal law for a manufacturer to
obtain FDA approval before marketing a
drug. Today, as a general rule, under the
FD&C Act, a ‘‘new drug’’ must be
approved by the FDA for safety and
efficacy pursuant to an approved New
Drug Application (NDA) or Abbreviated
New Drug Application (ANDA) before
the drug is introduced into interstate
commerce. See FD&C Act 201(p), 21
U.S.C. 321(p) (defining ‘‘new drug’’
under the Act); FD&C Act 505(a), 21
U.S.C. 355(a) (‘‘No person shall
introduce or deliver for introduction
into interstate commerce any new drug,
unless an approval of an application
. . . is effective with respect to such
drug.’’). A ‘‘person’’ that introduces a
‘‘new drug’’ into interstate commerce is
subject to, among other sanctions,
injunctions and/or having the subject
product seized in an ex parte
proceeding under admiralty rules. See
FD&C Act 302, 21 U.S.C. 332 (injunction
authority); FD&C Act 304, 21 U.S.C. 334
(seizure authority).
Not all drugs are ‘‘new drugs’’ which
require FDA approval. There are two
primary carve-outs from the FD&C Act’s
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definition of ‘‘new drug.’’ 1 First, when
Congress enacted the modern FD&C Act
in 1938, it exempted from the definition
of ‘‘new drug’’ all drugs ‘‘subject to the
Food and Drugs Act of June 30, 1906, as
amended, and if at such time its labeling
contained the same representations
concerning the conditions of its use.’’
FD&C Act 201(p)(1), 21 U.S.C. 321(p)(1).
Second, drugs that are generally
recognized as safe and effective which
have also ‘‘been used to a material
extent or for a material time’’ are not
‘‘new drugs.’’ FD&C Act 201(p)(1) and
(2), 21 U.S.C. 321(p)(1) and (2). Drugs
that meet either of these exceptions may
be legally marketed without FDA preapproval for safety and efficacy, subject
to the agency’s other regulatory
authorities.
Through a guidance document issued
in 2006 and later revised in 2011, and
without conducting notice-andcomment rulemaking, FDA launched a
program called the Unapproved Drugs
Initiative (UDI).2 The UDI sprang from
a laudable objective, namely to reduce
the number of unapproved drugs on the
market. To achieve this end, FDA
provided in its 2011 UDI Guidance that
‘‘the first company to obtain an approval
[of a previously unapproved drug] will
have a period of de facto market
exclusivity before other products obtain
approval.’’ 3 The agency ‘‘hope[d] that
this period of market exclusivity will
provide an incentive to firms to be the
first to obtain approval to market a
previously unapproved drug.’’ 4
Ultimately, manufacturers of older
drugs previously thought to be exempt
1 There is a third, related exemption which
relieves manufacturers from the obligation of
showing their drugs are effective prior to marketing.
In section 107(c)(4) of the Drug Amendments of
1962, Public Law 87–81, 76 Stat. 780, 789 (Oct. 10,
1962), Congress exempted from the efficacy
requirement ‘‘product[s] that, on the day before the
1962 amendments became effective, (A) [were] used
or sold commercially in the United States, (B)
[were] generally recognized by the experts as safe;
and (C) [were] not ‘covered’ by an ‘effective’
application.’’ USV Pharmaceutical Corp. v.
Weinberger, 412 U.S. 655, 653 (1973). In
Weinberger, the Supreme Court held that so-called
‘‘me-too drugs,’’ i.e., drugs that were copies of NDA
drugs, were effectively ‘‘covered’’ by an effective
application and thus subject to the efficacy
requirement just like drugs covered by NDAs. Id. at
664–65. Practically, Weinberger left as the lone
remaining candidates for this exemption from the
efficacy requirement drugs (a) on the market prior
to 1962, (b) generally recognized as safe, and (c) not
themselves subject to a 1938–1962 ‘‘effective’’ NDA.
2 FDA, Marketed Unapproved Drugs—
Compliance Policy Guide Sec. 440.100, Marketed
New Drugs Without Approved NDAs or ANDAs
(June 2006) (hereinafter the 2006 Guidance); FDA,
Marketed Unapproved Drugs—Compliance Policy
Guide Sec. 440.100, Marketed New Drugs Without
Approved NDAs or ANDAs (Sept. 19, 2011)
(hereinafter the 2011 Guidance).
3 2011 Guidance at 8.
4 Id.
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from the FDA approval requirement
obtained market exclusivity for those
products after FDA took unapproved
versions off the market. An unintended
consequence of the ‘‘period of de facto
market exclusivity’’ provided by the
UDI allowed manufacturers an
opportunity to raise prices in an
environment largely insulated from
market competition.
Based on its ongoing review of FDA
regulatory programs, the Department
has decided to withdraw the 2006 and
2011 Guidance, effective thirty days
after the date of publication of this
Notice in the Federal Register. All
compliance manuals, website
statements, and other informal
issuances with respect to the 2006 and
2011 Guidance are also hereby
withdrawn. The withdrawal of the 2006
and 2011 Guidance Documents
complies with FDA’s current Good
Guidance Practices regulation, which
allows for ‘‘periodic[ ] review of [of]
existing guidance documents to
determine whether they need to be
changed or withdrawn.’’ 21 CFR
10.115(k)(1). Nothing in this Notice
otherwise limits FDA’s authority to take
action against manufacturers of
unapproved drugs that meet the
statutory definition of a ‘‘new drug’’
(such as, for example, an unapproved
drug that claims to mitigate, treat, or
cure COVID–19) or violate the FD&C Act
in other ways. Further, nothing in this
Notice limits FDA’s grant of regulatory
exclusivities authorized by statute, such
as a new chemical entity exclusivity,
orphan drug exclusivity, or pediatric
exclusivity. This Notice does not apply
to drugs subject to (1) Investigational
New Drug applications (IND) that are in
effect as of the effective date of this
Notice, (2) any subsequent NDA based
on new clinical trial investigations
(other than bioavailability studies)
derived under such IND, and (3)
existing approved NDAs.
