Generic Drug User Fee Rates for Fiscal Year 2022, 40582-40587 [2021-16039]
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supported FTE hourly rate excluding
travel, $256/hour, to calculate the
portion of the user fee attributable to
those activities: $256/hour × (8 hours) =
$2,048. For the portion of the fee
covering onsite evaluation of a domestic
VQIP importer, we use the fully
supported FTE hourly rate for work
requiring domestic travel, $277/hour, to
calculate the portion of the user fee
attributable to those activities: $277/
hour × 8 hours (i.e., one fully supported
FTE × (1 day onsite × 8 hours)) = $2,216.
Therefore, the total cost of conducting
the domestic performance evaluation of
a VQIP importer is determined to be
$2,216 + $2,048 = $4,264.
Coordination of the onsite
performance evaluation of a foreign
VQIP importer is estimated to take place
at an FTE’s worksite, so we use the fully
supported FTE hourly rate excluding
travel, $256/hour, to calculate the
portion of the user fee attributable to
those activities: $256/hour × (10 hours)
= $2,560. For the portion of the fee
covering onsite evaluation of a foreign
VQIP importer, we use the fully
supported FTE hourly rate for work
requiring foreign travel, $330/hour, to
calculate the portion of the user fee
attributable to those activities: $330/
hour × 24 hours (i.e., one fully
supported FTE × ((2 travel days × 8
hours) + (1 day onsite × 8 hours))) =
$7,920. Therefore, the total cost of
conducting the foreign performance
evaluation of a VQIP importer is
determined to be $2,560 + $7,920 =
$10,480.
Therefore, the estimated average cost
of the work FDA performs in total for
approving an application for a VQIP
importer in FY22 based on these figures
would be $7,000 + ($9,984 × 0.25) +
($7,168 × 0.75) + ($4,264 × 0.25) =
$15,938
IV. How must the fee be paid?
An invoice will be sent to VQIP
importers approved to participate in the
program. Payment must be made prior
to October 1, 2021, to be eligible for
VQIP participation for the benefit year
beginning October 1, 2021. FDA will not
refund the VQIP user fee for any reason.
The payment must be made in U.S.
currency from a U.S. bank by one of the
following methods: wire transfer,
electronically, check, bank draft, or U.S.
postal money order made payable to the
Food and Drug Administration. The
preferred payment method is online
using an electronic check (Automated
Clearing House (ACH), also known as
eCheck) or credit card (Discover, VISA,
MasterCard, American Express). Secure
electronic payments can be submitted
using the User Fees Payment Portal at
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https://userfees.fda.gov/pay. (Note: only
full payments are accepted. No partial
payments can be made online.) Once
you have found your invoice, select
‘‘Pay Now’’ to be redirected to Pay.gov.
Electronic payment options are based on
the balance due. Payment by credit card
is available only for balances 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.
When paying by check, bank draft, or
U.S. postal money order, please include
the invoice number in the check stub.
Also write the FDA post office box
number (P.O. Box 979108) on the
enclosed check, bank draft, or money
order. Mail the payment including the
invoice number on the check stub to:
Food and Drug Administration, P.O.
Box 979108, St. Louis, MO 63197–9000.
When paying by wire transfer, it is
required that the invoice number is
included; without the invoice number
the payment may not be applied. The
originating financial institution may
charge a wire transfer fee. If the
financial institution charges a wire
transfer fee, it is required to add that
amount to the payment to ensure that
the invoice is paid in full. For
international wire transfers, please
inquire with the financial institutions
prior to submitting the payment. Use the
following account information when
sending a wire transfer: U.S. Department
of the Treasury, TREAS NYC, 33 Liberty
St., New York, NY 10045, Account
Name: Food and Drug Administration,
Account No.: 75060099, Routing No.:
021030004, Swift No.: FRNYUS33.
To send a check by a courier such as
Federal Express, the courier must
deliver the check to: U.S. Bank, Attn:
Government Lockbox 979108, 1005
Convention Plaza, St. Louis, MO 63101.
(Note: This address is for courier
delivery only. If you have any questions
concerning courier delivery, contact
U.S. Bank at 314–418–4013. This phone
number is only for questions about
courier delivery.)
The tax identification number of FDA
is 53–0196965. (Note: Invoice copies do
not need to be submitted to FDA with
the payments.)
V. What are the consequences of not
paying this fee?
The consequences of not paying these
fees are outlined in Section J of ‘‘FDA’s
Voluntary Qualified Importer Program;
Guidance for Industry’’ document
(available at https://www.fda.gov/
media/92196/download). If the user fee
is not paid before October 1, a VQIP
importer will not be eligible to
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participate in VQIP. For the first year a
VQIP application is approved, if the
user fee is not paid before October 1,
2021, you are not eligible to participate
in VQIP. If you subsequently pay the
user fee, FDA will begin your benefits
after we receive the full payment. The
user fee may not be paid after December
31, 2021. For a subsequent year, if you
do not pay the user fee before October
1, FDA will send a Notice of Intent to
Revoke your participation in VQIP. If
you do not pay the user fee within 30
days of the date of the Notice of Intent
to Revoke, we will revoke your
participation in VQIP.
Dated: July 20, 2021.
Lauren K. Roth,
Acting Principal Associate Commissioner for
Policy.
[FR Doc. 2021–16053 Filed 7–27–21; 8:45 am]
BILLING CODE 4164–01–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Food and Drug Administration
[Docket No. FDA–2021–N–0661]
Generic Drug User Fee Rates for Fiscal
Year 2022
Food and Drug Administration,
Health and Human Services (HHS).
ACTION: Notice.
AGENCY:
The Federal Food, Drug, and
Cosmetic Act (FD&C Act or statute), as
amended by the Generic Drug User Fee
Amendments of 2017 (GDUFA II),
authorizes the Food and Drug
Administration (FDA, Agency, or we) to
assess and collect fees for abbreviated
new drug applications (ANDAs); drug
master files (DMFs); generic drug active
pharmaceutical ingredient (API)
facilities, finished dosage form (FDF)
facilities, and contract manufacturing
organization (CMO) facilities; and
generic drug applicant program user
fees. In this document, FDA is
announcing fiscal year (FY) 2022 rates
for GDUFA II fees.
FOR FURTHER INFORMATION CONTACT: 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
Sections 744A and 744B of the FD&C
Act (21 U.S.C. 379j–41 and 379j–42)
establish fees associated with human
generic drug products. Fees are assessed
on: (1) Certain types of applications for
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human generic drug products; (2)
certain facilities where APIs and FDFs
are produced; (3) certain DMFs
associated with human generic drug
products; and (4) generic drug
applicants who have approved ANDAs
(the program fee) (see section 744B(a)(2)
through (5) of the FD&C Act).
GDUFA II provides that user fees
should total $493,600,000 annually
adjusted each year for inflation. For FY
2022, the generic drug fee rates are:
ANDA ($225,712), DMF ($74,952),
domestic API facility ($42,557) foreign
API facility ($57,557), domestic FDF
facility ($195,012), foreign FDF facility
($210,012), domestic CMO facility
($65,004), foreign CMO facility
($80,004), large size operation generic
drug applicant program ($1,536,856),
medium size operation generic drug
applicant program ($614,742), and small
business generic drug applicant program
($153,686). These fees are effective on
October 1, 2021, and will remain in
effect through September 30, 2022.
II. Fee Revenue Amount for FY 2022
GDUFA II directs FDA to use the
yearly revenue amount determined
under the statute as a starting point to
set the fee rates for each fee type. The
base revenue amount for FY 2022 is
$520,208,640. This is the amount
calculated for the prior fiscal year, FY
2021, pursuant to the statute (see
section 744B(b)(1) of the FD&C Act). For
more information about GDUFA II,
please refer to the FDA website (https://
www.fda.gov/gdufa). The ANDA, DMF,
API facility, FDF facility, CMO facility,
and generic drug applicant program fee
(GDUFA program fee) calculations for
FY 2022 are described in this document.
