Animal Generic Drug User Fee Program Rates and Payment Procedures for Fiscal Year 2025, 61465-61470 [2024-16885]

Download as PDF Federal Register / Vol. 89, No. 147 / Wednesday, July 31, 2024 / Notices U.S. Department of the Treasury are required to notify FDA within 1 working day, using the PIN described previously. The tax identification number of FDA is 53–0196965. B. Application Cover Sheet Procedures Step One: Create a user account and password. Log on to the ADUFA website at https://www.fda.gov/industry/animaldrug-user-fee-act-adufa/animal-druguser-fee-cover-sheet and, under Application Submission Information, click on ‘‘Create ADUFA User Fee Cover Sheet.’’ For security reasons, each firm applying will be assigned an organization identification number, and each user will also be required to set up a user account and password the first time you use this site. Online instructions will walk you through this process. Step Two: Create an Animal Drug User Fee Cover Sheet, transmit it to the FDA, and print a copy. After logging into your account with your username and password, complete the steps required to create an Animal Drug User Fee Cover Sheet. One cover sheet is needed for each animal drug application or supplement. Once you are satisfied that the data on the cover sheet is accurate and you have finalized the cover sheet, you will be able to transmit it electronically to the FDA and you will be able to print a copy of your cover sheet showing your unique PIN. Step Three: Send the payment for your application as described in section IX.A above. Step Four: Submit your application. C. Product, Establishment, and Sponsor Fees By December 31, 2024, FDA will issue invoices and payment instructions for product, establishment, and sponsor fees for FY 2025 using this fee schedule. Payment will be due by January 31, 2025. FDA will issue invoices in November 2025 for any products, establishments, and sponsors subject to fees for FY 2025 that qualify for fees after the December 2024 billing. lotter on DSK11XQN23PROD with NOTICES1 Dated: July 26, 2024. Lauren K. Roth, Associate Commissioner for Policy. [FR Doc. 2024–16894 Filed 7–30–24; 8:45 am] BILLING CODE 4164–01–P VerDate Sep<11>2014 17:29 Jul 30, 2024 Jkt 262001 DEPARTMENT OF HEALTH AND HUMAN SERVICES Food and Drug Administration [Docket No. FDA–2024–N–3481] Animal Generic Drug User Fee Program Rates and Payment Procedures for Fiscal Year 2025 AGENCY: Food and Drug Administration, HHS. ACTION: Notice. The Food and Drug Administration (FDA or the Agency) is announcing the fee rates and payment procedures for fiscal year (FY) 2025 generic new animal drug program user fees. The Federal Food, Drug, and Cosmetic Act (FD&C Act), as amended by the Animal Generic Drug User Fee Amendments of 2023 (AGDUFA IV), authorizes FDA to collect user fees for certain abbreviated applications for generic new animal drugs, for certain generic new animal drug products, for certain sponsors of such abbreviated applications for generic new animal drugs and/or investigational submissions for generic new animal drugs (JINAD’s), and for certain submissions related to JINAD files. This notice establishes the fee rates for FY 2025. SUMMARY: The application fee rates are effective for all abbreviated applications for a generic new animal drug submitted on or after October 1, 2024, and will remain in effect through September 30, 2025. The fee rates for requests to establish a JINAD file, and for certain submissions to JINAD files established prior to October 1, 2023, are effective on October 1, 2024, and will remain in effect through September 30, 2025. FOR FURTHER INFORMATION CONTACT: Visit FDA’s website at: https://www.fda.gov/ ForIndustry/UserFees/AnimalGeneric DrugUserFeeActAGDUFA/default.htm or contact: Lisa Kable, Center for Veterinary Medicine (HFV–10), Food and Drug Administration, 7500 Standish Pl., Rockville, MD 20855, 240–402– 6888, Lisa.Kable@fda.hhs.gov. For general questions, you may also email the Center for Veterinary Medicine (CVM) at: cvmagdufa@fda.hhs.gov. For questions relating to this notice: Olufunmilayo Ariyo, Office of Financial Management, Food and Drug Administration, 10903 New Hampshire Ave., Silver Spring, MD 20903, 240– 402–4989; or the User Fee Support Staff at OO-OFBAP-OFM-UFFS-Government@ fda.hhs.gov. SUPPLEMENTARY INFORMATION: DATES: PO 00000 Frm 00069 Fmt 4703 Sfmt 4703 61465 I. Background Section 741(a) of the FD&C Act (21 U.S.C. 379j–21(a)), establishes four different types of generic new animal drug user fees: (1) fees for certain abbreviated applications for generic new animal drugs; (2) annual fees for certain generic new animal drug products; (3) annual fees for certain sponsors of abbreviated applications for generic new animal drugs and/or investigational submissions for generic new animal drugs; and (4) JINAD file fees. When certain conditions are met, section 741(d) of the FD&C Act authorizes FDA to waive or reduce fees for generic new animal drugs intended solely to provide for a minor use or minor species indication. Section 741(b)(1) of the FD&C Act establishes a base revenue amount for each fiscal year. Per section 741(c)(2) and (3) of the FD&C Act, the base revenue amounts established for fiscal years after FY 2024 are subject to adjustment for inflation and workload. Beginning FY 2026, the annual fee revenue amounts are also subject to adjustment to reduce workload-based increases by the amount of certain excess collections. Section 741(b) of the FD&C Act establishes fees each year so that the percentage allocations for each of the fee categories is as follows: 20 percent shall be derived from fees for abbreviated applications for a generic new animal drug and JINAD file fees; 40 percent shall be derived from fees for generic new animal drug products; and 40 percent shall be derived from fees for generic new animal drug sponsors. The target revenue amounts for each fee category for FY 2025 are as follows: for application and/or JINAD file fees, the target revenue amount is $5,196,700; for product fees, the target revenue amount is $10,393,400; and for sponsor fees, the target revenue amount is $10,393,400. For FY 2025, the AGDUFA rates are: $161,907 for each abbreviated application for a generic new animal drug other than those subject to the criteria in section 512(d)(4) of the FD&C Act (21 U.S.C. 360b(d)(4)); $80,954 for each abbreviated application for a generic new animal drug subject to the criteria in section 512(d)(4) of the FD&C Act; $50,000 for each JINAD file request or certain submissions to established JINAD files; $16,139 for each generic new animal drug product; $270,204 for each generic new animal drug sponsor paying 100 percent of the sponsor fee; $202,653 for each generic new animal drug sponsor paying 75 percent of the sponsor fee; and $135,102 for each generic new animal drug sponsor paying 50 percent of the sponsor fee. FDA will E:\FR\FM\31JYN1.SGM 31JYN1 61466 Federal Register / Vol. 89, No. 147 / Wednesday, July 31, 2024 / Notices issue invoices for FY 2025 product and sponsor fees by December 31, 2024, and payment will be due by January 31, 2025. The application fee rates are effective for all abbreviated applications for a generic new animal drug submitted on or after October 1, 2024, and will remain in effect through September 30, 2025. The fee rate for requests to establish a JINAD file, and for certain submissions to JINAD files established prior to October 1, 2023, is effective on October 1, 2024, and will remain in effect through September 30, 2025. Applications will not be accepted for review until FDA has received full payment of application fees and any other fees owed under the AGDUFA program. Similarly, a request to establish a JINAD file or a submission to an existing JINAD file will not be accepted for action by FDA until FDA has received full payment of all fees owed under the AGDUFA program. II. Fee Revenue Amount for FY 2025 A. Statutory Fee Revenue Amounts Section 741(b)(1) of the FD&C Act specifies that the base fee revenue amount for FY 2025 for all generic animal drug user fee categories totals $25,000,000. B. Inflation Adjustment to Fee Revenue Amount Section 741(c)(2)(A) of the FD&C Act specifies that the annual fee revenue amount is to be adjusted for inflation increases for FY 2025 and subsequent fiscal years using two separate factors— one for personnel compensation and benefits (PC&B) costs and one for nonPC&B costs. Section 741(c)(2)(A)(ii) of the FD&C Act specifies the component of the inflation adjustment for payroll costs shall be one plus the average annual percent change in the cost of all PC&B, per full-time equivalent (FTE) position of the FDA, for the first 3 of the preceding 4 fiscal years of available data, multiplied by the average proportion of PC&B costs to total FDA costs for the first 3 of the 4 preceding fiscal years of available data. The data on total PC&B paid and numbers of FTE paid, from which the average cost per FTE can be derived, are published in FDA’s Justification of Estimates for Appropriations Committees. Table 1 summarizes the total PC&B costs per FTE for the specified fiscal years, provides the percentage change from the previous fiscal year, and provides the average percentage change over the first 3 of the 4 fiscal years preceding FY 2025. The 3-year average is 3.8539 percent. TABLE 1—FDA PERSONNEL COMPENSATION AND BENEFITS (PC&B) EACH YEAR AND PERCENT CHANGE Fiscal year 2021 Total PC&B .......................................................................................... Total FTEs ........................................................................................... PC&B per FTE ..................................................................................... Percent Change from Previous Year ................................................... Section 741(c)(2)(A)(ii) of the FD&C Act specifies that the 3.8539 percent should be multiplied by the average 2022 $3,039,513,000 18,501 $164,289 0.1811% 2023 $3,165,477,000 18,474 $171,348 4.2967% proportion of PC&B costs to total FDA costs for the first 3 of the preceding 4 fiscal years for which data are available. $3,436,513,000 18,729 $183,486 7.0838% 3-Year average ........................ ........................ ........................ 3.8539% Table 2 shows the amount of PC&B and the total costs obligated by FDA for the same 3 fiscal years. TABLE 2—PC&B AS A PERCENT OF TOTAL COST Fiscal year 2021 Total PC&B .......................................................................................... Total Costs ........................................................................................... PC&B percent ...................................................................................... The portion of the inflation adjustment relating to payroll costs is 3.8539 percent multiplied by 50.8359 percent, or 1.9593 percent. Section 741(c)(2)(A)(iii) of the FD&C Act specifies that the non-payroll costs adjustment factor is calculated by multiplying the average annual 2022 $3,039,513,000 $6,049,798,000 50.2416% 2023 $3,165,477,000 $6,251,981,000 50.6316% percentage change that occurred in the Consumer Price Index for Urban Consumers (Washington-ArlingtonAlexandria, DC-VA-MD-WV; Not Seasonally Adjusted; All Items Less Food and Energy; Annual Index) for the first 3 years of the preceding 4 years of $3,436,513,000 $6,654,058,000 51.6454% 3-Year average ........................ ........................ 50.8395% available data by the average proportion of all non-PC&B costs to total FDA costs for the first 3 years of the preceding 4 fiscal years. Table 3 provides the summary data for the percentage change in the specified CPI for the WashingtonArlington-Alexandria area.1 TABLE 3—ANNUAL AND 3-YEAR AVERAGE PERCENT CHANGE IN CPI (LESS FOOD AND ENERGY) FOR WASHINGTONARLINGTON-ALEXANDRIA AREA lotter on DSK11XQN23PROD with NOTICES1 Fiscal year 2021 Annual CPI ........................................................................................... Annual Percent Change ...................................................................... 2022 287.144 3.1271% 2023 302.608 5.3855% 1 The data is published by the Bureau of Labor Statistics and can be found on its website at: https:// data.bls.gov/timeseries/CUURS35ASA0L1E. VerDate Sep<11>2014 17:29 Jul 30, 2024 Jkt 262001 PO 00000 Frm 00070 Fmt 4703 Sfmt 4703 E:\FR\FM\31JYN1.SGM 31JYN1 313.315 3.5382% 3-Year average ........................ 4.0169% 61467 Federal Register / Vol. 89, No. 147 / Wednesday, July 31, 2024 / Notices Section 741(c)(2)(A)(iii) of the FD&C Act specifies to calculate the inflation adjustment for non-payroll costs, we multiply 4.0169 percent by the average proportion of all costs other than PC&B to total FDA costs for the first 3 years of the preceding 4 fiscal years. Since 50.8395 percent was obligated for PC&B as shown in table 2, 49.1605 percent is the portion of costs other than PC&B (100 percent minus the PC&B percentage of 50.8395). The portion of the inflation adjustment relating to nonpayroll costs is 4.0169 percent multiplied by 49.1605 percent, or 1.9747 percent. Next, we add the payroll component (1.9593 percent) to the non-payroll component (1.9747 percent), for an inflation adjustment of 3.9340 percent for FY 2025. Section 741(c)(2)(B) of the FD&C Act provides for the inflation adjustment to be compounded each fiscal year after FY 2025. The inflation adjustment for FY 2025 (3.9340 percent) is compounded by adding 1 and then multiplying by 1 plus the inflation adjustment factor for FY 2024 (zero percent), which equals 1.0393 (rounded) (1.0393 × 1.0). We then multiply the base revenue amount for FY 2025 ($25,000,000) by 1.0393, yielding an inflation adjusted amount of $25,983,500. generic investigational new animal drug meeting requests) received over the 5year period that ended on September 30, 2023 (the base years; 2019 through 2023), and the average number of each of these types of applications and submissions over the most recent 5-year period that ended April 30, 2024. The results of these calculations are presented in the first two columns of table 4. Column 3 reflects the percent change in workload over the two 5-year periods. Column 4 shows the weighting factor for each type of application/ submission, reflecting how much of the total FDA generic new animal drug review workload was accounted for by each type of application or submission in the table during the most recent 5 years. Column 5 is the weighted percent change in each category of workload and was derived by multiplying the weighting factor in each line in column 4 by the percent change from the base years in column 3. At the bottom right of the table, the sum of the values in column 5 is calculated, reflecting a total change in workload of negative 0.9977 percent for FY 2025. This is the workload adjuster for FY 2025. C. Workload Adjustment to Inflation Adjusted Fee Revenue Amount Section 741(c)(3)(A) of the FD&C Act specifies that fee revenue amounts for FY 2025 and subsequent fiscal years are subject to adjustment to account for changes in FDA’s review workload. The workload adjustment would be applied to the inflation adjusted fee revenue amount. To determine whether a workload adjustment applies, per AGDUFA IV commitments FDA calculates the weighted average of the change in the total number of each of the six types of applications and submissions specified in the workload adjustment provision (abbreviated applications for generic new animal drugs, manufacturing supplemental abbreviated applications for generic new animal drugs, investigational generic new animal drug study submissions, investigational generic new animal drug protocol submissions, generic investigational new animal drug file requests, and TABLE 4—WORKLOAD ADJUSTER CALCULATION Application type Abbreviated Application for a Generic New Animal Drug (ANADAs) ......................................................................... Manufacturing Supplements ANADAs ................................. Generic Investigational Study Submissions ........................ Generic Investigational Protocol Submissions .................... Generic Investigational New Animal Drug File Requests (JINAD) ............................................................................. Generic Investigational New Animal Drug Meeting Requests (JINAD) ................................................................. lotter on DSK11XQN23PROD with NOTICES1 FY 2025 AGDUFA IV Workload Adjuster ..................... Column 1 Column 2 Column 3 Column 4 Column 5 5-Year average (base years) Latest 5-year average Percent change Weighting factor Weighted percent change 28.00 249.40 171.80 58.00 31.60 249.20 167.00 54.60 12.8571 ¥0.0802 ¥2.7939 ¥5.8621 0.0902 0.2321 0.4759 0.1068 1.1600 ¥0.0186 ¥1.3296 ¥0.6263 49.20 47.20 ¥4.0650 0.0183 ¥0.0744 28.20 27.80 ¥1.4184 0.0767 ¥0.1087 ........................ ........................ ........................ ........................ ¥0.9977 Per section 741(c)(3)(C) of the FD&C Act under no circumstances shall the workload adjustment result in fee revenues that are less than the base fee revenues for that fiscal year as adjusted for inflation. For FY 2025 the workload adjustment would result in fee revenues less than the base fee revenues as adjusted for inflation, therefore no workload adjustment shall be applied. $10,393,400, is to come from product fees; and 40 percent, or a total of $10,393,400 is to come from sponsor fees (See section 741(b) of the FD&C Act). E. FY 2025 Fee Revenue Amounts AGDUFA IV specifies that the revenue amount of $25,983,500 for FY 2025 is to be divided as follows: 20 percent, or a total of $5,196,700, is to come from application and/or JINAD file fees; 40 percent, or a total of A. Fee Revenues and Numbers of FeePaying Applications and Submissions VerDate Sep<11>2014 17:29 Jul 30, 2024 Jkt 262001 III. Abbreviated Application Fee and Generic Investigational New Animal Drug (JINAD) File Fee Calculations for FY 2025 Section 741(a)(1)(A) of the FD&C Act states that each person who submits an abbreviated application for a generic new animal drug shall be subject to an application fee, with limited exceptions. PO 00000 Frm 00071 Fmt 4703 Sfmt 4703 The term ‘‘abbreviated application for a generic new animal drug’’ means an abbreviated application for the approval of any generic new animal drug submitted under section 512(b)(2) of the FD&C Act. FDA will assess fees related to JINAD files under section 741(a)(4)(A)(i) of the FD&C Act when a person submits a request to establish a new JINAD file. FDA will assess a fee under section 741(a)(4)(A)(ii) and (iii) of the FD&C Act for a person’s first submission, as described below, to a JINAD file on or after October 1, 2023, where the JINAD file had been established prior to that date. The JINAD file fee is set in accordance with E:\FR\FM\31JYN1.SGM 31JYN1 lotter on DSK11XQN23PROD with NOTICES1 61468 Federal Register / Vol. 89, No. 147 / Wednesday, July 31, 2024 / Notices section 741(c)(1)(C) of the FD&C Act at $50,000. FDA will set the abbreviated application fee so that such fees combined with the JINAD file fees will generate a combined total of $5,196,700 in fee revenue for FY 2025. To set fees for abbreviated applications for generic new animal drugs, FDA must first make some assumptions about the number of feepaying abbreviated applications it will receive during FY 2025, the number of requests to establish new JINAD files it will receive during FY 2025, and the number of existing (prior to October 1, 2023) JINAD files to which it will receive submissions during FY 2025. Regarding the fee for a person’s first submission to an existing (prior to October 1, 2023) JINAD file on or after October 1, 2023, FDA intends to assess a fee only for the