80_FR_50720 80 FR 50559 - Designating Additions to the Current List of Tropical Diseases in the Federal Food, Drug, and Cosmetic Act

80 FR 50559 - Designating Additions to the Current List of Tropical Diseases in the Federal Food, Drug, and Cosmetic Act

DEPARTMENT OF HEALTH AND HUMAN SERVICES
Food and Drug Administration

Federal Register Volume 80, Issue 161 (August 20, 2015)

Page Range50559-50564
FR Document2015-20554

The Federal Food, Drug, and Cosmetic Act (the FD&C Act) authorizes the Food and Drug Administration (FDA or Agency) to award priority review vouchers (PRVs) to tropical disease product applicants when the applications meet certain criteria. The FD&C Act lists the diseases that are considered to be tropical diseases for purposes of obtaining PRVs, and also provides for Agency expansion of that list to include other diseases that satisfy the definition of ``tropical diseases'' as set forth in the FD&C Act. FDA has determined that Chagas disease and neurocysticercosis satisfy this definition, and therefore is adding them to the list of designated tropical diseases whose product applications may result in the award of PRVs. Sponsors submitting certain applications for the treatment of Chagas disease and neurocysticercosis may be eligible to receive a PRV if such applications are approved by FDA.

Federal Register, Volume 80 Issue 161 (Thursday, August 20, 2015)
[Federal Register Volume 80, Number 161 (Thursday, August 20, 2015)]
[Rules and Regulations]
[Pages 50559-50564]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-20554]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

21 CFR Part 317

[Docket No. FDA-2008-N-0567]
RIN 0910-AG37


Designating Additions to the Current List of Tropical Diseases in 
the Federal Food, Drug, and Cosmetic Act

AGENCY: Food and Drug Administration, HHS.

ACTION: Final order.

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SUMMARY: The Federal Food, Drug, and Cosmetic Act (the FD&C Act) 
authorizes the Food and Drug Administration (FDA or Agency) to award 
priority review vouchers (PRVs) to tropical disease product applicants 
when the applications meet certain criteria. The FD&C Act lists the 
diseases that are considered to be tropical diseases for purposes of 
obtaining PRVs, and also provides for Agency expansion of that list to 
include other diseases that satisfy the definition of ``tropical 
diseases'' as set forth in the FD&C Act. FDA has determined that Chagas 
disease and neurocysticercosis satisfy this definition, and therefore 
is adding them to the list of designated tropical diseases whose 
product applications may result in the award of PRVs. Sponsors 
submitting certain applications for the treatment of Chagas disease and 
neurocysticercosis may be eligible to receive a PRV if such 
applications are approved by FDA.

DATES: This order is effective August 20, 2015.

ADDRESSES: Submit electronic comments on additional diseases suggested 
for designation to www.regulations.gov. Submit written comments on 
additional diseases suggested for designation to the Division of 
Dockets Management (HFA-305), Food and Drug Administration, 5630 
Fishers Lane, Rm. 1061, Rockville, MD 20852. All comments should be 
identified with the docket number found in brackets in the heading of 
this document.

FOR FURTHER INFORMATION CONTACT: Kristiana Brugger, Center for Drug 
Evaluation and Research, Food and Drug Administration, 10903 New 
Hampshire Ave., Bldg. 51, rm. 6262, Silver Spring, MD 20993-0002, 301-
796-3601; or Stephen Ripley, Center for Biologics Evaluation and 
Research, Food and Drug Administration, 10903 New Hampshire Ave., Bldg. 
71, rm. 7301, Silver Spring, MD 20993-0002, 240-402-7911.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Background: Priority Review Voucher Program
II. Criteria for Expansion of the List of Tropical Diseases
    A. No Significant Market in Developed Nations
    B. Disproportionately Affects Poor and Marginalized Populations
III. Diseases Being Designated
    A. Chagas Disease
    B. Neurocysticercosis
IV. Process for Requesting Additional Diseases To Be Added to the 
List
V. Paperwork Reduction Act
VI. References

I. Background: Priority Review Voucher Program

    Much of the global burden of disease falls on populations who lack 
the resources to develop, encourage development of, or purchase disease 
preventions or treatments. For this reason, many of the diseases 
afflicting these populations do not receive the same level of 
innovation investment as diseases afflicting wealthier or more 
empowered populations.
    Section 524 of the FD&C Act (21 U.S.C. 360n), which was added by 
section 1102 of the Food and Drug Administration Amendments Act of 2007 
(FDAAA), is designed to address the lack of treatment development 
incentives for such tropical diseases. It uses a PRV incentive to 
encourage the development of new drugs for prevention and treatment of 
certain diseases that, in the aggregate, affect millions of people 
throughout the world. Specifically, section 524 of the FD&C Act defines 
the term ``tropical disease product application'' and sets forth 
criteria which, if met, enable those who submit an application for a 
tropical disease product to be eligible to receive a PRV upon approval 
of that tropical disease product application. To be eligible for a PRV, 
the tropical disease product application must meet all of the following 
criteria:
     The application must be a ``human drug application,'' as 
defined in section 735(1) of the FD&C Act (21 U.S.C. 379g(1)).
     The application must be for the ``prevention or treatment 
of a tropical disease,'' as defined by statute.
     The application must be deemed eligible for priority 
review by the Secretary of HHS.
     The application must be approved after the date of 
enactment of FDAAA (i.e., September 27, 2007) for use in the 
prevention, detection, or treatment of a tropical disease.
     The application must be for ``a human drug, no active 
ingredient (including any ester or salt of the active ingredient) of 
which has been approved in any other application under section 
505(b)(1) [21 U.S.C. 355(b)(1)] or section 351 of the [PHS Act].''
    Section 524(a)(4) of the FD&C Act. In particular, the requirement 
that an application must be eligible for priority review demonstrates 
the PRV program's intent to reward tropical disease product 
applications that have the potential to demonstrate significant 
improvements in safety or effectiveness in the treatment or prevention 
of tropical diseases (Ref. 1).
    FDA will award a PRV to the application holder upon the approval of 
a qualifying tropical disease product application that meets the 
criteria previously listed. The voucher entitles the holder to a 
priority review of a human drug application, submitted under section 
505(b)(1) of the FD&C Act or section 351 of the PHS Act, of the voucher 
holder's choosing. Once awarded to the application holder, the PRV may 
be transferred to another entity, and the original holder may receive 
consideration (including payment) for the transfer. To redeem the 
voucher, a PRV holder must notify FDA of its intent to use the PRV at 
least 90 days prior to the submission of the application for which the 
PRV will be used. This notification constitutes a legally binding 
agreement to pay the user fee that must be applied to applications 
using a PRV.
    Section 524(a)(3) of the FD&C Act lists the following diseases as 
tropical diseases qualifying for a PRV:

 Tuberculosis

[[Page 50560]]

 Malaria
 Blinding trachoma
 Buruli ulcer
 Cholera
 Dengue/Dengue haemorrhagic fever
 Dracunculiasis (guinea-worm disease)
 Fascioliasis
 Human African trypanosomiasis
 Leishmaniasis
 Leprosy
 Lymphatic filariasis
 Onchocerciasis
 Schistosomiasis
 Soil transmitted helminthiasis
 Yaws
 Filoviruses

In addition, section 524(a)(3)(R) of the FD&C Act authorizes the 
Secretary to expand by order the list of tropical diseases to include 
``[a]ny other infectious disease for which there is no significant 
market in developed nations and that disproportionately affects poor 
and marginalized populations[,]'' and that is the purpose of this 
order.

II. Criteria for Expansion of the List of Tropical Diseases

    On December 12, 2008, FDA convened a public hearing, at which the 
public provided suggestions regarding the following topics: (1) 
Criteria that should be used to determine the eligibility of an 
infectious disease for designation as a tropical disease, (2) the 
process that should be used to make tropical disease designations, and 
(3) recommendations for specific diseases that should be designated as 
tropical diseases. A number of participants in the public meeting 
commented that, given the lack of definitive data for some diseases, as 
well as the lack of consensus on how these criteria should be defined, 
FDA should use a flexible approach in determining whether specific 
diseases meet the criteria.
    FDA agrees with the use of a flexible approach to tropical disease 
designation and is proposing that a scientifically informed, 
qualitative assessment of disease candidates is appropriate. FDA also 
is establishing a public docket that will continuously remain open to 
receive future suggestions for tropical disease designations under 
section 524 of the FD&C Act. The Agency proposes to review the contents 
of this public docket periodically and to take action to designate 
additional diseases when appropriate.
    As stated previously, section 524(a)(3)(R) of the FD&C Act 
authorizes the Secretary to designate by order ``[a]ny other infectious 
disease for which there is no significant market in developed nations 
and that disproportionately affects poor and marginalized populations'' 
as a ``tropical disease.'' In the following paragraphs, FDA sets forth 
its interpretation of this provision and the criteria we propose to use 
in determining which diseases may be designated by order of the 
Secretary as ``tropical diseases'' under section 524.

