83_FR_48804 83 FR 48617 - Fee for Using a Material Threat Medical Countermeasure Priority Review Voucher in Fiscal Year 2019

83 FR 48617 - Fee for Using a Material Threat Medical Countermeasure Priority Review Voucher in Fiscal Year 2019

DEPARTMENT OF HEALTH AND HUMAN SERVICES
Food and Drug Administration

Federal Register Volume 83, Issue 187 (September 26, 2018)

Page Range48617-48619
FR Document2018-20910

The Food and Drug Administration (FDA or the Agency) is announcing the fee rate for using a material threat medical countermeasure (MCM) priority review voucher for fiscal year (FY) 2019. The Federal Food, Drug, and Cosmetic Act (the FD&C Act), as amended by the 21st Century Cures Act (Cures Act), authorizes FDA to determine and collect material threat MCM priority review user fees for certain applications for review of human drug products when those applications use a material threat MCM priority review voucher. These vouchers are awarded to the applicants of material threat MCM applications that meet all of the requirements of this program upon FDA approval of such applications. The amount of the fee for using a material threat MCM priority review voucher is determined each FY based on the difference between the average cost incurred by FDA to review of a human drug application designated as priority review in the previous FY, and the average cost incurred in the review of an application that is not subject to priority review in the previous FY. This notice establishes the material threat MCM priority review fee rate for FY 2019 and outlines the payment procedures for such fees.

Federal Register, Volume 83 Issue 187 (Wednesday, September 26, 2018)
[Federal Register Volume 83, Number 187 (Wednesday, September 26, 2018)]
[Notices]
[Pages 48617-48619]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-20910]


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

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2018-N-0007]


Fee for Using a Material Threat Medical Countermeasure Priority 
Review Voucher in Fiscal Year 2019

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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

SUMMARY: The Food and Drug Administration (FDA or the Agency) is 
announcing the fee rate for using a material threat medical 
countermeasure (MCM) priority review voucher for fiscal year (FY) 2019. 
The Federal Food, Drug, and Cosmetic Act (the FD&C Act), as amended by 
the 21st Century Cures Act (Cures Act), authorizes FDA to determine and 
collect material threat MCM priority review user fees for certain 
applications for review of human drug products when those applications 
use a material threat MCM priority review voucher. These vouchers are 
awarded to the applicants of material threat MCM applications that meet 
all of the requirements of this program upon FDA approval of such 
applications. The amount of the fee for using a material threat MCM 
priority review voucher is determined each FY based on the difference 
between the average cost incurred by FDA to review of a human drug 
application designated as priority review in the previous FY, and the 
average cost incurred in the review of an application that is not 
subject to priority review in the previous FY. This notice establishes 
the material threat MCM priority review fee rate for FY 2019 and 
outlines the payment procedures for such fees.

FOR FURTHER INFORMATION CONTACT: Lola Olajide, Office of Financial 
Management, Food and Drug Administration, 8455 Colesville Rd., COLE-
14541B, Silver Spring, MD 20993-0002, 240-402-4244.

SUPPLEMENTARY INFORMATION: 

I. Background

    Section 3086 of the Cures Act (Pub. L. 114-255) added section 565A 
to the FD&C Act (21 U.S.C. 360bbb-4a). In section 565A of the FD&C Act, 
Congress encouraged development of material threat MCMs by offering 
additional incentives for obtaining FDA approval of such products. 
Under section 565A of the FD&C Act, the applicant of an eligible 
material threat MCM application (as defined in section 565A(a)(4)) 
shall receive a priority review voucher upon approval of the

[[Page 48618]]

material threat MCM application. The recipient of a material threat MCM 
priority review voucher may either use the voucher for a future human 
drug application submitted to FDA under section 505(b)(1) of the FD&C 
Act (21 U.S.C. 355(b)(1)) or section 351(a) of the Public Health 
Service Act (42 U.S.C. 262(a)), or transfer (including by sale) the 
voucher to another party. The voucher may be transferred (including by 
sale) repeatedly until it ultimately is used for a human drug 
application submitted to FDA under section 505(b)(1) of the FD&C Act or 
section 351(a) of the Public Health Service Act. A priority review is a 
review conducted with a Prescription Drug User Fee Act (PDUFA) goal 
date of 6 months after the receipt or filing date, depending on the 
type of application. Information regarding PDUFA goals is available at 
https://www.fda.gov/downloads/forindustry/userfees/prescriptiondruguserfee/ucm511438.pdf.
    The applicant that uses a material threat MCM priority review 
voucher is entitled to a priority review of its eligible human drug 
application, but must pay FDA a material threat MCM priority review 
user fee in addition to any user fee required by PDUFA for the 
application. Information regarding the material threat MCM priority 
review voucher program is available at: https://www.fda.gov/EmergencyPreparedness/Counterterrorism/MedicalCountermeasures/MCMLegalRegulatoryandPolicyFramework/ucm566498.htm.
    This notice establishes the material threat MCM priority review fee 
rate for FY 2019 at $2,457,140 and outlines FDA's procedures for 
payment of material threat MCM priority review user fees. This rate is 
effective on October 1, 2018, and will remain in effect through 
September 30, 2019.

