FDA, Industry Debate ‘America First’ User Fee Incentive

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FDA and drug-industry negotiators exchanged early feedback on the agency’s proposed “America First” fee incentives for domestic drug development during an 11/13 Prescription Drug User Fee Act (PDUFA) reauthorization steering committee meeting, according to newly released minutes. The proposal, first outlined by FDA at an 11/6 meeting, aims to steer more early-stage development back to the U.S. by adjusting PDUFA fees. Industry representatives from BIO, PhRMA, and CHPA said they support the goal of improving U.S. competitiveness but questioned whether PDUFA fee policy is the appropriate lever.

Executives acknowledged that more companies are initiating development outside the U.S. due to time, cost, and complexity. Still, they warned that fee-based incentives could create unintended burdens, particularly for small and emerging biotechs, and would be difficult for FDA to administer. They argued that because roughly 90% of drugs never reach a marketing application — and therefore never reach the PDUFA fee stage — fee incentives are unlikely to change companies’ early-development decisions.

Instead, industry urged FDA to focus on underlying contributors to foreign development migration, including lengthy early-phase review times, clinical-trial administrative demands, and requirements that vary across programs. Suggestions included shortening Phase 1 review timelines, standardizing documents and processes, expanding reliance on single IRBs, clarifying toxicology and new approach methodology expectations, and applying quality-risk-management principles more consistently in CMC reviews. FDA agreed to revisit its fee-incentive proposal later in the negotiations.

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