Document ID: FDA-2016-N-0007-0005
Agency: fda
Document Type: Notice
Title: Animal Generic Drug User Fee Rates and Payment Procedures
Posted Date: 2016-07-28T04:00Z

[Federal Register Volume 81, Number 145 (Thursday, July 28, 2016)]
[Notices]
[Pages 49669-49672]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-17811]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2016-N-0007]

Animal Generic Drug User Fee Rates and Payment Procedures for 
Fiscal Year 2017

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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SUMMARY: The Food and Drug Administration (FDA) is announcing the fee 
rates and payment procedures for fiscal year (FY) 2017 generic new 
animal drug user fees. The Federal Food, Drug, and Cosmetic Act (the 
FD&C Act), as amended by the Animal Generic Drug User Fee Amendments of 
2013 (AGDUFA II), authorizes FDA to collect user fees for certain 
abbreviated applications for generic new animal drugs, for certain 
generic new animal drug products, and for certain sponsors of such 
abbreviated applications for generic new animal drugs and/or 
investigational submissions for generic new animal drugs. This notice 
establishes the fee rates for FY 2017.

FOR FURTHER INFORMATION CONTACT: Visit FDA's Web site at http://www.fda.gov/ForIndustry/UserFees/AnimalGenericDrugUserFeeActAGDUFA/default.htm, or contact Lisa Kable, Center for Veterinary Medicine 
(HFV-10), Food and Drug Administration, 7519 Standish Pl., Rockville, 
MD 20855, 240-402-6888. For general questions, you may also email the 
Center for Veterinary Medicine (CVM) at cvmagdufa@fda.hhs.gov.

SUPPLEMENTARY INFORMATION: 

I. Background

    Section 741 of the FD&C Act (21 U.S.C. 379j-21) establishes three 
different types of user fees: (1) Fees for certain types of abbreviated 
applications for generic new animal drugs; (2) annual fees for certain 
generic new animal drug products; and (3) annual fees for certain 
sponsors of abbreviated applications for generic new animal drugs and/
or investigational submissions for generic new animal drugs (21 U.S.C. 
379j-21(a)). When certain conditions are met, FDA will waive or reduce 
fees for generic new animal drugs intended solely to provide for a 
minor use or minor species indication (21 U.S.C. 379j-21(d)).
    For FY 2014 through FY 2018, the FD&C Act establishes aggregate 
yearly base revenue amounts for each of these fee categories (21 U.S.C. 
379j-21(b)). Base revenue amounts established for fiscal years after FY 
2014 are subject to adjustment for workload (21 U.S.C. 379j-21(c)). The 
target revenue amounts for each fee category for FY 2017, after the 
adjustment for workload, are as follows: For application fees the 
target revenue amount is $2,835,000; for product fees the target 
revenue amount is $4,253,000; and for sponsor fees the target revenue 
amount is $4,253,000.
    For FY 2017, the generic new animal drug user fee rates are: 
$232,400 for each abbreviated application for a generic new animal drug 
other than those subject to the criteria in section 512(d)(4) of the 
FD&C Act (21 U.S.C. 360b(d)(4)); $116,200 for each abbreviated 
application for a generic new animal drug subject to the criteria in 
section 512(d)(4); $10,200 for each generic new animal drug product; 
$96,350 for each generic new animal drug sponsor paying 100 percent of 
the sponsor fee; $72,263 for each generic new animal drug sponsor 
paying 75 percent of the sponsor fee; and $48,175 for each generic new 
animal drug sponsor paying 50 percent of the sponsor fee. FDA will 
issue invoices for FY 2017 product and sponsor fees by December 31, 
2016. These fees will be due by January 31, 2017. The application fee 
rates are effective for all abbreviated applications for a generic new 
animal drug submitted on or after October 1, 2016, and will remain in 
effect through September 30, 2017. Applications will not be accepted 
for review until FDA has received full payment of related application 
fees and any other fees owed under the Animal Generic Drug User Fee 
program (AGDUFA program).