II. Material Threat Medical Countermeasure Priority Review User Fee for 
FY 2019

    FDA interprets section 565A(c)(2) of the FD&C Act as requiring that 
FDA determine the amount of the material threat MCM priority review 
user fee each fiscal year based on the difference between the average 
cost incurred by FDA in the review of a human drug application subject 
to priority review in the previous fiscal year, and the average cost 
incurred by FDA in the review of a human drug application that is not 
subject to priority review in the previous fiscal year.
    A priority review is a review conducted with a PDUFA goal date of 6 
months after the receipt or filing date, depending on the type of 
application. Under the PDUFA goals letter, FDA has committed to 
reviewing and acting on 90 percent of the applications granted priority 
review status within this expedited timeframe. Normally, an application 
for a human drug product will qualify for priority review if the 
product is intended to treat a serious condition and, if approved, 
would provide a significant improvement in safety or effectiveness. An 
application that does not receive a priority designation receives a 
standard review. Under the PDUFA goals letter, FDA has committed to 
reviewing and acting on 90 percent of standard applications within 10 
months of the receipt or filing date, depending on the type of 
application. A priority review involves a more intensive level of 
effort and a higher level of resources than a standard review.
    As interpreted by FDA, section 565A of the FD&C Act requires that 
the fee amount should be based on the difference between the average 
cost incurred by the Agency in the review of a human drug application 
subject to a priority review in the previous fiscal year, and the 
average cost incurred by the Agency in the review of a human drug 
application not subject to a priority review in the previous fiscal 
year. FDA is setting a fee for FY 2019, which is to be based on 
standard cost data from the previous fiscal year, FY 2018. However, the 
FY 2018 submission cohort has not been closed out yet, thus the cost 
data for FY 2018 are not complete. The latest year for which FDA has 
complete cost data is FY 2017. Furthermore, because FDA has never 
tracked the cost of reviewing applications that get priority review as 
a separate cost subset, FDA estimated this cost based on other data 
that the Agency has tracked. FDA uses data that the Agency estimates 
and publishes on its website each year--standard costs for review. FDA 
does not publish a standard cost for ``the review of a human drug 
application subject to priority review in the previous fiscal year.'' 
However, we expect all such applications would contain clinical data. 
The standard cost application categories with clinical data that FDA 
publishes each year are: (1) New drug applications (NDAs) for a new 
molecular entity (NME) with clinical data and (2) biologics license 
applications (BLAs).
    The standard cost worksheets for FY 2017 show standard costs of 
$5,340,560 for an NME NDA, and $4,596,936 for a BLA. Based on these 
standard costs, the total cost to review the 57 applications in these 
two categories in FY 2017 (31 NME NDAs with clinical data and 26 BLAs) 
was $285,077,688. (Note: These numbers exclude the President's 
Emergency Plan for AIDS Relief NDAs; no investigational new drug review 
costs are included in this amount.) Thirty-three of these applications 
(20 NDAs and 13 BLAs) received priority review, which would mean that 
the remaining 24 received standard reviews. Because a priority review 
compresses a review schedule that ordinarily takes 10 months into 6 
months, FDA estimates that a multiplier of 1.67 (10 months / 6 months) 
should be applied to non-priority review costs in estimating the effort 
and cost of a priority review as compared to a standard review. This 
multiplier is consistent with published research on this subject that 
supports a priority review multiplier in the range of 1.48 to 2.35 
(Ref. 1). Using FY 2017 figures, the costs of a priority and standard 
review are estimated using the following formula:

(33 [alpha] x 1.67) + (24[alpha]) = $285,077,688

where ``[alpha]'' is the cost of a standard review and ``[alpha] times 
1.67'' is the cost of a priority review. Using this formula, the cost 
of a standard review for NME NDAs and BLAs is calculated to be 
$3,603,561 (rounded to the nearest dollar) and the cost of a priority 
review for NME NDAs and BLAs is 1.67 times that amount, or $6,017,946 
(rounded to the nearest dollar). The difference between these two cost 
estimates, or $2,414,386, represents the incremental cost of conducting 
a priority review rather than a standard review.
    For the FY 2019 fee, FDA will need to adjust the FY 2017 
incremental cost by the average amount by which FDA's average costs 
increased in the 3 years prior to FY 2018, to adjust the FY 2017 amount 
for cost increases in FY 2018. That adjustment, published in the 
Federal Register on August 1, 2018 (see 83 FR 37504), setting FY 2019 
PDUFA fees, is 1.7708 percent for the most recent year, not compounded. 
Increasing the FY 2017 incremental priority review cost of $2,414,386 
by 1.7708 percent (or 0.017708) results in an estimated cost of 
$2,457,140 (rounded to the nearest dollar). This is the material threat 
MCM priority review user fee amount for FY 2019 that must be submitted 
with a priority review voucher for a human drug application in FY 2019, 
in addition to any PDUFA fee that is required for such an application.

