Establishment and Implementation of Regulations and Policies on Drug Registration and Impacts on the Pharmaceutical Industry of China ZHANG WEI Director General, Department of Drug Registration May 17, 2010, Beijing 2nd DIA China Annual Meeting Overview 1. 2. 3. 4. 5. 6. Progress on the Laws and Regulations concerning Drug Registration in 2009 Major Measures adopted on Drug Registration in 2009 Statistics on China’s Pharmaceutical Industry in 2009 Approval on Drug Registration in 2009 International Exchanges on Drug Registration in 2009 Progress on Anti-Counterfeiting Drugs in 2009 Progress on Laws and Regulations concerning Drug Registration Laws and Regulations on Drug Registration Drug Administration Drug Registration Technical Guidelines on Drug Research Laws and Regulations on Drug Administration laws Laws and Regulations on drug administration Administrative regulations SFDA decrees Normative documents Technical Guidelines on Drug Research Laws and Regulations on Drug Registration Provisions on Drug Registration Special approval of drug registration regulations(2009) Supplementary Requirements on the Registration of TCMs Requirements on the Registration of Technical Transfer for Drugs (2009) Requirements on the On Site Inspection for Drug Registration Laws and Regulations on Drug Registration ■Other Normative Documents Guidelines on Protection over TCM Products (2009) Requirements on Biological Products Requirements on File Management of APIs and Excipients (will be implemented in 2010) Provisions on Hospital Preparations (Interim) Laws and Regulations on Drug Registration The Provisions on Drug Standards Provisions on Drug Standards are being drafted and will be implemented in 2010. Provisions on Drug Registration 15 Chapters and 177 Articles Provisions on Drug Registration Four Versions Provisions on New Drug Approval, implemented on May 1, 1999 Provisions on Drug Registration (interim), implemented on December 1, 2002 Provisions on Drug Registration, implemented on May 1, 2005; Provisions on Drug Registration, implemented on October 1, 2007. Supplementary Documents for the Newly Revised Provisions on Drug Registration 1. Supplementary Requirements on Registration of TCMs (22 Articles) 2. Requirements on On-Site Inspection for Drug Registration (6 chapters and 55 articles) 3. Requirements on Special Review and Approval for Drug Registration (22 Articles) 4. Requirements on Registration of Technical Transfer of Drugs (4 chapters and 26 articles) Supplementary Documents for the Newly Revised Provisions on Drug Registration Improve laws and regulations on drug registration Provide details related to core content of Provisions on Drug Registration Enhance practicability of the Provisions Combine supervision and service Requirements on Special Review for Drug Registration Foundation Forty-fifth article of Provisions on Drug Registration: specific requirements on special review shall be drafted independently General Principles and Objectives Early intervention, prioritized review, multichannel communication, and real-time information updating Strike a balance between promoting innovation and controlling risks Encourage and support the development of new drugs Major Content 1、Adopt multiple measures to promote innovation 2、Enhance risk control to better regulate Adopt multiple measures to promote innovation 1. Independent channel and prioritized review independent filing independent coding prioritized review limited timeframe Adopt multiple measures to promote innovation 2. Convenient, scientific and reasonable access mechanism If consistent with items 1 and 2 of the 45th article, start the procedures when submitting clinical application, and confirm within 5 working days If consistent with items 3 and 4 of the 45th article, start the procedures when submitting production application, and organize expert review in 20 days If included in special review when submitting clinical application, include directly in the procedures when submitting production application. Adopt multiple measures to promote innovation 3. Timely intervention, and communication mechanism on key stages Early communication time: before applying for clinical trials content:application for special review, key technical issues Specialized communication time:during technical review and during clinical trials content :key security issues,clinical trial plan,evaluation on phased clinical trials Adopt multiple measures to promote innovation 4. Timely gather supplementary materials through multiple channels On review conferences participated by applicants and experts After meetings proposed by applicants For key security issues According to notices on supplementary information Allow changes in clinical services to improve efficiency Timeframe increased from 4 months (for common application) to 8 months Enhance risk control to better regulate Make risk control plan when submitting application, and