A. No Significant Market in Developed Nations

1. ``Developed Nations''
    In interpreting the term ``developed nations,'' FDA acknowledges at 
the outset that the standards for determining a nation's level of 
development, as well as the threshold for a ``developed'' country, are 
the subject of debate. Some nations may score well in some markers of 
development (e.g., gross domestic product) and poorly in others (e.g., 
sanitation), leading to disagreements regarding which measures of 
development should serve as dominant indicators. After also examining 
the International Monetary Fund (IMF)'s list of advanced economies 
(Ref. 2) and the United Nations (U.N.)'s human development index (Ref. 
3), the Agency is proposing to use a country's presence on the World 
Bank's \1\ list of ``high income economies'' (Ref. 4) as evidence that 
the country should be considered a ``developed nation'' for ``tropical 
disease'' determination purposes. Similarly, FDA will use a country's 
presence on the World Bank's list of ``low income economies'' (id.) as 
evidence that the country should not be considered a ``developed 
nation'' for purposes of ``tropical disease'' determination.
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    \1\ The ``World Bank'' is a term used to refer collectively to 
the International Development Association and the International Bank 
for Reconstruction and Development, which are two of the five 
organizations that comprise the World Bank Group.
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    FDA recognizes that there is a correlation between economic 
strength (particularly purchasing power) and the market incentive for 
drug creation: People in high-income economies are more likely to be 
able to afford disease treatments and, thus, drug companies have an 
incentive to create products that will be in demand in those countries. 
The World Bank list of high-income economies is calculated based on 
gross national income per capita, and, importantly, it thus reflects 
wealth as a primary basis for categorization. FDA's recognition of the 
role of wealth is why we deemed the U.N. development index less 
helpful: It measures development across a broad array of categories 
(e.g., mean years of schooling) that, while informative, are less 
directly correlated with the drug development incentives reflected in 
the statutory scheme. Indeed, the U.N. itself has acknowledged that 
``[t]he [human development index] was created to emphasize that people 
and their capabilities should be the ultimate criteria for assessing 
the development of a country, not economic growth alone'' (Ref. 5). And 
although the IMF's list of ``advanced economies'' reflects purchasing 
power to some degree, the World Bank calculus is more transparent and 
predictable than the IMF's calculus, and the U.S. government routinely 
uses the World Bank lists when determining a country's eligibility for 
Generalized System of Preferences benefits for trade in goods (Ref. 6).
2. ``No Significant Market''
    The list of tropical diseases in section 524(a)(3) of the FD&C 
includes ``[a]ny other infectious disease for which there is no 
significant market in developed nations. . .designated by order of the 
Secretary.'' As an initial matter, the Agency notes that ``infectious 
diseases,'' as such do not have markets--but drugs for the treatment or 
prevention of infectious diseases do. Because the statute offers 
vouchers for applications for drugs for either the treatment or 
prevention of infectious diseases, it is reasonable to assume that ``no 
significant market'' can refer to drugs for the treatment or prevention 
of infectious diseases. Thus, FDA will analyze the market for drugs for 
both the treatment and prevention of infectious diseases for a 
particular infectious disease.
    The threshold for what constitutes a ``significant market'' for 
drugs for the treatment or prevention of infectious diseases is 
difficult to quantify. Because of the challenges in providing a rigid 
definition of this term, FDA proposes that the following factors be 
considered in determining whether a ``significant market'' exists in 
developed countries.
a. Occurrence of the Disease in Developed Nations
    As discussed previously, market forces are important drivers of 
drug development. The purpose of section 524 of the FD&C Act is to 
provide an incentive (through a PRV) for innovation where there 
otherwise would be an insufficient financial or market incentive to 
invest in developing drugs for tropical diseases. The market for many 
FDA-approved products includes situations in which individuals (often 
reimbursed by their insurers) purchase the products for use by a 
specific patient. This reflects what we will refer to as the ``direct'' 
market, and the direct market for a drug in a

[[Page 50561]]

developed country can often be estimated by assessing the occurrence of 
a particular disease in that country.\2\
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    \2\ Exceptions may occur for diseases that have a low incidence 
in developed countries through use of preventive drugs or biologics. 
Thus, although the disease incidence is lower in developed countries 
these are less likely to be the types of diseases for which section 
524 of the FD&C Act is intended to spur innovation.
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    If the prevalence of a disease in developed countries is less than 
0.1 percent of the population of those countries, it is unlikely that 
ordinary market forces will offer a sufficient incentive to drive the 
development of new preventions or treatments. Thus, it is unlikely that 
there will be a ``significant market'' for the disease's treatment in 
those countries. Accordingly, FDA has decided to use a disease 
prevalence rate of 0.1 percent of the population as a factor for aiding 
in the determination of whether a ``significant market'' may exist for 
a disease's treatment.
b. The Existence of a Sizeable Indirect Market for the Tropical Disease 
Drug (e.g., Government, Including the Military) That Would Constitute a 
Financial Incentive for Drug Development
    As discussed previously, the market for many FDA-approved products 
is the ``direct'' market, involving patients purchasing drugs for their 
own use. However, some drugs may have a sizeable ``indirect'' market 
composed of, for example, government entities or nongovernmental 
organizations that wish to purchase and distribute a drug for the 
treatment or prevention of an infectious disease, often for public 
health reasons, to a particular group of people. Indeed, for some 
diseases identified as high priorities for public health preparedness, 
governmental entities have initiated programs to provide support for 
product development and/or stockpiling (Ref. 7).\3\ In such cases, FDA 
would consider that market as a factor in determining whether a 
significant market for a drug for the treatment or prevention of an 
infectious diseases disease exists in developed nations.
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    \3\ For example, certain diseases have been prioritized for 
medical countermeasure development and investment (see Ref. 7) or 
are listed as priority pathogens by government entities such as the 
National Institutes of Health (NIH)/National Institute of Allergy 
and Infectious Diseases (NIAID), Center for Disease Control or 
Prevention, and military programs (Refs. 8, 9, and 10). These and 
other indications of potential priority designation that could 
affect governmental resource allocation may be taken into account in 
assessment of whether a market exists in developed countries.
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B. Disproportionately Affects Poor and Marginalized Populations

    As with the term ``no significant market in developed nations,'' 
FDA has elected to analyze multiple factors--none of which, alone, 
invariably will be outcome-determinative--in assessing whether a given 
disease meets the requirement of ``disproportionately affects poor and 
marginalized populations'' for classification as a ``tropical disease'' 
under section 524 of the FD&C Act. Those factors are the following:
1. The Proportion of Global Disability-Adjusted Life Years for the 
Disease That Is Attributable to Developing Countries
    A disability-adjusted life year (DALY) measurement is not a direct 
measure of the prevalence of the disease; rather, it is a measure of 
the impact of that disease on a given population. ``One DALY can be 
thought of as one lost year of 'healthy' life'' (Ref. 11). An estimate 
of disease-related morbidity (a term which, as used in this order, 
refers to the state of being diseased (see Ref. 12)) and mortality in 
affected countries thus can be made by assessing available information 
about the DALY burden of a particular disease. ``DALYs for a disease or 
health condition are calculated as the sum of the Years of Life Lost. . 
.due to premature mortality in the population and the Years Lost due to 
Disability. . .for people living with the health condition or its 
consequences'' (Ref. 11). DALYs are an important measurement, enabling 
FDA to weigh ``tropical disease'' eligibility for those diseases that, 
although they may be present to some degree in developed countries 
(e.g., because of travel or immigration), cause much more harm to the 
public health of developing countries.
2. The Relative Burden of the Disease in the Most Impoverished 
Populations Within the Countries in Which It Is Found
    If a disease's prevalence is high in populations who cannot afford 
treatment and low in populations that can, there likely will be little 
market incentive for drug companies to create new treatments. In light 
of section 524 of the FD&C Act's intent to create treatment development 
incentives, as well as its clear goal of improving the health of 
impoverished populations, FDA will consider the demographic 
distribution of a disease in determining whether it should be 
designated as a ``tropical disease'' for the purposes of section 524 of 
the FD&C Act.
3. The Relative Burden of the Disease in Infants, Children, or Other 
Marginalized Segments of the Population (e.g., Women, the Elderly) 
Within the Countries in Which It Is Found
    One of the clear goals of section 524 of the FD&C Act is improving 
the health of marginalized populations, who generally suffer poorer 
health outcomes than their non-marginalized neighbors, even within the 
same country. To ``marginalize'' is to place (or keep) a person or 
population in a powerless or unimportant position (see, e.g., Ref. 13). 
Individuals or groups may be marginalized for any number of reasons, 
including, for example, gender, age, or extreme poverty. Marginalized 
populations generally lack a meaningful voice in societal 
decisionmaking, including decisions relating to the acquisition, 
distribution, and use of health resources. These populations, 
therefore, are less likely to have their health needs met and less 
likely to have the resources or political power needed to effect change 
in those aspects of health policy that most affect them--including 
incentivizing governments or private industry to offer disease 
treatments. Understanding the relative prevalence of a disease in these 
populations will help FDA determine whether treatment development for 
that disease would be spurred by the provision of section 524 of the 
FD&C Act's PRV incentive.
4. Designation by the World Health Organization as a Neglected Tropical 
Disease
    The World Health Organization (WHO), in its role as the directing 
and coordinating authority on international health within the U.N. 
system, has identified a list of diseases that it refers to as 
``neglected tropical diseases'' (Ref. 14). According to the WHO, these 
diseases ``are strongly associated with poverty'' and tend to affect 
those with ``little political voice''; rarely receive the attention of 
disease treatment innovators or the broader international community; 
and often flourish in tropical climates (id.). The WHO's list includes 
12 of the 17 enumerated diseases in section 524(a)(3) of the FD&C Act 
(see Ref. 15). Because the WHO's list of ``neglected tropical 
diseases'' includes many of the types of diseases for which section 524 
was designed to incentivize treatment development, FDA believes it is 
reasonable to consider WHO's ``neglected tropical disease'' 
designations in determining whether a disease should be designated as a

[[Page 50562]]

``tropical disease'' for purposes of section 524 of the FD&C Act.

III. Diseases Being Designated

    FDA has considered a number of diseases recommended in response to 
the Federal Register document announcing the December 12, 2008, public 
meeting (see 73 FR 66050, November 6, 2008), by meeting participants or 
others directing communications to FDA on the same topic. Based on an 
assessment using the criteria proposed previously, FDA has determined 
that the following diseases will be designated as ``tropical diseases'' 
under section 524 of the FD&C Act:
     Chagas disease.
     Neurocysticercosis.

FDA's rationale for adding these diseases to the list is discussed in 
the analyses that follow.