III. Fee Schedule for FY 2019

    The fee rate for FY 2019 is set out in table 1:

[[Page 48619]]



Table 1--Material Threat Medical Countermeasure Priority Review Schedule
                               for FY 2019
------------------------------------------------------------------------
                                                         Fee rate for FY
                      Fee category                             2019
------------------------------------------------------------------------
Application submitted with a material threat MCM             $2,457,140
 priority review voucher in addition to the normal
 PDUFA fee.............................................
------------------------------------------------------------------------

IV. Implementation of Material Threat Medical Countermeasure Priority 
Review User Fee

    Under section 565A(c)(4)(A) of the FD&C Act, the priority review 
user fee is due upon submission of a human drug application for which 
the priority review voucher is used. Section 565A(c)(4)(B) of the FD&C 
Act specifies that the application will be considered incomplete if the 
priority review user fee and all other applicable user fees are not 
paid in accordance with FDA payment procedures. In addition, section 
565A(c)(4)(C) specifies that FDA may not grant a waiver, exemption, 
reduction, or refund of any fees due and payable under this section of 
the FD&C Act.
    The material threat MCM priority review fee established in the new 
fee schedule must be paid for any application that is received on or 
after October 1, 2018, and submitted with a priority review voucher. 
This fee must be paid in addition to any other fee due under PDUFA. 
Payment must be made in U.S. currency by electronic check, check, bank 
draft, wire transfer, credit card, or U.S. postal money order payable 
to the order of the Food and Drug Administration. The preferred payment 
method is online using electronic check (Automated Clearing House (ACH) 
also known as eCheck). Secure electronic payments can be submitted 
using the User Fees Payment Portal at https://userfees.fda.gov/pay. 
(Note: Only full payments are accepted. No partial payments can be made 
online.) Once you search for your invoice, select ``Pay Now'' to be 
redirected to https://www.pay.gov/public/home. Note that electronic 
payment options are based on the balance due. Payment by credit card is 
available for balances that are less than $25,000. If the balance 
exceeds this amount, only the ACH option is available. Payments must be 
made using U.S. bank accounts as well as U.S. credit cards.
    FDA has partnered with the U.S. Department of the Treasury to use 
Pay.gov, a web-based payment application, for online electronic 
payment. The Pay.gov feature is available on the FDA website after the 
user fee ID number is generated.
    If paying with a paper check, the user fee identification (ID) 
number should be included on the check, followed by the words 
``Material Threat Medical Countermeasure Priority Review.'' All paper 
checks must be in U.S. currency from a U.S. bank made payable and 
mailed to: Food and Drug Administration, P.O. Box 979107, St. Louis, MO 
63197-9000.
    If checks are sent by a courier that requests a street address, the 
courier can deliver the checks to: U.S. Bank, Attention: Government 
Lockbox 979107, 1005 Convention Plaza, St. Louis, MO 63101. (Note: This 
U.S. Bank address is for courier delivery only. If you have any 
questions concerning courier delivery, contact the U.S. Bank at 314-
418-4013. This telephone number is only for questions about courier 
delivery). The FDA post office box number (P.O. Box 979107) must be 
written on the check. If needed, FDA's tax identification number is 53-
0196965.
    If paying by wire transfer, please reference your unique user fee 
ID number when completing your transfer. The originating financial 
institution may charge a wire transfer fee. If the financial 
institution charges a wire transfer fee, it is required to add that 
amount to the payment to ensure that the invoice is paid in full. The 
account information is as follows: U.S. Dept. of Treasury, TREAS NYC, 
33 Liberty St., New York, NY 10045, Account Number: 75060099, Routing 
Number: 021030004, SWIFT: FRNYUS33.

V. Reference

    The following reference is on display at the Dockets Management 
Staff (HFA-305), Food and Drug Administration, 5630 Fishers Lane, Rm. 
1061, Rockville, MD 20852) and is available for viewing by interested 
persons between 9 a.m. and 4 p.m., Monday through Friday; it is not 
available electronically at https://www.regulations.gov as this 
reference is copyright protected. FDA has verified the website address, 
as of the date this document publishes in the Federal Register, but 
websites are subject to change over time.