A. Inflation Adjustment
The base revenue amount for FY 2022
is $520,208,640. This is the amount
calculated for the prior fiscal year, FY
2021, pursuant to the statute (see
section 744B(b)(1) of the FD&C Act).
GDUFA II specifies that the
$520,208,640 is to be adjusted for
inflation increases for FY 2022 using
two separate adjustments—one for
personnel compensation and benefits
(PC&B) and one for non-PC&B costs (see
sections 744B(c)(1)(B) and (C) of the
FD&C Act).
The component of the inflation
adjustment for PC&B costs shall be one
plus the average annual percent change
in the cost of all PC&B paid per full-time
equivalent position (FTE) at FDA for the
first 3 of the 4 preceding fiscal years,
multiplied by the proportion of PC&B
costs to total FDA costs of human
generic drug activities for the first 3 of
the preceding 4 fiscal years (see section
744B(c)(1)(B) of the FD&C Act).
Table 1 summarizes the actual cost
and total FTEs for the specified fiscal
years, and provides the percent change
from the previous fiscal year and the
average percent change over the first 3
of the 4 fiscal years preceding FY 2022.
The 3-year average is 2.7383 percent.
TABLE 1—FDA PERSONNEL COMPENSATION AND BENEFITS (PC&B) EACH YEAR AND PERCENT CHANGE
Fiscal year
2018
Total PC&B ..........................................................................................
Total FTEs ...........................................................................................
PC&B per FTE .....................................................................................
Percent Change from Previous Year ...................................................
The statute specifies that this 2.7383
percent should be multiplied by the
proportion of PC&B expended for
2019
$2,690,678,000
17,023
$158,061
4.2206
2020
$2,620,052,000
17,144
$152,826
-3.3120
human generic drug activities for the
first 3 of the preceding 4 fiscal years.
Table 2 shows the amount of PC&B and
$2,875,592,000
17,535
$163,992
7.3063
3-Year
average
........................
........................
........................
2.7383
the total amount obligated for human
generic drug activities from FY 2018
through FY 2020.
TABLE 2—PC&B AS A PERCENT OF FEE REVENUES SPENT ON THE PROCESS OF HUMAN GENERIC DRUG APPLICATIONS
OVER THE LAST 3 YEARS
Fiscal year
2018
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PC&B ...............................................................................................................
Non-PC&B .......................................................................................................
Total Costs .......................................................................................................
PC&B Percent ..................................................................................................
Non-PC&B Percent ..........................................................................................
The payroll adjustment is 2.7383
percent multiplied by 55.5424 percent
(or 1.5209 percent).
The statute specifies that the portion
of the inflation adjustment for nonPC&B costs for FY 2022 is the average
annual percent change that occurred in
the Consumer Price Index (CPI) for
urban consumers (WashingtonBaltimore, DC–MD–VA–WV; not
seasonally adjusted; all items; annual
index) for the first 3 of the preceding 4
years of available data multiplied by the
proportion of all costs other than PC&B
costs to total costs of human generic
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$332,617,643
$276,911,265
$609,528,908
54.5696
45.4304
drug activities (see section 744B(c)(1)(C)
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).
2019
$356,874,114
$290,439,277
$647,313,391
55.1316
44.8684
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$397,392,785
$300,692,399
$698,085,185
56.9261
43.0739
3-Year
average
........................
........................
........................
55.5424
44.4576
In order to continue applying a CPI that
best reflects the geographic region in
which FDA is headquartered and that
provides the most current data
available, the Washington-ArlingtonAlexandria index will be used in
calculating the relevant adjustment
factors for FY 2022 and subsequent
years. Table 3 provides the summary
data for the percent change in the
specified CPI. The data are published by
1 The Bureau of Labor Statistics’ announcement of
the geographical revision can be viewed at https://
www.bls.gov/cpi/additional-resources/geographicrevision-2018.htm.
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2020
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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 3-YEAR AVERAGE PERCENT CHANGE IN CPI FOR WASHINGTON-ARLINGTON-ALEXANDRIA AREA
Year
2018
Annual CPI .......................................................................................................
Annual Percent Change ..................................................................................
To calculate the inflation adjustment
for non-pay costs, we multiply the 3year average percent change in the CPI
(1.4041 percent) by the proportion of all
costs other than PC&B to total costs of
human generic drug activities obligated.
Because 55.5424 percent was obligated
for PC&B as shown in table 2, 44.4576
percent is the portion of costs other than
PC&B. The non-pay adjustment is
1.4041 percent times 44.4576 percent, or
0.6242 percent.
To complete the inflation adjustment
for FY 2022, we add the PC&B
component (1.5209 percent) to the nonPC&B component (0.6242 percent) for a
total inflation adjustment of 2.1451
percent (rounded), and then add 1,
making an inflation adjustment multiple
of 1.021451. We then multiply the base
revenue amount for FY 2022
($520,208,640) by 1.021451, yielding an
inflation-adjusted amount of
$531,367,636.
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B. Final Year Adjustment
For FY 2022, FDA may, in addition to
the inflation adjustment, further
increase the fee revenue and fees
established if such an adjustment is
necessary to provide for not more than
3 months of operating reserves of
carryover user fees for human generic
drug activities for the first 3 months of
FY 2023. To determine whether a final
year adjustment applies, FDA calculates
operating reserves of carryover and its
estimated balance as of the beginning of
FY 2023.
After running analyses on the
projected collections and obligations for
FY 2021 and FY 2022, FDA estimates
available carryover balance will be
$63,131,283 as of the beginning of FY
2023. FDA estimates the cost of
operations per week is $10,202,769;
thus, the projected available carryover
balance of $63,131,283 at the beginning
of FY 2023 represents approximately 6
weeks of operating reserves. Per the
statute, FDA could raise the fee revenue
by $59,301,948 (12 weeks × $10,202,769
minus projected carryover of
$63,131,283) for the final year
adjustment. FDA recognizes that adding
$59,301,948 to the fee revenue in FY
2022 may pose as a burden to the
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261.445
2.0389
regulated industry. In light of this, and
in light of the fact that the legislative
language authorizing the final year
adjustment allows FDA discretion in
whether to make this adjustment for a
full 3 months of operating reserves or
for a shorter period, FDA has decided to
make the final year adjustment to allow
for only 7 weeks of operating reserves.
Accordingly, the final year adjustment
will be $8,288,102 (7 × $10,202,769 less
projected carryover of $63,131,283).
Adding this amount to the inflation
adjusted amount of $531,367,636 results
in a total revenue target of $539,656,000
(rounded to the nearest thousand
dollars).
III. ANDA Filing Fee
Under GDUFA II, the FY 2022 ANDA
filing fee is owed by each applicant that
submits an ANDA on or after October 1,
2021. This fee is due on the submission
date of the ANDA. Section 744B(b)(2)(B)
of the FD&C Act specifies that the
ANDA fee will make up 33 percent of
the $539,656,000, which is
$178,086,480.
To calculate the ANDA fee, FDA
estimated the number of full application
equivalents (FAEs) that will be
submitted in FY 2022. The submissions
are broken down into three categories:
New originals (submissions that have
not been received by FDA previously);
submissions that FDA refused to receive
(RTR) for reasons other than failure to
pay fees; and applications that are
resubmitted after an RTR decision for
reasons other than failure to pay fees.
An ANDA counts as one FAE; however,
75 percent of the fee paid for an ANDA
that has been RTR shall be refunded
according to GDUFA II if: (1) The ANDA
is refused for a cause other than failure
to pay fees or (2) the ANDA has been
withdrawn prior to receipt (section
744B(a)(3)(D)(i) of the FD&C Act).