A. Chagas Disease

    Chagas disease, also known as American trypanosomiasis, is a 
vector-borne parasitic disease caused by the protozoan Trypanosoma 
cruzi (Ref. 16). After the initial infection, a 2-month ``acute'' phase 
occurs, during which there are some antiparasitic drugs that can be 
used for treatment in some patients (id.). Treatment efficacy generally 
decreases with length of infection, and if the disease is not cured 
during the initial ``acute'' infection phase, the chronic infection 
lingers over the next several years or decades, often causing organ and 
tissue damage (id.). For example, some Chagas disease sufferers who 
contract the disease during childhood die in early adulthood due to 
heart arrhythmias or other effects of organ damage. Efforts to reduce 
Chagas disease center around controlling the spread of the vector 
insects (e.g., through insecticide and roof repair) and protecting 
people from insect bites (e.g., through bed net use) (id.).
    Chagas disease has a disproportionate effect on poor and 
marginalized populations. Developing countries in Central and South 
America suffer most of the global DALYs lost because of the disease 
(id.). Estimates vary, but approximately 8 million people are believed 
to be infected in Mexico, Central America, and South America (Ref. 17). 
Within Chagas-endemic countries, the disease often affects rural and/or 
poor populations who live in the mud huts that also are inhabited by 
the vector insects (Ref. 16). WHO has designated Chagas as a neglected 
tropical disease (Ref. 15).
    There also is no significant market for Chagas disease treatment in 
developed nations. Based on estimates derived by applying published 
seroprevalence data to immigrant population estimates in the United 
States, it is estimated that there are just over 300,000 persons 
infected with T. cruzi in the United States (Refs. 17, 18, and 19). The 
number of persons with chronic cases for whom definitive 
recommendations for treatment would apply is likely less than 300,000. 
Transmission and acute cases of Chagas disease would be considered 
unlikely either in the United States or in other developed countries. 
The most common insect vector that transmits the parasite, the 
triatomine bug, is found mostly in Central and South America. The main 
risk of Chagas transmission to uninfected persons in developed 
countries is due to mother-to-child transmission, or blood transfusions 
or organ donations where the donor has lived in or visited Chagas-
endemic countries--although there have been a few reports of vector-
borne Chagas infecting people in the United States (Refs. 16 and 17).
    There are no approved vaccines or other preventative therapies for 
the disease, either in the United States or elsewhere. The only drugs 
used to treat Chagas are benznidazole and nifurtimox, which are not 
approved in the United States for this use. In addition to the lack of 
a commercial market in developed countries (presumably because of the 
low prevalence of disease), there does not seem to be a sizeable 
indirect (e.g., government) market for Chagas treatments either--
presumably because of the geographical limitations of the disease. As a 
general matter, Chagas-endemic countries are developing countries in 
Central and South America, and thus neither persons with Chagas disease 
nor their governments are likely to be in a position to provide a 
financial incentive for treatment development. Given the disease's 
geographical limitations and its prevalence in non-touristed rural 
areas, it is unlikely that the travelers' market would be a sufficient 
incentive to encourage treatment development for Chagas.
    Given the factors described in this document, FDA has determined 
that Chagas disease meets both statutory criteria of ``no significant 
market in developed nations'' and ``disproportionately affects poor and 
marginalized populations.'' Therefore, FDA is designating Chagas 
disease as a tropical disease under section 524 of the FD&C Act.

B. Neurocysticercosis

    Cysticercosis is a disease caused by infection with Taenia solium, 
a tapeworm of the phylum Platyhelminthes, and is contracted when a 
person ingests the tapeworm eggs. After a person ingests the eggs, the 
tapeworm enters the larval stage and begins to infect the host's 
tissues. The most severe form of the disease, called 
neurocysticercosis, occurs when larvae enter the central nervous system 
and establish cysts that can cause epilepsy (see, e.g., Ref. 20). 
Treatment guidelines from the American Academy of Neurology recommend 
treatment with anti-helminthic drugs like albendazole, with 
consideration for adjunctive corticosteroid therapy (Ref. 20).
    Neurocysticercosis disproportionately affects poor and marginalized 
populations. Indeed, patients who have infection with T. solium 
generally have similar socioeconomic and demographic characteristics to 
those patients with soil transmitted helminthiasis, a disease already 
on the statutory list of ``tropical diseases'' in section 524 of the 
FD&C Act. As of the late 1990s, approximately 50 million people 
worldwide were estimated to harbor the tapeworm T. solium (Ref. 21), 
most of them living in poverty in the world's poorest countries that 
lack effective systems for meat inspection and adequate sanitation 
(Refs. 22 and 23). Estimates of the number of people who have epilepsy 
caused by neurocysticercosis ranges from 450,000 to 1,350,000 in 
Central and South America and from 300,000 to 4,600,000 in sub-saharan 
Africa (Ref. 23). Neurocysticercosis is believed to contribute to high 
levels of human morbidity, notably epilepsy, though efforts are 
underway to adequately characterize an estimate of DALY for 
neurocysticercosis (Ref. 24). Notably, cysticercosis is included on 
WHO's list of neglected tropical diseases (Ref. 15).
    FDA also has determined that neurocysticercosis products have no 
significant market in developed nations. Although the disease does 
occur in the United States, estimates of annual incidence rates in the 
general U.S. population are low, at approximately 0.2 cases per 100,000 
population. Incidence rates are much higher among Hispanics living in 
the United States, who most likely acquired the tapeworm in 
cysticercosis-endemic areas of Central and South America (Ref. 25), 
with estimates ranging between 3.1 and 5.8 cases per 100,000 Hispanic 
population (Ref. 26). FDA also is unaware of evidence suggesting any 
sizeable military, government, or other indirect market for 
neurocysticercosis products.
    In view of the disease characteristics discussed previously, FDA 
considers the statutory criteria for addition of neurocysticercosis to 
the list of tropical

[[Page 50563]]

diseases in section 524 of the FD&C Act to be satisfied. This addition 
is effective upon the publication of this order.

IV. Process for Requesting Additional Diseases To Be Added to the List

    The purpose of this order is to add diseases to the list of 
tropical diseases that FDA has found to meet the criteria in section 
524(a)(3)(R) of the FD&C Act. By expanding the list with this order, 
FDA does not mean to preclude the future addition of other diseases to 
this list. To facilitate the consideration of future additions to the 
list, FDA is establishing a public docket (see http://www.regulations.gov, Docket No. FDA-2008-N-0567) through which 
interested persons may submit requests for additional diseases to be 
added to the list. Such requests should be accompanied by information 
to document that the disease meets the criteria set forth in section 
524(a)(3)(R) of the FD&C Act. FDA will periodically review these 
requests, and, when appropriate, expand the list.

V. Paperwork Reduction Act

    This final order establishes a public docket through which 
interested persons may submit requests for additional diseases to be 
added to the list of tropical diseases that FDA has found to meet the 
criteria in section 524(a)(3)(R) of the FD&C Act. This request for 
information is exempt from Office of Management and Budget review under 
5 CFR 1320.3(h)(4) of the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501-3520). Specifically, ``[f]acts or opinions submitted in response 
to general solicitations of comments from the public, published in the 
Federal Register or other publications, regardless of the form or 
format thereof'' are exempt, ``provided that no person is required to 
supply specific information pertaining to the commenter, other than 
that necessary for self-identification, as a condition of the agency's 
full consideration of the comment.''

VI. References

    The following references have been placed on display in the 
Division of Dockets Management (see ADDRESSES) and may be seen by 
interested persons between 9 a.m. and 4 p.m. Monday through Friday, and 
are available electronically at http://www.regulations.gov.

    (FDA has verified the Web site addresses, but FDA is not 
responsible for any subsequent changes to the Web sites after this 
document publishes in the Federal Register.)