first data (or ‘‘P’’) submission to the Bioequivalence (BE) or Chemistry, Manufacturing, and Controls (CMC) technical sections of the JINAD file. The Agency has selected P submissions to the BE or CMC technical sections as the basis for assessing this fee because P submissions to these sections consistently entail the substantial use of FDA review hours during the phased review process. The Agency knows the numbers of applications and submissions that have been submitted in previous years. Those numbers fluctuate annually. In estimating the fee revenue to be generated by application and submission fees in FY 2025, FDA is assuming that the number of applications and submissions for which fees will be paid in FY 2025 will equal the average number of applications and submissions over the 5 most recently completed fiscal years of the AGDUFA program (FY 2019–FY 2023). In addition, under section 741(a)(1)(C)(ii) of the FD&C Act an abbreviated application for a generic new animal drug subject to the criteria in section 512(d)(4) of the FD&C Act and submitted on or after October 1, 2013, shall be subject to 50 percent of the fee applicable to all other abbreviated applications for a generic new animal drug. The average number of original submissions of abbreviated applications for generic new animal drugs over the 5 most recently completed fiscal years is 15 applications not subject to the criteria in section 512(d)(4) of the FD&C Act and 6.4 submissions subject to the criteria in section 512(d)(4). Each of the submissions described under section 512(d)(4) of the FD&C Act pays 50 percent of the fee paid by the other applications and will be counted as one half of a fee. Adding all of the VerDate Sep<11>2014 17:29 Jul 30, 2024 Jkt 262001 applications not subject to the criteria in section 512(d)(4) of the FD&C Act and 50 percent of the number that are subject to such criteria results in a total of 18.20 anticipated full fees. Based on the previous assumptions, FDA is estimating that it will receive a total of 18.20 fee-paying generic new animal drug applications in FY 2025 (15.0 original applications paying a full fee and 6.4 applications paying a half fee). For estimating the number of requests to establish a new JINAD file and the number of P submissions to the BE or CMC section of an existing (prior to October 1, 2023) JINAD file the Agency will receive in FY 2025, FDA took the number of new JINAD file requests and P submissions to the BE or CMC section of an existing JINAD file received in FY 2024. The number of requests to establish new JINAD files and P submissions to the BE or CMC section of existing JINAD files during FY 2024 as of June is 45. Based on the previous assumptions, FDA is estimating that it will receive a total of 45 fee-paying JINAD file submissions in FY 2025 (including both requests to establish new JINAD files and first P submissions to the BE or CMC section of existing (prior to October 1, 2023) JINAD files). B. Application Fee Rates for FY 2025 FDA must set the fee rates for FY 2025 so that the estimated 18.20 abbreviated application fees and 45 JINAD file fees will generate a total of $5,196,700. The fee for a new JINAD file request or the first submission to an existing (prior to October 1, 2023) JINAD file is $50,000 under section 741(c)(1)(C) of the FD&C Act. Therefore, the JINAD fees will generate a total of $2,250,000. Abbreviated application fees will have to generate a total of $2,946,700. To generate this amount, the fee for a generic new animal drug application will be $161,907 and for those applications that are subject to the criteria set forth in section 512(d)(4) of the FD&C Act, 50 percent of that amount, or $80,954. IV. Generic New Animal Drug Product Fee Calculations For FY 2025 A. Product Fee Revenues and Numbers of Fee-Paying Products The generic new animal drug product fee must be paid annually by the person named as the applicant in an abbreviated application or supplemental abbreviated application for a generic new animal drug product submitted for listing under section 510 of the FD&C Act (21 U.S.C. 360), and who had an PO 00000 Frm 00072 Fmt 4703 Sfmt 4703 abbreviated application or supplemental abbreviated application for a generic new animal drug product pending at FDA after September 1, 2008 (21 U.S.C. 379j–21(a)(2)). Section 741(k)(6) of FD&C Act defines ‘‘generic new animal drug product’’ as a specific strength or potency of a particular active ingredient or ingredients in final dosage form marketed by a particular manufacturer or distributor, which is uniquely identified by the labeler code and product code portions of the National Drug Code, and for which an abbreviated application for a generic new animal drug or supplemental abbreviated application for a generic new animal drug has been approved. The product fees are to be set so that they will generate $10,393,400 in fee revenue for FY 2025. To set generic new animal drug product fees to realize $10,393,400, FDA must make some assumptions about the number of products for which these fees will be paid in FY 2025. FDA gathered data on all generic new animal drug products that have been submitted for listing under section 510 of the FD&C Act and matched this to the list of all persons who FDA estimated would have a generic new animal drug application or supplemental abbreviated application pending after September 1, 2008. As of May 2024, FDA estimates that there is a total of 651 products submitted for listing by persons who had an abbreviated application for a generic new animal drug or supplemental abbreviated application for a generic new animal drug pending after September 1, 2008. Based on this, FDA believes that a total of 651 products will be subject to this fee in FY 2025. Per section 741(d) of the FD&C Act in estimating the fee revenue to be generated by generic new animal drug product fees in FY 2025, FDA is estimating that 1 percent of the products invoiced, or 7 products, will not pay fees in FY 2025, due to fee waivers and reductions. FDA has made this estimate at 1 percent this year, based on historical data over the past 5 completed fiscal years of the AGDUFA program. Accordingly, the Agency estimates that a total of 644 (651 minus 7) products will be subject to product fees in FY 2025. B. Product Fee Rates for FY 2025 FDA must set the fee rates for FY 2025 so that the estimated 644 products for which fees are paid will generate a total of $10,393,400. To generate this amount will require the fee for a generic new animal drug product, rounded to the nearest dollar, to be $16,139. E:\FR\FM\31JYN1.SGM 31JYN1 61469 Federal Register / Vol. 89, No. 147 / Wednesday, July 31, 2024 / Notices V. Generic New Animal Drug Sponsor Fee Calculations for FY 2025 A. Sponsor Fee Revenues and Numbers of Fee-Paying Sponsors The generic new animal drug sponsor fee must be paid annually by each person who: (1) is named as the applicant in an abbreviated application for a generic new animal drug, except for an approved application for which all subject products have been removed from listing under section 510 of the FD&C Act, or has submitted an investigational submission for a generic new animal drug that has not been terminated or otherwise rendered inactive and (2) had an abbreviated application for a generic new animal drug, supplemental abbreviated application for a generic new animal drug, or investigational submission for a generic new animal drug pending at FDA after September 1, 2008. See section 741(k)(7) and (a)(3) of the FD&C Act. Per section 741(a)(3)(C) of the FD&C Act, a generic new animal drug sponsor is subject to only one such fee each fiscal year. Applicants with more than 6 approved abbreviated applications will pay 100 percent of the sponsor fee; applicants with more than 1 and fewer than 7 approved abbreviated applications will pay 75 percent of the sponsor fee; and applicants with 1 or fewer approved abbreviated applications will pay 50 percent of the sponsor fee. The sponsor fees are to be set so that they will generate $10,393,400 in fee revenue for FY 2025. To set generic new animal drug sponsor fees to realize $10,393,400, FDA must make some assumptions about the number of sponsors who will pay these fees in FY 2025. FDA developed data on all generic new animal drug sponsors and matched this to the list of all sponsors who had pending submissions and applications after September 1, 2008. As of May, 2024, FDA estimates that in FY 2025, 15 sponsors will pay 100 percent fees, 15 sponsors will pay 75 percent fees, and 26 sponsors will pay 50 percent fees. The total of these figures is the equivalent of 39.25 full sponsor fees (15 times 100 percent or 15, plus 15 times 75 percent or 11.25 plus 26 times 50 percent or 13). FDA estimates that about 2 percent of all of these sponsors, or 0.79, will not pay fees in FY 2025, due to fee waivers and reductions. FDA has made the estimate of the percentage of sponsors that will not pay fees at 2 percent this year, based on historical data over the past 5 completed fiscal years of the AGDUFA program. See section 741(d) of the FD&C Act. Accordingly, the Agency estimates that the equivalent of 38.47 full sponsor fees (39.25 minus 0.78) are likely to be paid in FY 2025. B. Sponsor Fee Rates for FY 2025 FDA must set the fee rates for FY 2025 so that the estimated equivalent of 38.47 full sponsor fees will generate a total of $10,393,400. To generate this amount will require the 100 percent fee for a generic new animal drug sponsor, rounded to the nearest dollar, to be $270,204. Accordingly, the fee for those paying 75 percent of the full sponsor fee will be $202,653, and the fee for those paying 50 percent of the full sponsor fee will be $135,102. VI. Fee Schedule for FY 2025 The fee rates for FY 2025 are summarized in table 5. TABLE 5—FY 2025 FEE RATES Fee rate for FY 2025 User fee category Abbreviated Application Fee for Generic New Animal Drug except those subject to the criteria in section 512(d)(4) ..................... Abbreviated Application Fee for Generic New Animal Drug subject to the criteria in section 512(d)(4) ........................................... Generic Investigational New Animal Drug File Fee (JINAD) .............................................................................................................. Generic New Animal Drug Product Fee .............................................................................................................................................. 