Therefore, an ANDA that is considered
not to have been received by FDA due
to reasons other than failure to pay fees
or withdrawn prior to receipt counts as
one-fourth of an FAE. After an ANDA
has been RTR, the applicant has the
option of resubmitting. For user fee
purposes, these resubmissions are
equivalent to new original
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2019
264.777
1.2745
2020
267.157
0.8989
3-Year
average
........................
1.4041
submissions—ANDA resubmissions are
charged the full amount for an
application (one FAE).
FDA utilized data from ANDAs
submitted from October 1, 2019, to
April 30, 2021, to estimate the number
of new original ANDAs that will incur
filing fees in FY 2022. For FY 2022, the
Agency estimates that approximately
788 new original ANDAs will be
submitted and incur filing fees. Not all
of the new original ANDAs will be
received by the Agency and some of
those not received will be resubmitted
in the same fiscal year. Therefore, the
Agency expects that the FAE count for
ANDAs will be 789 for FY 2022.
The FY 2022 application fee is
estimated by dividing the number of
FAEs that will pay the fee in FY 2022
(789) into the fee revenue amount to be
derived from ANDA application fees in
FY 2022 ($178,086,480). The result,
rounded to the nearest dollar, is a fee of
$225,712 per ANDA.
The statute provides that those
ANDAs that include information about
the production of active pharmaceutical
ingredients other than by reference to a
DMF will pay an additional fee that is
based on the number of such active
pharmaceutical ingredients and the
number of facilities proposed to
produce those ingredients (see section
744B(a)(3)(F) of the FD&C Act). FDA
anticipates that this additional fee is
unlikely to be assessed often; therefore,
FDA has not included projections
concerning the amount of this fee in
calculating the fees for ANDAs.
IV. DMF Fee
Under GDUFA II, the DMF fee is
owed by each person that owns a type
II API DMF that is referenced, on or
after October 1, 2012, in a generic drug
submission by an initial letter of
authorization. This is a one-time fee for
each DMF. This fee is due on the earlier
of the date on which the first generic
drug submission is submitted that
references the associated DMF or the
date on which the DMF holder requests
the initial completeness assessment.
Under section 744B(a)(2)(D)(iii) of the
FD&C Act, if a DMF has successfully
undergone an initial completeness
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assessment and the fee is paid, the DMF
will be placed on a publicly available
list documenting DMFs available for
reference.
To calculate the DMF fee, FDA
assessed the volume of DMF
submissions over time. The Agency
assessed DMFs from October 1, 2019, to
April 30, 2021, and concluded that
averaging the number of fee-paying
DMFs provided the most accurate model
for predicting fee-paying DMFs for FY
2022. The monthly average of paid DMF
submissions the Agency received in FY
2020 and FY 2021 is 30. To determine
the FY 2022 projected number of feepaying DMFs, the average of 30 DMF
submissions is multiplied by 12 months,
which results in 360 estimated FY 2022
fee-paying DMFs. FDA is estimating 360
fee-paying DMFs for FY 2022.
The FY 2022 DMF fee is determined
by dividing the DMF target revenue by
the estimated number of fee-paying
DMFs in FY 2022. Section 744B(b)(2)(A)
of the FD&C Act specifies that the DMF
fees will make up 5 percent of the
$539,656,000, which is $26,982,800.
Dividing the DMF revenue amount
($26,982,800) by the estimated feepaying DMFs (360), and rounding to the
nearest dollar, yields a DMF fee of
$74,952 for FY 2022.
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V. Foreign Facility Fee Differential
Under GDUFA II, the fee for a facility
located outside the United States and its
territories and possessions shall be
$15,000 higher than the amount of the
fee for a facility located in the United
States and its territories and
possessions. The basis for this
differential is the extra cost incurred by
conducting an inspection outside the
United States and its territories and
possessions.
VI. FDF and CMO Facility Fees
Under GDUFA II, the annual FDF
facility fee is owed by each person who
owns an FDF facility that is identified
in at least one approved generic drug
submission owned by that person or its
affiliates. The CMO facility fee is owed
by each person who owns an FDF
facility that is identified in at least one
approved ANDA but is not identified in
an approved ANDA held by the owner
of that facility or its affiliates. These fees
are due no later than the first business
day on or after October 1 of each such
year. Section 744B(b)(2)(C) of the FD&C
Act specifies that the FDF and CMO
facility fee revenue will make up 20
percent of the $539,656,000, which is
$107,931,200.
To calculate the fees, data from FDA’s
Integrity Services (IS) were utilized as
the primary source of facility
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information for determining the
denominators of each facility fee type.
IS is the master data steward for all
facility information provided in generic
drug submissions received by FDA. A
facility’s reference status in an approved
generic drug submission is extracted
directly from submission data rather
than relying on data from selfidentification. This information
provided the number of facilities
referenced as FDF manufacturers in at
least one approved generic drug
submission. Based on FDA’s IS data, the
FDF and CMO facility denominators are
181 FDF domestic, 279 FDF foreign, 88
CMO domestic, and 104 CMO foreign
facilities for FY 2022.
GDUFA II specifies that the CMO
facility fee is to be equal to one-third the
amount of the FDF facility fee.
Therefore, to generate the target
collection revenue amount from FDF
and CMO facility fees ($107,931,200),
FDA must weight a CMO facility as onethird of an FDF facility. FDA set fees
based on the estimate of 181 FDF
domestic, 279 FDF foreign, 29.33 CMO
domestic (88 multiplied by one-third),
and 34.67 CMO foreign facilities (104
multiplied by one-third), which equals
524 total weighted FDF and CMO
facilities for FY 2022.
To calculate the fee for domestic
facilities, FDA first determines the total
fee revenue that will result from the
foreign facility differential by
subtracting the fee revenue resulting
from the foreign facility fee differential
from the target collection revenue
amount ($107,931,200) as follows. The
foreign facility fee differential revenue
equals the foreign facility fee differential
($15,000) multiplied by the number of
FDF foreign facilities (279) plus the
foreign facility fee differential ($15,000)
multiplied by the number of CMO
foreign facilities (104), totaling
$5,745,000. This results in foreign fee
differential revenue of $5,745,000 from
the total FDF and CMO facility fee target
collection revenue. Subtracting the
foreign facility differential fee revenue
($5,745,000) from the total FDF and
CMO facility target collection revenue
($107,931,200) results in a remaining
facility fee revenue balance of
$102,186,200. To determine the
domestic FDF facility fee, FDA divides
the $102,186,200 by the total weighted
number of FDF and CMO facilities
(524), which results in a domestic FDF
facility fee of $195,012. The foreign FDF
facility fee is $15,000 more than the
domestic FDF facility fee, or $210,012.
According to GDUFA II, the domestic
CMO fee is calculated as one-third the
amount of the domestic FDF facility fee.
Therefore, the domestic CMO fee is
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40585
$65,004, rounded to the nearest dollar.
The foreign CMO fee is calculated as the
domestic CMO fee plus the foreign fee
differential of $15,000. Therefore, the
foreign CMO fee is $80,004.
VII. API Facility Fee
Under GDUFA II, the annual API
facility fee is owed by each person who
owns a facility that is identified in: (1)
At least one approved generic drug
submission or (2) in a Type II API DMF
referenced in at least one approved
generic drug submission. These fees are
due no later than the first business day
on or after October 1 of each such year.
Section 744B(b)(2)(D) of the FD&C Act
specifies the API facility fee will make
up 7 percent of $539,656,000 in fee
revenue, which is $37,775,920.
To calculate the API facility fee, data
from FDA’s IS were utilized as the
primary source of facility information
for determining the denominator. As
stated above, IS is the master data
steward for all facility information
provided in generic drug submissions
received by FDA. A facility’s reference
status in an approved generic drug
submission is extracted directly from
submission data rather than relying on
data from self-identification. This
information provided the number of
facilities referenced as API
manufacturers in at least one approved
generic drug submission.
