Assign TE Codes for All Approved Drugs: Study
A USC-Brookings Schaeffer Institute for Health Policy study says FDA delays in approving therapeutic equivalence (TE) codes for some injectable drugs are hurting consumers by slowing competition between branded and generic products. In a blog post, Brookings says that FDA requires injectable drugs to contain, with some exceptions, the same inactive ingredients in the same concentration as the reference-listed drug if they want to obtain marketing authorization through an ANDA.
The report says the sameness requirement can create barriers to entry if inactive ingredients are part of the branded product’s patenting strategy. If generic manufacturers want to get around patents involving product formulation listing inactive ingredients, it says, FDA directs them to the 505(b)(2) pathway rather than the ANDA. However, it says, the 505(b)(2) pathway is under PDUFA rather than GDUFA.
“Unlike with ANDAs, FDA does not automatically assign TE codes to eligible applicants who use the 505(b)(2) pathway,” the report says. “Instead, FDA asks generic companies to file citizen petitions post-approval.”
Brookings looked at 22 such citizen petitions and found that the agency has been very slow to act on them. Many of them are still waiting for a decision, it says, with most having already waited two to three years.
“FDA’s long delays in handling citizen petitions have failed to promote competition, keeping costs higher for customers and purchasers,” the report says. Brookings recommends:
- user fee process improvements;
- a Congressional mandate to expedite the processing of the reviews; and
- greater executive branch engagement to encourage the agency to improve its approach to TE ratings by integrating them into the 505(b)(2) approval process and providing additional budget funds to help with the backlog.