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NATIONAL CENTER FOR POLICY ANALYSIS HOME / DONATE / ONE LEVEL UP / ABOUT NCPA / CONTACT Making Drugs Safe and Available without the FDA |
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The Need for Reform |
Developing a new drug is a complicated process. After the compound is produced
in a laboratory, it undergoes preclinical testing on animals, clinical testing
on humans and FDA review. The time required for the process has increased
significantly since 1963 [see Figure I].2
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| "Total time from laboratory production of a drug to FDA approval has increased...to 16.1 years." |
How the FDA Delays Drugs. Many of the medical products developed today require longer and more complicated testing because of their complex nature. In addition, despite a well-orchestrated public relations campaign suggesting just the opposite, the FDA imposes delays at every stage of development. |
In an October 1995 report, "FDA Drug Approval," the General Accounting Office announced that review times have fallen from 33 months to 19 months.4 In a December 12, 1995 speech at the annual meeting of the Food and Drug Law Institute, FDA Commissioner David Kessler boasted that the FDA had that year reviewed 96 percent of all pending final applications.5 Those numbers are misleading. The GAO report looked only at the last review of a final drug application and ignored the other phases of FDA review. The other phases have lengthened overall development time. For example, the number of clinical trial subjects has increased and the number of tests per subject has doubled. The FDA also has greatly increased the amount of information it demands before accepting a new drug application.6 Jeffrey Kimball, executive director of the Medical Device Manufacturers Association, says the FDA reduced its backlog of pending applications by a simple procedure: it rejected more new drug applications.7 A report by Citizens for a Sound Economy shows the FDA is taking more time to approve fewer drugs. In fiscal year 1994 the average review time was 27.3 months for the 62 new drug applications approved. But in 1995 the 33 approved new drug applications took an average of 28.6 months.8 U.S. law requires review of applications for final approval of new drugs within 180 days.9 The FDA is nowhere near meeting the statutory limit. What is the result? Extremely long delays between the laboratory development of a drug and the time it is available to patients.10
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| "Some lifesaving drugs were available in other countries years before the FDA approved them for use here." | These deaths are not dramatic, and one cannot always identify a death that occurred because the FDA was slow to allow a drug on the market. There is very little peer-reviewed research on deaths caused by FDA delays.13 Nonetheless, to a certain extent quantification is possible based on FDA claims regarding the lifesaving benefits of drugs it approved and the fact that some lifesaving drugs were available in other countries years before the FDA approved them for use here. Some examples [see Figure II]: |
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| "Beta-blockers...might have saved 10,000 to 20,000 lives a year...in the U.S." |
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Approvals Still Delayed. For more than three years the FDA has worked to reduce the amount of time it requires to approve new drugs. The FDA and Vice President Al Gore's National Performance Review proudly predict that by 1997 new drugs will receive final approval and be marketed within one year.20 Ignoring all the delays earlier in the process, what are the consequences of delaying new drugs for only one year? In the case of thrombolytic therapy, that means only 11,000 people might have died. The FDA also imposes heavy financial burdens on Americans. Some medical manufacturers are responding to the FDA's costly delays by moving abroad. The 16-year time frame for the development and approval process has raised the average cost of drug development in the U.S. to an estimated $200 million.21 Not surprisingly, more and more medical companies are relocating portions of their business, especially to Europe, where a more rational regulatory environment makes drug development less costly.
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| "The development and approval process has raised the average cost of drug development in the U.S. to an estimated $200 million." |
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Taxpayers also bear a substantial burden because the FDA is funded mostly by tax dollars, not drug company fees. In 1994 the total FDA budget was $921 million, appropriations for 1995 were $975 million24 and the 1996 budget was $878 million.25 | |