The total number of API facilities
identified was 679; of that number, 87
were domestic and 592 were foreign
facilities. The foreign facility differential
is $15,000. To calculate the fee for
domestic facilities, FDA must first
subtract the fee revenue that will result
from the foreign facility fee differential.
FDA takes the foreign facility
differential ($15,000) and multiplies it
by the number of foreign facilities (592)
to determine the total fee revenue that
will result from the foreign facility
differential. As a result of that
calculation, the foreign fee differential
revenue will make up $8,880,000 of the
total API fee revenue. Subtracting the
foreign facility differential fee revenue
($8,880,000) from the total API facility
target revenue ($37,775,920) results in a
remaining balance of $28,895,920. To
determine the domestic API facility fee,
we divide the $28,895,920 by the total
number of facilities (679), which gives
us a domestic API facility fee of
$42,557. The foreign API facility fee is
$15,000 more than the domestic API
facility fee, or $57,557.
VIII. Generic Drug Applicant Program
Fee
Under GDUFA II, if a person and its
affiliates own at least one but not more
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than five approved ANDAs on October
1, 2021, the person and its affiliates
shall owe a small business GDUFA
program fee. If a person and its affiliates
own at least 6 but not more than 19
approved ANDAs, the person and its
affiliates shall owe a medium size
operation GDUFA program fee. If a
person and its affiliates own at least 20
approved ANDAs, the person and its
affiliates shall owe a large size operation
GDUFA program fee. These fees are due
no later than the first business day on
or after October 1 of each such year.
Section 744B(b)(2)(E) of the FD&C Act
specifies the GDUFA program fee will
make up 35 percent of $539,656,000 in
fee revenue, which is $188,879,600.
To determine the appropriate number
of parent companies for each tier, the
Agency asked companies to claim their
ANDAs and affiliates in the Center for
Drug Evaluation and Research (CDER)
NextGen Portal. The companies were
able to confirm relationships currently
present in the Agency’s records, while
also reporting newly approved ANDAs,
newly acquired ANDAs, and new
affiliations.
In determining the appropriate
number of approved ANDAs, the
Agency has factored in a number of
variables that could affect the collection
of the target revenue: (1) Inactive
ANDAs—applicants who have not
submitted an annual report for one or
more of their approved applications
within the past 2 years; (2) Program Fee
Arrears List—parent companies that are
on the arrears list for any fiscal year; (3)
Center for Biologics Evaluation and
Research (CBER) approved ANDAs—
applicants and their affiliates with
CBER-approved ANDAs in addition to
CDER’s approved ANDAs; and (4)
withdrawals of approved ANDAs by
April 1st—applicants who have
submitted a written request for
withdrawal of approval by April 1st of
the previous fiscal year. The list of
original approved ANDAs from the
Generic Drug Review Platform as of
April 30, 2021, shows 291 applicants in
the small business tier, 76 applicants in
the medium size tier, and 76 applicants
in the large size tier. Factoring in all the
variables for the fourth year of GDUFA
II, the Agency estimates there will be
203 applicants in the small business
tier, 69 applicants in the medium size
tier, and 75 applicants in the large size
tier for FY 2022.
To calculate the GDUFA program fee,
GDUFA II provides that large size
operation generic drug applicants pay
the full fee, medium size operation
applicants pay two-fifths of the full fee,
and small business applicants pay onetenth of the full fee. To generate the
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target collection revenue amount from
GDUFA program fees ($188,879,600),
we must weigh medium and small
tiered applicants as a subset of a large
size operation generic drug applicant.
FDA will set fees based on the weighted
estimate of 20.30 applicants in the small
business tier (203 multiplied by 10
percent), 27.6 applicants in the medium
size tier (69 multiplied by 40 percent),
and 75 applicants in the large size tier,
arriving at 122.90 total weighted
applicants for FY 2022.
To generate the large size operation
GDUFA program fee, FDA divides the
target revenue amount of $188,879,600
by 122.90, which equals $1,536,856.
The medium size operation GDUFA
program fee is 40 percent of the full fee
($614,742), and the small business
operation GDUFA program fee is 10
percent of the full fee ($153,686).
U.S. currency drawn on a U.S. bank by
electronic check, check, bank draft, U.S.
postal money order, credit card, 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
utilize Pay.gov, a web-based payment
application, for online electronic
payment. The Pay.gov feature is
available on the FDA website after
completing the Generic Drug User Fee
Cover Sheet and generating the user fee
ID number.
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 an invoice is located,
IX. Fee Schedule for FY 2022
‘‘Pay Now’’ should be selected to be
redirected to Pay.gov. Electronic
The fee rates for FY 2022 are set out
payment options are based on the
in table 4.
balance due. Payment by credit card is
available for balances less than $25,000.
TABLE 4—FEE SCHEDULE FOR FY
If the balance exceeds this amount, only
2022
the ACH option is available. Payments
Fees rates for must be made using U.S. bank accounts
Fee category
FY 2022
as well as U.S. credit cards.
The user fee ID number must be
Applications:
included on the check, bank draft, or
Abbreviated New Drug Appostal money order and must be made
plication (ANDA) ............
$225,712
Drug Master File (DMF) ....
74,952 payable to the order of the Food and
Drug Administration. Payments can be
Facilities:
mailed to: Food and Drug
Active Pharmaceutical InAdministration, P.O. Box 979108, St.
gredient (API)—Domestic ...................................
42,557 Louis, MO 63197–9000. If checks are to
API—Foreign .....................
57,557 be sent by a courier that requests a street
Finished Dosage Form
address, the courier can deliver checks
(FDF)—Domestic ...........
195,012 to: U.S. Bank, Attention: Government
FDF—Foreign ...................
210,012 Lockbox 979108, 1005 Convention
Contract Manufacturing
Plaza, St. Louis, MO 63101. (Note: This
Organization (CMO)—
Domestic ........................
65,004 U.S. Bank address is for courier delivery
CMO—Foreign ..................
80,004 only. For questions concerning courier
delivery, U.S. Bank can be contacted at
GDUFA Program:
314–418–4013. This telephone number
Large size operation generic drug applicant ...
1,536,856 is only for questions about courier
Medium size operation
delivery.) The FDA post office box
generic drug applicant
614,742 number (P.O. Box 979108) must be
Small business operwritten on the check, bank draft, or
ation generic drug appostal money order.
plicant .........................
153,686
For payments made by wire transfer,
the unique user fee ID number must be
X. Fee Payment Options and
referenced. Without the unique user fee
Procedures
ID number, the payment may not be
The new fee rates are effective
applied. If the payment amount is not
October 1, 2021. To pay the ANDA,
applied, the invoice amount will be
DMF, API facility, FDF facility, CMO
referred to collections. The originating
facility, and GDUFA program fees, a
financial institution may charge a wire
Generic Drug User Fee Cover Sheet must transfer fee. Applicable wire transfer
be completed, available at https://
fees must be included with payment to
www.fda.gov/gdufa and https://
ensure fees are fully paid. Questions
userfees.fda.gov/OA_HTML/
about wire transfer fees should be
gdufaCAcdLogin.jsp, and a user fee
addressed to the financial institution.
identification (ID) number must be
The following account information
generated. Payment must be made in
should be used to send payments by
PO 00000
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28JYN1
Federal Register / Vol. 86, No. 142 / Wednesday, July 28, 2021 / Notices
wire transfer: U.S. Department of the
Treasury, TREAS NYC, 33 Liberty St.,
New York, NY 10045, account number:
75060099, routing number: 021030004,
SWIFT: FRNYUS33. FDA’s tax
identification number is 53–0196965.
Dated: July 20, 2021.
Lauren K. Roth,
Acting Principal Associate Commissioner for
Policy.