The Department is withdrawing the
2006 and 2011 Guidances for several
evidence-based reasons. After the UDI
began, reports emerged that Americans
were paying significantly more for
prescription drugs approved by FDA
through the UDI than they had paid
previously. One report noted that a drug
approved through the UDI ‘‘sells for
about $4.50 a tablet—nearly 50 times
the price of the unapproved version.’’ 5
Another report asserted that ‘‘[t]hanks at
least partially to the FDA program, the
price of vasopressin . . . has risen 10fold’’ and the cost of ‘‘a vial of
5 Harris Meyer, The High Price of FDA Approval,
Kaiser Health News, Dec. 29, 2009, https://khn.org/
news/fda-approval/.
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neostigimine . . . has gone from less
than $5 to $90.’’ 6
In 2017, scholars from the Yale
School of Medicine and the University
of Utah published a peer-reviewed
study corroborating the previous
reports.7 The study reviewed 34 drugs
subject to the UDI between 2006 and
2015. The scholars found the average
wholesale unit price of 26 of the 34
drugs for which pricing data was
available increased by a median of 37%
(interquartile range of 23%–204%).8
The average wholesale unit price of 11
of the drugs surveyed in the study
increased by more than 128%.9
The study also linked the UDI to drug
shortages, which the authors defined as
‘‘a supply issue that affects how a
pharmacy prepares or dispenses a drug
product that influences patient care
when prescribers must use an
alternative agent.’’ 10 In this regard, the
scholars found that 24 of the 34 drugs
experienced shortages after FDA took
enforcement action after an entity
obtained FDA approval of a previously
unapproved drug. The median shortage
was 217 days.11
Finally, the authors considered
whether the UDI generated new clinical
data evidence for older drugs. The
authors found that, of the nineteen
drugs that obtained FDA approval
during the study period, only two were
supported by ‘‘new clinical trial
evidence.’’ 12 The other seventeen drugs
‘‘were supported by literature reviews
and bioequivalence to older drug
products.’’ 13
Therefore, the Department has
concluded that while the UDI began
with laudable goals, it has had
numerous negative, unintended
consequences on Americans’ access to
prescription drugs and generated very
limited benefits.
6 Michael Hiltzik, The little-known FDA program
that’s driving drug prices higher, L.A. Times (Sept.
23, 2015), https://www.latimes.com/business/
hiltzik/la-fi-mh-the-little-known-fda-program20150923-column.html.
7 Ravi Gupta et al., The FDA Unapproved Drugs
Initiative: An Observational Study of the
Consequences for Drug Prices and Shortages in the
United States, 23 J. of Man. Care & Specialty Pharm.
1066 (Oct. 2017).
8 Id. at 1071.
9 See id. at 1072.
10 Id. at 1068.
11 Id. at 1073.
12 Id.
13 Id.; see also Aaron S. Kesselheim and Daniel
H. Solomon, Incentives for Drug Development—The
Curious Case of Colchicine, N. Engl. J. Med. 362;22
at 2046 (noting the dramatic rise in the price of
Colchicine after implementation of the UDI, but that
‘‘there is no evidence of any meaningful
improvement to the public health’’ from the
regulatory changes).
13 36 FR 14662, 14662–63 (Aug. 7, 1971).
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Moreover, the fact that the program
was initiated through guidance, as
opposed to notice-and-comment
rulemaking, further supports the
Department’s decision to withdraw the
2006 and 2011 Guidances, because the
Department has serious legal concerns
about whether the UDI was
implemented through legally
permissible procedures.14 The
Department recognizes that some
persons might contend that they have
reliance interests in the 2011 Guidance
remaining in effect. In Dep’t of
Homeland Sec. v. Regents of the Univ.
of California, 140 S. Ct. 1891 (2020), the
Supreme Court struck down the
Department of Homeland Security’s
rescission of the Deferred Action for
Childhood Arrivals (DACA)
immigration program, in part based on
the reliance interests of persons eligible
to obtain the benefits of the program.
Notably, in that case, immigration
authorities ‘‘solicited applications from
eligible aliens, instituted a standardized
review process, and sent formal notices
indicating whether the alien would
receive the two-year forbearance.’’ Id.
As the Court explained, DACA ‘‘created
a program for conferring affirmative
immigration relief.’’ Id.