1. Ridley, D.B., H.G. Grabowski, and J.L. Moe, ``Developing Drugs 
for Developing Countries,'' Health Affairs, vol. 25, no. 2, pp. 313-
324, 2006, available at: https://faculty.fuqua.duke.edu/~willm/
HSM_RA/Documents/HA2006_Ridley_Vouchers.pdf.

    Dated: September 20, 2018.
Leslie Kux,
Associate Commissioner for Policy.
[FR Doc. 2018-20910 Filed 9-25-18; 8:45 am]
 BILLING CODE 4164-01-P



                                                                       Federal Register / Vol. 83, No. 187 / Wednesday, September 26, 2018 / Notices                                          48617

                                               and other applicable disclosure law. For                orally or in writing, on issues pending               DEPARTMENT OF HEALTH AND
                                               more information about FDA’s posting                    before the committees. All electronic                 HUMAN SERVICES
                                               of comments to public dockets, see 80                   and written submissions submitted to
                                               FR 56469, September 18, 2015, or access                 the Docket (see ADDRESSES) on or before               Food and Drug Administration
                                               the information at: https://www.gpo.gov/                October 18, 2018, will be provided to                 [Docket No. FDA–2018–N–0007]
                                               fdsys/pkg/FR-2015-09-18/pdf/2015-                       the committees. Oral presentations from
                                               23389.pdf.                                              the public will be scheduled between                  Fee for Using a Material Threat Medical
                                                  Docket: For access to the docket to                  approximately 1 p.m. and 2 p.m. Those                 Countermeasure Priority Review
                                               read background documents or the                        individuals interested in making formal               Voucher in Fiscal Year 2019
                                               electronic and written/paper comments                   oral presentations should notify the
                                               received, go to https://                                                                                      AGENCY:    Food and Drug Administration,
                                                                                                       contact person and submit a brief                     HHS.
                                               www.regulations.gov and insert the
                                                                                                       statement of the general nature of the                ACTION:   Notice.
                                               docket number, found in brackets in the
                                                                                                       evidence or arguments they wish to
                                               heading of this document, into the                                                                            SUMMARY:   The Food and Drug
                                               ‘‘Search’’ box and follow the prompts                   present, the names and addresses of
                                                                                                       proposed participants, and an                         Administration (FDA or the Agency) is
                                               and/or go to the Dockets Management                                                                           announcing the fee rate for using a
                                               Staff, 5630 Fishers Lane, Rm. 1061,                     indication of the approximate time
                                                                                                       requested to make their presentation on               material threat medical countermeasure
                                               Rockville, MD 20852.                                                                                          (MCM) priority review voucher for fiscal
                                               FOR FURTHER INFORMATION CONTACT:
                                                                                                       or before October 10, 2018. Time
                                                                                                       allotted for each presentation may be                 year (FY) 2019. The Federal Food, Drug,
                                               Kalyani Bhatt, Center for Drug                                                                                and Cosmetic Act (the FD&C Act), as
                                               Evaluation and Research, Food and                       limited. If the number of registrants
                                                                                                                                                             amended by the 21st Century Cures Act
                                               Drug Administration, 10903 New                          requesting to speak is greater than can               (Cures Act), authorizes FDA to
                                               Hampshire Ave., Bldg. 31, Rm. 2417,                     be reasonably accommodated during the                 determine and collect material threat
                                               Silver Spring, MD 20993–0002, 301–                      scheduled open public hearing session,                MCM priority review user fees for
                                               796–9001, Fax: 301–847–8533, email:                     FDA may conduct a lottery to determine                certain applications for review of
                                               kalyani.bhatt@fda.hhs.gov, or FDA                       the speakers for the scheduled open                   human drug products when those
                                               Advisory Committee Information Line,                    public hearing session. The contact                   applications use a material threat MCM
                                               1–800–741–8138 (301–443–0572 in the                     person will notify interested persons                 priority review voucher. These vouchers
                                               Washington, DC area). A notice in the                   regarding their request to speak by                   are awarded to the applicants of
                                               Federal Register about last minute                      October 11, 2018.                                     material threat MCM applications that
                                               modifications that impact a previously                     Persons attending FDA’s advisory                   meet all of the requirements of this
                                               announced advisory committee meeting                    committee meetings are advised that the               program upon FDA approval of such
                                               cannot always be published quickly                      Agency is not responsible for providing               applications. The amount of the fee for
                                               enough to provide timely notice.                                                                              using a material threat MCM priority
                                                                                                       access to electrical outlets.
                                               Therefore, you should always check                                                                            review voucher is determined each FY
                                               FDA’s website at https://-www.fda.gov/                     For press inquiries, please contact the            based on the difference between the
                                               Advisory-Committees/default.htm and                     Office of Media Affairs at fdaoma@                    average cost incurred by FDA to review
                                               scroll down to the appropriate advisory                 fda.hhs.gov or 301–796–4540.                          of a human drug application designated
                                               committee meeting link, or call the                        FDA welcomes the attendance of the                 as priority review in the previous FY,
                                               advisory committee information line to                  public at its advisory committee                      and the average cost incurred in the
                                               learn about possible modifications                      meetings and will make every effort to                review of an application that is not
                                               before coming to the meeting.                           accommodate persons with disabilities.                subject to priority review in the
                                               SUPPLEMENTARY INFORMATION:                              If you require special accommodations                 previous FY. This notice establishes the
                                                  Agenda: The committees will discuss                  due to a disability, please contact                   material threat MCM priority review fee
                                               the efficacy, safety, and benefit-risk                  Kalyani Bhatt (see FOR FURTHER                        rate for FY 2019 and outlines the
                                               profile of new drug application (NDA)                   INFORMATION CONTACT) at least 7 days in
                                                                                                                                                             payment procedures for such fees.
                                               211371, brexanolone 5 mg/mL                             advance of the meeting.                               FOR FURTHER INFORMATION CONTACT: Lola
                                               intravenous injection, submitted by                                                                           Olajide, Office of Financial
                                               Sage Therapeutics, for the proposed                        FDA is committed to the orderly                    Management, Food and Drug
                                               indication of postpartum depression.                    conduct of its advisory committee                     Administration, 8455 Colesville Rd.,
                                                  FDA intends to make background                       meetings. Please visit our website at                 COLE–14541B, Silver Spring, MD
                                               material available to the public no later               https://www.fda.gov/Advisory                          20993–0002, 240–402–4244.
                                               than 2 business days before the meeting.                Committees/AboutAdvisoryCommittees/                   SUPPLEMENTARY INFORMATION:
                                               If FDA is unable to post the background                 ucm111462.htm for procedures on
                                               material on its website prior to the                    public conduct during advisory                        I. Background
                                               meeting, the background material will                   committee meetings.                                      Section 3086 of the Cures Act (Pub. L.
                                               be made publicly available at the                          Notice of this meeting is given under              114–255) added section 565A to the
                                               location of the advisory committee                      the Federal Advisory Committee Act (5                 FD&C Act (21 U.S.C. 360bbb–4a). In
                                               meeting, and the background material                    U.S.C. app. 2).                                       section 565A of the FD&C Act, Congress
                                               will be posted on FDA’s website after                                                                         encouraged development of material
                                               the meeting. Background material is                       Dated: September 20, 2018.                          threat MCMs by offering additional
daltland on DSKBBV9HB2PROD with NOTICES