II. Revenue Amount for FY 2017

A. Statutory Fee Revenue Amounts

    AGDUFA II, Title II of Public Law 113-14, specifies that the 
aggregate revenue amount for FY 2017 for abbreviated application fees 
is $1,984,000 and each of the other two generic new animal drug user 
fee categories, annual product fees and annual sponsor fees, is 
$2,976,000 each (see 21 U.S.C. 379j-21(b)).

B. Inflation Adjustment to Fee Revenue Amount

    The amounts established in AGDUFA II for each year for FY 2014 
through FY 2018 include an inflation adjustment; therefore, no further 
inflation adjustment is required.

C. Workload Adjustment Fee Revenue Amount

    For each FY beginning after FY 2014, AGDUFA II provides that 
statutory fee revenue amounts shall be further adjusted to reflect 
changes in review workload. (See 21 U.S.C. 379j-21(c)(2).)
    FDA calculated the average number of each of the four types of 
applications and submissions specified in the workload adjustment 
provision (abbreviated applications for generic new animal drugs, 
manufacturing supplemental abbreviated applications for generic new 
animal drugs, investigational generic new animal drug study 
submissions, and investigational generic new animal drug protocol 
submissions) received over the 5-year period that ended on September 
30, 2013 (the base years), and the average number of each of these 
types of applications and submissions over the most recent 5-year 
period that ended on June 30, 2016.
    The results of these calculations are presented in the first two 
columns in table 1. Column 3 reflects the percent change in workload 
over the two 5-year periods. Column 4 shows the weighting factor for 
each type of application, reflecting how much of the total FDA generic 
new animal drug review workload was accounted for by each type of 
application or submission in the table during the most recent 5 years. 
Column 5 is the weighted percent change in each category of workload 
and was derived by multiplying the

[[Page 49670]]

weighting factor in each line in column 4 by the percent change from 
the base years in column 3. At the bottom right of table 1, the sum of 
the values in column 5 is calculated, reflecting a total change in 
workload of 42.9097 percent for FY 2017. This is the workload adjuster 
for FY 2017.

                                     Table 1--Workload Adjuster Calculation
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                                     Column 1        Column 2        Column 3        Column 4        Column 5
                                 -------------------------------------------------------------------------------
        Application type          5-year average   Latest 5-year                     Weighting       Weighted
                                   (base years)       average     Percent change      factor      percent change
----------------------------------------------------------------------------------------------------------------
Abbreviated New Animal Drug                 25.0            29.8         19.2000          0.3730          7.1620
 Applications (ANADAs)..........
Manufacturing Supplements ANADAs           128.0           145.2         13.4375          0.2667          3.5837
Generic Investigational Study               23.0            48.0        108.6957          0.2411         26.2031
 Submissions....................
Generic Investigational Protocol            17.2            25.8         50.0000          0.1192          5.9609
 Submissions....................
                                 -------------------------------------------------------------------------------
    FY 2017 AGDUFA II Workload    ..............  ..............  ..............  ..............         42.9097
     Adjuster...................
----------------------------------------------------------------------------------------------------------------

    Over the last year FDA has continued to see more sponsors getting 
involved in the generic animal drug approval process, including pioneer 
sponsors. This has contributed to sustained increases in the number of 
ANADAs, manufacturing supplements, and protocols submitted. 
Additionally, more sponsors continue to pursue drug approvals that do 
not qualify for a waiver of the requirement to conduct an in vivo 
bioequivalence study. For this reason we are seeing a large sustained 
increase in the number of generic investigational new animal drug study 
submissions.
    As a result, the statutory revenue amount for each category of fees 
for FY 2017 ($1,984,000 for application fees and $2,976,000 for both 
product and sponsor fees) must now be increased by 42.9097 percent, for 
a total fee revenue target in FY 2017 of $11,341,000 (rounded to the 
nearest thousand dollars) for fees from all three categories. The 
target for application fee revenue is $1,984,000 times 42.9097 percent, 
for a total of $2,835,000, rounded to the nearest thousand. The target 
for product fee revenue is $2,976,000 times 42.9097 percent, for a 
total of $4,253,000, rounded to the nearest thousand dollars, and the 
target for sponsor fee revenue is the same as for product fees 
($4,253,000, rounded to the nearest thousand dollars).