[FR Doc. 2021–16039 Filed 7–27–21; 8:45 am]
BILLING CODE 4164–01–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Food and Drug Administration
[Docket No. FDA–2021–N–0649]
Determination That CECLOR CD
(Cefaclor Extended-Release Tablets)
375 Milligrams and 500 Milligrams
Were Not Withdrawn From Sale for
Reasons of Safety or Effectiveness,
Except the Indication of Secondary
Bacterial Infections of Acute
Bronchitis, Which Was Withdrawn
From Sale for Reasons of Safety or
Effectiveness
AGENCY:
Food and Drug Administration,
HHS.
ACTION:
Notice.
The Food and Drug
Administration (FDA, Agency, or we)
has determined that CECLOR CD
(cefaclor extended-release tablets) 375
milligrams (mg) and 500 mg were not
withdrawn from sale for reasons of
safety or effectiveness, except with
respect to the indication of secondary
bacterial infections of acute bronchitis
(SBIAB) that was withdrawn for reasons
of safety or effectiveness. This
determination means that FDA will not
begin procedures to suspend approval of
any abbreviated new drug application
(ANDA) that refers to this drug product
and has removed the indication for
SBIAB. This determination also will
allow FDA to continue to approve
ANDAs that refer to these drug products
as long as they meet relevant legal and
regulatory requirements. However, the
Agency will not accept or approve
ANDAs for CECLOR CD (cefaclor
extended-release tablets) 375 mg and
500 mg that include SBIAB as an
indication.
khammond on DSKJM1Z7X2PROD with NOTICES
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
Stacy Kane, Center for Drug Evaluation
and Research, Food and Drug
Administration, 10903 New Hampshire
Ave., Bldg. 51, Rm. 6236, Silver Spring,
MD 20993–0002, 301–796–8363,
Stacy.Kane@fda.hhs.gov.
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17:16 Jul 27, 2021
Jkt 253001
Section
505(j) of the Federal Food, Drug, and
Cosmetic Act (FD&C Act) (21 U.S.C.
355(j)) allows the submission of an
ANDA to market a generic version of a
previously approved drug product. To
obtain approval, the ANDA applicant
must show, among other things, that the
generic drug product: (1) Has the same
active ingredient(s), dosage form, route
of administration, strength, conditions
of use, and, with certain exceptions,
labeling as the listed drug, which is a
version of the drug that was previously
approved and (2) is bioequivalent to the
listed drug. ANDA applicants do not
have to repeat the extensive clinical
testing otherwise necessary to gain
approval of a new drug application
(NDA).
Section 505(j)(7) of the FD&C Act
requires FDA to publish a list of all
approved drugs. FDA publishes this list
as part of the ‘‘Approved Drug Products
With Therapeutic Equivalence
Evaluations,’’ which is known generally
as the ‘‘Orange Book.’’ Under FDA
regulations, drugs are removed from the
list if the Agency withdraws or
suspends approval of the drug’s NDA or
ANDA for reasons of safety or
effectiveness or if FDA determines that
the listed drug was withdrawn from sale
for reasons of safety or effectiveness (21
CFR 314.162).
A person may petition the Agency to
determine, or the Agency may
determine on its own initiative, whether
a listed drug was withdrawn from sale
for reasons of safety or effectiveness.
This determination may be made at any
time after the drug has been withdrawn
from sale but must be made prior to
approving an ANDA that refers to the
listed drug (§ 314.161 (21 CFR 314.161)).
FDA may not approve an ANDA that
does not refer to a listed drug.
Under § 314.161(a)(2), the Agency
must also determine whether a listed
drug was withdrawn from sale for
reasons of safety or effectiveness if
ANDAs that referred to the listed drug
have already been approved prior to its
market withdrawal. If the Agency
determines that a listed drug was
withdrawn from sale for reasons of
safety or effectiveness, and there are
approved ANDAs that reference that
listed drug, FDA will initiate a
proceeding to determine whether the
suspension of the ANDAs is also
required (21 CFR 314.161(d)).
CECLOR CD (cefaclor extendedrelease tablets) 375 mg and 500 mg are
the subject of NDA 050673 held by Eli
Lilly and Co., and initially approved on
June 28, 1996. CECLOR CD (cefaclor
extended-release tablets) is indicated for
the treatment of patients with the
SUPPLEMENTARY INFORMATION:
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40587
following mild to moderate infections
when caused by susceptible strains of
the designated microorganisms:
• Acute bacterial exacerbations of
chronic bronchitis due to Haemophilus
influenzae (non-b-lactamase-producing
strains only), Moraxella catarrhalis
(including b-lactamase-producing
strains) or Streptococcus pneumoniae.
• Secondary bacterial infections of
acute bronchitis due to H. influenzae
(non-b-lactamase-producing strains
only), M. catarrhalis (including blactamase-producing strains), or S.
pneumoniae.
• Pharyngitis and tonsillitis due to
Streptococcus pyogenes.
• Uncomplicated skin and skin
structure infections due to
Staphylococcus aureus (methicillinsusceptible).
On June 13, 2005, Eli Lilly and Co.
submitted a request to the Agency to
withdraw approval of NDA 050673,
CECLOR CD (cefaclor extended-release
tablets), 375 mg and 500 mg, under 21
CFR 314.150(c). The Agency published
a Federal Register notice on April 22,
2014, withdrawing approval of NDA
050673, effective May 22, 2014.1
After reviewing Agency records and
based on the information we have at this
time, FDA has determined under
§ 314.161 that CECLOR CD (cefaclor
extended-release tablets), 375 mg and
500 mg, were not withdrawn from sale
for reasons of safety or effectiveness,
except with respect to the indication for
SBIAB.
Based on a review of relevant
information, FDA has concluded that
the SBIAB indication is not appropriate
because most cases of SBIAB are
considered to be viral or noninfectious.
As an antibacterial drug, CECLOR CD
(cefaclor extended-release tablets) is not
considered to be effective to treat
SBIAB. Such use of CECLOR CD
(cefaclor extended-release tablets)
would likely result in inappropriate
antibacterial drug use. Accordingly, for
the treatment of SBIAB, the benefit-risk
profile of CECLOR CD (cefaclor
extended-release tablets) is unfavorable
and does not support approval of these
products (or ANDAs referencing them)
for this indication. For the remaining
indications, the Agency has determined
that CECLOR CD (cefaclor extendedrelease tablets) continues to have a
favorable benefit-risk profile.
Accordingly, the Agency will
continue to list CECLOR CD (cefaclor
extended-release tablets), 375 mg and
500 mg, in the ‘‘Discontinued Drug
Product List’’ section of the Orange
Book. The approved ANDA has
1 See
E:\FR\FM\28JYN1.SGM
79 FR 22501 (April 22, 2014).
28JYN1
Agencies
[Federal Register Volume 86, Number 142 (Wednesday, July 28, 2021)]
[Notices]
[Pages 40582-40587]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-16039]
-----------------------------------------------------------------------
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Food and Drug Administration
[Docket No. FDA-2021-N-0661]
Generic Drug User Fee Rates for Fiscal Year 2022
AGENCY: Food and Drug Administration, Health and Human Services (HHS).
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Federal Food, Drug, and Cosmetic Act (FD&C Act or
statute), as amended by the Generic Drug User Fee Amendments of 2017
(GDUFA II), authorizes the Food and Drug Administration (FDA, Agency,
or we) to assess and collect fees for abbreviated new drug applications
(ANDAs); drug master files (DMFs); generic drug active pharmaceutical
ingredient (API) facilities, finished dosage form (FDF) facilities, and
contract manufacturing organization (CMO) facilities; and generic drug
applicant program user fees. In this document, FDA is announcing fiscal
year (FY) 2022 rates for GDUFA II fees.