                                               available at https://www.fda.gov/                       Leslie Kux,                                           incentives for obtaining FDA approval
                                               AdvisoryCommittees/Calendar/                            Associate Commissioner for Policy.                    of such products. Under section 565A of
                                               default.htm. Scroll down to the                         [FR Doc. 2018–20908 Filed 9–25–18; 8:45 am]           the FD&C Act, the applicant of an
                                               appropriate advisory committee meeting                  BILLING CODE 4164–01–P
                                                                                                                                                             eligible material threat MCM
                                               link.                                                                                                         application (as defined in section
                                                  Procedure: Interested persons may                                                                          565A(a)(4)) shall receive a priority
                                               present data, information, or views,                                                                          review voucher upon approval of the


                                          VerDate Sep<11>2014   19:21 Sep 25, 2018   Jkt 244001   PO 00000   Frm 00033   Fmt 4703   Sfmt 4703   E:\FR\FM\26SEN1.SGM   26SEN1


                                               48618                   Federal Register / Vol. 83, No. 187 / Wednesday, September 26, 2018 / Notices

                                               material threat MCM application. The                    depending on the type of application.                 NME NDAs with clinical data and 26
                                               recipient of a material threat MCM                      Under the PDUFA goals letter, FDA has                 BLAs) was $285,077,688. (Note: These
                                               priority review voucher may either use                  committed to reviewing and acting on                  numbers exclude the President’s
                                               the voucher for a future human drug                     90 percent of the applications granted                Emergency Plan for AIDS Relief NDAs;
                                               application submitted to FDA under                      priority review status within this                    no investigational new drug review
                                               section 505(b)(1) of the FD&C Act (21                   expedited timeframe. Normally, an                     costs are included in this amount.)
                                               U.S.C. 355(b)(1)) or section 351(a) of the              application for a human drug product                  Thirty-three of these applications (20
                                               Public Health Service Act (42 U.S.C.                    will qualify for priority review if the               NDAs and 13 BLAs) received priority
                                               262(a)), or transfer (including by sale)                product is intended to treat a serious                review, which would mean that the
                                               the voucher to another party. The                       condition and, if approved, would                     remaining 24 received standard reviews.
                                               voucher may be transferred (including                   provide a significant improvement in                  Because a priority review compresses a
                                               by sale) repeatedly until it ultimately is              safety or effectiveness. An application               review schedule that ordinarily takes 10
                                               used for a human drug application                       that does not receive a priority                      months into 6 months, FDA estimates
                                               submitted to FDA under section                          designation receives a standard review.               that a multiplier of 1.67 (10 months ÷ 6
                                               505(b)(1) of the FD&C Act or section                    Under the PDUFA goals letter, FDA has                 months) should be applied to non-
                                               351(a) of the Public Health Service Act.                committed to reviewing and acting on                  priority review costs in estimating the
                                               A priority review is a review conducted                 90 percent of standard applications                   effort and cost of a priority review as
                                               with a Prescription Drug User Fee Act                   within 10 months of the receipt or filing             compared to a standard review. This
                                               (PDUFA) goal date of 6 months after the                 date, depending on the type of                        multiplier is consistent with published
                                               receipt or filing date, depending on the                application. A priority review involves               research on this subject that supports a
                                               type of application. Information                        a more intensive level of effort and a                priority review multiplier in the range
                                               regarding PDUFA goals is available at                   higher level of resources than a standard             of 1.48 to 2.35 (Ref. 1). Using FY 2017
                                               https://www.fda.gov/downloads/                          review.                                               figures, the costs of a priority and
                                               forindustry/userfees/prescription                          As interpreted by FDA, section 565A                standard review are estimated using the
                                               druguserfee/ucm511438.pdf.                              of the FD&C Act requires that the fee                 following formula:
                                                  The applicant that uses a material                   amount should be based on the
                                               threat MCM priority review voucher is                   difference between the average cost                   (33 a × 1.67) + (24a) = $285,077,688
                                               entitled to a priority review of its                    incurred by the Agency in the review of               where ‘‘a’’ is the cost of a standard
                                               eligible human drug application, but                    a human drug application subject to a                 review and ‘‘a times 1.67’’ is the cost of
                                               must pay FDA a material threat MCM                      priority review in the previous fiscal                a priority review. Using this formula,
                                               priority review user fee in addition to                 year, and the average cost incurred by                the cost of a standard review for NME