III. Abbreviated Application Fee Calculations for FY 2017

A. Application Fee Revenues and Numbers of Fee-Paying Applications

    Each person that submits an abbreviated application or a 
supplemental abbreviated application for a generic new animal drug 
shall be subject to an application fee, with limited exceptions (21 
U.S.C. 379j-21(a)(1)). The term ``abbreviated application for a generic 
new animal drug'' means an abbreviated application for the approval of 
any generic new animal drug submitted under section 512(b)(2) (21 
U.S.C. 379j-21(k)(1)). A ``supplemental abbreviated application for a 
generic new animal drug'' is defined as a request to the Secretary to 
approve a change in an approved abbreviated application (21 U.S.C. 
379j-21(k)(11)). The application fees are to be set so that they will 
generate $2,835,000 in fee revenue for FY 2017.
    To set fees for abbreviated applications for generic new animal 
drugs to realize $2,835,000, FDA must first make some assumptions about 
the number of fee-paying abbreviated applications it will receive 
during FY 2017.
    The Agency knows the number of applications that have been 
submitted in previous years. That number fluctuates from year to year. 
FDA is making estimates and applying different assumptions for two 
types of full fee submissions: Original submissions of abbreviated 
applications for generic new animal drugs and ``reactivated'' 
submissions of abbreviated applications for generic new animal drugs. 
Any original submissions of abbreviated applications for generic new 
animal drugs that were received by FDA before July 1, 2008, were not 
assessed fees (21 U.S.C. 379j-21(a)(1)(A)). Some of these non-fee-
paying submissions were later resubmitted on or after July 1 because 
the initial submission was not approved by FDA (i.e., FDA marked the 
submission as incomplete and requested additional non-administrative 
information) or because the original submission was withdrawn by the 
sponsor. Abbreviated applications for generic new animal drugs 
resubmitted on or after July 1, 2008, are subject to user fees. In this 
notice, FDA refers to these resubmitted applications as ``reactivated'' 
applications.
    Also, under AGDUFA II, an abbreviated application for an animal 
generic drug subject to the criteria in section 512(d)(4) of the FD&C 
Act and submitted on or after October 1, 2013, shall be subject to 50 
percent of the fee applicable to all other abbreviated applications for 
a generic new animal drug (21 U.S.C. 379j-21(a)(1)(C)(ii)).
    Regarding original submissions of abbreviated applications for 
generic new animal drugs, FDA is assuming that the number of 
applications that will pay fees in FY 2017 will equal the average 
number of submissions over the 5 most recently completed years of the 
AGDUFA program (FY 2011-FY 2015). FDA believes that this is a 
reasonable approach after 7 complete years of experience with this 
program.
    The average number of original submissions of abbreviated 
applications for generic new animal drugs over the 5 most recently 
completed years is 10 applications not subject to the criteria in 
section 512(d)(4) of the FD&C Act and 4.4 submissions subject to the 
criteria in section 512(d)(4). Each of the submissions described under 
section 512(d)(4) of the FD&C Act pays 50 percent of the fee paid by 
the other applications and will be counted as one half of a fee. Adding 
all of the applications not subject to the criteria in section 
512(d)(4) of the FD&C Act and 50 percent of the number that are subject 
to such criteria results in a total of 12.2 anticipated full fees.
    In prior years, FDA had estimated the number of reactivations of 
abbreviated applications for generic new animal drugs that had been 
originally submitted prior to July 1, 2008. Over the years, that number 
has decreased to the point that FDA no longer expects to receive any 
reactivations of applications initially submitted prior to July 1, 
2008, and will include no provision for them in its fee estimates. 
Should such a submission be made, the submitter will be expected to pay 
the appropriate fee.

[[Page 49671]]

    Based on the previous assumptions, FDA is estimating that it will 
receive a total of 12.2 fee-paying generic new animal drug applications 
in FY 2017 (10 original applications paying a full fee and 4.4 
applications paying a half fee).