100% Generic New Animal Drug Sponsor Fee 1 ................................................................................................................................ 75% Generic New Animal Drug Sponsor Fee 1 .................................................................................................................................. 50% Generic New Animal Drug Sponsor Fee 1 .................................................................................................................................. 1 An animal drug sponsor is subject to only one fee each fiscal year. VIII. Fee Waiver or Reduction; Exemption From Fees lotter on DSK11XQN23PROD with NOTICES1 $161,907 80,954 50,000 16,139 270,204 202,653 135,102 IX. Procedures for Paying FY 2025 Fees Per section 741(d)(1), of the FD&C Act the types of fees waivers and reductions that applied last fiscal year still exist for FY 2025. However, after September 30, 2023, there is no longer an exemption for any person who submits to CVM a supplemental abbreviated application relating to a generic new animal drug approved under section 512 of the FD&C Act, solely to add the application number to the labeling of the drug in the manner specified in section 502(w)(3) of the FD&C Act (21 U.S.C. 352(w)(3)). Waivers or reductions remain available for abbreviated applications for generic new animal drugs intended solely for a minor use/minor species indication; see section 741(d) of the FD&C Act. VerDate Sep<11>2014 17:29 Jul 30, 2024 Jkt 262001 A. Abbreviated Application Fees, JINAD File Fees, and Payment Instructions The FY 2025 fees established in the new fee schedule must be paid for the following applications/submissions that are subject to fees under AGDUFA IV and submitted on or after October 1, 2024: a generic new animal drug application, a submission requesting to establish a JINAD file, or the first BE or CMC submission to a JINAD file that was established prior to October 1, 2023. 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 electronic check (Automated Clearing House (ACH), also known as PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 eCheck) or credit card (Discover, VISA, MasterCard, American Express). Electronic payment options are based on the balance due. Payment by credit card is available only for balances that are less than $25,000. If the balance exceeds this amount, only the ACH option is available. Secure electronic payments can be submitted using the User Fees Payment Portal at https:// userfees.fda.gov/pay or the Pay.gov payment option is available to you after you submit a cover sheet. (Note: only full payments are accepted. No partial payments can be made online.) Once you find your invoice, select ‘‘Pay Now’’ to be redirected to Pay.gov. 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 write your application’s unique Payment Identification Number (PIN), beginning E:\FR\FM\31JYN1.SGM 31JYN1 lotter on DSK11XQN23PROD with NOTICES1 61470 Federal Register / Vol. 89, No. 147 / Wednesday, July 31, 2024 / Notices with the letters ‘‘AG’’, on the upper right-hand corner of your completed Animal Generic Drug User Fee Cover Sheet. Also write FDA’s post office box number (P.O. Box 979033) and PIN on the enclosed check, bank draft, or money order. Mail the payment and a copy of the completed Animal Generic Drug User Fee Cover Sheet to: Food and Drug Administration, P.O. Box 979033, St. Louis, MO 63197–9000. Note: In no case should the payment for the fee be submitted to FDA with the application or JINAD file submission. When paying by wire transfer, the invoice number or PIN needs to be included. Without the invoice number or PIN, the payment may not be applied, and the invoice amount would be referred to collections. 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. Use the following account information when sending a payment by wire transfer: U.S. Department of the Treasury, TREAS NYC, 33 Liberty St., New York, NY 10045, Account Name: Food and Drug Administration, Account Number: 75060099, U.S. Department of the Treasury routing/transit number: 021030004, SWIFT Number: FRNYUS33. To send a check by a courier such as FedEx, the courier must deliver the check and printed copy of the cover sheet to U.S. Bank: U.S. Bank, Attn: Government Lockbox 979033, 3180 Rider Trail S, Earth City, MO 63045. (Note: This address is for courier delivery only. If you have any questions concerning courier delivery, contact U.S. Bank at 855–259–3064. This telephone number is only for questions about courier delivery.) It is important that the fee arrives at the bank at least a day or two before the abbreviated application or JINAD submission arrives at FDA’s CVM. FDA records the official abbreviated application or JINAD submission receipt date as the later of the following: the date the application or submission was received by CVM, or the date U.S. Bank notifies FDA that your payment in the full amount has been received, or when the U.S. Department of the Treasury notifies FDA of payment. U.S. Bank and the U.S. Department of the Treasury are required to notify FDA within 1 working day, using the PIN described previously. The tax identification number of FDA is 53–0196965. VerDate Sep<11>2014 17:29 Jul 30, 2024 Jkt 262001 B. Application and JINAD File Submission Cover Sheet Procedures DEPARTMENT OF HEALTH AND HUMAN SERVICES Step One: Create a user account and password. Log onto the AGDUFA website at https://www.fda.gov/ ForIndustry/UserFees/ AnimalGenericDrug UserFeeActAGDUFA/ucm137049.htm and, under Application Submission Information, click on ‘‘Create AGDUFA User Fee Cover Sheet’’ and follow the directions. For security reasons, each firm submitting an application and/or a JINAD file submission will be assigned an organization identification number, and each user will also be required to set up a user account and password the first time you use this site. Online instructions will walk you through this process. Step Two: Create an Animal Generic Drug User Fee Cover Sheet, transmit it to FDA, and print a copy. After logging into your account with your username and password, complete the steps required to create an Animal Generic Drug User Fee Cover Sheet. One cover sheet is needed for each abbreviated application for a generic new animal drug or JINAD file submission. Once you are satisfied that the data on the cover sheet is accurate and you have finalized the cover sheet, you will be able to transmit it electronically to FDA and you will be able to print a copy of your cover sheet showing your unique PIN. Step Three: Send the payment for your application or JINAD file submission as described in section IX.A. Step Four: Submit your application or JINAD file submission. Food and Drug Administration C. Product and Sponsor Fees By December 31, 2024, FDA will issue invoices and payment instructions for product and sponsor fees for FY 2025 using this fee schedule. Payment will be due by January 31, 2025. FDA will issue invoices in November 2025 for any products and sponsors subject to fees for FY 2025 that qualify for fees after the December 2024 billing. Dated: July 26, 2024. Lauren K. Roth, Associate Commissioner for Policy. [FR Doc. 2024–16885 Filed 7–30–24; 8:45 am] BILLING CODE 4164–01–P PO 00000 Frm 00074 Fmt 4703 Sfmt 4703 [Docket No. FDA–2024–N–3005] Outsourcing Facility Fee Rates for Fiscal Year 2025 AGENCY: Food and Drug Administration, HHS. ACTION: Notice. The Food and Drug Administration (FDA) is announcing the fiscal year (FY) 2025 rates for the establishment and reinspection fees related to entities that compound human drugs and elect to register as outsourcing facilities under the Federal Food, Drug, and Cosmetic Act (FD&C Act). The FD&C Act authorizes FDA to assess and collect an annual establishment fee from outsourcing facilities, as well as a reinspection fee for each reinspection of an outsourcing facility. This document establishes the FY 2025 rates for the small business establishment fee ($6,488), the nonsmall business establishment fee ($21,534), and the reinspection fee ($19,465) for outsourcing facilities; provides information on how the fees for FY 2025 were determined; and describes the payment procedures outsourcing facilities should follow. DATES: These fee rates are effective October 1, 2024, and will remain in effect through September 30, 2025. FOR FURTHER INFORMATION CONTACT: For more information on human drug compounding and outsourcing facility fees, visit FDA’s website at: https:// www.fda.gov/drugs/guidancecompliance-regulatory-information/ human-drug-compounding. For questions relating to this notice: Olufunmilayo Ariyo, Office of Financial Management, Food and Drug Administration, 10903 New Hampshire Ave., Silver Spring, MD 20903, 240– 402–4989; or the User Fee Support Staff at OO-OFBAP-OFM-UFSS-Government@ fda.hhs.gov. SUPPLEMENTARY INFORMATION: SUMMARY: I. Background Under section 503B of the FD&C Act (21 U.S.C. 353b), a human drug compounder can register with FDA as an ‘‘outsourcing facility.’’ Outsourcing facilities, as defined in section 503B(d)(4), are facilities that meet all the conditions described in section 503B(a), including registering with FDA as an outsourcing facility and paying an annual establishment fee. If the conditions of section 503B are met, a E:\FR\FM\31JYN1.SGM 31JYN1

