Califf Says GOP Budget Cuts Would Devastate FDA

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FDA commissioner Robert Califf says that proposed budget cuts of up to 22% being floated by Republican lawmakers would have a devasting effect on the agency and the industries it serves. Testifying at a 3/29 House Appropriations Subcommittee hearing, Califf was asked by ranking member Sanford Bishop (D-GA) to elaborate on the impact to FDA programs if the proposed cuts occurred.

Califf replied that not only would appropriated funds see cuts, but user fees would also feel the burn. He said there’s a trigger in the user fee programs that says if the budget authority drops to a certain level, then user fees also drop. So, when both budgeted amounts are decreased “the result is going to be that our innovative companies are going to suffer,” he told the hearing. “They won't get their products reviewed on time. That’ll cost jobs and that will cause our industries to move overseas.” When it comes to inspections, he said these would drop between 20 and 35%, which means that things like interdicting opioids at the border, and dealing with contaminated products would all “fall down.”

During the hearing’s conclusion, Califf was asked by subcommittee chair Andy Harris (R-MD) whether concerns about inspection schedules and suspect drug products coming into the U.S., could be eased with a drug batch testing program at the border to help identify bad players who in turn could be banned from importing product into the U.S. Califf responded that theoretically it could and he would like CDER officials to be able to respond further to the question.

Under such a plan, Califf said he would not be worried about the innovator side, but the generic industry is more worrisome. He said that because 90% of prescriptions written in the U.S. are for generics, such a maneuver would increase the cost of these. “The competition of the generic industry is almost entirely on the basis of cost right now and it concerns us a lot at the FDA,” he said. “We need a hard look at that industry to make sure that quality is built in, which is going to cost a little bit more.”

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