FDA Backlog Leaves Biotech Stocks in Limbo
The most important thing coming out of the U.S. Food and Drug Administration these days is what's not coming out of the agency.
I'm talking about on-time delivery of drug approval decisions.
Top brass at the FDA have given drug reviewers permission to slow down decisions on new drugs. The move comes after the FDA has already missed drug approval deadlines because of a lack of resources -- i.e., too few drug reviewers handling too many drug reviews.
The delays have prompted John Jenkins, the FDA's director of the Office of New Drugs, to ease back on drug approval deadlines by giving reviewers the freedom to take more time, if necessary. The RPM Report, a drug industry trade newsletter, broke the story about Jenkins' decision."We will still strive to meet our PDUFA goals whenever we can, however, in some cases we may not be able to meet PDUFA goals, and managers have been given the discretion to make those decisions," Jenkins told The RPM Report. "PDUFA" stands for the Prescription Drug User Fee Act, which is the federal law that sets out the fees drug companies must pay to the FDA to subsidize new drug reviews. In return, the FDA is supposed to meet certain drug approval timelines, which call for a six-month review time for an accelerated drug approval and a 10-month period for a standard review. "In the short term, our ability to meet PDUFA goals is expected to decrease," Jenkins said in the report. "In some cases we may have to cut back on work by declining requests from sponsors for guidance (e.g., meetings, multiple cycle SPA reviews) and in other cases we may decide to go past the PDUFA goal date for review of an application. In cases where we decide to go past the PDUFA goal date the sponsor will be notified by the division management of that plan." For investors, the news is clearly troubling. Investing in biotech or drug companies with drugs pending approval is hard enough; now, the endeavor gets even more difficult since drug approval deadlines are going to be fluid. Cardiome (CRME - Get Report) and CV Therapeutics (CVTX) have already been hit with FDA delays. The FDA was supposed to act on Cardiome's heart drug IV vernakalant on Jan. 19; the company is still waiting for the FDA to make a decision. Last week, the FDA informed CV Therapeutics that the review of its cardiac imaging agent regadenoson was taking longer than expected. In December, I posted a chart of pending drug reviews in front of the FDA this year. I've updated that list below to include all drug reviews now at the FDA with approval dates expected in 2008. The list was compiled with help from BioMedTracker.com and company reports. Included on the list are also two upcoming FDA advisory panel meetings, one for Lev Pharmaceuticals' (LEVP.OB) drug Cinryze scheduled for May 2, the other for Cephalon (CEPH) and its pain drug Fentora on May 6. Given the new FDA fluidity when it comes to PDUFA dates, don't be surprised to see some missed deadlines on the list below. Some highlights from the updated list:
|Expected FDA decision date||Company||Drug||Indication||Status|
|1/13/2008||Biogen Idec/Elan||Tysabri||Crohn's Disease||Approved|
|1/18/2008||Johnson & Johnson||TMC125||HIV/AIDS||Approved|
|1/19/2008||Cardiome Pharma||Vernakalant IV||Acute Atrial fibrillation||Delayed|
|1/30/2008||Lev Pharmaceuticals||Cinryze||Hereditary angioedema (HAE)||Complete Response Letter|
|3/7/2008||Spectrum Pharmaceuticals||ISO-Vorin||Bone Cancer||Approved|
|3/14/2008||CV Therapeutics||regadenoson||Heart Imaging Agent||Delayed|
|04/01/2008-04/24/2008||Amgen||Nplate||Immune Thrombocytopenic Purpura (ITP)|
|04/01/2008-04/30/2008||Axcan Pharma||Ultrase Capsules||Exocrine Pancreatic Insufficiency|
|04/01/2008-04/31/2008||Merck & Co.||Cordaptive||Dyslipidemia/Hypercholesterolemia|
|4/30/2008||Progenics Pharmaceuticals||Methylnaltrexone||Opioid Induced Constipation (AMI)|
|5/1/2008||Discovery Laboratories||Surfaxin||Respiratory Distress Syndrome (RDS)|
|5/2/2008||Lev Pharmaceuticals||Cinryze||Hereditary angioedema (HAE)||Advisory Panel Meeting|
|5/6/2008||Cephalon||Fentora||Chronic/breakthrough pain||Advisory Panel Meeting|
|5/10/2008||Adolor Corporation||Entereg||Postoperative Ileus|
|06/01/2008-06/30/2008||Eurand||Zentase||Exocrine Pancreatic Insufficiency|
|6/20/2008||Millennium Pharmaceuticals||Velcade||Multiple Myeloma (First line)|
|6/26/2008||Eli Lilly & Company||Prasugrel||Acute Coronary Syndrome (ACS)|
|7/21/2008||Theravance||Telavancin||Skin and Skin-Structure Infections|
|7/27/2008||Vanda Pharma/ Titan Pharma||Iloperidone||Schizophrenia|
|8/1/08-8/31/2008||BioDelivery Sciences Int'l||BEMA Fentanyl||Pain Indications|
|8/11/2008||Gilead Sciences||Viread||Hepatitis B|
|8/29/2008||Johnson & Johnson||Paliperidone palmitate||Schizophrenia|
|9/16/2008||Gilead Sciences||Aztreonam lysine||Cystic Fibrosis|
|10/4/2008||Johnson & Johnson||Ustekinumab||Psoriasis|
|10/19/2008||AMAG Pharmaceuticals||Ferumoxytol||Anemia Due to Chronic Renal Failure|
|10/31/2008||Cephalon||Treanda||Non-Hodgkin's Lymphoma (NHL)|
|Source: BioMedTracker, company reports|
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Check Out Our Best Services for Investors
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.