Disclaimer

All opinions are my own.
Showing posts with label Lower Drug Prices. Show all posts
Showing posts with label Lower Drug Prices. Show all posts

Thursday, July 5, 2018

Amazon PillPack Marriage can Alleviate Drug Shortages and May be Lower Drug Prices

FDA has been publishing drug shortage lists and it seems that no one is taking up the challenge to alleviate them. Reasons for the shortages have been discussed (1). I am sure there are additional. Week of June 28, 2018 a minor earthquake which could become a major disturbance to the drug pricing and supply chain happened. Amazon is buying PillPack (2). This has caused some concern on the pharma landscape. Actually Pharma companies and PBMs should be really concerned in conjunction with Amazon, Berkshire Hathaway and JP Morgan (ABM) alliance announced in January 2018 (3). I see this a tremendous opportunity for Amazon to alleviate drug shortages and improve drug affordability (4)

While the process of PillPack assimilation is going on, Amazon can directly contact the companies who can produce drugs on the shortage list directly, whet them and start supplying the drugs. This will upset the PBMs applecart. PBMs could use their political clout to threaten Amazon. However, PBMs might have to swallow a bitter pill. Amazon could extend the relationship to generic drug suppliers and lower overall drug prices. 


I believe pieces parts to alleviate drug shortages and improve drug affordability are being put in place. Pace might have to be hastened. Political entities, regulatory bodies and hospitals will be and should rooting for their success. 

Girish Malhotra, PE

EPCOT International


  1. Koons, Cynthia, Why We May Lose Generic Drugs, Bloomberg Businessweek, April 11, 2018, accessed April 18, 2018
  2.  Amazon Buys Online Pharmacy PillPack for $1 Billion, WSJ.com, Accessed July 5, 2018
  1. Triple Threat: Amazon, Berkshire, JPMorgan Rattle Health-Care Firms, The Wall Street Journal,  January 30, 2018, Accessed January 31, 2018
  2. Malhotra, Girish: Improving Drug Affordability for the United States Populous through Alternate Business Models, Profitability through Simplicity, May 4, 2018

Saturday, March 25, 2017

Can the Review and Approval Process for ANDA at USFDA be Reduced from Ten Months to Three Months?

Not having been involved with regulatory filing aspects of pharmaceuticals, reviewing Generic Drug User Fee Act Reauthorization (GDUFA II) (1) was educational. After review my process simplification instincts kicked in. If the current approval time line can be reduced from TEN months to THREE months, impact of the process will be lower drug costs.

Reading joint testimony of Drs. Woodcock, Marks and Shuren (2) and having had time to review the application process, reinforced my thinking that a time reduction is possible but to get there industry along with USFDA would have to practice what chemical engineers and chemists are taught and asked to practice for every manufacturing process they develop, design and commercialize i.e. produce quality first time and all the time. In terms of FDA’s vocabulary the filling and review processes would have to follow QbD (Quality by Design) practices. FDA will have to follow what it has been asking the industry to practice. Industry will also have to follow suit. I believe industry will also get hands on practice about QbD and it will trickle through the whole organization, a win-win.

Many associated and proficient with regulatory filings would categorically say that filings are not a manufacturing process and such a time reduction is impossible and cannot be done. Currently filing an application is a task that is repeated by many to create quality application. It will generate higher profits for the filer if they can reduce its approval time. It can be continuously improved and deserves our attention. We improve every repetitive task to facilitate our daily lives. So why not improve the FDA ANDA (abbreviated new drug application) application filing and approval process? Improvements here could have far reaching impact for other filings also.

I firmly believe that such a time reduction is possible but many things will have to change to get there. Our thinking and work philosophy has to change. In the current application process following challenges (1) have been identified. Each challenge is reviewed.