B. Application Fee Rates for FY 2017

    FDA must set the fee rates for FY 2017 so that the estimated 12.2 
abbreviated applications that pay the fee will generate a total of 
$2,835,000. To generate this amount, the fee for a generic new animal 
drug application, rounded to the nearest hundred dollars, will have to 
be $232,400, and for those applications that are subject to the 
criteria set forth in section 512(d)(4) of the FD&C Act, 50 percent of 
that amount, or $116,200.

IV. Generic New Animal Drug Product Fee Calculations for FY 2017

A. Product Fee Revenues and Numbers of Fee-Paying Products

    The generic new animal drug product fee (also referred to as the 
product fee) must be paid annually by the person named as the applicant 
in an abbreviated application or supplemental abbreviated application 
for a generic new animal drug product submitted for listing under 
section 510 of the FD&C Act (21 U.S.C. 360), and who had an abbreviated 
application or supplemental abbreviated application for a generic new 
animal drug product pending at FDA after September 1, 2008 (see 21 
U.S.C. 379j-21(a)(2)). The term ``generic new animal drug product'' 
means each specific strength or potency of a particular active 
ingredient or ingredients in final dosage form marketed by a particular 
manufacturer or distributor, which is uniquely identified by the 
labeler code and product code portions of the national drug code, and 
for which an abbreviated application for a generic new animal drug or 
supplemental abbreviated application for a generic new animal drug has 
been approved (21 U.S.C. 379j-21(k)(6)). The product fees are to be set 
so that they will generate $4,253,000 in fee revenue for FY 2017.
    To set generic new animal drug product fees to realize $4,253,000, 
FDA must make some assumptions about the number of products for which 
these fees will be paid in FY 2017. FDA gathered data on all generic 
new animal drug products that have been submitted for listing under 
section 510 of the FD&C Act and matched this to the list of all persons 
who FDA estimated would have an abbreviated new animal drug application 
or supplemental abbreviated application pending after September 1, 
2008. As of June 2016, FDA estimates a total of 417 products submitted 
for listing by persons who had an abbreviated application for a generic 
new animal drug or supplemental abbreviated application for a generic 
new animal drug pending after September 1, 2008. Based on this, FDA 
believes that a total of 417 products will be subject to this fee in FY 
2017.
    In estimating the fee revenue to be generated by generic new animal 
drug product fees in FY 2017, FDA is assuming that less than two 
products invoiced will qualify for minor use/minor species fee waiver 
(see 21 U.S.C. 379j-21(d)). FDA has kept this estimate at zero percent 
this year, based on historical data over the past 5 completed years of 
the AGDUFA program.
    Accordingly, the Agency estimates that a total of 417 products will 
be subject to product fees in FY 2017.

B. Product Fee Rates for FY 2017

    FDA must set the fee rates for FY 2017 so that the estimated 417 
products that pay fees will generate a total of $4,253,000. To generate 
this amount will require the fee for a generic new animal drug product, 
rounded to the nearest $5, to be $10,200.