allow market entry upon meeting certain conditions. Set up an exit mechanism for application for new drug registration special review Establish a database for application for new drug registration special review to facilitate public supervision Four Guidelines on Implementation 1.Guidelines on Materials on Independent Filing of Products Subject to Special Review 2. Guidelines on Communication Mechanism for Products Subject to Special Review 3. Guidelines on Meeting Minutes for Special Review 4. Guidelines on Information Release concerning Products Subject to Special Review Progress of Implementation Twenty-eight products have entered special review procedures, including 23 chemical drugs and 5 biological products. Twenty-seven products are for APIs, finished products or biological products that have never been marketed in China or any foreign countries. (Article 2.2) One is for a new drug that has therapeutic advantages or there is no effective treatment for the diseases. (article 2.3) Other 11 products which are evaluated according to the Requirements on Special Review and Approval are for drugs or vaccines for the treatment and prevention of H1N1. Requirements on Registration of Technical Transfer of Drugs To Encourage the Innovation To Stimulate the Market To Promote the Concentration and Saving To Save the Cost To Open the Transfer Market To Regulate the Registration To Ensure the Quality To Control the Risk Requirements on Registration of Technical Transfer of Drugs Key Point 1 To Encourage the Innovation to encourage the combination of research and production, to promote the commercialization of research projects, to promote the introduction of foreign new technology and to show the strong commitment on the innovation. Requirements on Registration of Technical Transfer of Drugs Key Point 2 To Promote the Concentration and Saving to encourage the good companies to carry out asset restructuring, to rationally allocate the resources, to adjust the product structure, to update the technologic capacity and to make full use of the advantages, so as to promote the concentration of the entire industry. Requirements on Registration of Technical Transfer of Drugs Key Point 3 To Open the Transfer Market on the basis of new drug technical transfer, to enlarge the scope of transfer and allow the technical transfer for new drug prior to the expiry of monitoring period as well as the transfer of manufacturing technology after the expiry of monitoring period. Requirements on Registration of Technical Transfer of Drugs Key Point 4 To regulate the Registration to regulate the registration process between the two sides of the technical transfer by setting up criteria on the qualification, technical standards and requirements. In the past, there was no need to carry out technical review and clinical validation before the technical transfer of the new drug , now things have been changed and the technical threshold has been improved. Technical Review Clinical Trial Transferor BE study Other study Batch production Transferee Requirements on Registration of Technical Transfer of Drugs Key Point 5 To control the Risks to control the safety risks by three methods, including dynamic control, static control and procedure control. Static Control: high risk products are not applicable for technical transfer; Dynamic Control: Where high risks are newly discovered, the technical transfer shall be ceased. Procedure Control: where safety risks are discovered during the process of technical review, the technical transfer shall not be approved. Requirements on Registration of Technical Transfer of Drugs Key Point 6 To Ensure the Quality with the strict technical review and the validation research carried out by the enterprises, the quality of the products before and after the transfer shall be consistent. Requirements on Registration of Technical Transfer of Drugs Key Point 7 To Save the Cost The companies are able to gain the license by technical transfer, not by changing dosage forms or applying for generic drugs. By these means, the cost on research and development as well as timing could be saved, the low-level redundant production can also be reduced. The one-one transfer may also enable us to control the total number of drug approval licenses. Requirements on Registration of Technical Transfer of Drugs Key Point 8 To Stimulate the Market The enterprises can restructure their assets by implementing technical transfer. The market of pharmaceutical technology could be promoted and the merger and cooperation could also be encouraged. Technical Guidelines on Drug Research Technical Guidelines on Drug Research To regulate the drug research activities and to promote the level of drug research; The introduction of ICH guidelines; To deal with the global drug research and to promote the mutual recognition on drug registration as well as the standard harmonization; To improve the requirements