FOR FURTHER INFORMATION CONTACT: 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:
I. Background
Sections 744A and 744B of the FD&C Act (21 U.S.C. 379j-41 and 379j-
42) establish fees associated with human generic drug products. Fees
are assessed on: (1) Certain types of applications for
[[Page 40583]]
human generic drug products; (2) certain facilities where APIs and FDFs
are produced; (3) certain DMFs associated with human generic drug
products; and (4) generic drug applicants who have approved ANDAs (the
program fee) (see section 744B(a)(2) through (5) of the FD&C Act).
GDUFA II provides that user fees should total $493,600,000 annually
adjusted each year for inflation. For FY 2022, the generic drug fee
rates are: ANDA ($225,712), DMF ($74,952), domestic API facility
($42,557) foreign API facility ($57,557), domestic FDF facility
($195,012), foreign FDF facility ($210,012), domestic CMO facility
($65,004), foreign CMO facility ($80,004), large size operation generic
drug applicant program ($1,536,856), medium size operation generic drug
applicant program ($614,742), and small business generic drug applicant
program ($153,686). These fees are effective on October 1, 2021, and
will remain in effect through September 30, 2022.
II. Fee Revenue Amount for FY 2022
GDUFA II directs FDA to use the yearly revenue amount determined
under the statute as a starting point to set the fee rates for each fee
type. The base revenue amount for FY 2022 is $520,208,640. This is the
amount calculated for the prior fiscal year, FY 2021, pursuant to the
statute (see section 744B(b)(1) of the FD&C Act). For more information
about GDUFA II, please refer to the FDA website (https://www.fda.gov/gdufa). The ANDA, DMF, API facility, FDF facility, CMO facility, and
generic drug applicant program fee (GDUFA program fee) calculations for
FY 2022 are described in this document.
A. Inflation Adjustment
The base revenue amount for FY 2022 is $520,208,640. This is the
amount calculated for the prior fiscal year, FY 2021, pursuant to the
statute (see section 744B(b)(1) of the FD&C Act). GDUFA II specifies
that the $520,208,640 is to be adjusted for inflation increases for FY
2022 using two separate adjustments--one for personnel compensation and
benefits (PC&B) and one for non-PC&B costs (see sections 744B(c)(1)(B)
and (C) of the FD&C Act).
The component of the inflation adjustment for PC&B costs shall be
one plus the average annual percent change in the cost of all PC&B paid
per full-time equivalent position (FTE) at FDA for the first 3 of the 4
preceding fiscal years, multiplied by the proportion of PC&B costs to
total FDA costs of human generic drug activities for the first 3 of the
preceding 4 fiscal years (see section 744B(c)(1)(B) of the FD&C Act).
Table 1 summarizes the actual cost and total FTEs for the specified
fiscal years, and provides the percent change from the previous fiscal
year and the average percent change over the first 3 of the 4 fiscal
years preceding FY 2022. The 3-year average is 2.7383 percent.
Table 1--FDA Personnel Compensation and Benefits (PC&B) Each Year and Percent Change
----------------------------------------------------------------------------------------------------------------
Fiscal year 2018 2019 2020 3-Year average
----------------------------------------------------------------------------------------------------------------
Total PC&B................................ $2,690,678,000 $2,620,052,000 $2,875,592,000 ..............
Total FTEs................................ 17,023 17,144 17,535 ..............
PC&B per FTE.............................. $158,061 $152,826 $163,992 ..............
Percent Change from Previous Year......... 4.2206 -3.3120 7.3063 2.7383
----------------------------------------------------------------------------------------------------------------
The statute specifies that this 2.7383 percent should be multiplied
by the proportion of PC&B expended for human generic drug activities
for the first 3 of the preceding 4 fiscal years. Table 2 shows the
amount of PC&B and the total amount obligated for human generic drug
activities from FY 2018 through FY 2020.
Table 2--PC&B as a Percent of Fee Revenues Spent on the Process of Human Generic Drug Applications Over the Last
3 Years
----------------------------------------------------------------------------------------------------------------
Fiscal year 2018 2019 2020 3-Year average
----------------------------------------------------------------------------------------------------------------
PC&B............................................ $332,617,643 $356,874,114 $397,392,785 ..............
Non-PC&B........................................ $276,911,265 $290,439,277 $300,692,399 ..............
Total Costs..................................... $609,528,908 $647,313,391 $698,085,185 ..............
PC&B Percent.................................... 54.5696 55.1316 56.9261 55.5424
Non-PC&B Percent................................ 45.4304 44.8684 43.0739 44.4576
----------------------------------------------------------------------------------------------------------------
The payroll adjustment is 2.7383 percent multiplied by 55.5424
percent (or 1.5209 percent).
The statute specifies that the portion of the inflation adjustment
for non-PC&B costs for FY 2022 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 of the preceding 4 years of available
data multiplied by the proportion of all costs other than PC&B costs to
total costs of human generic drug activities (see section 744B(c)(1)(C)
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
that best reflects the geographic region in which FDA is headquartered
and that provides the most current data available, the Washington-
Arlington-Alexandria index will be used in calculating the relevant
adjustment factors for FY 2022 and subsequent years. Table 3 provides
the summary data for the percent change in the specified CPI. The data
are published by
[[Page 40584]]
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 3-Year Average Percent Change in CPI for Washington-Arlington-Alexandria Area
----------------------------------------------------------------------------------------------------------------
Year 2018 2019 2020 3-Year average
----------------------------------------------------------------------------------------------------------------
Annual CPI...................................... 261.445 264.777 267.157 ..............
Annual Percent Change........................... 2.0389 1.2745 0.8989 1.4041
----------------------------------------------------------------------------------------------------------------
To calculate the inflation adjustment for non-pay costs, we
multiply the 3-year average percent change in the CPI (1.4041 percent)
by the proportion of all costs other than PC&B to total costs of human
generic drug activities obligated. Because 55.5424 percent was
obligated for PC&B as shown in table 2, 44.4576 percent is the portion
of costs other than PC&B. The non-pay adjustment is 1.4041 percent
times 44.4576 percent, or 0.6242 percent.
To complete the inflation adjustment for FY 2022, we add the PC&B
component (1.5209 percent) to the non-PC&B component (0.6242 percent)
for a total inflation adjustment of 2.1451 percent (rounded), and then
add 1, making an inflation adjustment multiple of 1.021451. We then
multiply the base revenue amount for FY 2022 ($520,208,640) by
1.021451, yielding an inflation-adjusted amount of $531,367,636.
B. Final Year Adjustment
For FY 2022, FDA may, in addition to the inflation adjustment,
further increase the fee revenue and fees established if such an
adjustment is necessary to provide for not more than 3 months of
operating reserves of carryover user fees for human generic drug
activities for the first 3 months of FY 2023. To determine whether a
final year adjustment applies, FDA calculates operating reserves of
carryover and its estimated balance as of the beginning of FY 2023.
After running analyses on the projected collections and obligations
for FY 2021 and FY 2022, FDA estimates available carryover balance will
be $63,131,283 as of the beginning of FY 2023. FDA estimates the cost
of operations per week is $10,202,769; thus, the projected available
carryover balance of $63,131,283 at the beginning of FY 2023 represents
approximately 6 weeks of operating reserves. Per the statute, FDA could
raise the fee revenue by $59,301,948 (12 weeks x $10,202,769 minus
projected carryover of $63,131,283) for the final year adjustment. FDA
recognizes that adding $59,301,948 to the fee revenue in FY 2022 may
pose as a burden to the regulated industry. In light of this, and in
light of the fact that the legislative language authorizing the final
year adjustment allows FDA discretion in whether to make this
adjustment for a full 3 months of operating reserves or for a shorter
period, FDA has decided to make the final year adjustment to allow for
only 7 weeks of operating reserves. Accordingly, the final year
adjustment will be $8,288,102 (7 x $10,202,769 less projected carryover
of $63,131,283). Adding this amount to the inflation adjusted amount of
$531,367,636 results in a total revenue target of $539,656,000 (rounded
to the nearest thousand dollars).