V. Generic New Animal Drug Sponsor Fee Calculations for FY 2017

A. Sponsor Fee Revenues and Numbers of Fee-Paying Sponsors

    The generic new animal drug sponsor fee (also referred to as the 
sponsor fee) must be paid annually by each person who: (1) Is named as 
the applicant in an abbreviated application for a generic new animal 
drug, except for an approved application for which all subject products 
have been removed from listing under section 510 of the FD&C Act, or 
has submitted an investigational submission for a generic new animal 
drug that has not been terminated or otherwise rendered inactive and 
(2) had an abbreviated application for a generic new animal drug, 
supplemental abbreviated application for a generic new animal drug, or 
investigational submission for a generic new animal drug pending at FDA 
after September 1, 2008 (see 21 U.S.C. 379j-21(k)(7) and 379j-21(a)(3), 
respectively). A generic new animal drug sponsor is subject to only one 
such fee each fiscal year (see 21 U.S.C. 379j-21(a)(3)(C)). Applicants 
with more than six approved abbreviated applications will pay 100 
percent of the sponsor fee; applicants with more than one and fewer 
than seven approved abbreviated applications will pay 75 percent of the 
sponsor fee; and applicants with one or fewer approved abbreviated 
applications will pay 50 percent of the sponsor fee (see 21 U.S.C. 
379j-21(a)(3)(C)). The sponsor fees are to be set so that they will 
generate $4,253,000 in fee revenue for FY 2017.
    To set generic new animal drug sponsor fees to realize $4,253,000, 
FDA must make some assumptions about the number of sponsors who will 
pay these fees in FY 2017. FDA now has 7 complete years of experience 
collecting these sponsor fees. Based on the number of firms that meet 
this definition and the average number of firms paying fees at each 
level over the 5 most recently completed years of the AGDUFA program 
(FY 2011 through FY 2015), FDA estimates that in FY 2017, 13 sponsors 
will pay 100 percent fees, 18 sponsors will pay 75 percent fees, and 38 
sponsors will pay 50 percent fees. That totals the equivalent of 45.5 
full sponsor fees (13 times 100 percent or 13, plus 18 times 75 percent 
or 13.5, plus 38 times 50 percent or 19).
    FDA estimates that about 3 percent of all of these sponsors, or 
1.37, may qualify for a minor use/minor species fee waiver (see 21 
U.S.C. 379j-21(d)). FDA has reduced the estimate of the percentage of 
sponsors that will not pay fees from 4 percent to 3 percent this year, 
based on historical data over the past 5 completed years of the AGDUFA 
program.
    Accordingly, the Agency estimates that the equivalent of 44.13 full 
sponsor fees (45.5 minus 1.37) are likely to be paid in FY 2017.

B. Sponsor Fee Rates for FY 2017

    FDA must set the fee rates for FY 2017 so that the estimated 
equivalent of 44.13 full sponsor fees will generate a total of 
$4,253,000. To generate this amount will require the 100 percent fee 
for a generic new animal drug sponsor, rounded to the nearest $50, to 
be $96,350. Accordingly, the fee for those paying 75 percent of the 
full sponsor fee will be $72,263, and the fee for those paying 50 
percent of the full sponsor fee will be $48,175.

VI. Fee Schedule for FY 2017

    The fee rates for FY 2017 are summarized in table 2 of this 
document.

[[Page 49672]]

                       Table 2--FY 2017 Fee Rates
------------------------------------------------------------------------
                                                           Fee rate for
        Generic new animal drug user fee category           FY 2017 ($)
------------------------------------------------------------------------
Abbreviated Application Fee for Generic New Animal Drug         $232,400
 except those subject to the criteria in section
 512(d)(4)..............................................
Abbreviated Application Fee for Generic New Animal Drug          116,200
 subject to the criteria in section 512(d)(4)...........
Generic New Animal Drug Product Fee.....................          10,200
100 Percent Generic New Animal Drug Sponsor Fee \1\.....          96,350
75 Percent Generic New Animal Drug Sponsor Fee \1\......          72,263
50 Percent Generic New Animal Drug Sponsor Fee \1\......          48,175
------------------------------------------------------------------------
\1\ An animal drug sponsor is subject to only one fee each fiscal year.