on drug safety by considering the new problems discovered during the daily regulation. Technical Guidelines on Drug Research Formally promulgated: 80 chemical drugs: 31 (the Technical Guidelines on Drug Carcinogenicity Study will be issued soon.) TCMs: 12 Biological Products: 26 General Subjects: 6 General Principles: 5 Technical Guidelines on Drug Research Asking for Comments Chemical Drugs: 4 TCMs: 1 Technical Guidelines on Drug Research Cases: taking the problems detected by regulation into consideration, SFDA issued some technical requirements and guidelines into consideration since 2008 in order to improve the requirements on drug safety. Basic Technical Requirements on Injections Basic Technical Requirements on Multi-Compound Bio-Chemical Injections Technical Guidelines on the Research on Changes of Marketed Chemical Drugs Technical Guidelines on the Research on Changes of Marketed TCMs. Major Measures adopted on Drug Registration To regulate the on-site inspection for drug registration; To carry out the evaluation on the implementation of GCP; To initiate the review process on drug re-registration; To stick to the science-based evaluation and to strengthen the control of risks; To use all kinds of methods to ensure transparency; To rationally allocate the resources and to improve the efficiency of technical review. To regulate on-site inspection for drug registration In order to unify the standards and procedures, the provincial Food and Drug Administrations have developed the following documents for the on-site inspection for drug registration: —implementation guidelines and working procedures —SOPs and other requirements for inspectors In 31 provinces of China, we have carried out 3721 on-site inspections for drug registration, among them, 1133 are for new drug applications, 1198 are for generic drug applications and 1390 are for To carry out the evaluation on the implementation of GCP To carry out the re-check on GCP clinical research institutes To carry out on-site inspection on the clinical trials of imported drugs and to evaluate the implementation of GCP. To initiate the review process on drug re-registration Every province has developed a work plan for re-registration; 3028 products got re-registered throughout China. To stick to the science-based evaluation and to strengthen the control of risks To carry out the research on the CTD of generic chemical drugs; To develop and implement the Technical Guidelines on Drug Carcinogenicity Study; To adopt the third party validation in order to ensure a reliable and scientific review result; To hold the specific seminars and consultations in order to solve the common problems during the technical review, to unify the review standards and to ensure the consistency of the review result. To use all kinds of methods to ensure transparency To make almost 70 review cases public; To have communication with the applicants by expert consultation, consultation meeting, video conference, teleconference, etc. When reviewing the H1N1 vaccines, technical review was organized in a public way. The principles of public votes and public involvement were introduced in order to ensure the safety and efficacy of vaccines as well as the transparent and opened evaluation. To use different methods such as consultation day, opening day, mailbox of the director general in order to strengthen the communication with the society, to promote the openness and transparency of technical review and to establish a “sunshine” Methods Introduced in 2009 to Ensure the Openness and Transparency of the Technical Review Methods 1.Public Review 2.To publicize the review cases 3.Openning Day 4.Consultation Day Amount When reviewing the H1N1 vaccines, technical review was organized in a public way and the votes were made on the spot. Methods 6.Video Conferences To publicize almost 70 7.Seminars cases and their analysis on the website. 11 times, 281 people. 8.Consultation Meetings (communication meetings) 4000 people 9.Experts’ consultation 5. Information release Answer 1600 questions Amount 10 14 seminars with 4000 participants. 80 11 consultation related to 282 drugs. To Initiate the Special Procedure and to Ensure the Disease Prevention and Control In order to deal with emergencies, SFDA issued the following documents: Notice on the Preparation of H1N1 Vaccine Production Work Plan on the Special Review and Approval for H1N1 Vaccines Work Plan on the Review and Approval of H1N1 Vaccines Key Items on the Research and Development of H1N1 Vaccines Notice on Strengthening the Regulation on Research and Development of H1N1 Vaccines Notice on the On-Site Inspection for the H1N1 Vaccine Samples for Clinical Trials. Notice on Issuing the Approval License for H1N1 Vaccines To Initiate the Special Procedure and to Ensure the Disease Prevention and Control To approve 10 H1N1 vaccines for marketing; To approve the importation of Zanamavir Powders; To