  • Submission completeness: It takes about four review cycles to approve ANDA.
  • Volume of applications
  • Other factors. Several factors delay timely consumer access.



a) Risk Evaluation and Mitigation Strategies are used by Brand companies to delay generic entry


b) Delaying or denying generic companies’ access to reference listed drug products, thereby preventing companies from conducting studies required for approval


c) Misuse of FDA’s citizen petition process as a means to block generic approvals. 

d) FDA generally cannot approve generics until patent and exclusivity on the innovator product expire. Patent litigation and other legal challenges can frustrate timely approval. 
Submission Completeness:
In March 2, 2017 testimony Pre-ANDA program is suggested. I believe that is the most brilliant idea for filing application and reducing time. It is a step QbD implementation of the application filing process.
“About four reviews” needed for FDA application is equal to FDA using four iterations to have a quality application. Current method to get to an acceptable product (application) is a QbA (Quality by Analysis) practice. I equate QbA to “Quality by Aggravation”.
FDA also has to practice what it is suggesting companies to follow. Quoting FDA “This guidance (3) describes the concept that quality cannot be tested into products; (ANDA application, to me is a product of FDA’s work), in other words, it should be built-in or should be present by design.”
Yes like manufacturing processes, applications for every product are going to be different when it comes to content but the information filing requirements are essentially going to be same. I believe a template application that covers better than 90% of the filing requirements can be designed. A standard application format could pare down four reviews to a single review and completeness. This would be a monumental accomplishment. If accomplished, we will automatically see the approval time reduction.
Currently it can take up to 45 days for the FDA reviewing team to determine completeness of the application. FDA would have to figure out how this time can be reduced to 15 days. Current review practices would have to be modified. Long delays suggest that the filing team does not understand FDA’s QbD expectations or FDA has not relayed them to applicants.
FDA has to create applications that clearly state what it expects from the companies. A standard template has to be created. It's possible that the current templates do not relay FDA expectations. A redesign may be necessary. Once these applications are designed, companies and FDA staff can be trained to follow the process. Workshops could be held on a regular basis to train industry to what is needed.
I know such processes work. We had similar processes at Illinois EPA in 1972 for various industry segments. We had timelines from submission to approval of equipment design and operating permits. Based on our questions, every industry submitted relevant information that facilitated review and approval. FDA may have to benchmark to see which government agency has the best application review and approval process. Elements can be incorporated.
Another important aspect of the filing process would be to involve the engineers and chemists who have created and commercialized the process so the filled application is complete and represents a quality (QbD) filing. It means that the companies have to do their homework. They know their processes the best.
Every effort has to be made to pare ten months to 90 days. It is a doable challenge.
Volume of Applications:
FDA can go with best basis planning scenario and deal with ups and downs of the numbers. Ability to deal with such changes will be its operational finesse strategy. Many businesses deal with such scenarios. Most likely I have oversimplified the situation.
Other Factors:
*    Risk Evaluation and Mitigation Strategies are used by Brand companies to delay generic entry. 



FDA has to develop a program or strategy to prevent such harassment. Roadblock could be set but there has to be a resolution that is acceptable to each side. Generics have to be on top of their game to counter such delay tactics. Legislatorial changes might have to be incorporated. In our political system that could be a challenge.
*       Delaying or denying generic companies’ access to reference listed drug products, thereby preventing the companies from conducting studies required for approval.

Congressional intervention might be needed. USP or others who have information should be able to share the information. Congress can create a scenario to assure necessary samples are available for the generics. This would be good for their constituents. I believe FDA can intervene also.
*       Misuse of FDA’s citizen petition process as a means to block generic approvals. 



If the brand companies are abusing citizen’s petition process, there has to be a counter strategy from the generics. I have not looked at this in detail but I am sure that there are ways and means to counter this challenge.
*      FDA generally cannot approve generics until patent and exclusivity on the innovator product expire. Patent litigation and other legal challenges can frustrate timely approval. 



Generic filers have to develop their strategies. I believe if the approval time is lowered from ten months to 90 days, companies could develop workable measures. Filing company has to have a complete grasp of the situation and strategies.
If the approval process is lowered from ten months to 90 days, need for priority review most likely could disappear.
Breakdown of 90 Day Time:
I would break the 90 days in three segments. Initial review has to be completed by FDA in 15 days from acceptance of the initial application. FDA has to provide the company deficiencies of the application. Incomplete application could be rejected. Companies will have 30 days to respond FDA’s requirements. FDA would have 45 days after corrections, more than sufficient time, to review and interact with the company and act on the application.
If for some reasons the company is not able to fulfill its obligation after the initial 15 day FDA review and complete its deficiencies 30 days, they could stand to loose its application and would have to start over again. With such a possibility, it would be in the best interest of all parties to have quality application from the get go. It will be a QbD win for all.
It is very possible that facility inspections could be an encumbrance in the approval process. However, having command of the designed process would be reflected in the application. If it were not that would mean that the designed and operating process is different from the filled information. It would be tantamount to falsification of information and it should be used to ban the company from shipping products to the US market. 
What I am suggesting might be a challenge but until we take on challenges progress is never made. By posting this blog I am not questioning authority of FDA or any other government body but just presenting an alternate perspective that would bring generics to the market quicker and lower healthcare costs. I might also be incorrect in my conjectures and expectations but it would be worth if we can make an improvement and lower drug costs.

