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Volume 360:837-838 February 19, 2009 Number 8
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FDA Review Vouchers

 

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 by Kesselheim, A. S.
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To the Editor: In his Perspective article, Kesselheim (Nov. 6 issue)1 expresses concern about priority-review vouchers for drugs for the treatment of neglected tropical diseases. We proposed the voucher program in 2006,2 it became law in 2007, and the law allows vouchers to be awarded by the Food and Drug Administration (FDA) in 2009.2 Under the law, developers of treatments for neglected diseases such as malaria and tuberculosis are rewarded with priority-review vouchers to be applied to other drugs, such as profitable cardiovascular therapies. Kesselheim says that this prize system is "potentially dangerous" and "inefficient," and he suggests that it is ineffective and too narrow in scope.

First, priority review is safe.3 Priority review should not be confused with "accelerated approval" or "fast track." Priority review does not omit safety or efficacy studies or require approval within a given time frame. It sets a target of 6 rather than 10 months for FDA review.

Second, the voucher program is efficient because it can alleviate tremendous suffering at little government cost. Our analysis shows that it will provide substantial net benefits to patients and drug developers,2 while the additional cost of priority review will be covered by an extra user fee paid to the FDA.

Third, the voucher program will be effective. Kesselheim argues that "manufacturers will be unlikely to start such a program merely because of the prospect of earning a voucher some years in the future, since the voucher's value depends on the success of potential `blockbuster' drugs." Uncertainty is in the nature of the pharmaceutical business. The voucher could be worth more than $100 million, which should at least motivate firms to take products off their shelves and put them into late-stage clinical trials.

Fourth, the voucher program is of reasonable scope. Kesselheim argues that the scope is too narrow because the voucher prize is not given to manufacturers of follow-on formulations. Conversely, some argue that the scope is too broad, in that vouchers are awarded to manufacturers of treatments that are already available in countries outside the United States. We respect suggestions for improving the law's provisions, but we think the current compromise is reasonable. The current priority-review voucher program can provide new incentives for drug development at relatively low government cost, speed the review of another product that the market values, and even speed approval of the generic version of that product.

Other mechanisms are also worthwhile, and we hope that the priority-review voucher program will complement them. Selling a voucher can provide funds for private development partnerships. We also support funds for push mechanisms (e.g., funding of clinical trials) and pull mechanisms (e.g., advance market commitments).4


Jeffrey Moe, Ph.D.
Henry Grabowski, Ph.D.
David Ridley, Ph.D.
Duke University
Durham, NC 27708
david.ridley{at}duke.edu

Drs. Moe, Grabowski, and Ridley were the authors of the original priority-review proposal. That research was funded by the GlaxoWellcome Foundation and the Center for the Advancement of Social Entrepreneurship. No other potential conflict of interest relevant to this letter was reported.

References

  1. Kesselheim AS. Drug development for neglected diseases -- the trouble with FDA review vouchers. N Engl J Med 2008;359:1981-1983. [Free Full Text]
  2. Ridley DB, Grabowski HG, Moe JL. Developing drugs for developing countries. Health Aff (Millwood) 2006;25:313-324. [Free Full Text]
  3. Grabowski HG, Wang YR. Do faster Food and Drug Administration drug reviews adversely affect patient safety? An analysis of the 1992 Prescription Drug User Fee Act. J Law Econ 2008;51:377-406. [CrossRef][Web of Science]
  4. Berndt ER, Glennerster R, Kremer MR, et al. Advance market commitments for vaccines against neglected diseases: estimating costs and effectiveness. Health Econ 2007;16:491-511. [CrossRef][Web of Science][Medline]

 
The author replies: In response to Moe et al.: there are well-documented concerns about the safety and cost-effectiveness of a priority-review voucher program. A recent study showed that drugs that are approved by the FDA in the last 2 months before a regulatory deadline are more likely to be associated with safety problems than drugs approved at other times, suggesting that there are dangers in imposing arbitrarily accelerated deadlines on FDA reviews.1 Second, the cost of a priority-review voucher will be substantial because the public will pay more for the earlier availability of drugs such as ezetimibe (Zetia) that may not work better than less-expensive generic drugs.2

Finally, with regard to the treatment of neglected diseases affecting millions of patients across the world, Moe et al. argue that many promising drugs that are ready for late-stage development have not been taken off manufacturers' shelves because of insufficient financial incentives. If true, this is an alarming indictment of the industry. Pharmaceutical development is largely driven by companies that derive their revenues from patent-protected market exclusivity. In addition to inadequately addressing "unprofitable" diseases, this incentive structure has been exploited by manufacturers to garner undeserved revenue at the expense of patients and payers.3

It is not a stretch to predict similar behavior after the adoption of a priority-review voucher program. The first voucher is likely to be received by Novartis for the antimalarial treatment artemether–lumefantrine (Coartem), a product that has long been available outside the United States.4 Yet there is no guarantee that Novartis's windfall of $100 million (or more) in this case will be invested in delivery of the drug to needy patients or in further research.5 The optimal way to address neglected diseases is not to create ever more convoluted incentives that are easily prone to misuse, but instead to enhance public investment in research while ensuring that the results are made available in such a way as to achieve the greatest benefit for the public health.


Aaron S. Kesselheim, M.D., J.D.
Brigham and Women's Hospital
Boston, MA 02115

References

  1. Carpenter D, Zucker EJ, Avorn J. Drug-review deadlines and safety problems. N Engl J Med 2008;358:1354-1361. [Free Full Text]
  2. Jackevicius CA, Tu JV, Ross JS, Ko DT, Krumholz HM. Use of ezetimibe in the United States and Canada. N Engl J Med 2008;358:1819-1828. [Free Full Text]
  3. Kesselheim AS, Fischer MA, Avorn J. Extensions of intellectual property rights and delayed adoption of generic drugs: effects on Medicaid spending. Health Aff (Millwood) 2006;25:1637-1647. [Free Full Text]
  4. McCaughan M. Novartis Coartem malaria NDA may be first for priority review voucher. Pink sheet: prescription pharmaceuticals and biotechnology. November 2008. (Accessed January 30, 2009, at http://prvinfo.org/files/pink%20sheet%20-%20coartem%20may%20be%20first%20prv.pdf.)
  5. Gagnon M-A, Lexchin J. The cost of pushing pills: a new estimate of pharmaceutical promotion expenditures in the United States. PLoS Med 2008;5:e1-e1. [CrossRef][Medline]

 

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