Agencies

[Federal Register Volume 89, Number 147 (Wednesday, July 31, 2024)]
[Notices]
[Pages 61465-61470]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-16885]


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

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2024-N-3481]


Animal Generic Drug User Fee Program Rates and Payment Procedures 
for Fiscal Year 2025

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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

SUMMARY: The Food and Drug Administration (FDA or the Agency) is 
announcing the fee rates and payment procedures for fiscal year (FY) 
2025 generic new animal drug program user fees. The Federal Food, Drug, 
and Cosmetic Act (FD&C Act), as amended by the Animal Generic Drug User 
Fee Amendments of 2023 (AGDUFA IV), authorizes FDA to collect user fees 
for certain abbreviated applications for generic new animal drugs, for 
certain generic new animal drug products, for certain sponsors of such 
abbreviated applications for generic new animal drugs and/or 
investigational submissions for generic new animal drugs (JINAD's), and 
for certain submissions related to JINAD files. This notice establishes 
the fee rates for FY 2025.

DATES: The application fee rates are effective for all abbreviated 
applications for a generic new animal drug submitted on or after 
October 1, 2024, and will remain in effect through September 30, 2025. 
The fee rates for requests to establish a JINAD file, and for certain 
submissions to JINAD files established prior to October 1, 2023, are 
effective on October 1, 2024, and will remain in effect through 
September 30, 2025.

FOR FURTHER INFORMATION CONTACT: Visit FDA's website at: https://www.fda.gov/ForIndustry/UserFees/AnimalGenericDrugUserFeeActAGDUFA/default.htm or contact: Lisa Kable, Center for Veterinary Medicine 
(HFV-10), Food and Drug Administration, 7500 Standish Pl., Rockville, 
MD 20855, 240-402-6888, [email protected]. For general questions, 
you may also email the Center for Veterinary Medicine (CVM) at: 
[email protected].
    For questions relating to this notice: Olufunmilayo Ariyo, Office 
of Financial Management, Food and Drug Administration, 10903 New 
Hampshire Ave., Silver Spring, MD 20903, 240-402-4989; or the User Fee 
Support Staff at [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    Section 741(a) of the FD&C Act (21 U.S.C. 379j-21(a)), establishes 
four different types of generic new animal drug user fees: (1) fees for 
certain abbreviated applications for generic new animal drugs; (2) 
annual fees for certain generic new animal drug products; (3) annual 
fees for certain sponsors of abbreviated applications for generic new 
animal drugs and/or investigational submissions for generic new animal 
drugs; and (4) JINAD file fees. When certain conditions are met, 
section 741(d) of the FD&C Act authorizes FDA to waive or reduce fees 
for generic new animal drugs intended solely to provide for a minor use 
or minor species indication.
    Section 741(b)(1) of the FD&C Act establishes a base revenue amount 
for each fiscal year. Per section 741(c)(2) and (3) of the FD&C Act, 
the base revenue amounts established for fiscal years after FY 2024 are 
subject to adjustment for inflation and workload. Beginning FY 2026, 
the annual fee revenue amounts are also subject to adjustment to reduce 
workload-based increases by the amount of certain excess collections. 
Section 741(b) of the FD&C Act establishes fees each year so that the 
percentage allocations for each of the fee categories is as follows: 20 
percent shall be derived from fees for abbreviated applications for a 
generic new animal drug and JINAD file fees; 40 percent shall be 
derived from fees for generic new animal drug products; and 40 percent 
shall be derived from fees for generic new animal drug sponsors. The 
target revenue amounts for each fee category for FY 2025 are as 
follows: for application and/or JINAD file fees, the target revenue 
amount is $5,196,700; for product fees, the target revenue amount is 
$10,393,400; and for sponsor fees, the target revenue amount is 
$10,393,400.
    For FY 2025, the AGDUFA rates are: $161,907 for each abbreviated 
application for a generic new animal drug other than those subject to 
the criteria in section 512(d)(4) of the FD&C Act (21 U.S.C. 
360b(d)(4)); $80,954 for each abbreviated application for a generic new 
animal drug subject to the criteria in section 512(d)(4) of the FD&C 
Act; $50,000 for each JINAD file request or certain submissions to 
established JINAD files; $16,139 for each generic new animal drug 
product; $270,204 for each generic new animal drug sponsor paying 100 
percent of the sponsor fee; $202,653 for each generic new animal drug 
sponsor paying 75 percent of the sponsor fee; and $135,102 for each 
generic new animal drug sponsor paying 50 percent of the sponsor fee. 
FDA will

[[Page 61466]]

issue invoices for FY 2025 product and sponsor fees by December 31, 
2024, and payment will be due by January 31, 2025. The application fee 
rates are effective for all abbreviated applications for a generic new 
animal drug submitted on or after October 1, 2024, and will remain in 
effect through September 30, 2025. The fee rate for requests to 
establish a JINAD file, and for certain submissions to JINAD files 
established prior to October 1, 2023, is effective on October 1, 2024, 
and will remain in effect through September 30, 2025.
    Applications will not be accepted for review until FDA has received 
full payment of application fees and any other fees owed under the 
AGDUFA program. Similarly, a request to establish a JINAD file or a 
submission to an existing JINAD file will not be accepted for action by 
FDA until FDA has received full payment of all fees owed under the 
AGDUFA program.

II. Fee Revenue Amount for FY 2025

A. Statutory Fee Revenue Amounts

    Section 741(b)(1) of the FD&C Act specifies that the base fee 
revenue amount for FY 2025 for all generic animal drug user fee 
categories totals $25,000,000.

B. Inflation Adjustment to Fee Revenue Amount

    Section 741(c)(2)(A) of the FD&C Act specifies that the annual fee 
revenue amount is to be adjusted for inflation increases for FY 2025 
and subsequent fiscal years using two separate factors--one for 
personnel compensation and benefits (PC&B) costs and one for non-PC&B 
costs.
    Section 741(c)(2)(A)(ii) of the FD&C Act specifies the component of 
the inflation adjustment for payroll costs shall be one plus the 
average annual percent change in the cost of all PC&B, per full-time 
equivalent (FTE) position of the FDA, for the first 3 of the preceding 
4 fiscal years of available data, multiplied by the average proportion 
of PC&B costs to total FDA costs for the first 3 of the 4 preceding 
fiscal years of available data. The data on total PC&B paid and numbers 
of FTE paid, from which the average cost per FTE can be derived, are 
published in FDA's Justification of Estimates for Appropriations 
Committees.
    Table 1 summarizes the total PC&B costs per FTE for the specified 
fiscal years, provides the percentage change from the previous fiscal 
year, and provides the average percentage change over the first 3 of 
the 4 fiscal years preceding FY 2025. The 3-year average is 3.8539 
percent.