1. U.S. Food and Drug Administration, ``Guidance for Industry: 
Expedited Programs For Serious Conditions--Drugs and Biologics'' 
(available at http://www.fda.gov/downloads/drugs/guidancecomplianceregulatoryinformation/guidances/ucm358301.pdf), 
2014.
2. IMF, ``World Economic Outlook: Recovery Strengthens, Remains 
Uneven,'' Table B1 (available at http://www.imf.org/external/pubs/ft/weo/2014/01/pdf/tblpartb.pdf).
3. U.N. Development Programme, ``Human Development Index (HDI)'' 
(available at http://hdr.undp.org/en/content/human-development-index-hdi).
4. The World Bank, ``Country and Lending Groups'' (available at 
http://data.worldbank.org/about/country-and-lending-groups).
5. U.N. Development Programme, ``Frequently Asked Questions--Human 
Development Index (HDI)'' (available at http://hdr.undp.org/en/faq-page/human-development-index-hdi#t292n36).
6. Congressional Research Service, ``Generalized System of 
Preferences: Background and Renewal Debate,'' pp. 7, 11 (available 
at http://fas.org/sgp/crs/misc/RL33663.pdf).
7. U.S. Department of Health and Human Services, ``Public Health 
Emergency Medical Countermeasures Enterprise (PHEMCE) Implementation 
Plan,'' December 2012 (available at http://www.phe.gov/Preparedness/mcm/phemce/Documents/2012-PHEMCE-Implementation-Plan.pdf).
8. National Institute of Allergy and Infectious Diseases, NIAID 
Emerging Infectious Diseases/Pathogens (available at http://www.niaid.nih.gov/topics/biodefenserelated/biodefense/pages/cata.aspx).
9. Centers for Disease Control and Prevention, Bioterrorism Agents/
Diseases (available at http://www.bt.cdc.gov/agent/agentlist-category.asp).
10. Joint Program Executive Office for Chemical and Biological 
Defense, Joint Vaccine Acquisition Program (JVAP) (available at 
http://www.jpeocbd.osd.mil/packs/Default.aspx?pg=1208).
11. WHO, ``Metrics: Disability Adjusted Life Year (DALY)'' 
(available at http://www.who.int/healthinfo/global_burden_disease/metrics_daly/en/).
12. Medline Plus/Merriam-Webster Medical Dictionary Online, 
``Morbidity'' (available at http://www.merriam-webster.com/medlineplus/morbidity).
13. Merriam-Webster Dictionary Online, ``Marginalize'' (available at 
http://www.merriam-webster.com/dictionary/marginalize).
14. WHO, ``First WHO Report on Neglected Tropical Diseases: Working 
to Overcome the Global Impact of Neglected Tropical Diseases'' 
(available at http://whqlibdoc.who.int/publications/2010/9789241564090_eng.pdf).
15. WHO, ``Neglected Tropical Diseases: Diseases Covered by NTD 
Department'' (available at http://www.who.int/neglected_diseases/diseases/en/).
16. Centers for Disease Control and Prevention, ``Parasites--
American Trypanosomiasis (also known as Chagas Disease): Detailed 
FAQs'' (available at http://www.cdc.gov/parasites/chagas/gen_info/detailed.html).
17. Centers for Disease Control and Prevention, ``Parasites--
American Trypanosomiasis (also known as Chagas Disease): 
Epidemiology and Risk Factors,'' (available at http://www.cdc.gov/parasites/chagas/epi.html).
18. Bern, C. and S.P. Montgomery, ``An Estimate of the Burden of 
Chagas Disease in the United States,'' Clinical Infectious Diseases, 
49:e52-54, 2009 (available at http://cid.oxfordjournals.org/content/49/5/e52.full).
19. Centers for Disease Control and Prevention, ``Congenital 
Transmission of Chagas Disease--Virginia, 2010,'' MMWR. Morbidity 
and Mortality Weekly Report, 61(26):477-479, July 6, 2012 (available 
at http://www.cdc.gov/mmwr/preview/mmwrhtml/mm6126a1.htm?s_cid=mm6126a1_w).
20. Baird, R.A., S. Weibe, J.R. Zunt, et al., ``Evidence-Based 
Guideline: Treatment of Parenchymal Neurocysticercosis,'' Neurology, 
80:1424-1429, 2013 (available at http://www.neurology.org/content/80/15/1424.full.pdf).
21. White, A.C., Jr., ``Neurcysticercosis: A Major Cause of 
Neurological Disease Worldwide,'' Clinical Infectious Disease, 
24:101-115, 1997 (available at http://cid.oxfordjournals.org/content/24/2/101.long).
22. Institute of Medicine, ``The Causes and Impacts of Neglected 
Tropical and Zoonotic Diseases: Opportunities for Integrated 
Intervention Strategies,'' Washington, DC: The National Academies 
Press (available at http://www.ncbi.nlm.nih.gov/books/NBK62507/pdf/TOC.pdf).
23. Mewara, A., K. Goyal, and R. Sehgal, ``Neurocysticercosis: A 
Disease of Neglect,'' Tropical Parasitology, 3(2):106-113, 2013 
(available at http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3889086/?report=printable).
24. Bhattarai, R., H. Carabin, and C. Budke, ``The Burden of 
Cysticercosis,'' Novel Aspects on Cysticercosis and 
Neurocysticercosis, H.F. Sibat, ed. (available at http://www.intechopen.com/books/novel-aspects-on-cysticercosis-and-neurocysticercosis/the-burden-of-cysticercosis).
25. Wallin, M.T. and J.F. Kurtzke, ``Neurocysticercosis in the 
United States: Review of an Important Emerging Infection,'' 
Neurology, 63:1559-1564, 2004 (available at http://www.neurology.org/content/63/9/1559.long).
26. O'Neal, S., J. Noh, P. Wilkins, et al, ``Taenia solium Tapeworm 
Infection, Oregon, 2006-2009,'' Emerging Infectious Disease, 
17(6):1030-1036, 2011 (available at http://wwwnc.cdc.gov/eid/article/17/6/10-1397_article).


[[Page 50564]]


    Dated: August 14, 2015.
Leslie Kux,
Associate Commissioner for Policy.
[FR Doc. 2015-20554 Filed 8-19-15; 8:45 am]
 BILLING CODE 4164-01-P



                                                              Federal Register / Vol. 80, No. 161 / Thursday, August 20, 2015 / Rules and Regulations                                        50559

                                             captioned proceeding. Revisions to                      ADDRESSES:  Submit electronic                         disease product application’’ and sets
                                             Auxiliary Installations, Replacement                    comments on additional diseases                       forth criteria which, if met, enable those
                                             Facilities, and Siting and Maintenance                  suggested for designation to                          who submit an application for a tropical
                                             Regulations, 152 FERC ¶ 61,049 (2015).                  www.regulations.gov. Submit written                   disease product to be eligible to receive
                                             This errata notice makes a correction to                comments on additional diseases                       a PRV upon approval of that tropical
                                             the Final Rule as issued.                               suggested for designation to the Division             disease product application. To be
                                               In FR Doc. 2015–17919 appearing on                    of Dockets Management (HFA–305),                      eligible for a PRV, the tropical disease
                                             page 43949 in the Federal Register of                   Food and Drug Administration, 5630                    product application must meet all of the
                                             Friday, July 24, 2015, the following                    Fishers Lane, Rm. 1061, Rockville, MD                 following criteria:
                                             correction is made:                                     20852. All comments should be                            • The application must be a ‘‘human
                                               1. On page 43949, in the second                       identified with the docket number                     drug application,’’ as defined in section
                                             column, § 157.216(b)(2)(i)(A) of the                    found in brackets in the heading of this              735(1) of the FD&C Act (21 U.S.C.
                                             regulatory text is revised to read as                   document.                                             379g(1)).
                                             follows:                                                FOR FURTHER INFORMATION CONTACT:                         • The application must be for the
                                               ‘‘(A) Will not exceed the cost limit in               Kristiana Brugger, Center for Drug                    ‘‘prevention or treatment of a tropical
                                             § 157.208(d) for activities under the                   Evaluation and Research, Food and                     disease,’’ as defined by statute.
                                             prior notice provisions;’’                              Drug Administration, 10903 New                           • The application must be deemed
                                               Dated: August 14, 2015.                               Hampshire Ave., Bldg. 51, rm. 6262,                   eligible for priority review by the
                                             Kimberly D. Bose,                                       Silver Spring, MD 20993–0002, 301–                    Secretary of HHS.
                                             Secretary.                                              796–3601; or Stephen Ripley, Center for                  • The application must be approved
                                             [FR Doc. 2015–20538 Filed 8–19–15; 8:45 am]             Biologics Evaluation and Research,                    after the date of enactment of FDAAA
                                             BILLING CODE 6717–01–P                                  Food and Drug Administration, 10903                   (i.e., September 27, 2007) for use in the
                                                                                                     New Hampshire Ave., Bldg. 71, rm.                     prevention, detection, or treatment of a
                                                                                                     7301, Silver Spring, MD 20993–0002,                   tropical disease.
                                             DEPARTMENT OF HEALTH AND                                240–402–7911.                                            • The application must be for ‘‘a
                                             HUMAN SERVICES                                          SUPPLEMENTARY INFORMATION:                            human drug, no active ingredient
                                                                                                                                                           (including any ester or salt of the active
                                                                                                     Table of Contents                                     ingredient) of which has been approved
                                             Food and Drug Administration
                                                                                                     I. Background: Priority Review Voucher                in any other application under section
                                             21 CFR Part 317                                               Program                                         505(b)(1) [21 U.S.C. 355(b)(1)] or section
                                                                                                     II. Criteria for Expansion of the List of             351 of the [PHS Act].’’
                                             [Docket No. FDA–2008–N–0567]                                  Tropical Diseases                                  Section 524(a)(4) of the FD&C Act. In
                                                                                                        A. No Significant Market in Developed              particular, the requirement that an
                                             RIN 0910–AG37
                                                                                                           Nations
                                                                                                        B. Disproportionately Affects Poor and             application must be eligible for priority
                                             Designating Additions to the Current                          Marginalized Populations                        review demonstrates the PRV program’s
                                             List of Tropical Diseases in the Federal                III. Diseases Being Designated                        intent to reward tropical disease
                                             Food, Drug, and Cosmetic Act                               A. Chagas Disease                                  product applications that have the
                                                                                                        B. Neurocysticercosis                              potential to demonstrate significant
                                             AGENCY:    Food and Drug Administration,
                                                                                                     IV. Process for Requesting Additional                 improvements in safety or effectiveness
                                             HHS.                                                          Diseases To Be Added to the List                in the treatment or prevention of
                                             ACTION:   Final order.                                  V. Paperwork Reduction Act
                                                                                                                                                           tropical diseases (Ref. 1).
                                                                                                     VI. References
                                             SUMMARY:    The Federal Food, Drug, and                                                                          FDA will award a PRV to the
                                             Cosmetic Act (the FD&C Act) authorizes                  I. Background: Priority Review                        application holder upon the approval of
                                             the Food and Drug Administration (FDA                   Voucher Program                                       a qualifying tropical disease product
                                             or Agency) to award priority review                        Much of the global burden of disease               application that meets the criteria
                                             vouchers (PRVs) to tropical disease                     falls on populations who lack the                     previously listed. The voucher entitles
                                             product applicants when the                             resources to develop, encourage                       the holder to a priority review of a
                                             applications meet certain criteria. The                 development of, or purchase disease                   human drug application, submitted
                                             FD&C Act lists the diseases that are                    preventions or treatments. For this                   under section 505(b)(1) of the FD&C Act
                                             considered to be tropical diseases for                  reason, many of the diseases afflicting               or section 351 of the PHS Act, of the
                                             purposes of obtaining PRVs, and also                    these populations do not receive the                  voucher holder’s choosing. Once
                                             provides for Agency expansion of that                   same level of innovation investment as                awarded to the application holder, the
                                             list to include other diseases that satisfy             diseases afflicting wealthier or more                 PRV may be transferred to another
                                             the definition of ‘‘tropical diseases’’ as              empowered populations.                                entity, and the original holder may
                                             set forth in the FD&C Act. FDA has                         Section 524 of the FD&C Act (21                    receive consideration (including
                                             determined that Chagas disease and                      U.S.C. 360n), which was added by                      payment) for the transfer. To redeem the
                                             neurocysticercosis satisfy this                         section 1102 of the Food and Drug                     voucher, a PRV holder must notify FDA
                                             definition, and therefore is adding them                Administration Amendments Act of                      of its intent to use the PRV at least 90
                                             to the list of designated tropical diseases             2007 (FDAAA), is designed to address                  days prior to the submission of the
                                             whose product applications may result                   the lack of treatment development                     application for which the PRV will be
                                             in the award of PRVs. Sponsors                          incentives for such tropical diseases. It             used. This notification constitutes a
                                             submitting certain applications for the                 uses a PRV incentive to encourage the                 legally binding agreement to pay the
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                                             treatment of Chagas disease and                         development of new drugs for                          user fee that must be applied to
                                             neurocysticercosis may be eligible to                   prevention and treatment of certain                   applications using a PRV.
                                             receive a PRV if such applications are                  diseases that, in the aggregate, affect                  Section 524(a)(3) of the FD&C Act lists
                                             approved by FDA.                                        millions of people throughout the                     the following diseases as tropical
                                             DATES: This order is effective August 20,               world. Specifically, section 524 of the               diseases qualifying for a PRV:
                                             2015.                                                   FD&C Act defines the term ‘‘tropical                  • Tuberculosis


