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Date: Sat, 9 Mar 2002 12:32:06 -0600

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Deal to Boost Drug Approval, Oversight
Industries Agree to Higher Fees So FDA Can Hire More Employees  


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By Marc Kaufman
Washington Post Staff Writer
Thursday, March 7, 2002; Page A02  

The Food and Drug Administration has reached tentative agreement with the 
prescription drug and biotechnology industries on a plan that would enable the 
agency to hire hundreds of new employees to speed drug approvals and would 
substantially increase oversight of drug side effects after medications reach 
the market.

The agreement, negotiated in private but discussed publicly yesterday at a 
congressional hearing on reauthorization of the Prescription Drug User Fee Act 
(PDUFA), is being reviewed by the Bush administration and could be modified 
before being formally presented to Congress this month.

But industry and government officials agreed yesterday that there will be a 
major increase in the amount drug companies pay as FDA drug-approval user fees 
and a resulting expansion in the FDA workforce. Already, industry user fees pay 
the salaries of more than 1,000 agency employees.

That drug industry funding has allowed companies to have their new drug 
applications reviewed and approved much more quickly than before PDUFA was 
passed in 1992, which has made the program popular with drug producers. But some
consumer groups have accused the FDA of being co-opted by the industry money, 
saying the agency moves too fast on drug applications while being dangerously 
reluctant to take drugs off the market when consumers begin experiencing serious
complications.

Testifying before the House Energy and Commerce Committee's health subcommittee 
yesterday, FDA Deputy Commissioner Lester M. Crawford said the PDUFA process has
allowed U.S. drugmakers to become far more competitive and bring out many more 
new drugs than their European rivals.

He defended the agency's safety record -- saying the percentage of approved 
drugs pulled from the market has not changed since 1992 -- but was also eager to
report that the number of FDA employees reviewing side effects from drugs 
already on the market would increase most significantly under the proposed plan.
Other FDA officials later said the number of agency post-marketing reviewers 
would double, to about 200.

The FDA has been meeting regularly for several months with representatives of 
the Pharmaceutical Research and Manufacturers of America (PhRMA) and the 
Biotechnology Industry Organization (BIO) to negotiate how much they would pay 
in user fees and how FDA procedures and timetables might be modified. Some 
members of Congress and consumer representatives complained yesterday about the 
private nature of the meetings, because the subject was the operations of a 
major government agency.

There was general support in the subcommittee for reauthorization of PDUFA, 
which was a major initiative of House Republicans in the early 1990s. Republican
members of the subcommittee stressed that PDUFA expires on Oct. 1 and that FDA 
employees will be laid off if it is not reauthorized in time. They said a 
"clean" bill should be passed so the process will go quickly.

But some Democratic lawmakers asked critical questions about how aggressively 
the FDA regulates prescription drugs and about prescription drug pricing, and 
they indicated that those subjects should be part of the PDUFA reauthorization.

For instance, Rep. Sherrod Brown (D-Ohio) made clear that he wants to link PDUFA
to issues of drug safety and the availability of generic drugs. He also raised 
the contentious issue of prescription drug costs.

"With all due respect, this committee and this Congress jump when the drug 
industry says 'jump'; it rushes to pass legislation when the drug industry wants
it to pass legislation," Brown said. "But we better not talk about drug pricing
or the impact of direct-to-consumer advertising on health care utilization. 
Those topics are taboo."

Sidney Wolfe of the public interest group Public Citizen, who has criticized the
industry user fees for years, said the new plan is no improvement. Public 
Citizen has been particularly aggressive in pushing for greater post-market 
surveillance of drug side effects, but Wolfe said the industry-funded program is
misguided.

"To think this money from the industry is a free lunch, to think that it won't 
affect the process at FDA, is fantasy," he said.

Much of the testimony yesterday about FDA expansion focused on the 
post-marketing surveillance, but industry officials later said their greatest 
concern still is getting new drug applications through the agency more quickly.

Carl Feldbaum, president of BIO, said his group has concluded that the FDA's 
Center for Biologics Evaluation and Review is "seriously underfunded" because of
the recent jump in applications for drugs created through biotechnology, and 
that it needs more funds from user fees. He said his group wants some of the new
money to pay for consultants hired by the FDA to explain cutting-edge 
technologies to staff members.

Alan Goldhammer, PhRMA's vice president for regulatory affairs, said his 
organization has also concluded that the FDA needs more user fees to support the
drug approval process. While the number of agency employees working on 
post-market surveillance of dangerous side effects would increase by 100 under 
the tentative plan, he said the number of new drug reviewers would increase by 
"several hundred more."
  2002 The Washington Post Company



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