The UDI is distinguishable from the
DACA program. Unlike DACA, the 2011
Guidance described how the FDA
intended to exercise its enforcement
discretion, but stopped short of
committing FDA to any particular
action. FDA stated that it was ‘‘more
likely to take enforcement action’’
against unapproved competitors of
newly approved drugs under the UDI,
but that the agency ‘‘intend[s] to take
into account the circumstances once the
product is approved in determining how
to exercise our enforcement discretion
with regard to the unapproved
products.’’ 15 Moreover, the 2011
Guidance stated that it ‘‘does not create
or confer any rights for or on any person
and does not operate to bind FDA or the
public.’’ 16 Any reliance interests are
thus illusory. Furthermore, Congress
vested FDA with the sole authority to
enforce the FD&C Act. FD&C Act 310, 21
U.S.C. 337. Under Heckler v. Chaney,
470 U.S. 821 (1985), FDA’s decision
about the extent to which it shall
enforce the FD&C Act is unreviewable
14 See, e.g., 5 U.S.C. 553. The Department also has
concerns regarding whether the issuance of the
2011 Guidance complied with FDA’s good guidance
practices regulation, 21 CFR 10.115, in effect at the
time. FDA issued the 2011 Guidance ‘‘without
public comment because the Agency has
determined that prior public participation is not
feasible or appropriate.’’ 76 FR 58398 (Sept. 21,
2011).
15 2011 Guidance at 7.
16 Id. at 2.
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75333
under the Administrative Procedure
Act.
Even if there were cognizable reliance
interests in the UDI, the Department has
ample evidence-based justification for
rescinding the 2006 and 2011
Guidances. After more than fourteen
years of experience with the program,
evidence has emerged that the UDI has
caused significant prescription drug
price increases and drug shortages while
providing limited new clinical data on
older drugs. The Department believes
these costs imposed on American
patients and taxpayers outweigh any
reliance interests that may exist in the
program. The Department has also
considered the public health effects of
withdrawing the 2006 and 2011
Guidances. As the 2011 Guidance
acknowledges, there are ‘‘several
thousand’’ products on the market that
lack FDA approval.17 To the extent this
program has limited patient access to
important, safe medications due to price
increases or drug shortages, the
withdrawal of the 2006 and 2011
Guidances will have a positive impact
on public health. Moreover, eliminating
this program allows FDA’s resources to
be directed toward monitoring
unapproved ‘‘new drugs’’ that fall
squarely within the traditional scope of
the definition of that term in the FD&C
Act. At the same time, the Notice allows
FDA to use its limited review resources
on innovative potential therapies, as
opposed to older drugs with
longstanding use.
Besides, any reliance interests (if they
existed) would be minimal. This Notice
does not apply to drugs subject to (1)
INDs in effect as of the effective date of
this Notice, (2) any subsequent NDA
based on new clinical investigations
(other than bioavailability studies)
derived under such IND, and (3)
existing approved NDAs.
II. Pre-1938 Grandfathered and GRASE
Drugs; Request for Information
As noted above, when Congress
enacted the FD&C Act in 1938 and later
amended the Act in 1962, it exempted
certain drugs from the FDA approval
requirement. Section 201(p) of the FD&C
Act, 21 U.S.C. 321(p), excludes from the
definition of ‘‘new drug’’ certain drugs
marketed prior to June 25, 1938 and
drugs generally recognized as safe and
effective, or GRASE. In the 2011
Guidance, FDA stated that ‘‘it is not
likely that any currently marketed
prescription drug is grandfathered or is
otherwise not a new drug,’’ though the
17 Id.
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agency stated ‘‘that it is at least
theoretically possible.’’ 18
That was not always the case. For
many years, FDA acknowledged that at
least some drugs are not ‘‘new drugs’’
subject to FDA approval prior to
marketing. In a 1980 version of the
Orange Book, FDA stated that ‘‘[t]he law
also permits drugs to be legally
marketed without such fully approved
applications under certain
circumstances,’’ including ‘‘drugs
marketed prior to 1938 that are not
subject to the pre-market clearance
procedures of the law’’ and ‘‘drug
products marketed between 1938 and
1962 that were approved for safety but
not effectiveness.’’ 19 In the same
publication, the agency went on to
identify specific products, noting
‘‘commonly used large volume
intravenous products are not included
on the List [of FDA-approved drugs]
(e.g., dextrose 5% with water, dextrose
10% with water, sodium chloride 0.9%
injection),’’ since ‘‘all of these drug
products came on the market in glass
containers before 1938 and have not
been required to obtain an approved
new drug application as a condition of
marketing.’’ 20 In the 2000 edition of the
Orange Book, FDA cited to the
barbiturate ‘‘Phenobarbital Tablets’’ as
an example of ‘‘pre-1938 drugs.’’ 21 The
2011 Guidance, issued absent noticeand-comment rulemaking and without
prior public comment, contains no
acknowledgement of these prior
positions.22
This evolution in the agency’s
thinking has had consequences. Under
the UDI, FDA required the manufacturer
of an epinephrine brand which
originally came onto the market in 1901
to submit an NDA.23 The drug
colchicine, a product FDA
acknowledged ‘‘was available in oral
dosage form during the 19th century,’’ 24
18 Id.
at 12 (emphasis in original).
Approved Prescription Drug Products
with Therapeutic Equivalence Evaluations (herein
the Orange Book), at I–3 (1st ed. 1980).
20 Id. at I–13.
21 Id. at I–13. FDA, Orange Book, at v (2000); see
also FDA, Orange Book, at iv (29th ed. 2009)
(containing same reference to ‘‘pre-1938 drugs’’ and
phenobarbital tablets). FDA included a reference to
‘‘pre-1938 drugs’’ like phenobarbital tablets in the
Orange Book as late as 2016, FDA, Orange Book, at
iv (36th ed. 2016), but removed the reference in its
2017 edition and subsequent versions.
22 Cf. F.C.C. v. Fox Television Stations, Inc., 556
U.S. 502, 515 (2009) (‘‘To be sure, the requirement
that an agency provide reasoned explanation for its
action would ordinarily demand that it display
awareness that it is changing position.’’)