III. ANDA Filing Fee
Under GDUFA II, the FY 2022 ANDA filing fee is owed by each
applicant that submits an ANDA on or after October 1, 2021. This fee is
due on the submission date of the ANDA. Section 744B(b)(2)(B) of the
FD&C Act specifies that the ANDA fee will make up 33 percent of the
$539,656,000, which is $178,086,480.
To calculate the ANDA fee, FDA estimated the number of full
application equivalents (FAEs) that will be submitted in FY 2022. The
submissions are broken down into three categories: New originals
(submissions that have not been received by FDA previously);
submissions that FDA refused to receive (RTR) for reasons other than
failure to pay fees; and applications that are resubmitted after an RTR
decision for reasons other than failure to pay fees. An ANDA counts as
one FAE; however, 75 percent of the fee paid for an ANDA that has been
RTR shall be refunded according to GDUFA II if: (1) The ANDA is refused
for a cause other than failure to pay fees or (2) the ANDA has been
withdrawn prior to receipt (section 744B(a)(3)(D)(i) of the FD&C Act).
Therefore, an ANDA that is considered not to have been received by FDA
due to reasons other than failure to pay fees or withdrawn prior to
receipt counts as one-fourth of an FAE. After an ANDA has been RTR, the
applicant has the option of resubmitting. For user fee purposes, these
resubmissions are equivalent to new original submissions--ANDA
resubmissions are charged the full amount for an application (one FAE).
FDA utilized data from ANDAs submitted from October 1, 2019, to
April 30, 2021, to estimate the number of new original ANDAs that will
incur filing fees in FY 2022. For FY 2022, the Agency estimates that
approximately 788 new original ANDAs will be submitted and incur filing
fees. Not all of the new original ANDAs will be received by the Agency
and some of those not received will be resubmitted in the same fiscal
year. Therefore, the Agency expects that the FAE count for ANDAs will
be 789 for FY 2022.
The FY 2022 application fee is estimated by dividing the number of
FAEs that will pay the fee in FY 2022 (789) into the fee revenue amount
to be derived from ANDA application fees in FY 2022 ($178,086,480). The
result, rounded to the nearest dollar, is a fee of $225,712 per ANDA.
The statute provides that those ANDAs that include information
about the production of active pharmaceutical ingredients other than by
reference to a DMF will pay an additional fee that is based on the
number of such active pharmaceutical ingredients and the number of
facilities proposed to produce those ingredients (see section
744B(a)(3)(F) of the FD&C Act). FDA anticipates that this additional
fee is unlikely to be assessed often; therefore, FDA has not included
projections concerning the amount of this fee in calculating the fees
for ANDAs.
IV. DMF Fee
Under GDUFA II, the DMF fee is owed by each person that owns a type
II API DMF that is referenced, on or after October 1, 2012, in a
generic drug submission by an initial letter of authorization. This is
a one-time fee for each DMF. This fee is due on the earlier of the date
on which the first generic drug submission is submitted that references
the associated DMF or the date on which the DMF holder requests the
initial completeness assessment. Under section 744B(a)(2)(D)(iii) of
the FD&C Act, if a DMF has successfully undergone an initial
completeness
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assessment and the fee is paid, the DMF will be placed on a publicly
available list documenting DMFs available for reference.
To calculate the DMF fee, FDA assessed the volume of DMF
submissions over time. The Agency assessed DMFs from October 1, 2019,
to April 30, 2021, and concluded that averaging the number of fee-
paying DMFs provided the most accurate model for predicting fee-paying
DMFs for FY 2022. The monthly average of paid DMF submissions the
Agency received in FY 2020 and FY 2021 is 30. To determine the FY 2022
projected number of fee-paying DMFs, the average of 30 DMF submissions
is multiplied by 12 months, which results in 360 estimated FY 2022 fee-
paying DMFs. FDA is estimating 360 fee-paying DMFs for FY 2022.
The FY 2022 DMF fee is determined by dividing the DMF target
revenue by the estimated number of fee-paying DMFs in FY 2022. Section
744B(b)(2)(A) of the FD&C Act specifies that the DMF fees will make up
5 percent of the $539,656,000, which is $26,982,800. Dividing the DMF
revenue amount ($26,982,800) by the estimated fee-paying DMFs (360),
and rounding to the nearest dollar, yields a DMF fee of $74,952 for FY
2022.
V. Foreign Facility Fee Differential
Under GDUFA II, the fee for a facility located outside the United
States and its territories and possessions shall be $15,000 higher than
the amount of the fee for a facility located in the United States and
its territories and possessions. The basis for this differential is the
extra cost incurred by conducting an inspection outside the United
States and its territories and possessions.
VI. FDF and CMO Facility Fees
Under GDUFA II, the annual FDF facility fee is owed by each person
who owns an FDF facility that is identified in at least one approved
generic drug submission owned by that person or its affiliates. The CMO
facility fee is owed by each person who owns an FDF facility that is
identified in at least one approved ANDA but is not identified in an
approved ANDA held by the owner of that facility or its affiliates.
These fees are due no later than the first business day on or after
October 1 of each such year. Section 744B(b)(2)(C) of the FD&C Act
specifies that the FDF and CMO facility fee revenue will make up 20
percent of the $539,656,000, which is $107,931,200.
To calculate the fees, data from FDA's Integrity Services (IS) were
utilized as the primary source of facility information for determining
the denominators of each facility fee type. IS is the master data
steward for all facility information provided in generic drug
submissions received by FDA. A facility's reference status in an
approved generic drug submission is extracted directly from submission
data rather than relying on data from self-identification. This
information provided the number of facilities referenced as FDF
manufacturers in at least one approved generic drug submission. Based
on FDA's IS data, the FDF and CMO facility denominators are 181 FDF
domestic, 279 FDF foreign, 88 CMO domestic, and 104 CMO foreign
facilities for FY 2022.
GDUFA II specifies that the CMO facility fee is to be equal to one-
third the amount of the FDF facility fee. Therefore, to generate the
target collection revenue amount from FDF and CMO facility fees
($107,931,200), FDA must weight a CMO facility as one-third of an FDF
facility. FDA set fees based on the estimate of 181 FDF domestic, 279
FDF foreign, 29.33 CMO domestic (88 multiplied by one-third), and 34.67
CMO foreign facilities (104 multiplied by one-third), which equals 524
total weighted FDF and CMO facilities for FY 2022.
To calculate the fee for domestic facilities, FDA first determines
the total fee revenue that will result from the foreign facility
differential by subtracting the fee revenue resulting from the foreign
facility fee differential from the target collection revenue amount
($107,931,200) as follows. The foreign facility fee differential
revenue equals the foreign facility fee differential ($15,000)
multiplied by the number of FDF foreign facilities (279) plus the
foreign facility fee differential ($15,000) multiplied by the number of
CMO foreign facilities (104), totaling $5,745,000. This results in
foreign fee differential revenue of $5,745,000 from the total FDF and
CMO facility fee target collection revenue. Subtracting the foreign
facility differential fee revenue ($5,745,000) from the total FDF and
CMO facility target collection revenue ($107,931,200) results in a
remaining facility fee revenue balance of $102,186,200. To determine
the domestic FDF facility fee, FDA divides the $102,186,200 by the
total weighted number of FDF and CMO facilities (524), which results in
a domestic FDF facility fee of $195,012. The foreign FDF facility fee
is $15,000 more than the domestic FDF facility fee, or $210,012.
According to GDUFA II, the domestic CMO fee is calculated as one-
third the amount of the domestic FDF facility fee. Therefore, the
domestic CMO fee is $65,004, rounded to the nearest dollar. The foreign
CMO fee is calculated as the domestic CMO fee plus the foreign fee
differential of $15,000. Therefore, the foreign CMO fee is $80,004.