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                                             50560            Federal Register / Vol. 80, No. 161 / Thursday, August 20, 2015 / Rules and Regulations

                                             • Malaria                                               ‘‘tropical disease.’’ In the following                with the drug development incentives
                                             • Blinding trachoma                                     paragraphs, FDA sets forth its                        reflected in the statutory scheme.
                                             • Buruli ulcer                                          interpretation of this provision and the              Indeed, the U.N. itself has
                                             • Cholera                                               criteria we propose to use in                         acknowledged that ‘‘[t]he [human
                                             • Dengue/Dengue haemorrhagic fever                      determining which diseases may be                     development index] was created to
                                             • Dracunculiasis (guinea-worm disease)                  designated by order of the Secretary as               emphasize that people and their
                                             • Fascioliasis                                          ‘‘tropical diseases’’ under section 524.              capabilities should be the ultimate
                                             • Human African trypanosomiasis                                                                               criteria for assessing the development of
                                             • Leishmaniasis                                         A. No Significant Market in Developed                 a country, not economic growth alone’’
                                             • Leprosy                                               Nations                                               (Ref. 5). And although the IMF’s list of
                                             • Lymphatic filariasis                                                                                        ‘‘advanced economies’’ reflects
                                                                                                     1. ‘‘Developed Nations’’
                                             • Onchocerciasis                                                                                              purchasing power to some degree, the
                                             • Schistosomiasis                                          In interpreting the term ‘‘developed
                                                                                                                                                           World Bank calculus is more
                                             • Soil transmitted helminthiasis                        nations,’’ FDA acknowledges at the
                                             • Yaws                                                                                                        transparent and predictable than the
                                                                                                     outset that the standards for
                                             • Filoviruses                                                                                                 IMF’s calculus, and the U.S. government
                                                                                                     determining a nation’s level of
                                                                                                                                                           routinely uses the World Bank lists
                                             In addition, section 524(a)(3)(R) of the                development, as well as the threshold
                                                                                                                                                           when determining a country’s eligibility
                                             FD&C Act authorizes the Secretary to                    for a ‘‘developed’’ country, are the
                                                                                                                                                           for Generalized System of Preferences
                                             expand by order the list of tropical                    subject of debate. Some nations may
                                                                                                                                                           benefits for trade in goods (Ref. 6).
                                             diseases to include ‘‘[a]ny other                       score well in some markers of
                                             infectious disease for which there is no                development (e.g., gross domestic                     2. ‘‘No Significant Market’’
                                             significant market in developed nations                 product) and poorly in others (e.g.,                     The list of tropical diseases in section
                                             and that disproportionately affects poor                sanitation), leading to disagreements                 524(a)(3) of the FD&C includes ‘‘[a]ny
                                             and marginalized populations[,]’’ and                   regarding which measures of                           other infectious disease for which there
                                             that is the purpose of this order.                      development should serve as dominant                  is no significant market in developed
                                                                                                     indicators. After also examining the                  nations. . .designated by order of the
                                             II. Criteria for Expansion of the List of               International Monetary Fund (IMF)’s list
                                             Tropical Diseases                                                                                             Secretary.’’ As an initial matter, the
                                                                                                     of advanced economies (Ref. 2) and the                Agency notes that ‘‘infectious diseases,’’
                                                On December 12, 2008, FDA                            United Nations (U.N.)’s human                         as such do not have markets—but drugs
                                             convened a public hearing, at which the                 development index (Ref. 3), the Agency                for the treatment or prevention of
                                             public provided suggestions regarding                   is proposing to use a country’s presence              infectious diseases do. Because the
                                             the following topics: (1) Criteria that                 on the World Bank’s 1 list of ‘‘high                  statute offers vouchers for applications
                                             should be used to determine the                         income economies’’ (Ref. 4) as evidence               for drugs for either the treatment or
                                             eligibility of an infectious disease for                that the country should be considered a               prevention of infectious diseases, it is
                                             designation as a tropical disease, (2) the              ‘‘developed nation’’ for ‘‘tropical                   reasonable to assume that ‘‘no
                                             process that should be used to make                     disease’’ determination purposes.                     significant market’’ can refer to drugs for
                                             tropical disease designations, and (3)                  Similarly, FDA will use a country’s                   the treatment or prevention of infectious
                                             recommendations for specific diseases                   presence on the World Bank’s list of                  diseases. Thus, FDA will analyze the
                                             that should be designated as tropical                   ‘‘low income economies’’ (id.) as                     market for drugs for both the treatment
                                             diseases. A number of participants in                   evidence that the country should not be               and prevention of infectious diseases for
                                             the public meeting commented that,                      considered a ‘‘developed nation’’ for                 a particular infectious disease.
                                             given the lack of definitive data for                   purposes of ‘‘tropical disease’’                         The threshold for what constitutes a
                                             some diseases, as well as the lack of                   determination.                                        ‘‘significant market’’ for drugs for the
                                             consensus on how these criteria should                     FDA recognizes that there is a                     treatment or prevention of infectious
                                             be defined, FDA should use a flexible                   correlation between economic strength                 diseases is difficult to quantify. Because
                                             approach in determining whether                         (particularly purchasing power) and the               of the challenges in providing a rigid
                                             specific diseases meet the criteria.                    market incentive for drug creation:                   definition of this term, FDA proposes
                                                FDA agrees with the use of a flexible                People in high-income economies are                   that the following factors be considered
                                             approach to tropical disease designation                more likely to be able to afford disease              in determining whether a ‘‘significant
                                             and is proposing that a scientifically                  treatments and, thus, drug companies                  market’’ exists in developed countries.
                                             informed, qualitative assessment of                     have an incentive to create products that
                                             disease candidates is appropriate. FDA                  will be in demand in those countries.                 a. Occurrence of the Disease in
                                             also is establishing a public docket that               The World Bank list of high-income                    Developed Nations
                                             will continuously remain open to                        economies is calculated based on gross                   As discussed previously, market
                                             receive future suggestions for tropical                 national income per capita, and,                      forces are important drivers of drug
                                             disease designations under section 524                  importantly, it thus reflects wealth as a             development. The purpose of section
                                             of the FD&C Act. The Agency proposes                    primary basis for categorization. FDA’s               524 of the FD&C Act is to provide an
                                             to review the contents of this public                   recognition of the role of wealth is why              incentive (through a PRV) for
                                             docket periodically and to take action to               we deemed the U.N. development index                  innovation where there otherwise
                                             designate additional diseases when                      less helpful: It measures development                 would be an insufficient financial or
                                             appropriate.                                            across a broad array of categories (e.g.,             market incentive to invest in developing
                                                As stated previously, section                        mean years of schooling) that, while                  drugs for tropical diseases. The market
                                                                                                                                                           for many FDA-approved products
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                                             524(a)(3)(R) of the FD&C Act authorizes                 informative, are less directly correlated
                                             the Secretary to designate by order                                                                           includes situations in which individuals
                                             ‘‘[a]ny other infectious disease for                      1 The ‘‘World Bank’’ is a term used to refer        (often reimbursed by their insurers)
                                             which there is no significant market in                 collectively to the International Development         purchase the products for use by a
                                                                                                     Association and the International Bank for
                                             developed nations and that                              Reconstruction and Development, which are two of
                                                                                                                                                           specific patient. This reflects what we
                                             disproportionately affects poor and                     the five organizations that comprise the World Bank   will refer to as the ‘‘direct’’ market, and
                                             marginalized populations’’ as a                         Group.                                                the direct market for a drug in a


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                                                              Federal Register / Vol. 80, No. 161 / Thursday, August 20, 2015 / Rules and Regulations                                           50561