                                               any user fee required by PDUFA for the                  the Agency in the review of a human                   NDAs and BLAs is calculated to be
                                               application. Information regarding the                  drug application not subject to a priority            $3,603,561 (rounded to the nearest
                                               material threat MCM priority review                     review in the previous fiscal year. FDA               dollar) and the cost of a priority review
                                               voucher program is available at: https://               is setting a fee for FY 2019, which is to             for NME NDAs and BLAs is 1.67 times
                                               www.fda.gov/EmergencyPreparedness/                      be based on standard cost data from the               that amount, or $6,017,946 (rounded to
                                               Counterterrorism/Medical                                previous fiscal year, FY 2018. However,               the nearest dollar). The difference
                                               Countermeasures/MCMLegal                                the FY 2018 submission cohort has not                 between these two cost estimates, or
                                               RegulatoryandPolicyFramework/                           been closed out yet, thus the cost data               $2,414,386, represents the incremental
                                               ucm566498.htm.                                          for FY 2018 are not complete. The latest              cost of conducting a priority review
                                                  This notice establishes the material                 year for which FDA has complete cost                  rather than a standard review.
                                               threat MCM priority review fee rate for                 data is FY 2017. Furthermore, because
                                                                                                       FDA has never tracked the cost of                        For the FY 2019 fee, FDA will need
                                               FY 2019 at $2,457,140 and outlines
                                                                                                       reviewing applications that get priority              to adjust the FY 2017 incremental cost
                                               FDA’s procedures for payment of
                                                                                                       review as a separate cost subset, FDA                 by the average amount by which FDA’s
                                               material threat MCM priority review
                                                                                                       estimated this cost based on other data               average costs increased in the 3 years
                                               user fees. This rate is effective on
                                                                                                       that the Agency has tracked. FDA uses                 prior to FY 2018, to adjust the FY 2017
                                               October 1, 2018, and will remain in
                                                                                                       data that the Agency estimates and                    amount for cost increases in FY 2018.
                                               effect through September 30, 2019.
                                                                                                       publishes on its website each year—                   That adjustment, published in the
                                               II. Material Threat Medical                             standard costs for review. FDA does not               Federal Register on August 1, 2018 (see
                                               Countermeasure Priority Review User                     publish a standard cost for ‘‘the review              83 FR 37504), setting FY 2019 PDUFA
                                               Fee for FY 2019                                         of a human drug application subject to                fees, is 1.7708 percent for the most
                                                  FDA interprets section 565A(c)(2) of                 priority review in the previous fiscal                recent year, not compounded.
                                               the FD&C Act as requiring that FDA                      year.’’ However, we expect all such                   Increasing the FY 2017 incremental
                                               determine the amount of the material                    applications would contain clinical                   priority review cost of $2,414,386 by
                                               threat MCM priority review user fee                     data. The standard cost application                   1.7708 percent (or 0.017708) results in
                                               each fiscal year based on the difference                categories with clinical data that FDA                an estimated cost of $2,457,140
                                               between the average cost incurred by                    publishes each year are: (1) New drug                 (rounded to the nearest dollar). This is
                                               FDA in the review of a human drug                       applications (NDAs) for a new                         the material threat MCM priority review
                                               application subject to priority review in               molecular entity (NME) with clinical                  user fee amount for FY 2019 that must
                                               the previous fiscal year, and the average               data and (2) biologics license                        be submitted with a priority review
                                               cost incurred by FDA in the review of                   applications (BLAs).                                  voucher for a human drug application in
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                                               a human drug application that is not                       The standard cost worksheets for FY                FY 2019, in addition to any PDUFA fee
                                               subject to priority review in the                       2017 show standard costs of $5,340,560                that is required for such an application.
                                               previous fiscal year.                                   for an NME NDA, and $4,596,936 for a                  III. Fee Schedule for FY 2019
                                                  A priority review is a review                        BLA. Based on these standard costs, the
                                               conducted with a PDUFA goal date of 6                   total cost to review the 57 applications                The fee rate for FY 2019 is set out in
                                               months after the receipt or filing date,                in these two categories in FY 2017 (31                table 1:



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                                                                       Federal Register / Vol. 83, No. 187 / Wednesday, September 26, 2018 / Notices                                                 48619

                                                           TABLE 1—MATERIAL THREAT MEDICAL COUNTERMEASURE PRIORITY REVIEW SCHEDULE FOR FY 2019
                                                                                                                                                                                               Fee rate for
                                                                                                                Fee category                                                                    FY 2019

                                               Application submitted with a material threat MCM priority review voucher in addition to the normal PDUFA fee ............................        $2,457,140



                                               IV. Implementation of Material Threat                      If paying with a paper check, the user                 RA/Documents/HA2006_Ridley_
                                               Medical Countermeasure Priority                         fee identification (ID) number should be                  Vouchers.pdf.
                                               Review User Fee                                         included on the check, followed by the                  Dated: September 20, 2018.
                                                                                                       words ‘‘Material Threat Medical                       Leslie Kux,
                                                  Under section 565A(c)(4)(A) of the                   Countermeasure Priority Review.’’ All                 Associate Commissioner for Policy.
                                               FD&C Act, the priority review user fee                  paper checks must be in U.S. currency                 [FR Doc. 2018–20910 Filed 9–25–18; 8:45 am]
                                               is due upon submission of a human                       from a U.S. bank made payable and
                                                                                                                                                             BILLING CODE 4164–01–P
                                               drug application for which the priority                 mailed to: Food and Drug
                                               review voucher is used. Section                         Administration, P.O. Box 979107, St.
                                               565A(c)(4)(B) of the FD&C Act specifies                 Louis, MO 63197–9000.                                 DEPARTMENT OF HEALTH AND
                                               that the application will be considered                    If checks are sent by a courier that               HUMAN SERVICES
                                               incomplete if the priority review user                  requests a street address, the courier can
                                               fee and all other applicable user fees are              deliver the checks to: U.S. Bank,                     Food and Drug Administration
                                               not paid in accordance with FDA                         Attention: Government Lockbox 979107,
                                               payment procedures. In addition,                                                                              [Docket No. FDA–2014–D–2138]
                                                                                                       1005 Convention Plaza, St. Louis, MO
                                               section 565A(c)(4)(C) specifies that FDA                63101. (Note: This U.S. Bank address is               Agency Information Collection
                                               may not grant a waiver, exemption,                      for courier delivery only. If you have                Activities; Submission for Office of
                                               reduction, or refund of any fees due and                any questions concerning courier                      Management and Budget Review;
                                               payable under this section of the FD&C                  delivery, contact the U.S. Bank at 314–               Comment Request; Guidance for
                                               Act.                                                    418–4013. This telephone number is                    Industry: Adverse Event Reporting for
                                                  The material threat MCM priority                     only for questions about courier                      Outsourcing Facilities Under Section
                                               review fee established in the new fee                   delivery). The FDA post office box                    503B of the Federal Food, Drug, and
                                               schedule must be paid for any                           number (P.O. Box 979107) must be                      Cosmetic Act
                                               application that is received on or after                written on the check. If needed, FDA’s
                                               October 1, 2018, and submitted with a                   tax identification number is 53–                      AGENCY:    Food and Drug Administration,
                                               priority review voucher. This fee must                  0196965.                                              HHS.
                                               be paid in addition to any other fee due                   If paying by wire transfer, please                 ACTION:   Notice.
                                               under PDUFA. Payment must be made                       reference your unique user fee ID
                                                                                                       number when completing your transfer.                 SUMMARY:   The Food and Drug
                                               in U.S. currency by electronic check,                                                                         Administration (FDA) is announcing
                                               check, bank draft, wire transfer, credit                The originating financial institution
                                                                                                       may charge a wire transfer fee. If the                that a proposed collection of
                                               card, or U.S. postal money order                                                                              information has been submitted to the
                                               payable to the order of the Food and                    financial institution charges a wire
                                                                                                       transfer fee, it is required to add that              Office of Management and Budget
                                               Drug Administration. The preferred                                                                            (OMB) for review and clearance under