23 FDA, Ctr. For Drug Evaluation and Research,
Application Number: 204200Origs1s000,
204200Orig2s000, Summary Review, at 3, https://
www.accessdata.fda.gov/drugsatfda_docs/nda/
2012/204200Orig1Orig2s000SumR.pdf.
24 75 FR 60768 (Oct. 1, 2010).
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19 FDA,
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was also approved through the UDI. The
interpretation of the definition of ‘‘new
drug’’ espoused in the 2011 Guidance
essentially foreclosed the possibility
that these two century-old drugs were
pre-1938 grandfathered drugs exempt
from the approval process. The 2017
study discussed above found that the
average wholesale unit price of
epinephrine and colchicine increased
by 58.3% and 3,323.5%, respectively,25
costs absorbed by American patients
and taxpayers.
The regulatory history of the
prescription drug Daraprim raises
similar issues. FDA originally approved
Daraprim (pyrimethamine) for safety in
1953, and later deemed the drug
effective through the Drug Efficacy
Study Implementation, or DESI review
process.26 The drug is listed on the
World Health Organization’s List of
Essential Medications, ‘‘a list of
minimum medicine needs for a basic
health-care system, listing the most
efficacious, safe and cost-effective
medicines for priority conditions.’’ 27 In
2015, the company Turing
Pharmaceuticals ‘‘raised the price [of
the drug] to $750 a tablet from $13.50,
bringing the annual cost of treatment for
some patients to hundreds of thousands
of dollars.’’ 28 Turing came by this
windfall, at least in part, because of
FDA’s interpretation of the definition of
‘‘new drug’’ in the FD&C Act as
articulated in the 2006 and 2011
Guidances, a view that foreclosed the
possibility that Daraprim, a drug more
than sixty years old, could ever qualify
as GRASE. That position effectively
prevented other manufacturers of
generic versions of this product from
entering the market without an
approved abbreviated new drug
application, allowing Turing to enjoy a
single-source position in the
marketplace while potential competitors
went through the regulatory process. In
February 2016, Congress held a hearing
on this widely-publicized issue.
Ultimately, FDA approved a generic
competitor for this single-source drug in
February 2020.
25 Gupta, supra note 7, at 1072; see also Aaron S.
Kesselheim and Daniel H. Solomon, Incentives for
Drug Development—The Curious Case of
Colchicine, N. Engl. J. Med. 362;22 at 2046 (noting
the dramatic rise in the price of Colchicine after
implementation of the UDI, but that ‘‘there is no
evidence of any meaningful improvement to the
public health’’ from the regulatory changes).
26 36 FR 14662, 14662–63 (Aug. 7, 1971).
27 World Health Organization, 20th WHO Model
List of Essential Medications, at 24 (Mar. 2017).
28 Andrew Pollack, Drug Goes From $13.50 a
Tablet to $750, Overnight, N.Y. Times, Sept. 20,
2015, https://www.nytimes.com/2015/09/21/
business/a-huge-overnight-increase-in-a-drugsprice-raises-protests.html.
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The Department wishes to engage
with the public on the contours of the
exceptions to the definition of ‘‘new
drug.’’ In this regard, HHS is reviewing
whether certain drugs, including the
drug subject to Congressional scrutiny
in 2016, might qualify as exempt from
the FDA approval requirement. To aid
that effort, HHS asks for input from
patients, health care providers, industry,
and other stakeholders to provide
information responsive to any of the
topics below:
1. Lists of drugs marketed prior to
June 25, 1938 that are currently
available on the market.
2. The extent to which drugs
marketed prior to June 25, 1938, or
drugs that might qualify as GRASE, have
regulatory approvals in countries
outside the United States.
3. Whether there would be adverse
clinical or economic consequences to
deeming as GRASE those drugs
previously approved by the FDA for
which patent and regulatory exclusivity
have expired.
4. Any published literature reviews or
clinical studies related to any drugs
potentially exempt from the new drug
approval requirement.
Dated: November 20, 2020.
Alex M. Azar II,
Secretary, Department of Health and Human
Services.
[FR Doc. 2020–26133 Filed 11–24–20; 8:45 am]
BILLING CODE 4150–26–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Food and Drug Administration
[Docket No. FDA–2010–D–0529]
Qualification Process for Drug
Development Tools; Guidance for
Industry; Availability
AGENCY:
Food and Drug Administration,
HHS.
ACTION:
Notice of availability.
The Food and Drug
Administration’s (FDA or Agency)
Center for Drug Evaluation and Research
(CDER) and Center for Biologics
Evaluation and Research (CBER) are
announcing the availability of a final
guidance for industry and FDA staff
entitled ‘‘Qualification Process for Drug
Development Tools.’’ Under the 21st
Century Cures Act (Cures Act), enacted
on December 13, 2016, a new section
was added to the Federal Food, Drug,
and Cosmetic Act (FD&C Act), which
defined a three-stage qualification
process for drug development tools
(DDTs). This guidance meets the Cures
SUMMARY:
E:\FR\FM\25NON1.SGM
25NON1
Agencies
[Federal Register Volume 85, Number 228 (Wednesday, November 25, 2020)]
[Notices]
[Pages 75331-75334]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-26133]
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DEPARTMENT OF HEALTH AND HUMAN SERVICES
Food and Drug Administration
Termination of the Food and Drug Administration's Unapproved
Drugs Initiative; Request for Information Regarding Drugs Potentially
Generally Recognized as Safe and Effective
AGENCY: Food and Drug Administration (FDA), Department of Health and
Human Services (HHS).