              Table 1--FDA Personnel Compensation and Benefits (PC&B) Each Year and Percent Change
----------------------------------------------------------------------------------------------------------------
                Fiscal year                       2021              2022              2023        3-Year average
----------------------------------------------------------------------------------------------------------------
Total PC&B................................    $3,039,513,000    $3,165,477,000    $3,436,513,000  ..............
Total FTEs................................            18,501            18,474            18,729  ..............
PC&B per FTE..............................          $164,289          $171,348          $183,486  ..............
Percent Change from Previous Year.........           0.1811%           4.2967%           7.0838%         3.8539%
----------------------------------------------------------------------------------------------------------------

    Section 741(c)(2)(A)(ii) of the FD&C Act specifies that the 3.8539 
percent should be multiplied by the average proportion of PC&B costs to 
total FDA costs for the first 3 of the preceding 4 fiscal years for 
which data are available. Table 2 shows the amount of PC&B and the 
total costs obligated by FDA for the same 3 fiscal years.

                                    Table 2--PC&B as a Percent of Total Cost
----------------------------------------------------------------------------------------------------------------
                Fiscal year                       2021              2022              2023        3-Year average
----------------------------------------------------------------------------------------------------------------
Total PC&B................................    $3,039,513,000    $3,165,477,000    $3,436,513,000  ..............
Total Costs...............................    $6,049,798,000    $6,251,981,000    $6,654,058,000  ..............
PC&B percent..............................          50.2416%          50.6316%          51.6454%        50.8395%
----------------------------------------------------------------------------------------------------------------

    The portion of the inflation adjustment relating to payroll costs 
is 3.8539 percent multiplied by 50.8359 percent, or 1.9593 percent.
    Section 741(c)(2)(A)(iii) of the FD&C Act specifies that the non-
payroll costs adjustment factor is calculated by multiplying the 
average annual percentage change that occurred in the Consumer Price 
Index for Urban Consumers (Washington-Arlington-Alexandria, DC-VA-MD-
WV; Not Seasonally Adjusted; All Items Less Food and Energy; Annual 
Index) for the first 3 years of the preceding 4 years of available data 
by the average proportion of all non-PC&B costs to total FDA costs for 
the first 3 years of the preceding 4 fiscal years. Table 3 provides the 
summary data for the percentage change in the specified CPI for the 
Washington-Arlington-Alexandria area.\1\
---------------------------------------------------------------------------

    \1\ The data is published by the Bureau of Labor Statistics and 
can be found on its website at: https://data.bls.gov/timeseries/CUURS35ASA0L1E.

    Table 3--Annual and 3-Year Average Percent Change in CPI (Less Food and Energy) for Washington-Arlington-
                                                 Alexandria Area
----------------------------------------------------------------------------------------------------------------
                Fiscal year                       2021              2022              2023        3-Year average
----------------------------------------------------------------------------------------------------------------
Annual CPI................................           287.144           302.608           313.315  ..............
Annual Percent Change.....................           3.1271%           5.3855%           3.5382%         4.0169%
----------------------------------------------------------------------------------------------------------------


[[Page 61467]]

    Section 741(c)(2)(A)(iii) of the FD&C Act specifies to calculate 
the inflation adjustment for non-payroll costs, we multiply 4.0169 
percent by the average proportion of all costs other than PC&B to total 
FDA costs for the first 3 years of the preceding 4 fiscal years. Since 
50.8395 percent was obligated for PC&B as shown in table 2, 49.1605 
percent is the portion of costs other than PC&B (100 percent minus the 
PC&B percentage of 50.8395). The portion of the inflation adjustment 
relating to non-payroll costs is 4.0169 percent multiplied by 49.1605 
percent, or 1.9747 percent.
    Next, we add the payroll component (1.9593 percent) to the non-
payroll component (1.9747 percent), for an inflation adjustment of 
3.9340 percent for FY 2025.
    Section 741(c)(2)(B) of the FD&C Act provides for the inflation 
adjustment to be compounded each fiscal year after FY 2025. The 
inflation adjustment for FY 2025 (3.9340 percent) is compounded by 
adding 1 and then multiplying by 1 plus the inflation adjustment factor 
for FY 2024 (zero percent), which equals 1.0393 (rounded) (1.0393 x 
1.0). We then multiply the base revenue amount for FY 2025 
($25,000,000) by 1.0393, yielding an inflation adjusted amount of 
$25,983,500.

C. Workload Adjustment to Inflation Adjusted Fee Revenue Amount

    Section 741(c)(3)(A) of the FD&C Act specifies that fee revenue 
amounts for FY 2025 and subsequent fiscal years are subject to 
adjustment to account for changes in FDA's review workload. The 
workload adjustment would be applied to the inflation adjusted fee 
revenue amount.
    To determine whether a workload adjustment applies, per AGDUFA IV 
commitments FDA calculates the weighted average of the change in the 
total number of each of the six types of applications and submissions 
specified in the workload adjustment provision (abbreviated 
applications for generic new animal drugs, manufacturing supplemental 
abbreviated applications for generic new animal drugs, investigational 
generic new animal drug study submissions, investigational generic new 
animal drug protocol submissions, generic investigational new animal 
drug file requests, and generic investigational new animal drug meeting 
requests) received over the 5-year period that ended on September 30, 
2023 (the base years; 2019 through 2023), and the average number of 
each of these types of applications and submissions over the most 
recent 5-year period that ended April 30, 2024.
    The results of these calculations are presented in the first two 
columns of table 4. Column 3 reflects the percent change in workload 
over the two 5-year periods. Column 4 shows the weighting factor for 
each type of application/submission, reflecting how much of the total 
FDA generic new animal drug review workload was accounted for by each 
type of application or submission in the table during the most recent 5 
years. Column 5 is the weighted percent change in each category of 
workload and was derived by multiplying the weighting factor in each 
line in column 4 by the percent change from the base years in column 3. 
At the bottom right of the table, the sum of the values in column 5 is 
calculated, reflecting a total change in workload of negative 0.9977 
percent for FY 2025. This is the workload adjuster for FY 2025.

                                     Table 4--Workload Adjuster Calculation
----------------------------------------------------------------------------------------------------------------
                                     Column 1        Column 2        Column 3        Column 4        Column 5
                                 -------------------------------------------------------------------------------
        Application type          5-Year average   Latest 5-year                     Weighting       Weighted
                                   (base years)       average     Percent change      factor      percent change
----------------------------------------------------------------------------------------------------------------
Abbreviated Application for a              28.00           31.60         12.8571          0.0902          1.1600
 Generic New Animal Drug
 (ANADAs).......................
Manufacturing Supplements ANADAs          249.40          249.20         -0.0802          0.2321         -0.0186
Generic Investigational Study             171.80          167.00         -2.7939          0.4759         -1.3296
 Submissions....................
Generic Investigational Protocol           58.00           54.60         -5.8621          0.1068         -0.6263
 Submissions....................
Generic Investigational New                49.20           47.20         -4.0650          0.0183         -0.0744
 Animal Drug File Requests
 (JINAD)........................
Generic Investigational New                28.20           27.80         -1.4184          0.0767         -0.1087
 Animal Drug Meeting Requests
 (JINAD)........................
                                 -------------------------------------------------------------------------------
    FY 2025 AGDUFA IV Workload    ..............  ..............  ..............  ..............         -0.9977
     Adjuster...................
----------------------------------------------------------------------------------------------------------------

    Per section 741(c)(3)(C) of the FD&C Act under no circumstances 
shall the workload adjustment result in fee revenues that are less than 
the base fee revenues for that fiscal year as adjusted for inflation. 
For FY 2025 the workload adjustment would result in fee revenues less 
than the base fee revenues as adjusted for inflation, therefore no 
workload adjustment shall be applied.

E. FY 2025 Fee Revenue Amounts

    AGDUFA IV specifies that the revenue amount of $25,983,500 for FY 
2025 is to be divided as follows: 20 percent, or a total of $5,196,700, 
is to come from application and/or JINAD file fees; 40 percent, or a 
total of $10,393,400, is to come from product fees; and 40 percent, or 
a total of $10,393,400 is to come from sponsor fees (See section 741(b) 
of the FD&C Act).