                                             developed country can often be                          B. Disproportionately Affects Poor and                3. The Relative Burden of the Disease in
                                             estimated by assessing the occurrence of                Marginalized Populations                              Infants, Children, or Other Marginalized
                                             a particular disease in that country.2                                                                        Segments of the Population (e.g.,
                                                                                                        As with the term ‘‘no significant                  Women, the Elderly) Within the
                                                If the prevalence of a disease in                    market in developed nations,’’ FDA has
                                             developed countries is less than 0.1                                                                          Countries in Which It Is Found
                                                                                                     elected to analyze multiple factors—
                                             percent of the population of those                      none of which, alone, invariably will be                 One of the clear goals of section 524
                                             countries, it is unlikely that ordinary                 outcome-determinative—in assessing                    of the FD&C Act is improving the health
                                             market forces will offer a sufficient                   whether a given disease meets the                     of marginalized populations, who
                                             incentive to drive the development of                   requirement of ‘‘disproportionately                   generally suffer poorer health outcomes
                                             new preventions or treatments. Thus, it                 affects poor and marginalized                         than their non-marginalized neighbors,
                                             is unlikely that there will be a                        populations’’ for classification as a                 even within the same country. To
                                             ‘‘significant market’’ for the disease’s                ‘‘tropical disease’’ under section 524 of             ‘‘marginalize’’ is to place (or keep) a
                                             treatment in those countries.                           the FD&C Act. Those factors are the                   person or population in a powerless or
                                             Accordingly, FDA has decided to use a                   following:                                            unimportant position (see, e.g., Ref. 13).
                                             disease prevalence rate of 0.1 percent of                                                                     Individuals or groups may be
                                             the population as a factor for aiding in                1. The Proportion of Global Disability-
                                                                                                     Adjusted Life Years for the Disease That              marginalized for any number of reasons,
                                             the determination of whether a                                                                                including, for example, gender, age, or
                                                                                                     Is Attributable to Developing Countries
                                             ‘‘significant market’’ may exist for a                                                                        extreme poverty. Marginalized
                                             disease’s treatment.                                       A disability-adjusted life year (DALY)             populations generally lack a meaningful
                                             b. The Existence of a Sizeable Indirect                 measurement is not a direct measure of                voice in societal decisionmaking,
                                             Market for the Tropical Disease Drug                    the prevalence of the disease; rather, it             including decisions relating to the
                                                                                                     is a measure of the impact of that                    acquisition, distribution, and use of
                                             (e.g., Government, Including the
                                                                                                     disease on a given population. ‘‘One                  health resources. These populations,
                                             Military) That Would Constitute a
                                                                                                     DALY can be thought of as one lost year               therefore, are less likely to have their
                                             Financial Incentive for Drug
                                                                                                     of ’healthy’ life’’ (Ref. 11). An estimate            health needs met and less likely to have
                                             Development
                                                                                                     of disease-related morbidity (a term                  the resources or political power needed
                                                As discussed previously, the market                  which, as used in this order, refers to               to effect change in those aspects of
                                             for many FDA-approved products is the                   the state of being diseased (see Ref. 12))            health policy that most affect them—
                                             ‘‘direct’’ market, involving patients                   and mortality in affected countries thus              including incentivizing governments or
                                             purchasing drugs for their own use.                     can be made by assessing available                    private industry to offer disease
                                             However, some drugs may have a                          information about the DALY burden of                  treatments. Understanding the relative
                                             sizeable ‘‘indirect’’ market composed of,               a particular disease. ‘‘DALYs for a                   prevalence of a disease in these
                                             for example, government entities or                     disease or health condition are                       populations will help FDA determine
                                             nongovernmental organizations that                      calculated as the sum of the Years of                 whether treatment development for that
                                             wish to purchase and distribute a drug                  Life Lost. . .due to premature mortality              disease would be spurred by the
                                             for the treatment or prevention of an                   in the population and the Years Lost                  provision of section 524 of the FD&C
                                             infectious disease, often for public                    due to Disability. . .for people living               Act’s PRV incentive.
                                             health reasons, to a particular group of                with the health condition or its
                                                                                                                                                           4. Designation by the World Health
                                             people. Indeed, for some diseases                       consequences’’ (Ref. 11). DALYs are an
                                                                                                                                                           Organization as a Neglected Tropical
                                             identified as high priorities for public                important measurement, enabling FDA
                                                                                                                                                           Disease
                                                                                                     to weigh ‘‘tropical disease’’ eligibility
                                             health preparedness, governmental
                                                                                                     for those diseases that, although they                   The World Health Organization
                                             entities have initiated programs to
                                                                                                     may be present to some degree in                      (WHO), in its role as the directing and
                                             provide support for product
                                                                                                     developed countries (e.g., because of                 coordinating authority on international
                                             development and/or stockpiling (Ref.
                                                                                                     travel or immigration), cause much                    health within the U.N. system, has
                                             7).3 In such cases, FDA would consider
                                                                                                     more harm to the public health of                     identified a list of diseases that it refers
                                             that market as a factor in determining                  developing countries.
                                             whether a significant market for a drug                                                                       to as ‘‘neglected tropical diseases’’ (Ref.
                                             for the treatment or prevention of an                   2. The Relative Burden of the Disease in              14). According to the WHO, these
                                             infectious diseases disease exists in                   the Most Impoverished Populations                     diseases ‘‘are strongly associated with
                                             developed nations.                                      Within the Countries in Which It Is                   poverty’’ and tend to affect those with
                                                                                                     Found                                                 ‘‘little political voice’’; rarely receive the
                                                2 Exceptions may occur for diseases that have a
                                                                                                                                                           attention of disease treatment
                                             low incidence in developed countries through use           If a disease’s prevalence is high in               innovators or the broader international
                                             of preventive drugs or biologics. Thus, although the    populations who cannot afford                         community; and often flourish in
                                             disease incidence is lower in developed countries       treatment and low in populations that                 tropical climates (id.). The WHO’s list
                                             these are less likely to be the types of diseases for   can, there likely will be little market               includes 12 of the 17 enumerated
                                             which section 524 of the FD&C Act is intended to
                                             spur innovation.                                        incentive for drug companies to create                diseases in section 524(a)(3) of the
                                                3 For example, certain diseases have been            new treatments. In light of section 524               FD&C Act (see Ref. 15). Because the
                                             prioritized for medical countermeasure                  of the FD&C Act’s intent to create                    WHO’s list of ‘‘neglected tropical
                                             development and investment (see Ref. 7) or are          treatment development incentives, as                  diseases’’ includes many of the types of
                                             listed as priority pathogens by government entities
                                                                                                     well as its clear goal of improving the               diseases for which section 524 was
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                                             such as the National Institutes of Health (NIH)/
                                             National Institute of Allergy and Infectious Diseases   health of impoverished populations,                   designed to incentivize treatment
                                             (NIAID), Center for Disease Control or Prevention,      FDA will consider the demographic                     development, FDA believes it is
                                             and military programs (Refs. 8, 9, and 10). These       distribution of a disease in determining              reasonable to consider WHO’s
                                             and other indications of potential priority
                                             designation that could affect governmental resource
                                                                                                     whether it should be designated as a                  ‘‘neglected tropical disease’’
                                             allocation may be taken into account in assessment      ‘‘tropical disease’’ for the purposes of              designations in determining whether a
                                             of whether a market exists in developed countries.      section 524 of the FD&C Act.                          disease should be designated as a


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                                             50562            Federal Register / Vol. 80, No. 161 / Thursday, August 20, 2015 / Rules and Regulations

                                             ‘‘tropical disease’’ for purposes of                    applying published seroprevalence data                Platyhelminthes, and is contracted
                                             section 524 of the FD&C Act.                            to immigrant population estimates in                  when a person ingests the tapeworm
                                                                                                     the United States, it is estimated that               eggs. After a person ingests the eggs, the
                                             III. Diseases Being Designated
                                                                                                     there are just over 300,000 persons                   tapeworm enters the larval stage and
                                                FDA has considered a number of                       infected with T. cruzi in the United                  begins to infect the host’s tissues. The
                                             diseases recommended in response to                     States (Refs. 17, 18, and 19). The                    most severe form of the disease, called
                                             the Federal Register document                           number of persons with chronic cases                  neurocysticercosis, occurs when larvae
                                             announcing the December 12, 2008,                       for whom definitive recommendations                   enter the central nervous system and
                                             public meeting (see 73 FR 66050,                        for treatment would apply is likely less              establish cysts that can cause epilepsy
                                             November 6, 2008), by meeting                           than 300,000. Transmission and acute                  (see, e.g., Ref. 20). Treatment guidelines
                                             participants or others directing                        cases of Chagas disease would be                      from the American Academy of
                                             communications to FDA on the same                       considered unlikely either in the United              Neurology recommend treatment with
                                             topic. Based on an assessment using the                 States or in other developed countries.               anti-helminthic drugs like albendazole,
                                             criteria proposed previously, FDA has                   The most common insect vector that                    with consideration for adjunctive
                                             determined that the following diseases                  transmits the parasite, the triatomine                corticosteroid therapy (Ref. 20).
                                             will be designated as ‘‘tropical diseases’’             bug, is found mostly in Central and                      Neurocysticercosis disproportionately
                                             under section 524 of the FD&C Act:                      South America. The main risk of Chagas                affects poor and marginalized
                                                • Chagas disease.                                    transmission to uninfected persons in                 populations. Indeed, patients who have
                                                • Neurocysticercosis.                                developed countries is due to mother-to-              infection with T. solium generally have
                                             FDA’s rationale for adding these                        child transmission, or blood                          similar socioeconomic and demographic
                                             diseases to the list is discussed in the                transfusions or organ donations where                 characteristics to those patients with
                                             analyses that follow.                                   the donor has lived in or visited Chagas-             soil transmitted helminthiasis, a disease
                                             A. Chagas Disease                                       endemic countries—although there have                 already on the statutory list of ‘‘tropical
                                                                                                     been a few reports of vector-borne                    diseases’’ in section 524 of the FD&C
                                                Chagas disease, also known as                        Chagas infecting people in the United                 Act. As of the late 1990s, approximately
                                             American trypanosomiasis, is a vector-                  States (Refs. 16 and 17).                             50 million people worldwide were
                                             borne parasitic disease caused by the                      There are no approved vaccines or                  estimated to harbor the tapeworm T.
                                             protozoan Trypanosoma cruzi (Ref. 16).                  other preventative therapies for the                  solium (Ref. 21), most of them living in
                                             After the initial infection, a 2-month                  disease, either in the United States or               poverty in the world’s poorest countries
                                             ‘‘acute’’ phase occurs, during which                    elsewhere. The only drugs used to treat               that lack effective systems for meat
                                             there are some antiparasitic drugs that                 Chagas are benznidazole and                           inspection and adequate sanitation
                                             can be used for treatment in some                       nifurtimox, which are not approved in                 (Refs. 22 and 23). Estimates of the
                                             patients (id.). Treatment efficacy                      the United States for this use. In                    number of people who have epilepsy
                                             generally decreases with length of                      addition to the lack of a commercial                  caused by neurocysticercosis ranges
                                             infection, and if the disease is not cured              market in developed countries                         from 450,000 to 1,350,000 in Central
                                             during the initial ‘‘acute’’ infection                  (presumably because of the low                        and South America and from 300,000 to
                                             phase, the chronic infection lingers over               prevalence of disease), there does not                4,600,000 in sub-saharan Africa (Ref.
                                             the next several years or decades, often                seem to be a sizeable indirect (e.g.,                 23). Neurocysticercosis is believed to
                                             causing organ and tissue damage (id.).                  government) market for Chagas                         contribute to high levels of human
                                             For example, some Chagas disease                        treatments either—presumably because                  morbidity, notably epilepsy, though
                                             sufferers who contract the disease                      of the geographical limitations of the                efforts are underway to adequately
                                             during childhood die in early adulthood                 disease. As a general matter, Chagas-                 characterize an estimate of DALY for
                                             due to heart arrhythmias or other effects               endemic countries are developing                      neurocysticercosis (Ref. 24). Notably,
                                             of organ damage. Efforts to reduce                      countries in Central and South America,               cysticercosis is included on WHO’s list
                                             Chagas disease center around                            and thus neither persons with Chagas                  of neglected tropical diseases (Ref. 15).
                                             controlling the spread of the vector                    disease nor their governments are likely                 FDA also has determined that
                                             insects (e.g., through insecticide and                  to be in a position to provide a financial            neurocysticercosis products have no
                                             roof repair) and protecting people from                 incentive for treatment development.                  significant market in developed nations.
                                             insect bites (e.g., through bed net use)                Given the disease’s geographical                      Although the disease does occur in the
                                             (id.).                                                  limitations and its prevalence in non-                United States, estimates of annual
                                                Chagas disease has a disproportionate                touristed rural areas, it is unlikely that            incidence rates in the general U.S.
                                             effect on poor and marginalized                         the travelers’ market would be a                      population are low, at approximately
                                             populations. Developing countries in                    sufficient incentive to encourage                     0.2 cases per 100,000 population.
                                             Central and South America suffer most                   treatment development for Chagas.                     Incidence rates are much higher among
                                             of the global DALYs lost because of the                    Given the factors described in this                Hispanics living in the United States,
                                             disease (id.). Estimates vary, but                      document, FDA has determined that                     who most likely acquired the tapeworm
                                             approximately 8 million people are                      Chagas disease meets both statutory                   in cysticercosis-endemic areas of
                                             believed to be infected in Mexico,                      criteria of ‘‘no significant market in                Central and South America (Ref. 25),
                                             Central America, and South America                      developed nations’’ and                               with estimates ranging between 3.1 and
                                             (Ref. 17). Within Chagas-endemic                        ‘‘disproportionately affects poor and                 5.8 cases per 100,000 Hispanic
                                             countries, the disease often affects rural              marginalized populations.’’ Therefore,                population (Ref. 26). FDA also is
                                             and/or poor populations who live in the                 FDA is designating Chagas disease as a                unaware of evidence suggesting any
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                                             mud huts that also are inhabited by the                 tropical disease under section 524 of the             sizeable military, government, or other
                                             vector insects (Ref. 16). WHO has                       FD&C Act.                                             indirect market for neurocysticercosis
                                             designated Chagas as a neglected                                                                              products.
                                             tropical disease (Ref. 15).                             B. Neurocysticercosis                                    In view of the disease characteristics
                                                There also is no significant market for                Cysticercosis is a disease caused by                discussed previously, FDA considers
                                             Chagas disease treatment in developed                   infection with Taenia solium, a                       the statutory criteria for addition of
                                             nations. Based on estimates derived by                  tapeworm of the phylum                                neurocysticercosis to the list of tropical