ACTION: Notice; request for information.
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SUMMARY: The Department of Health and Human Services is issuing this
Notice to withdraw FDA's Marketed Unapproved Drugs--Compliance Policy
Guide, Sec. 440.100, Marketed New Drugs Without Approved NDAs or ANDAs,
and to request information from the public regarding drugs that may be
grandfathered or generally recognized as safe and effective.
DATES: Part I of this Notice shall be effective thirty days from the
date of publication in the Federal Register. To be considered,
responses and comments related to Part II of this Notice must be
received electronically at the email
[[Page 75332]]
address listed below. The Department will consider information
submitted by the public in response to Part II of this Notice on a
rolling basis, and until further notice.
ADDRESSES: Responses to Part II must be submitted electronically, and
should be addressed to [email protected]. In the subject line of the email
message, submissions should include ``GRASE RFI Response.''
FOR FURTHER INFORMATION CONTACT: Nick Uehlecke, 200 Independence Ave.
SW, Washington, DC 20201; or by email at [email protected]; or by
telephone at 1-877-696-6775.
SUPPLEMENTARY INFORMATION: The Trump Administration, through the
Department of Health and Human Services (HHS), is continuing its
efforts to reduce the price of prescription drugs. This Notice
addresses two related but distinct issues: (1) The Food and Drug
Administration's (FDA) Unapproved Drugs Initiative (UDI) and (2) the
construction of the statutory exemptions from the definition of ``new
drugs'' subject to FDA approval under the federal Food, Drug, and
Cosmetic Act (FD&C Act), namely so-called pre-1938 grandfathered drugs
and drugs that are ``generally recognized as safe and effective'' or
``GRASE.''
I. Unapproved Drugs Initiative
In 1938, Congress created the modern scheme for federal regulation
of drugs. Before 1938, there was no requirement under federal law for a
manufacturer to obtain FDA approval before marketing a drug. Today, as
a general rule, under the FD&C Act, a ``new drug'' must be approved by
the FDA for safety and efficacy pursuant to an approved New Drug
Application (NDA) or Abbreviated New Drug Application (ANDA) before the
drug is introduced into interstate commerce. See FD&C Act 201(p), 21
U.S.C. 321(p) (defining ``new drug'' under the Act); FD&C Act 505(a),
21 U.S.C. 355(a) (``No person shall introduce or deliver for
introduction into interstate commerce any new drug, unless an approval
of an application . . . is effective with respect to such drug.''). A
``person'' that introduces a ``new drug'' into interstate commerce is
subject to, among other sanctions, injunctions and/or having the
subject product seized in an ex parte proceeding under admiralty rules.
See FD&C Act 302, 21 U.S.C. 332 (injunction authority); FD&C Act 304,
21 U.S.C. 334 (seizure authority).
Not all drugs are ``new drugs'' which require FDA approval. There
are two primary carve-outs from the FD&C Act's definition of ``new
drug.'' \1\ First, when Congress enacted the modern FD&C Act in 1938,
it exempted from the definition of ``new drug'' all drugs ``subject to
the Food and Drugs Act of June 30, 1906, as amended, and if at such
time its labeling contained the same representations concerning the
conditions of its use.'' FD&C Act 201(p)(1), 21 U.S.C. 321(p)(1).
Second, drugs that are generally recognized as safe and effective which
have also ``been used to a material extent or for a material time'' are
not ``new drugs.'' FD&C Act 201(p)(1) and (2), 21 U.S.C. 321(p)(1) and
(2). Drugs that meet either of these exceptions may be legally marketed
without FDA pre-approval for safety and efficacy, subject to the
agency's other regulatory authorities.
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\1\ There is a third, related exemption which relieves
manufacturers from the obligation of showing their drugs are
effective prior to marketing. In section 107(c)(4) of the Drug
Amendments of 1962, Public Law 87-81, 76 Stat. 780, 789 (Oct. 10,
1962), Congress exempted from the efficacy requirement ``product[s]
that, on the day before the 1962 amendments became effective, (A)
[were] used or sold commercially in the United States, (B) [were]
generally recognized by the experts as safe; and (C) [were] not
`covered' by an `effective' application.'' USV Pharmaceutical Corp.
v. Weinberger, 412 U.S. 655, 653 (1973). In Weinberger, the Supreme
Court held that so-called ``me-too drugs,'' i.e., drugs that were
copies of NDA drugs, were effectively ``covered'' by an effective
application and thus subject to the efficacy requirement just like
drugs covered by NDAs. Id. at 664-65. Practically, Weinberger left
as the lone remaining candidates for this exemption from the
efficacy requirement drugs (a) on the market prior to 1962, (b)
generally recognized as safe, and (c) not themselves subject to a
1938-1962 ``effective'' NDA.
---------------------------------------------------------------------------
Through a guidance document issued in 2006 and later revised in
2011, and without conducting notice-and-comment rulemaking, FDA
launched a program called the Unapproved Drugs Initiative (UDI).\2\ The
UDI sprang from a laudable objective, namely to reduce the number of
unapproved drugs on the market. To achieve this end, FDA provided in
its 2011 UDI Guidance that ``the first company to obtain an approval
[of a previously unapproved drug] will have a period of de facto market
exclusivity before other products obtain approval.'' \3\ The agency
``hope[d] that this period of market exclusivity will provide an
incentive to firms to be the first to obtain approval to market a
previously unapproved drug.'' \4\ Ultimately, manufacturers of older
drugs previously thought to be exempt from the FDA approval requirement
obtained market exclusivity for those products after FDA took
unapproved versions off the market. An unintended consequence of the
``period of de facto market exclusivity'' provided by the UDI allowed
manufacturers an opportunity to raise prices in an environment largely
insulated from market competition.