approve the enlarged production and changed manufacturing process of Phosphate Oseltamivir. To Promote the IT System on Drug Registration The NDRC approved SFDA’s proposal on Phase I IT System on Drug Regulation on September 30, 2009. The Department of Drug Registration established the IT system on the Insert Sheet and Labeling of Drugs and initiated the testing program on that system. IT systems to be established in 2010: IT system on the Filing of APIs and Excipients. IT system on the Drug Standards Management Data Analysis on Statistics of Drug Registration in 2009 Market Approval in 2009 Drug Registration Approval in 2009 Type of Concentrated Medicines Review Chemicals 834 TCMs 1474 Biological / Products Imported Drugs Total Total Regular Review 548 92 38 / 114 2308 792 3100 The Drug Approvals Made in Accordance with the Newly Revised Provisions on Drug Registration The Drug Approvals made in accordance with the newly revised Provisions on Drug Registration in 2009 Approval for domestic production Registration Changed Type New Drugs Dosage Generics Forms Chemical 175 17 356 Drugs 72 8 12 TCMs Biological Products Total Total 38 678 Total Approval for Importation 548 100 92 1 38 13 114 792 Various Categories of Domestic New Drugs approved in 2009 Registration Type Chemical Drugs TCMs Class 1 13 inc: 1.1, 2; 1.3, 2; 1.5, 6, Original Class I, 3 Class 2 20 inc: 2, 1 Original class II, 19 Class 3 95 inc: 3.1,69; 3.2,18; 3.3,4; 3.4,2; Original Class III, 2 NOTE: Calculated according to Number of Receiving and Acceptence. Class 4 47 inc: 4, 14; Original Class IV, 33 Class 5 Class 6 / / 2 70 Inc: 6, 65; Original Class VI,5 Ratio of the Compounds or TCM preparations and the Number of Receiving and Acceptance Approvals for Chemical Drugs Changed New Dosage Generics Drugs Forms Approvals for TCMs Changed New Dosage Generics Drugs Forms Compounds or Prescriptions 94 16 142 72 8 12 Number of Receiving and Acceptance 175 17 356 65 8 11 Ration 1:1.9 1:1.1 1:2.5 1:1.1 1:1 1:1 This ration can show the status of repeated application. The statistics show that the ration of chemical compounds for new drugs and the number of receiving and acceptance is 1:1.9, for the changed dosage forms, 1: 1.1, for generics, 1:2.5, much lower than the ration in 2008 (1:2.5 for new drugs and 1:3 for generics). While for the approval for TCMs, it shows that there is no repeated applications for TCMs. Comparative Analysis on Application Items Rations of Different Application Items Calculated according to the Numbers of Receiving and Acceptance. Approvals for Chemical Drugs New Drugs Changed Dosage Forms Number of Receiving and Acceptance 175 17 356 Proportions 32% 3% 65% Approval for TCMs Changed Dosage Forms Generics 72 8 12 78% 9% 13% New Generics Drugs The Ration of New Drugs reflects the status of drug research, review structure and tendency. The annual statistics (calculated according to the number of receiving and acceptance) shows that the new chemical drugs accounts for 32% of the total approval, while for changed dosage forms, 3%, for generics, 65%. For TCMs, the proportion is 78%, 9% and 13%(see the form above). While for the year 2006 and 2007, the ration of new drug is no higher than 15% and the changed dosage forms and generics Statistics on Receiving and Acceptance in Recent Five Years Testing on the Imported Drugs Imported Drug Testing in 2009 Categories Total Batches Tested Imported Batches Total Sum Imported (Billion US dollars) Disqualified Batches Chemical Drugs 21451 21400 80.4 51 TCMs 2410 2393 2.4 17 Biologics 1375 1375 13.5 0 Total 25236 25168 96.4 68 In 2009, 25236 batches (9.64 US dollars) imported drugs were tested and 25168 batches were qualified and 68 batches were disqualified. Testing on Imported Drugs Number of Unqualified Batches 30 26 25 20 15 10 7 6 5 4 3 2 2 2 F X1 L J S X2 R1 R2 M 1 1 1 1 1 1 0 H1 Y D K H2 * Calculated according to the disqualified batches Testing on Imported Drugs Value of unqualified drugs(10,000 dollars) 500 450 400 350 300 250 200 150 100 50 0 F H1 X1 S Y M R1 D J K X2 L R2 H2 Data Analysis on Drug Registration Approvals in 2009 The numbers of applications returns to normal; The repeated applications were reduced; Rational application structure reached and remained. Statistics on Pharmaceutical Industry in 2009 The Rapid Development of Chinese Pharmaceutical Industry in spite of Depression The total value of output of pharmaceutical industry will increase 26% in 2010on the basis of 2009,profit will increase 30% In 2009,total industrial output value of the pharmaceutical industry exceeded 1,040 billion, which was 21.18% increase comparing with last year. 1998~2009,the average annual growth of the total value of output of pharmaceutical industry in our country was 20%,which was double of the GDP growth. The Increase of Chinese Pharmaceutical Industry in 2009 CategoryM Output(100 million RMB) Increase Ratio(%) APIs 1837.5 13.7 Finished