VII. Procedures for Paying FY 2017 Generic New Animal Drug User Fees

A. Abbreviated Application Fees and Payment Instructions

    The FY 2017 fee established in the new fee schedule must be paid 
for an abbreviated new animal drug application subject to fees under 
AGDUFA II that is submitted on or after October 1, 2016. Payment must 
be made in U.S. currency from a U.S. bank by check, bank draft, U.S. 
postal money order payable to the order of the Food and Drug 
Administration, wire transfer, or electronically using Pay.gov. The 
preferred payment method is online using electronic check (Automated 
Clearing House (ACH), also known as eCheck) or credit card (Discover, 
VISA, MasterCard, American Express). Secure electronic payments can be 
submitted using the User Fees Payment Portal at https://userfees.fda.gov/pay or the Pay.gov payment option is available to you 
after you submit a cover sheet. Once you search for your invoice, click 
``Pay Now'' to be redirected to Pay.gov. Note that electronic payment 
options are based on the balance due. Payment by credit card is 
available for balances less than $25,000. If the balance exceeds this 
amount, only the ACH option is available. Payments must be drawn on U.S 
bank accounts as well as U.S. credit cards.
    On your check, bank draft, U.S. or postal money order, please write 
your application's unique Payment Identification Number, beginning with 
the letters ``AG'', from the upper right-hand corner of your completed 
Animal Generic Drug User Fee Cover Sheet. Also write the FDA post 
office box number (P.O. Box 979033) on the enclosed check, bank draft, 
or money order. Your payment and a copy of the completed Animal Generic 
Drug User Fee Cover Sheet can be mailed to: Food and Drug 
Administration, P.O. Box 979033, St. Louis, MO 63197-9000.
    If payment is made via wire transfer, send payment to U. S. 
Department of the Treasury, TREAS NYC, 33 Liberty St., New York, NY 
10045, Account Name: Food and Drug Administration, Account No.: 
75060099, Routing No.: 021030004, Swift No.: FRNYUS33, Beneficiary: 
FDA, 8455 Colesville Rd., 14th Floor, Silver Spring, MD 20993-0002. You 
are responsible for any administrative costs associated with the 
processing of a wire transfer. Contact your bank or financial 
institution about the fee and add it to your payment to ensure that 
your fee is fully paid.
    If you prefer to send a check by a courier, the courier may deliver 
the check and printed copy of the cover sheet to: U.S. Bank, Attn: 
Government Lockbox 979033, 1005 Convention Plaza, St. Louis, MO 63101. 
(Note: This address is for courier delivery only. If you have any 
questions concerning courier delivery contact the U.S. Bank at 314-418-
4013. This phone number is only for questions about courier delivery.)
    The tax identification number of FDA is 53-0196965. (Note: In no 
case should the payment for the fee be submitted to FDA with the 
application.)
    It is helpful if the fee arrives at the bank at least a day or two 
before the abbreviated application arrives at FDA's Center for 
Veterinary Medicine (CVM). FDA records the official abbreviated 
application receipt date as the later of the following: The date the 
application was received by CVM, or the date U.S. Bank notifies FDA 
that your payment in the full amount has been received, or when the U. 
S. Department of the Treasury notifies FDA of payment. U.S. Bank and 
the United States Treasury are required to notify FDA within 1 working 
day, using the Payment Identification Number described previously.

B. Application Cover Sheet Procedures

    Step One--Create a user account and password. Log onto the AGDUFA 
Web site at http://www.fda.gov/ForIndustry/UserFees/AnimalGenericDrugUserFeeActAGDUFA/ucm137049.htm and scroll down the 
page until you find the link ``Create AGDUFA User Fee Cover Sheet.'' 
Click on that link and follow the directions. For security reasons, 
each firm submitting an application will be assigned an organization 
identification number, and each user will also be required to set up a 
user account and password the first time you use this site. Online 
instructions will walk you through this process.
    Step Two--Create an Animal Generic Drug User Fee Cover Sheet, 
transmit it to FDA, and print a copy. After logging into your account 
with your user name and password, complete the steps required to create 
an Animal Generic Drug User Fee Cover Sheet. One cover sheet is needed 
for each abbreviated animal drug application. Once you are satisfied 
that the data on the cover sheet is accurate and you have finalized the 
cover sheet, you will be able to transmit it electronically to FDA and 
you will be able to print a copy of your cover sheet showing your 
unique Payment Identification Number.
    Step Three--Send the payment for your application as described in 
Section VII.A of this document.
    Step Four--Please submit your application and a copy of the 
completed Animal Generic Drug User Fee Cover Sheet to the following 
address: Food and Drug Administration, Center for Veterinary Medicine, 
Document Control Unit (HFV-199), 7500 Standish Pl., Rockville, MD 
20855.

C. Product and Sponsor Fees

    By December 31, 2016, FDA will issue invoices and payment 
instructions for product and sponsor fees for FY 2017 using this fee 
schedule. Fees will be due by January 31, 2017. FDA will issue invoices 
in November 2017 for any products and sponsors subject to fees for FY 
2017 that qualify for fees after the December 2016 billing.

    Dated: July 22, 2016.
Leslie Kux,
Associate Commissioner for Policy.
[FR Doc. 2016-17811 Filed 7-27-16; 8:45 am]
 BILLING CODE 4164-01-P