---------------------------------------------------------------------------
\2\ FDA, Marketed Unapproved Drugs--Compliance Policy Guide Sec.
440.100, Marketed New Drugs Without Approved NDAs or ANDAs (June
2006) (hereinafter the 2006 Guidance); FDA, Marketed Unapproved
Drugs--Compliance Policy Guide Sec. 440.100, Marketed New Drugs
Without Approved NDAs or ANDAs (Sept. 19, 2011) (hereinafter the
2011 Guidance).
\3\ 2011 Guidance at 8.
\4\ Id.
---------------------------------------------------------------------------
Based on its ongoing review of FDA regulatory programs, the
Department has decided to withdraw the 2006 and 2011 Guidance,
effective thirty days after the date of publication of this Notice in
the Federal Register. All compliance manuals, website statements, and
other informal issuances with respect to the 2006 and 2011 Guidance are
also hereby withdrawn. The withdrawal of the 2006 and 2011 Guidance
Documents complies with FDA's current Good Guidance Practices
regulation, which allows for ``periodic[ ] review of [of] existing
guidance documents to determine whether they need to be changed or
withdrawn.'' 21 CFR 10.115(k)(1). Nothing in this Notice otherwise
limits FDA's authority to take action against manufacturers of
unapproved drugs that meet the statutory definition of a ``new drug''
(such as, for example, an unapproved drug that claims to mitigate,
treat, or cure COVID-19) or violate the FD&C Act in other ways.
Further, nothing in this Notice limits FDA's grant of regulatory
exclusivities authorized by statute, such as a new chemical entity
exclusivity, orphan drug exclusivity, or pediatric exclusivity. This
Notice does not apply to drugs subject to (1) Investigational New Drug
applications (IND) that are in effect as of the effective date of this
Notice, (2) any subsequent NDA based on new clinical trial
investigations (other than bioavailability studies) derived under such
IND, and (3) existing approved NDAs.
The Department is withdrawing the 2006 and 2011 Guidances for
several evidence-based reasons. After the UDI began, reports emerged
that Americans were paying significantly more for prescription drugs
approved by FDA through the UDI than they had paid previously. One
report noted that a drug approved through the UDI ``sells for about
$4.50 a tablet--nearly 50 times the price of the unapproved version.''
\5\ Another report asserted that ``[t]hanks at least partially to the
FDA program, the price of vasopressin . . . has risen 10-fold'' and the
cost of ``a vial of
[[Page 75333]]
neostigimine . . . has gone from less than $5 to $90.'' \6\
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\5\ Harris Meyer, The High Price of FDA Approval, Kaiser Health
News, Dec. 29, 2009, https://khn.org/news/fda-approval/.
\6\ Michael Hiltzik, The little-known FDA program that's driving
drug prices higher, L.A. Times (Sept. 23, 2015), https://www.latimes.com/business/hiltzik/la-fi-mh-the-little-known-fda-program-20150923-column.html.
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In 2017, scholars from the Yale School of Medicine and the
University of Utah published a peer-reviewed study corroborating the
previous reports.\7\ The study reviewed 34 drugs subject to the UDI
between 2006 and 2015. The scholars found the average wholesale unit
price of 26 of the 34 drugs for which pricing data was available
increased by a median of 37% (interquartile range of 23%-204%).\8\ The
average wholesale unit price of 11 of the drugs surveyed in the study
increased by more than 128%.\9\
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\7\ Ravi Gupta et al., The FDA Unapproved Drugs Initiative: An
Observational Study of the Consequences for Drug Prices and
Shortages in the United States, 23 J. of Man. Care & Specialty
Pharm. 1066 (Oct. 2017).
\8\ Id. at 1071.
\9\ See id. at 1072.
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The study also linked the UDI to drug shortages, which the authors
defined as ``a supply issue that affects how a pharmacy prepares or
dispenses a drug product that influences patient care when prescribers
must use an alternative agent.'' \10\ In this regard, the scholars
found that 24 of the 34 drugs experienced shortages after FDA took
enforcement action after an entity obtained FDA approval of a
previously unapproved drug. The median shortage was 217 days.\11\
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\10\ Id. at 1068.
\11\ Id. at 1073.
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Finally, the authors considered whether the UDI generated new
clinical data evidence for older drugs. The authors found that, of the
nineteen drugs that obtained FDA approval during the study period, only
two were supported by ``new clinical trial evidence.'' \12\ The other
seventeen drugs ``were supported by literature reviews and
bioequivalence to older drug products.'' \13\
---------------------------------------------------------------------------
\12\ Id.
\13\ Id.; see also Aaron S. Kesselheim and Daniel H. Solomon,
Incentives for Drug Development--The Curious Case of Colchicine, N.
Engl. J. Med. 362;22 at 2046 (noting the dramatic rise in the price
of Colchicine after implementation of the UDI, but that ``there is
no evidence of any meaningful improvement to the public health''
from the regulatory changes).
\13\ 36 FR 14662, 14662-63 (Aug. 7, 1971).
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Therefore, the Department has concluded that while the UDI began
with laudable goals, it has had numerous negative, unintended
consequences on Americans' access to prescription drugs and generated
very limited benefits.