VII. API Facility Fee
Under GDUFA II, the annual API facility fee is owed by each person
who owns a facility that is identified in: (1) At least one approved
generic drug submission or (2) in a Type II API DMF referenced in at
least one approved generic drug submission. These fees are due no later
than the first business day on or after October 1 of each such year.
Section 744B(b)(2)(D) of the FD&C Act specifies the API facility fee
will make up 7 percent of $539,656,000 in fee revenue, which is
$37,775,920.
To calculate the API facility fee, data from FDA's IS were utilized
as the primary source of facility information for determining the
denominator. As stated above, IS is the master data steward for all
facility information provided in generic drug submissions received by
FDA. A facility's reference status in an approved generic drug
submission is extracted directly from submission data rather than
relying on data from self-identification. This information provided the
number of facilities referenced as API manufacturers in at least one
approved generic drug submission.
The total number of API facilities identified was 679; of that
number, 87 were domestic and 592 were foreign facilities. The foreign
facility differential is $15,000. To calculate the fee for domestic
facilities, FDA must first subtract the fee revenue that will result
from the foreign facility fee differential. FDA takes the foreign
facility differential ($15,000) and multiplies it by the number of
foreign facilities (592) to determine the total fee revenue that will
result from the foreign facility differential. As a result of that
calculation, the foreign fee differential revenue will make up
$8,880,000 of the total API fee revenue. Subtracting the foreign
facility differential fee revenue ($8,880,000) from the total API
facility target revenue ($37,775,920) results in a remaining balance of
$28,895,920. To determine the domestic API facility fee, we divide the
$28,895,920 by the total number of facilities (679), which gives us a
domestic API facility fee of $42,557. The foreign API facility fee is
$15,000 more than the domestic API facility fee, or $57,557.
VIII. Generic Drug Applicant Program Fee
Under GDUFA II, if a person and its affiliates own at least one but
not more
[[Page 40586]]
than five approved ANDAs on October 1, 2021, the person and its
affiliates shall owe a small business GDUFA program fee. If a person
and its affiliates own at least 6 but not more than 19 approved ANDAs,
the person and its affiliates shall owe a medium size operation GDUFA
program fee. If a person and its affiliates own at least 20 approved
ANDAs, the person and its affiliates shall owe a large size operation
GDUFA program fee. These fees are due no later than the first business
day on or after October 1 of each such year. Section 744B(b)(2)(E) of
the FD&C Act specifies the GDUFA program fee will make up 35 percent of
$539,656,000 in fee revenue, which is $188,879,600.
To determine the appropriate number of parent companies for each
tier, the Agency asked companies to claim their ANDAs and affiliates in
the Center for Drug Evaluation and Research (CDER) NextGen Portal. The
companies were able to confirm relationships currently present in the
Agency's records, while also reporting newly approved ANDAs, newly
acquired ANDAs, and new affiliations.
In determining the appropriate number of approved ANDAs, the Agency
has factored in a number of variables that could affect the collection
of the target revenue: (1) Inactive ANDAs--applicants who have not
submitted an annual report for one or more of their approved
applications within the past 2 years; (2) Program Fee Arrears List--
parent companies that are on the arrears list for any fiscal year; (3)
Center for Biologics Evaluation and Research (CBER) approved ANDAs--
applicants and their affiliates with CBER-approved ANDAs in addition to
CDER's approved ANDAs; and (4) withdrawals of approved ANDAs by April
1st--applicants who have submitted a written request for withdrawal of
approval by April 1st of the previous fiscal year. The list of original
approved ANDAs from the Generic Drug Review Platform as of April 30,
2021, shows 291 applicants in the small business tier, 76 applicants in
the medium size tier, and 76 applicants in the large size tier.
Factoring in all the variables for the fourth year of GDUFA II, the
Agency estimates there will be 203 applicants in the small business
tier, 69 applicants in the medium size tier, and 75 applicants in the
large size tier for FY 2022.
To calculate the GDUFA program fee, GDUFA II provides that large
size operation generic drug applicants pay the full fee, medium size
operation applicants pay two-fifths of the full fee, and small business
applicants pay one-tenth of the full fee. To generate the target
collection revenue amount from GDUFA program fees ($188,879,600), we
must weigh medium and small tiered applicants as a subset of a large
size operation generic drug applicant. FDA will set fees based on the
weighted estimate of 20.30 applicants in the small business tier (203
multiplied by 10 percent), 27.6 applicants in the medium size tier (69
multiplied by 40 percent), and 75 applicants in the large size tier,
arriving at 122.90 total weighted applicants for FY 2022.
To generate the large size operation GDUFA program fee, FDA divides
the target revenue amount of $188,879,600 by 122.90, which equals
$1,536,856. The medium size operation GDUFA program fee is 40 percent
of the full fee ($614,742), and the small business operation GDUFA
program fee is 10 percent of the full fee ($153,686).
IX. Fee Schedule for FY 2022
The fee rates for FY 2022 are set out in table 4.
Table 4--Fee Schedule for FY 2022
------------------------------------------------------------------------
Fees rates for
Fee category FY 2022
------------------------------------------------------------------------
Applications:
Abbreviated New Drug Application (ANDA)............... $225,712
Drug Master File (DMF)................................ 74,952
Facilities:
Active Pharmaceutical Ingredient (API)--Domestic...... 42,557
API--Foreign.......................................... 57,557
Finished Dosage Form (FDF)--Domestic.................. 195,012
FDF--Foreign.......................................... 210,012
Contract Manufacturing Organization (CMO)--Domestic... 65,004
CMO--Foreign.......................................... 80,004
GDUFA Program:
Large size operation generic drug applicant......... 1,536,856
Medium size operation generic drug applicant........ 614,742
Small business operation generic drug applicant..... 153,686
------------------------------------------------------------------------
X. Fee Payment Options and Procedures
The new fee rates are effective October 1, 2021. To pay the ANDA,
DMF, API facility, FDF facility, CMO facility, and GDUFA program fees,
a Generic Drug User Fee Cover Sheet must be completed, available at
https://www.fda.gov/gdufa and https://userfees.fda.gov/OA_HTML/gdufaCAcdLogin.jsp, and a user fee identification (ID) number must be
generated. Payment must be made in U.S. currency drawn on a U.S. bank
by electronic check, check, bank draft, U.S. postal money order, credit
card, 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 utilize Pay.gov,
a web-based payment application, for online electronic payment. The
Pay.gov feature is available on the FDA website after completing the
Generic Drug User Fee Cover Sheet and generating the user fee ID
number.
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 an
invoice is located, ``Pay Now'' should be selected to be redirected to
Pay.gov. Electronic payment options are based on the balance due.
Payment by credit card is available for balances 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.
The user fee ID number must be included on the check, bank draft,
or postal money order and must be made payable to the order of the Food
and Drug Administration. Payments can be mailed to: Food and Drug
Administration, P.O. Box 979108, St. Louis, MO 63197-9000. If checks
are to be sent by a courier that requests a street address, the courier
can deliver checks 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. For questions concerning courier
delivery, U.S. Bank can be contacted at 314-418-4013. This telephone
number is only for questions about courier delivery.) The FDA post
office box number (P.O. Box 979108) must be written on the check, bank
draft, or postal money order.
For payments made by wire transfer, the unique user fee ID number
must be referenced. Without the unique user fee ID number, the payment
may not be applied. If the payment amount is not applied, the invoice
amount will be referred to collections. The originating financial
institution may charge a wire transfer fee. Applicable wire transfer
fees must be included 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
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wire transfer: U.S. Department of the Treasury, TREAS NYC, 33 Liberty
St., New York, NY 10045, account number: 75060099, routing number:
021030004, SWIFT: FRNYUS33. FDA's tax identification number is 53-
0196965.
Dated: July 20, 2021.
Lauren K. Roth,
Acting Principal Associate Commissioner for Policy.
[FR Doc. 2021-16039 Filed 7-27-21; 8:45 am]
BILLING CODE 4164-01-P