Generic User Fee Program has $174 Million Unplanned Carryover: GAO

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FDA’s Generic Drug User Fee Amendments of 2012 (GDUFA) program had a $174 million carryover in fiscal year 2016, but it lacked a plan for administering this carryover — “one that includes a fully-documented analysis of program costs and risks to ensure that program operations can be sustained in case of unexpected changes in collections or costs,” according to a just-released Government Accountability Office (GAO) report. “FDA’s approach is inconsistent with best practices for managing federal user fees,” GAO says. “Without a carryover plan, FDA lacks reasonable assurance that the size of its carryover is appropriate to ensure the efficient and responsible use of resources.”

 

On a positive note, GAO says generic drug application review times have improved under GDUFA. FDA’s review time for a new ANDA decreased from 28 months for applications submitted in fiscal year 2012 to about 14 months for those submitted in fiscal year 2015. FDA also surpassed multiple GDUFA performance goals. For example, FDA committed to reviewing 60% of ANDAs submitted in fiscal year 2015 within 15 months of their receipt. GAO says it found that the agency took action on 89% of such ANDAs, which surpassed the goal.


GAO’s report recommended that FDA develop a plan for administering user fee carryover that includes analyses of program costs and risks and reflects actual operational needs and contingencies. In comments to GAO, FDA concurred with the recommendation.

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