Moreover, the fact that the program was initiated through guidance,
as opposed to notice-and-comment rulemaking, further supports the
Department's decision to withdraw the 2006 and 2011 Guidances, because
the Department has serious legal concerns about whether the UDI was
implemented through legally permissible procedures.\14\ The Department
recognizes that some persons might contend that they have reliance
interests in the 2011 Guidance remaining in effect. In Dep't of
Homeland Sec. v. Regents of the Univ. of California, 140 S. Ct. 1891
(2020), the Supreme Court struck down the Department of Homeland
Security's rescission of the Deferred Action for Childhood Arrivals
(DACA) immigration program, in part based on the reliance interests of
persons eligible to obtain the benefits of the program. Notably, in
that case, immigration authorities ``solicited applications from
eligible aliens, instituted a standardized review process, and sent
formal notices indicating whether the alien would receive the two-year
forbearance.'' Id. As the Court explained, DACA ``created a program for
conferring affirmative immigration relief.'' Id.
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\14\ See, e.g., 5 U.S.C. 553. The Department also has concerns
regarding whether the issuance of the 2011 Guidance complied with
FDA's good guidance practices regulation, 21 CFR 10.115, in effect
at the time. FDA issued the 2011 Guidance ``without public comment
because the Agency has determined that prior public participation is
not feasible or appropriate.'' 76 FR 58398 (Sept. 21, 2011).
---------------------------------------------------------------------------
The UDI is distinguishable from the DACA program. Unlike DACA, the
2011 Guidance described how the FDA intended to exercise its
enforcement discretion, but stopped short of committing FDA to any
particular action. FDA stated that it was ``more likely to take
enforcement action'' against unapproved competitors of newly approved
drugs under the UDI, but that the agency ``intend[s] to take into
account the circumstances once the product is approved in determining
how to exercise our enforcement discretion with regard to the
unapproved products.'' \15\ Moreover, the 2011 Guidance stated that it
``does not create or confer any rights for or on any person and does
not operate to bind FDA or the public.'' \16\ Any reliance interests
are thus illusory. Furthermore, Congress vested FDA with the sole
authority to enforce the FD&C Act. FD&C Act 310, 21 U.S.C. 337. Under
Heckler v. Chaney, 470 U.S. 821 (1985), FDA's decision about the extent
to which it shall enforce the FD&C Act is unreviewable under the
Administrative Procedure Act.
---------------------------------------------------------------------------
\15\ 2011 Guidance at 7.
\16\ Id. at 2.
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Even if there were cognizable reliance interests in the UDI, the
Department has ample evidence-based justification for rescinding the
2006 and 2011 Guidances. After more than fourteen years of experience
with the program, evidence has emerged that the UDI has caused
significant prescription drug price increases and drug shortages while
providing limited new clinical data on older drugs. The Department
believes these costs imposed on American patients and taxpayers
outweigh any reliance interests that may exist in the program. The
Department has also considered the public health effects of withdrawing
the 2006 and 2011 Guidances. As the 2011 Guidance acknowledges, there
are ``several thousand'' products on the market that lack FDA
approval.\17\ To the extent this program has limited patient access to
important, safe medications due to price increases or drug shortages,
the withdrawal of the 2006 and 2011 Guidances will have a positive
impact on public health. Moreover, eliminating this program allows
FDA's resources to be directed toward monitoring unapproved ``new
drugs'' that fall squarely within the traditional scope of the
definition of that term in the FD&C Act. At the same time, the Notice
allows FDA to use its limited review resources on innovative potential
therapies, as opposed to older drugs with longstanding use.
---------------------------------------------------------------------------
\17\ Id. at 3.
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Besides, any reliance interests (if they existed) would be minimal.
This Notice does not apply to drugs subject to (1) INDs in effect as of
the effective date of this Notice, (2) any subsequent NDA based on new
clinical investigations (other than bioavailability studies) derived
under such IND, and (3) existing approved NDAs.
II. Pre-1938 Grandfathered and GRASE Drugs; Request for Information
As noted above, when Congress enacted the FD&C Act in 1938 and
later amended the Act in 1962, it exempted certain drugs from the FDA
approval requirement. Section 201(p) of the FD&C Act, 21 U.S.C. 321(p),
excludes from the definition of ``new drug'' certain drugs marketed
prior to June 25, 1938 and drugs generally recognized as safe and
effective, or GRASE. In the 2011 Guidance, FDA stated that ``it is not
likely that any currently marketed prescription drug is grandfathered
or is otherwise not a new drug,'' though the
[[Page 75334]]
agency stated ``that it is at least theoretically possible.'' \18\
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\18\ Id. at 12 (emphasis in original).
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That was not always the case. For many years, FDA acknowledged that
at least some drugs are not ``new drugs'' subject to FDA approval prior
to marketing. In a 1980 version of the Orange Book, FDA stated that
``[t]he law also permits drugs to be legally marketed without such
fully approved applications under certain circumstances,'' including
``drugs marketed prior to 1938 that are not subject to the pre-market
clearance procedures of the law'' and ``drug products marketed between
1938 and 1962 that were approved for safety but not effectiveness.''
\19\ In the same publication, the agency went on to identify specific
products, noting ``commonly used large volume intravenous products are
not included on the List [of FDA-approved drugs] (e.g., dextrose 5%
with water, dextrose 10% with water, sodium chloride 0.9% injection),''
since ``all of these drug products came on the market in glass
containers before 1938 and have not been required to obtain an approved
new drug application as a condition of marketing.'' \20\ In the 2000
edition of the Orange Book, FDA cited to the barbiturate
``Phenobarbital Tablets'' as an example of ``pre-1938 drugs.'' \21\ The
2011 Guidance, issued absent notice-and-comment rulemaking and without
prior public comment, contains no acknowledgement of these prior
positions.\22\
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\19\ FDA, Approved Prescription Drug Products with Therapeutic
Equivalence Evaluations (herein the Orange Book), at I-3 (1st ed.