III. Abbreviated Application Fee and Generic Investigational New Animal 
Drug (JINAD) File Fee Calculations for FY 2025

A. Fee Revenues and Numbers of Fee-Paying Applications and Submissions

    Section 741(a)(1)(A) of the FD&C Act states that each person who 
submits an abbreviated application for a generic new animal drug shall 
be subject to an application fee, with limited exceptions. The term 
``abbreviated application for a generic new animal drug'' means an 
abbreviated application for the approval of any generic new animal drug 
submitted under section 512(b)(2) of the FD&C Act. FDA will assess fees 
related to JINAD files under section 741(a)(4)(A)(i) of the FD&C Act 
when a person submits a request to establish a new JINAD file. FDA will 
assess a fee under section 741(a)(4)(A)(ii) and (iii) of the FD&C Act 
for a person's first submission, as described below, to a JINAD file on 
or after October 1, 2023, where the JINAD file had been established 
prior to that date. The JINAD file fee is set in accordance with

[[Page 61468]]

section 741(c)(1)(C) of the FD&C Act at $50,000. FDA will set the 
abbreviated application fee so that such fees combined with the JINAD 
file fees will generate a combined total of $5,196,700 in fee revenue 
for FY 2025.
    To set fees for abbreviated applications for generic new animal 
drugs, FDA must first make some assumptions about the number of fee-
paying abbreviated applications it will receive during FY 2025, the 
number of requests to establish new JINAD files it will receive during 
FY 2025, and the number of existing (prior to October 1, 2023) JINAD 
files to which it will receive submissions during FY 2025.
    Regarding the fee for a person's first submission to an existing 
(prior to October 1, 2023) JINAD file on or after October 1, 2023, FDA 
intends to assess a fee only for the first data (or ``P'') submission 
to the Bioequivalence (BE) or Chemistry, Manufacturing, and Controls 
(CMC) technical sections of the JINAD file. The Agency has selected P 
submissions to the BE or CMC technical sections as the basis for 
assessing this fee because P submissions to these sections consistently 
entail the substantial use of FDA review hours during the phased review 
process.
    The Agency knows the numbers of applications and submissions that 
have been submitted in previous years. Those numbers fluctuate 
annually. In estimating the fee revenue to be generated by application 
and submission fees in FY 2025, FDA is assuming that the number of 
applications and submissions for which fees will be paid in FY 2025 
will equal the average number of applications and submissions over the 
5 most recently completed fiscal years of the AGDUFA program (FY 2019-
FY 2023).
    In addition, under section 741(a)(1)(C)(ii) of the FD&C Act an 
abbreviated application for a generic new animal drug subject to the 
criteria in section 512(d)(4) of the FD&C Act and submitted on or after 
October 1, 2013, shall be subject to 50 percent of the fee applicable 
to all other abbreviated applications for a generic new animal drug.
    The average number of original submissions of abbreviated 
applications for generic new animal drugs over the 5 most recently 
completed fiscal years is 15 applications not subject to the criteria 
in section 512(d)(4) of the FD&C Act and 6.4 submissions subject to the 
criteria in section 512(d)(4). Each of the submissions described under 
section 512(d)(4) of the FD&C Act pays 50 percent of the fee paid by 
the other applications and will be counted as one half of a fee. Adding 
all of the applications not subject to the criteria in section 
512(d)(4) of the FD&C Act and 50 percent of the number that are subject 
to such criteria results in a total of 18.20 anticipated full fees.
    Based on the previous assumptions, FDA is estimating that it will 
receive a total of 18.20 fee-paying generic new animal drug 
applications in FY 2025 (15.0 original applications paying a full fee 
and 6.4 applications paying a half fee).
    For estimating the number of requests to establish a new JINAD file 
and the number of P submissions to the BE or CMC section of an existing 
(prior to October 1, 2023) JINAD file the Agency will receive in FY 
2025, FDA took the number of new JINAD file requests and P submissions 
to the BE or CMC section of an existing JINAD file received in FY 2024. 
The number of requests to establish new JINAD files and P submissions 
to the BE or CMC section of existing JINAD files during FY 2024 as of 
June is 45.
    Based on the previous assumptions, FDA is estimating that it will 
receive a total of 45 fee-paying JINAD file submissions in FY 2025 
(including both requests to establish new JINAD files and first P 
submissions to the BE or CMC section of existing (prior to October 1, 
2023) JINAD files).

B. Application Fee Rates for FY 2025

    FDA must set the fee rates for FY 2025 so that the estimated 18.20 
abbreviated application fees and 45 JINAD file fees will generate a 
total of $5,196,700. The fee for a new JINAD file request or the first 
submission to an existing (prior to October 1, 2023) JINAD file is 
$50,000 under section 741(c)(1)(C) of the FD&C Act. Therefore, the 
JINAD fees will generate a total of $2,250,000. Abbreviated application 
fees will have to generate a total of $2,946,700.
    To generate this amount, the fee for a generic new animal drug 
application will be $161,907 and for those applications that are 
subject to the criteria set forth in section 512(d)(4) of the FD&C Act, 
50 percent of that amount, or $80,954.

IV. Generic New Animal Drug Product Fee Calculations For FY 2025

A. Product Fee Revenues and Numbers of Fee-Paying Products

    The generic new animal drug product fee must be paid annually by 
the person named as the applicant in an abbreviated application or 
supplemental abbreviated application for a generic new animal drug 
product submitted for listing under section 510 of the FD&C Act (21 
U.S.C. 360), and who had an abbreviated application or supplemental 
abbreviated application for a generic new animal drug product pending 
at FDA after September 1, 2008 (21 U.S.C. 379j-21(a)(2)). Section 
741(k)(6) of FD&C Act defines ``generic new animal drug product'' as a 
specific strength or potency of a particular active ingredient or 
ingredients in final dosage form marketed by a particular manufacturer 
or distributor, which is uniquely identified by the labeler code and 
product code portions of the National Drug Code, and for which an 
abbreviated application for a generic new animal drug or supplemental 
abbreviated application for a generic new animal drug has been 
approved. The product fees are to be set so that they will generate 
$10,393,400 in fee revenue for FY 2025.
    To set generic new animal drug product fees to realize $10,393,400, 
FDA must make some assumptions about the number of products for which 
these fees will be paid in FY 2025. FDA gathered data on all generic 
new animal drug products that have been submitted for listing under 
section 510 of the FD&C Act and matched this to the list of all persons 
who FDA estimated would have a generic new animal drug application or 
supplemental abbreviated application pending after September 1, 2008. 
As of May 2024, FDA estimates that there is a total of 651 products 
submitted for listing by persons who had an abbreviated application for 
a generic new animal drug or supplemental abbreviated application for a 
generic new animal drug pending after September 1, 2008. Based on this, 
FDA believes that a total of 651 products will be subject to this fee 
in FY 2025.
    Per section 741(d) of the FD&C Act in estimating the fee revenue to 
be generated by generic new animal drug product fees in FY 2025, FDA is 
estimating that 1 percent of the products invoiced, or 7 products, will 
not pay fees in FY 2025, due to fee waivers and reductions. FDA has 
made this estimate at 1 percent this year, based on historical data 
over the past 5 completed fiscal years of the AGDUFA program.
    Accordingly, the Agency estimates that a total of 644 (651 minus 7) 
products will be subject to product fees in FY 2025.

B. Product Fee Rates for FY 2025

    FDA must set the fee rates for FY 2025 so that the estimated 644 
products for which fees are paid will generate a total of $10,393,400. 
To generate this amount will require the fee for a generic new animal 
drug product, rounded to the nearest dollar, to be $16,139.

