Research & DevelopmentPDUFA

The Prescription Drug User Fee Act VI

The Prescription Drug User Fee Act (PDUFA) provides the U.S. Food and Drug Administration (FDA) with necessary resources to meet performance goals for the regulatory review of new medicines. PDUFA is critical to ensuring America’s biopharmaceutical companies can continue scientific innovation and bring new treatments to help patients live longer, healthier lives.

History of PDUFA

The PDUFA user fee program was first created in response to a bottleneck of new medicine approvals that left patients waiting for years for an under-staffed and under-funded FDA to review new drug applications. Before PDUFA, it often took the FDA more than two years to review new medicines, and more than 70 percent of medicines were first approved outside of the United States.

In 1992, Congress passed the first PDUFA and now, more than 25 years later, the average approval time for a new medicine is just 10 months, and 78 percent of medicines are now first approved in the U.S.

The latest reauthorization of PDUFA (PDUFA VI) was signed into law on August 18, 2017 and took effect on October 1, 2017. It expires September 30, 2022.

How it Works

To help make the review process more efficient, biopharmaceutical companies pay two different user fees under PDUFA VI:

  • Application fee: Fee due when a sponsor submits a New Drug Application (NDA) or Biologics License Application (BLA).
  • Program fee: Post-approval annual fee for most prescription drug products approved by October 1 of each fiscal year for which no generic drug exists.

PDUFA VI Is Accomplishing:

 PDUFA VI is strengthening the FDA’s human drug review program and helping the Agency remain the global “gold-standard” of medicine review through:

  • Real-World Evidence (RWE): By employing the data uncovered in the “real-world” practice of medicine – whether through electronic health records, payer administrative claims, or patient registries – the FDA can harness valuable information about the safety and efficacy of a medicine in a broader population than a clinical trial. PDUFA VI provides additional resources to the FDA to help develop a better understanding of how RWE can be used in regulatory decision-making.

  • Patient-Focused Drug Development: PDUFA VI boosts the FDA’s expertise and capacity to advance the science of patient input and to incorporate patient perspectives in the drug development and review processes. Understanding how medicines improve how a patient feels and functions is just as important as clinical benefit. Patients, family members, and caregivers can provide their unique and valuable perspectives on their disease condition and available treatment options to advance this understanding. These perspectives can help inform evaluations of a medicine’s benefits and risks, provide additional context for FDA’s regulatory decision-making, and  help researchers better identify clinical outcomes that matter to patients and their caregivers.

  • Innovative Clinical Trial Design: Randomized controlled clinical trials (RCTs) have long been the industry-standard for assessing efficacy and safety of new medicines. However, as the drug development process adapts to bring innovative new treatments to patients faster, the clinical trial process must become nimbler. PDUFA VI enhances drug development by establishing processes to facilitate appropriate use of innovative clinical trial designs and novel statistical methods which will help to enhance their review and acceptance in the drug review process.

 

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