1980).
\20\ Id. at I-13.
\21\ Id. at I-13. FDA, Orange Book, at v (2000); see also FDA,
Orange Book, at iv (29th ed. 2009) (containing same reference to
``pre-1938 drugs'' and phenobarbital tablets). FDA included a
reference to ``pre-1938 drugs'' like phenobarbital tablets in the
Orange Book as late as 2016, FDA, Orange Book, at iv (36th ed.
2016), but removed the reference in its 2017 edition and subsequent
versions.
\22\ Cf. F.C.C. v. Fox Television Stations, Inc., 556 U.S. 502,
515 (2009) (``To be sure, the requirement that an agency provide
reasoned explanation for its action would ordinarily demand that it
display awareness that it is changing position.'')
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This evolution in the agency's thinking has had consequences. Under
the UDI, FDA required the manufacturer of an epinephrine brand which
originally came onto the market in 1901 to submit an NDA.\23\ The drug
colchicine, a product FDA acknowledged ``was available in oral dosage
form during the 19th century,'' \24\ was also approved through the UDI.
The interpretation of the definition of ``new drug'' espoused in the
2011 Guidance essentially foreclosed the possibility that these two
century-old drugs were pre-1938 grandfathered drugs exempt from the
approval process. The 2017 study discussed above found that the average
wholesale unit price of epinephrine and colchicine increased by 58.3%
and 3,323.5%, respectively,\25\ costs absorbed by American patients and
taxpayers.
---------------------------------------------------------------------------
\23\ FDA, Ctr. For Drug Evaluation and Research, Application
Number: 204200Origs1s000, 204200Orig2s000, Summary Review, at 3,
https://www.accessdata.fda.gov/drugsatfda_docs/nda/2012/204200Orig1Orig2s000SumR.pdf.
\24\ 75 FR 60768 (Oct. 1, 2010).
\25\ Gupta, supra note 7, at 1072; see also Aaron S. Kesselheim
and Daniel H. Solomon, Incentives for Drug Development--The Curious
Case of Colchicine, N. Engl. J. Med. 362;22 at 2046 (noting the
dramatic rise in the price of Colchicine after implementation of the
UDI, but that ``there is no evidence of any meaningful improvement
to the public health'' from the regulatory changes).
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The regulatory history of the prescription drug Daraprim raises
similar issues. FDA originally approved Daraprim (pyrimethamine) for
safety in 1953, and later deemed the drug effective through the Drug
Efficacy Study Implementation, or DESI review process.\26\ The drug is
listed on the World Health Organization's List of Essential
Medications, ``a list of minimum medicine needs for a basic health-care
system, listing the most efficacious, safe and cost-effective medicines
for priority conditions.'' \27\ In 2015, the company Turing
Pharmaceuticals ``raised the price [of the drug] to $750 a tablet from
$13.50, bringing the annual cost of treatment for some patients to
hundreds of thousands of dollars.'' \28\ Turing came by this windfall,
at least in part, because of FDA's interpretation of the definition of
``new drug'' in the FD&C Act as articulated in the 2006 and 2011
Guidances, a view that foreclosed the possibility that Daraprim, a drug
more than sixty years old, could ever qualify as GRASE. That position
effectively prevented other manufacturers of generic versions of this
product from entering the market without an approved abbreviated new
drug application, allowing Turing to enjoy a single-source position in
the marketplace while potential competitors went through the regulatory
process. In February 2016, Congress held a hearing on this widely-
publicized issue. Ultimately, FDA approved a generic competitor for
this single-source drug in February 2020.
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\26\ 36 FR 14662, 14662-63 (Aug. 7, 1971).
\27\ World Health Organization, 20th WHO Model List of Essential
Medications, at 24 (Mar. 2017).
\28\ Andrew Pollack, Drug Goes From $13.50 a Tablet to $750,
Overnight, N.Y. Times, Sept. 20, 2015, https://www.nytimes.com/2015/09/21/business/a-huge-overnight-increase-in-a-drugs-price-raises-protests.html.
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The Department wishes to engage with the public on the contours of
the exceptions to the definition of ``new drug.'' In this regard, HHS
is reviewing whether certain drugs, including the drug subject to
Congressional scrutiny in 2016, might qualify as exempt from the FDA
approval requirement. To aid that effort, HHS asks for input from
patients, health care providers, industry, and other stakeholders to
provide information responsive to any of the topics below:
1. Lists of drugs marketed prior to June 25, 1938 that are
currently available on the market.
2. The extent to which drugs marketed prior to June 25, 1938, or
drugs that might qualify as GRASE, have regulatory approvals in
countries outside the United States.
3. Whether there would be adverse clinical or economic consequences
to deeming as GRASE those drugs previously approved by the FDA for
which patent and regulatory exclusivity have expired.
4. Any published literature reviews or clinical studies related to
any drugs potentially exempt from the new drug approval requirement.
Dated: November 20, 2020.
Alex M. Azar II,
Secretary, Department of Health and Human Services.
[FR Doc. 2020-26133 Filed 11-24-20; 8:45 am]
BILLING CODE 4150-26-P