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                                                              Federal Register / Vol. 80, No. 161 / Thursday, August 20, 2015 / Rules and Regulations                                             50563

                                             diseases in section 524 of the FD&C Act                      and Biologics’’ (available at http://                 Trypanosomiasis (also known as Chagas
                                             to be satisfied. This addition is effective                  www.fda.gov/downloads/drugs/                          Disease): Detailed FAQs’’ (available at
                                             upon the publication of this order.                          guidancecompliance                                    http://www.cdc.gov/parasites/chagas/
                                                                                                          regulatoryinformation/guidances/                      gen_info/detailed.html).
                                             IV. Process for Requesting Additional                        ucm358301.pdf), 2014.                            17. Centers for Disease Control and
                                             Diseases To Be Added to the List                        2. IMF, ‘‘World Economic Outlook: Recovery                 Prevention, ‘‘Parasites—American
                                                                                                          Strengthens, Remains Uneven,’’ Table B1
                                                The purpose of this order is to add                                                                             Trypanosomiasis (also known as Chagas
                                                                                                          (available at http://www.imf.org/
                                             diseases to the list of tropical diseases                                                                          Disease): Epidemiology and Risk
                                                                                                          external/pubs/ft/weo/2014/01/pdf/
                                             that FDA has found to meet the criteria                      tblpartb.pdf).                                        Factors,’’ (available at http://
                                             in section 524(a)(3)(R) of the FD&C Act.                3. U.N. Development Programme, ‘‘Human                     www.cdc.gov/parasites/chagas/epi.html).
                                                                                                          Development Index (HDI)’’ (available at          18. Bern, C. and S.P. Montgomery, ‘‘An
                                             By expanding the list with this order,
                                                                                                          http://hdr.undp.org/en/content/human-                 Estimate of the Burden of Chagas Disease
                                             FDA does not mean to preclude the
                                                                                                          development-index-hdi).                               in the United States,’’ Clinical Infectious
                                             future addition of other diseases to this               4. The World Bank, ‘‘Country and Lending                   Diseases, 49:e52–54, 2009 (available at
                                             list. To facilitate the consideration of                     Groups’’ (available at http://                        http://cid.oxfordjournals.org/content/49/
                                             future additions to the list, FDA is                         data.worldbank.org/about/country-and-                 5/e52.full).
                                             establishing a public docket (see                            lending-groups).                                 19. Centers for Disease Control and
                                             http://www.regulations.gov, Docket No.                  5. U.N. Development Programme,                             Prevention, ‘‘Congenital Transmission of
                                             FDA–2008–N–0567) through which                               ‘‘Frequently Asked Questions—Human                    Chagas Disease—Virginia, 2010,’’
                                             interested persons may submit requests                       Development Index (HDI)’’ (available at
                                                                                                                                                                MMWR. Morbidity and Mortality Weekly
                                                                                                          http://hdr.undp.org/en/faq-page/human-
                                             for additional diseases to be added to                                                                             Report, 61(26):477–479, July 6, 2012
                                                                                                          development-index-hdi#t292n36).
                                             the list. Such requests should be                       6. Congressional Research Service,                         (available at http://www.cdc.gov/mmwr/
                                             accompanied by information to                                ‘‘Generalized System of Preferences:                  preview/mmwrhtml/mm6126a1.htm?s_
                                             document that the disease meets the                          Background and Renewal Debate,’’ pp. 7,               cid=mm6126a1_w).
                                             criteria set forth in section 524(a)(3)(R)                   11 (available at http://fas.org/sgp/crs/         20. Baird, R.A., S. Weibe, J.R. Zunt, et al.,
                                             of the FD&C Act. FDA will periodically                       misc/RL33663.pdf).                                    ‘‘Evidence-Based Guideline: Treatment
                                             review these requests, and, when                        7. U.S. Department of Health and Human                     of Parenchymal Neurocysticercosis,’’
                                             appropriate, expand the list.                                Services, ‘‘Public Health Emergency                   Neurology, 80:1424–1429, 2013
                                                                                                          Medical Countermeasures Enterprise                    (available at http://www.neurology.org/
                                             V. Paperwork Reduction Act                                   (PHEMCE) Implementation Plan,’’                       content/80/15/1424.full.pdf).
                                                                                                          December 2012 (available at http://              21. White, A.C., Jr., ‘‘Neurcysticercosis: A
                                                This final order establishes a public                     www.phe.gov/Preparedness/mcm/
                                             docket through which interested                                                                                    Major Cause of Neurological Disease
                                                                                                          phemce/Documents/2012-PHEMCE-
                                             persons may submit requests for                                                                                    Worldwide,’’ Clinical Infectious Disease,
                                                                                                          Implementation-Plan.pdf).
                                             additional diseases to be added to the                  8. National Institute of Allergy and Infectious            24:101–115, 1997 (available at http://
                                                                                                          Diseases, NIAID Emerging Infectious                   cid.oxfordjournals.org/content/24/2/
                                             list of tropical diseases that FDA has
                                                                                                          Diseases/Pathogens (available at http://              101.long).
                                             found to meet the criteria in section
                                                                                                          www.niaid.nih.gov/topics/                        22. Institute of Medicine, ‘‘The Causes and
                                             524(a)(3)(R) of the FD&C Act. This                                                                                 Impacts of Neglected Tropical and
                                                                                                          biodefenserelated/biodefense/pages/
                                             request for information is exempt from                       cata.aspx).                                           Zoonotic Diseases: Opportunities for
                                             Office of Management and Budget                         9. Centers for Disease Control and                         Integrated Intervention Strategies,’’
                                             review under 5 CFR 1320.3(h)(4) of the                       Prevention, Bioterrorism Agents/                      Washington, DC: The National
                                             Paperwork Reduction Act of 1995 (44                          Diseases (available at http://                        Academies Press (available at http://
                                             U.S.C. 3501–3520). Specifically, ‘‘[f]acts                   www.bt.cdc.gov/agent/agentlist-                       www.ncbi.nlm.nih.gov/books/
                                             or opinions submitted in response to                         category.asp).                                        NBK62507/pdf/TOC.pdf).
                                             general solicitations of comments from                  10. Joint Program Executive Office for                23. Mewara, A., K. Goyal, and R. Sehgal,
                                             the public, published in the Federal                         Chemical and Biological Defense, Joint                ‘‘Neurocysticercosis: A Disease of
                                                                                                          Vaccine Acquisition Program (JVAP)
                                             Register or other publications,                                                                                    Neglect,’’ Tropical Parasitology,
                                                                                                          (available at http://
                                             regardless of the form or format thereof’’                                                                         3(2):106–113, 2013 (available at http://
                                                                                                          www.jpeocbd.osd.mil/packs/
                                             are exempt, ‘‘provided that no person is                     Default.aspx?pg=1208).                                www.ncbi.nlm.nih.gov/pmc/articles/
                                             required to supply specific information                 11. WHO, ‘‘Metrics: Disability Adjusted Life               PMC3889086/?report=printable).
                                             pertaining to the commenter, other than                      Year (DALY)’’ (available at http://              24. Bhattarai, R., H. Carabin, and C. Budke,
                                             that necessary for self-identification, as                   www.who.int/healthinfo/global_burden_                 ‘‘The Burden of Cysticercosis,’’ Novel
                                             a condition of the agency’s full                             disease/metrics_daly/en/).                            Aspects on Cysticercosis and
                                             consideration of the comment.’’                         12. Medline Plus/Merriam-Webster Medical                   Neurocysticercosis, H.F. Sibat, ed.
                                                                                                          Dictionary Online, ‘‘Morbidity’’                      (available at http://
                                             VI. References                                               (available at http://www.merriam-                     www.intechopen.com/books/novel-
                                                                                                          webster.com/medlineplus/morbidity).                   aspects-on-cysticercosis-and-
                                               The following references have been                    13. Merriam-Webster Dictionary Online,
                                             placed on display in the Division of                                                                               neurocysticercosis/the-burden-of-
                                                                                                          ‘‘Marginalize’’ (available at http://                 cysticercosis).
                                             Dockets Management (see ADDRESSES)                           www.merriam-webster.com/dictionary/              25. Wallin, M.T. and J.F. Kurtzke,
                                             and may be seen by interested persons                        marginalize).                                         ‘‘Neurocysticercosis in the United States:
                                             between 9 a.m. and 4 p.m. Monday                        14. WHO, ‘‘First WHO Report on Neglected                   Review of an Important Emerging
                                             through Friday, and are available                            Tropical Diseases: Working to Overcome
                                                                                                                                                                Infection,’’ Neurology, 63:1559–1564,
                                             electronically at http://                                    the Global Impact of Neglected Tropical
                                                                                                                                                                2004 (available at http://
                                             www.regulations.gov.                                         Diseases’’ (available at http://
                                                                                                          whqlibdoc.who.int/publications/2010/                  www.neurology.org/content/63/9/
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                                                (FDA has verified the Web site addresses,                 9789241564090_eng.pdf).                               1559.long).
                                             but FDA is not responsible for any                      15. WHO, ‘‘Neglected Tropical Diseases:               26. O’Neal, S., J. Noh, P. Wilkins, et al,
                                             subsequent changes to the Web sites after this               Diseases Covered by NTD Department’’                  ‘‘Taenia solium Tapeworm Infection,
                                             document publishes in the Federal Register.)                 (available at http://www.who.int/                     Oregon, 2006–2009,’’ Emerging
                                             1. U.S. Food and Drug Administration,                        neglected_diseases/diseases/en/).                     Infectious Disease, 17(6):1030–1036,
                                                  ‘‘Guidance for Industry: Expedited                 16. Centers for Disease Control and                        2011 (available at http://wwwnc.cdc.gov/
                                                  Programs For Serious Conditions—Drugs                   Prevention, ‘‘Parasites—American                      eid/article/17/6/10-1397_article).