[[Page 61469]]

V. Generic New Animal Drug Sponsor Fee Calculations for FY 2025

A. Sponsor Fee Revenues and Numbers of Fee-Paying Sponsors

    The generic new animal drug sponsor fee must be paid annually by 
each person who: (1) is named as the applicant in an abbreviated 
application for a generic new animal drug, except for an approved 
application for which all subject products have been removed from 
listing under section 510 of the FD&C Act, or has submitted an 
investigational submission for a generic new animal drug that has not 
been terminated or otherwise rendered inactive and (2) had an 
abbreviated application for a generic new animal drug, supplemental 
abbreviated application for a generic new animal drug, or 
investigational submission for a generic new animal drug pending at FDA 
after September 1, 2008. See section 741(k)(7) and (a)(3) of the FD&C 
Act.
    Per section 741(a)(3)(C) of the FD&C Act, a generic new animal drug 
sponsor is subject to only one such fee each fiscal year. Applicants 
with more than 6 approved abbreviated applications will pay 100 percent 
of the sponsor fee; applicants with more than 1 and fewer than 7 
approved abbreviated applications will pay 75 percent of the sponsor 
fee; and applicants with 1 or fewer approved abbreviated applications 
will pay 50 percent of the sponsor fee. The sponsor fees are to be set 
so that they will generate $10,393,400 in fee revenue for FY 2025.
    To set generic new animal drug sponsor fees to realize $10,393,400, 
FDA must make some assumptions about the number of sponsors who will 
pay these fees in FY 2025. FDA developed data on all generic new animal 
drug sponsors and matched this to the list of all sponsors who had 
pending submissions and applications after September 1, 2008. As of 
May, 2024, FDA estimates that in FY 2025, 15 sponsors will pay 100 
percent fees, 15 sponsors will pay 75 percent fees, and 26 sponsors 
will pay 50 percent fees. The total of these figures is the equivalent 
of 39.25 full sponsor fees (15 times 100 percent or 15, plus 15 times 
75 percent or 11.25 plus 26 times 50 percent or 13).
    FDA estimates that about 2 percent of all of these sponsors, or 
0.79, will not pay fees in FY 2025, due to fee waivers and reductions. 
FDA has made the estimate of the percentage of sponsors that will not 
pay fees at 2 percent this year, based on historical data over the past 
5 completed fiscal years of the AGDUFA program. See section 741(d) of 
the FD&C Act.
    Accordingly, the Agency estimates that the equivalent of 38.47 full 
sponsor fees (39.25 minus 0.78) are likely to be paid in FY 2025.

B. Sponsor Fee Rates for FY 2025

    FDA must set the fee rates for FY 2025 so that the estimated 
equivalent of 38.47 full sponsor fees will generate a total of 
$10,393,400. To generate this amount will require the 100 percent fee 
for a generic new animal drug sponsor, rounded to the nearest dollar, 
to be $270,204. Accordingly, the fee for those paying 75 percent of the 
full sponsor fee will be $202,653, and the fee for those paying 50 
percent of the full sponsor fee will be $135,102.

VI. Fee Schedule for FY 2025

    The fee rates for FY 2025 are summarized in table 5.

                       Table 5--FY 2025 Fee Rates
------------------------------------------------------------------------
                                                           Fee rate for
                    User fee category                         FY 2025
------------------------------------------------------------------------
Abbreviated Application Fee for Generic New Animal Drug         $161,907
 except those subject to the criteria in section
 512(d)(4)..............................................
Abbreviated Application Fee for Generic New Animal Drug           80,954
 subject to the criteria in section 512(d)(4)...........
Generic Investigational New Animal Drug File Fee (JINAD)          50,000
Generic New Animal Drug Product Fee.....................          16,139
100% Generic New Animal Drug Sponsor Fee \1\............         270,204
75% Generic New Animal Drug Sponsor Fee \1\.............         202,653
50% Generic New Animal Drug Sponsor Fee \1\.............         135,102
------------------------------------------------------------------------
\1\ An animal drug sponsor is subject to only one fee each fiscal year.

VIII. Fee Waiver or Reduction; Exemption From Fees

    Per section 741(d)(1), of the FD&C Act the types of fees waivers 
and reductions that applied last fiscal year still exist for FY 2025. 
However, after September 30, 2023, there is no longer an exemption for 
any person who submits to CVM a supplemental abbreviated application 
relating to a generic new animal drug approved under section 512 of the 
FD&C Act, solely to add the application number to the labeling of the 
drug in the manner specified in section 502(w)(3) of the FD&C Act (21 
U.S.C. 352(w)(3)).
    Waivers or reductions remain available for abbreviated applications 
for generic new animal drugs intended solely for a minor use/minor 
species indication; see section 741(d) of the FD&C Act.

IX. Procedures for Paying FY 2025 Fees

A. Abbreviated Application Fees, JINAD File Fees, and Payment 
Instructions

    The FY 2025 fees established in the new fee schedule must be paid 
for the following applications/submissions that are subject to fees 
under AGDUFA IV and submitted on or after October 1, 2024: a generic 
new animal drug application, a submission requesting to establish a 
JINAD file, or the first BE or CMC submission to a JINAD file that was 
established prior to October 1, 2023. 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 electronic check (Automated Clearing House 
(ACH), also known as eCheck) or credit card (Discover, VISA, 
MasterCard, American Express). Electronic payment options are based on 
the balance due. Payment by credit card is available only for balances 
that are less than $25,000. If the balance exceeds this amount, only 
the ACH option is available. Secure electronic payments can be 
submitted using the User Fees Payment Portal at https://userfees.fda.gov/pay or the Pay.gov payment option is available to you 
after you submit a cover sheet. (Note: only full payments are accepted. 
No partial payments can be made online.) Once you find your invoice, 
select ``Pay Now'' to be redirected to Pay.gov. 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 write your application's unique Payment Identification Number 
(PIN), beginning

[[Page 61470]]

with the letters ``AG'', on the upper right-hand corner of your 
completed Animal Generic Drug User Fee Cover Sheet. Also write FDA's 
post office box number (P.O. Box 979033) and PIN on the enclosed check, 
bank draft, or money order. Mail the payment and a copy of the 
completed Animal Generic Drug User Fee Cover Sheet to: Food and Drug 
Administration, P.O. Box 979033, St. Louis, MO 63197-9000. Note: In no 
case should the payment for the fee be submitted to FDA with the 
application or JINAD file submission.
    When paying by wire transfer, the invoice number or PIN needs to be 
included. Without the invoice number or PIN, the payment may not be 
applied, and the invoice amount would be referred to collections. 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. Use the following account information when sending a payment by 
wire transfer: U.S. Department of the Treasury, TREAS NYC, 33 Liberty 
St., New York, NY 10045, Account Name: Food and Drug Administration, 
Account Number: 75060099, U.S. Department of the Treasury routing/
transit number: 021030004, SWIFT Number: FRNYUS33.
    To send a check by a courier such as FedEx, the courier must 
deliver the check and printed copy of the cover sheet to U.S. Bank: 
U.S. Bank, Attn: Government Lockbox 979033, 3180 Rider Trail S, Earth 
City, MO 63045. (Note: This address is for courier delivery only. If 
you have any questions concerning courier delivery, contact U.S. Bank 
at 855-259-3064. This telephone number is only for questions about 
courier delivery.)
    It is important that the fee arrives at the bank at least a day or 
two before the abbreviated application or JINAD submission arrives at 
FDA's CVM. FDA records the official abbreviated application or JINAD 
submission receipt date as the later of the following: the date the 
application or submission was received by CVM, or the date U.S. Bank 
notifies FDA that your payment in the full amount has been received, or 
when the U.S. Department of the Treasury notifies FDA of payment. U.S. 
Bank and the U.S. Department of the Treasury are required to notify FDA 
within 1 working day, using the PIN described previously.
    The tax identification number of FDA is 53-0196965.

B. Application and JINAD File Submission Cover Sheet Procedures

    Step One: Create a user account and password. Log onto the AGDUFA 
website at https://www.fda.gov/ForIndustry/UserFees/AnimalGenericDrugUserFeeActAGDUFA/ucm137049.htm and, under Application 
Submission Information, click on ``Create AGDUFA User Fee Cover Sheet'' 
and follow the directions. For security reasons, each firm submitting 
an application and/or a JINAD file submission will be assigned an 
organization identification number, and each user will also be required 
to set up a user account and password the first time you use this site. 
Online instructions will walk you through this process.
    Step Two: Create an Animal Generic Drug User Fee Cover Sheet, 
transmit it to FDA, and print a copy. After logging into your account 
with your username and password, complete the steps required to create 
an Animal Generic Drug User Fee Cover Sheet. One cover sheet is needed 
for each abbreviated application for a generic new animal drug or JINAD 
file submission. Once you are satisfied that the data on the cover 
sheet is accurate and you have finalized the cover sheet, you will be 
able to transmit it electronically to FDA and you will be able to print 
a copy of your cover sheet showing your unique PIN.
    Step Three: Send the payment for your application or JINAD file 
submission as described in section IX.A.
    Step Four: Submit your application or JINAD file submission.

C. Product and Sponsor Fees

    By December 31, 2024, FDA will issue invoices and payment 
instructions for product and sponsor fees for FY 2025 using this fee 
schedule. Payment will be due by January 31, 2025. FDA will issue 
invoices in November 2025 for any products and sponsors subject to fees 
for FY 2025 that qualify for fees after the December 2024 billing.

    Dated: July 26, 2024.
Lauren K. Roth,
Associate Commissioner for Policy.
[FR Doc. 2024-16885 Filed 7-30-24; 8:45 am]
BILLING CODE 4164-01-P


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