Task Order HHSP233200700003T
Department of Health and Human Services, Office of the Assistant Secretary for Planning and Evaluation
The Lewin Group and
This report was prepared by The Lewin Group, Inc., in collaboration with i3 Innovus. Staff contributing to this report include: Clifford Goodman, PhD*, Joanna Campbell, PhD†, Erin Karnes*, Laura Peterson*, Shalini Naik, MS†, Kristen Nunes†, William Vogt, PhD‡, Deborah Marshall, PhD†, Steve Clark†, Bengt Jönsson, PhD†, and William Crown, PhD†. The Lewin Group and i3 Innovus gratefully acknowledge the guidance and support of Amber Jessup, PhD, of the Office of the Assistant Secretary for Planning and Evaluation, Department of Health and Human Services.
* The Lewin Group
† i3 Innovus
‡ National Bureau of Economic Research
Unlike most conventional drugs, biological products are usually large, complex molecules that are produced by living organisms. These commercially engineered biologics currently account for billions of dollars in health care spending. Starting early last century, Congress has regulated most biologics separately from small molecules under the Biologics Control Act, which was later incorporated into the Public Health Service (PHS) Act. Although some biologics are regulated under the Federal Food, Drug, and Cosmetic Act (FDCA) for historical reasons, and are, therefore, candidates for generic production through section 505(j), an Abbreviated New Drug Application (ANDA), or through 505(b)(2), using data from previously approved innovator biologics to make claims of safety and effectiveness, there is no abbreviated path for replica or closely similar follow-on products for biologics under the PHS Act. While this group of products is known by various names, this report uses the term “follow-on protein products” (FoPPs).
Due to the potential cost savings that FoPPs could provide in the US market, members of Congress have made various proposals for establishing a regulatory pathway for FoPPs. The purpose of this report is to provide an unbiased estimate of potential cost savings from the introduction of FoPPs under multiple scenarios for abbreviated regulatory pathways. Findings from this analysis may be useful in the context of ongoing policy deliberations. A better understanding of the potential impact of legislative provisions for the regulatory pathway on cost savings may inform policymakers as such a pathway is considered.
This report was prepared by The Lewin Group and i3 Innovus under contract to the Assistant Secretary forPlanning and Evaluation. The findings and conclusions of this report are those of the author(s) and do not necessarily represent the views of ASPE or HHS. Material contained in this publication is in the public domain and may be reproduced, fully or partially, without permission of the Federal Government.