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                                             50564            Federal Register / Vol. 80, No. 161 / Thursday, August 20, 2015 / Rules and Regulations

                                               Dated: August 14, 2015.                               a voucher holder to use the voucher                   dating violence, sexual assault, and
                                             Leslie Kux,                                             assistance outside the jurisdiction of the            stalking have access to the resources
                                             Associate Commissioner for Policy.                      PHA that initially issues the family its              necessary to relocate to a safe, stable
                                             [FR Doc. 2015–20554 Filed 8–19–15; 8:45 am]             voucher. While portability offers an                  home away from an abuser. Further,
                                             BILLING CODE 4164–01–P
                                                                                                     important mechanism to increase                       moves to areas with relatively low
                                                                                                     housing choice, this feature has not                  concentrations of neighborhood poverty
                                                                                                     been maximized by PHAs and                            have shown to relay important benefits
                                                                                                     participating families because the                    to housing choice voucher families, in
                                             DEPARTMENT OF HOUSING AND
                                                                                                     current process for allowing a family to              particular mental and physical health
                                             URBAN DEVELOPMENT
                                                                                                     move from one jurisdiction to another is              for adults and long-term educational
                                             24 CFR Part 982                                         time consuming and burdensome. HUD                    and earning gains for young children.
                                                                                                     recognizes that for the HCV program’s                 HUD recognizes that some policies may
                                             [Docket No. FR–5453–F–02]                               goals to support mobility and housing                 increase burden for some PHAs;
                                             RIN 2577–AC86                                           choice to be realized, the regulations                however, the added clarity to the
                                                                                                     governing the portability process must                portability process afforded by this final
                                             Housing Choice Voucher Program:                         be clarified so that the burden on                    rule is expected to improve the
                                             Streamlining the Portability Process                    families and the PHA is reduced. This                 portability process and reduce the
                                                                                                     final rule completes the rulemaking                   burden on families and PHAs.
                                             AGENCY:  Office of the Assistant                                                                                The streamlining changes do not add
                                                                                                     process, which commenced in 2012, to
                                             Secretary for Public and Indian                                                                               any substantial cost to the HCV
                                                                                                     revise the existing portability
                                             Housing, HUD.                                                                                                 program.
                                                                                                     regulations to streamline the portability
                                             ACTION: Final rule.                                     process and facilitate the ability of                 II. Background—the March 28, 2012,
                                             SUMMARY:    This final rule amends HUD’s                participating families to move to the                 Proposed Rule
                                             regulations governing portability in the                jurisdiction of their choice.
                                                                                                                                                              On March 28, 2012, at 77 FR 18731,
                                             Housing Choice Voucher (HCV)                            B. Summary of the Major Provisions of                 HUD published a rule in the Federal
                                             program. Portability is a feature of the                the Regulatory Action                                 Register that proposed to amend HUD’s
                                             HCV program that allows an eligible                                                                           regulations governing portability in the
                                                                                                        The key regulatory changes by this
                                             family with a housing choice voucher to                                                                       HCV program. The HCV program is the
                                                                                                     final rule include:
                                             use that voucher to lease a unit                           • Removing the mandatory                           Federal Government’s largest program
                                             anywhere in the United States where                     absorption requirement discussed in the               for assisting very low-income families,
                                             there is a public housing agency (PHA)                  proposed rule and clarifying the                      the elderly, and persons with
                                             operating an HCV program. The purpose                   notification requirement for mandatory                disabilities to afford decent, safe, and
                                             of HUD’s changes to the portability                     voucher suspension;                                   sanitary housing in the private market.
                                             regulations is to enable PHAs to better                    • Requiring an initial PHA to notify               The HCV program is authorized by
                                             serve families and expand housing                       the local HUD office within 10 business               section 8(o) of the United States
                                             opportunities by improving portability                  days of a determination to deny a                     Housing Act of 1937 (42 U.S.C. 1473f(o))
                                             processes.                                              portability move based on insufficient                (1937 Act), and the HCV program
                                             DATES: Effective: September 21, 2015.                   funding;                                              regulations are found in 24 CFR part
                                             FOR FURTHER INFORMATION CONTACT:                           • Providing that the voucher issued                982.
                                             Becky Primeaux, Director, Housing                       by the receiving PHA to the family may                   Housing choice vouchers are
                                             Voucher and Management Operations                       not expire before 30 calendar days has                administered locally by PHAs. PHAs
                                             Division, Office of Housing Choice                      passed from the expiration date of the                receive Federal funds from HUD to
                                             Vouchers, Office of Public and Indian                   initial PHA’s voucher;                                administer the HCV program. Under the
                                             Housing, Department of Housing and                         • Requiring briefings for all                      HCV program, housing assistance is
                                             Urban Development, 451 7th Street SW.,                  participating on how portability works                provided on behalf of the participating
                                             Room 4216, Washington, DC 20410–                        and the benefits of living in low-poverty             family who is responsible for finding a
                                             8000, telephone number 202–708–0477                     census tracts; and                                    suitable housing unit of their choice
                                             (this is not a toll-free number).                          • Allowing a family to choose the                  where the owner agrees to rent under
                                             Individuals with speech or hearing                      receiving PHA to administer their                     the program. The participant is free to
                                             impairments may access this number                      voucher should they choose to use                     choose any rental housing, including
                                             through TTY by calling the Federal                      portability.                                          single family homes, townhouses, and
                                             Relay Service at 800–877–8339 (this is                  Please see Section III of this preamble,              apartments, that meets the requirements
                                             a toll-free number).                                    entitled ‘‘Changes at the Final Rule                  of the program and is not limited to
                                                                                                     Stage’’ for a more detailed discussion of             units located in subsidized housing
                                             SUPPLEMENTARY INFORMATION:
                                                                                                     all the changes proposed by this rule.                projects. Under certain circumstances, if
                                             I. Executive Summary                                                                                          authorized by the PHA, a family may
                                                                                                     C. Costs and Benefits                                 use its voucher to purchase a modest
                                             A. Purpose of the Regulatory Action                       The changes made by this final rule                 home.
                                               The purpose of this final rule is to                  are designed to minimize burden for                      A housing subsidy is paid to the
                                             improve the portability process of the                  PHAs and participating HCV families                   landlord directly by the PHA on behalf
                                             HCV program. Under the HCV program,                     and thereby increase the ability of                   of the participating family. The family
                                                                                                     participating families to live in areas of            then pays the difference between the
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                                             the participating family is free to choose
                                             any housing that meets the requirements                 their choice or relocate to a new area for            actual rent charged by the landlord and
                                             of the program. As a means to enable                    employment opportunities or to gain                   the amount subsidized by the program.
                                             housing choice and mobility to                          access to preferred schools for their                 The PHA determines the amount that
                                             encourage social and economic                           children. In addition, the improved                   the family will contribute toward rent,
                                             integration, the HCV program offers                     portability process contributes to                    which is generally 30 percent of its
                                             voucher portability; that is, the ability of            helping victims of domestic violence,                 adjusted annual income. A key feature


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Document Created: 2015-12-15 11:09:02
Document Modified: 2015-12-15 11:09:02
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal order.
DatesThis order is effective August 20, 2015.
ContactKristiana Brugger, Center for Drug Evaluation and Research, Food and Drug Administration, 10903 New Hampshire Ave., Bldg. 51, rm. 6262, Silver Spring, MD 20993-0002, 301- 796-3601; or Stephen Ripley, Center for Biologics Evaluation and Research, Food and Drug Administration, 10903 New Hampshire Ave., Bldg. 71, rm. 7301, Silver Spring, MD 20993-0002, 240-402-7911.
FR Citation80 FR 50559 
RIN Number0910-AG37

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