Girish Malhotra, PE
President
EPCOT International 

  1.  Generic Drug User Fee Act Reauthorization (GDUFA II) Accessed March 16, 2017
  2. Testimony of Drs. Woodcock, Marks and Shuren Accessed March 23, 2017
  3. Advancement of Emerging Technology Applications to Modernize the Pharmaceutical Manufacturing Base Guidance for Industry Accessed March 24, 2017

Wednesday, June 17, 2015

Can An Alliance Between US Pharmaceutical Benefit Managers (1) and Make in India (2) Lead to Lower Global Drug Prices?

Question asked is very legitimate and the ANSWER is unequivocally YES. However, in order for it to happen there has to be a unique alliance that would bring bureaucrats, technocrats and business minds on the same table and work together “hand and glove” to change the global landscape.

Background:

Indian pharma companies with 2005 WTO/TRIPS agreement took advantage of the need for low cost generics in the developed countries. They succeeded. However, regulatory bodies (FDA, EMA and others) were not fully prepared to oversee their manufacturing practices. With time quality and therefore supply issues have resulted. My conjecture is that in order to stay profitable not every “t” has been crossed and not every “i” has been dotted with respect to manufacturing technology and meeting regulatory requirements.

Unless attention is paid in the improving manufacturing technologies and complying with regulations Indian companies might not be able to meet all of the regulatory and quality requirements. This could have long-term impact on the reputation of Indian companies as the “global pharmacy”.

Many of the Indian pharmaceutical companies have imported their Active Pharmaceutical Ingredients (API) from China. Chinese API overdependence has caught the attention of Modi government in India. Government of India is taking steps to alleviate API dependence from China (Centre mulls bulk drug policy, Government working on policy to promote APIs production). This recognition and remediation steps are of significant value.

My concern is that unless the right players are involved and timing is impeccable, Government of India might not be able to meet its “Make in India” plan for pharmaceuticals and might loose India’s status as the “global pharmacy”.

Indian companies for the foreseeable future will remain supplier of generic drugs. They have a significant opportunity to be the supplier of generics to 30+% of the global pharma market if all the pieces of puzzle fit.

Brand Company market revenue will be higher due to high drug prices but compared to generics they will have significantly lower patient base. I do not believe Brand companies will have much roll in this venture as their focus is catering drugs that are under patent. 

What all is needed:

With respect to formulations Indian pharma landscape is fragmented. There are too many players catering to the same customer base as a result they do not have economies of scale i.e. not the best manufacturing technologies. Economies of scale can improve profitability. Same holds for the needed API.

US PBMs, as the time progresses, will be consolidating. CVS Health and Target merger is the most recent. PBMs need to leverage their supply costs. Consolidation of PBMs is one way. The other way is to work with pharmaceutical manufacturers. Second way will have higher and sustained financial benefits for each participant.

PBMs along with a quasi-Indian government body can create pharmaceutical API manufacturing and formulation companies who can through economies of scale incorporate best of the technologies to produce quality drugs at the lowest price to supply the world’s pharma market.

If a “can-do” team that consists of savvy technocrats, bureaucrats and business folks from India and the United States can be created and it succeeds; it will change the global pharma supply landscape. Timing is of the essence and the team will have to operate on a fast track.


An International team can be assembled and it can very quickly select pharmaceuticals based on their revenue, patient need and manufacturing technologies. Reverse calculation method (3) using total global revenue can be a staring point. I would not venture out to say what cost reduction is possible but improved asset utilization, improved product yield, reduced waste and reduced quality approval time would definitely lower costs. Regulatory bodies will have to play their part for the success. It would be a global win.  

Girish Malhotra
President
EPCOT International