                                               payment method is online using                          amount to the payment to ensure that
                                                                                                       the invoice is paid in full. The account              the Paperwork Reduction Act of 1995.
                                               electronic check (Automated Clearing
                                                                                                       information is as follows: U.S. Dept. of              DATES: Fax written comments on the
                                               House (ACH) also known as eCheck).
                                               Secure electronic payments can be                       Treasury, TREAS NYC, 33 Liberty St.,                  collection of information by October 26,
                                               submitted using the User Fees Payment                   New York, NY 10045, Account Number:                   2018.
                                               Portal at https://userfees.fda.gov/pay.                 75060099, Routing Number: 021030004,                  ADDRESSES: To ensure that comments on
                                               (Note: Only full payments are accepted.                 SWIFT: FRNYUS33.                                      the information collection are received,
                                               No partial payments can be made                                                                               OMB recommends that written
                                                                                                       V. Reference
                                               online.) Once you search for your                                                                             comments be faxed to the Office of
                                                                                                          The following reference is on display              Information and Regulatory Affairs,
                                               invoice, select ‘‘Pay Now’’ to be
                                                                                                       at the Dockets Management Staff (HFA–                 OMB, Attn: FDA Desk Officer, Fax: 202–
                                               redirected to https://www.pay.gov/
                                                                                                       305), Food and Drug Administration,                   395–7285, or emailed to oira_
                                               public/home. Note that electronic
                                                                                                       5630 Fishers Lane, Rm. 1061, Rockville,               submission@omb.eop.gov. All
                                               payment options are based on the
                                                                                                       MD 20852) and is available for viewing                comments should be identified with the
                                               balance due. Payment by credit card is
                                                                                                       by interested persons between 9 a.m.                  OMB control number 0910–0800. Also
                                               available for balances that are less than
                                                                                                       and 4 p.m., Monday through Friday; it                 include the FDA docket number found
                                               $25,000. If the balance exceeds this
                                                                                                       is not available electronically at https://           in brackets in the heading of this
                                               amount, only the ACH option is
                                                                                                       www.regulations.gov as this reference is              document.
                                               available. Payments must be made using
                                                                                                       copyright protected. FDA has verified
                                               U.S. bank accounts as well as U.S. credit                                                                     FOR FURTHER INFORMATION CONTACT:
                                                                                                       the website address, as of the date this
                                               cards.                                                                                                        Domini Bean, Office of Operations,
                                                                                                       document publishes in the Federal
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                                                  FDA has partnered with the U.S.                                                                            Food and Drug Administration, Three
                                                                                                       Register, but websites are subject to
                                               Department of the Treasury to use                                                                             White Flint North, 10A–12M, 11601
                                                                                                       change over time.
                                               Pay.gov, a web-based payment                                                                                  Landsdown St., North Bethesda, MD
                                                                                                       1. Ridley, D.B., H.G. Grabowski, and J.L. Moe,        20852, 301–796–5733, PRAStaff@
                                               application, for online electronic                           ‘‘Developing Drugs for Developing
                                               payment. The Pay.gov feature is                                                                               fda.hhs.gov.
                                                                                                            Countries,’’ Health Affairs, vol. 25, no. 2,
                                               available on the FDA website after the                       pp. 313–324, 2006, available at: https://        SUPPLEMENTARY INFORMATION: In
                                               user fee ID number is generated.                             faculty.fuqua.duke.edu/∼willm/HSM_               compliance with 44 U.S.C. 3507, FDA


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Document Created: 2018-09-26 00:47:14
Document Modified: 2018-09-26 00:47:14
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
ContactLola Olajide, Office of Financial Management, Food and Drug Administration, 8455 Colesville Rd., COLE- 14541B, Silver Spring, MD 20993-0002, 240-402-4244.
FR Citation83 FR 48617 

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