Chemical Drugs 2758.6 19.0 TCMs 1998.0 24.0 Processed Slices 511.7 28.3 Bio-chemicals 887.2 29.1 Medical Equipments and Devices 950.0 22.9 Hygiene Materials and Medicinal Products 520.7 29.0 Total 9915.9 21.4 Opportunities for the Development of Chinese Pharmaceutical Industry The rigid requirements of medical reform and public health create opportunities • Basic medical insurance system in 2011 and 850 billion input in 3 years • Rigid requirements increase caused by accelerated aging and urbanization growth • Pharmaceutical industry will have a new upward inflection point when GDP per capita is more than 3,000 dollars. R&D industry transfer and opportunities of concentrative drug patents expiring • Contractor for processing, custom contract research and development outsourcing industry as the main form of transfer • Increasing Opportunities of generic drugs along with the concentrative drug patents expiring in 10 years The international options of local pharmaceutical companies create opportunities • The international registration recognition of united states and EU countries • Various forms of foreign layout, including mergers and acquisitions and IPO Policy Factors that may Affect the Pharmaceutical Industry in 2010 In 2009, there are many policies related to medicines were promulgated. In April, 2009, the new plan on medical reform was issued; In May, the Comments on the Promotion of TCM Industry was issued; In June, the Comments on the Promotion of Biologic Products Industry was issued; The List of Essential Medicines and the List on Medical Insurance. ——These policies have greatly stimulated the demand for medicines and the industry tended to move towards the local and village level. The concentration of the industry was encouraged and the market became larger and larger. Anticipation of the Future Chinese Pharmaceutical Industry In 2011, China will become the third biggest market for pharmaceuticals in the World. From 2009 to 2013, it is estimated that 17countries will boast the increase of total sale of medicines, which accounts for 90 billion US dollars and accounts for 48% of the total increase throughout the world. While in 2009, the proportion is 37%. The great changes on the world economy, the development of health industry (improvement of medical service and increased investment), and the changed proportion between generics and innovative drugs have led to the adjustment of the market. Root causes of problems in pharmaceutical industry have not been resolved Large number of small businesses and low industrial concentration Insufficient R&D investment, low innovation ability, low proportion of high-tech products Gap between international and domestic quality control systems and practices Drug quality and safety incidents Lack of fair and orderly market to ensure survival of the best low competitiveness of low value-added exported products Outstanding problems in pharmaceutical industry The extensive growth mode: high input, high consumption, high pollution, high emissions, low efficiency, low concentration and low technological level Export volume of 2009 was 19.2 billion USD, of which 16.6 billion was raw materials, accounting for 86.24%; medicine, 1.2 billion; and biological durgs, 1.45 billion. 1299 companies which produce western medicines exported their products, including 181 foreign-fuded enterprises, accounting for 14%. However the proportion of exports accounted for 51.92% Conclusion In spite of the background of financial crisis, the pharmaceutical industry in China has increased and the increasing rate is higher than the common ratio of the other industry sectors. In 2009, the strengthened legal system of drug registration as well as other important activities had greatly promoted the healthy development of Chinese pharmaceutical Industry. International Exchanges in 2009 International Cooperation Programs related to Drug Registration in 2009 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Meeting with Senior Delegation of PHAMA and BIO(April, 2009, Changsha) Training on GCP Inspection with RDPAC/FDA (June 11 to 14, 2009, Beijing) Training on GLP Inspection with RDPAC/FDA (Sept.10 to 13, 2009, Hangzhou) Meeting with Mr. Kasoff, Deputy Assistant Minister of US DOC, (Sept. 2009, Beijing) JCCT Seminar on Data Protection (Sept. 2009, Beijing) JCCT Seminar on Anti-Counterfeiting Drugs (Nov. 2009, Beijing) Seminar on Generic Biologic Products with BIO (Nov.5, 2009, Beijing) The First DIA China Conference, (Nov. 1 to 3, 2009) Sino-Korea-Japan Seminars on Clinical Trials (Dec.17, 2009, Beijing) The First Meeting of China ICH Research Group, (Dec.2009, Beijing) The Second Meeting of China ICH Research Group, (April, 2010, Beijing) International Seminar on Marketing Licenses with RDPAC (March, 2010, Beijing) Seminar on the Clinical Trial Supervision of Biologic Products with BIO (March 24, 2010, Beijing) Progress on the AntiCounterfeiting Drugs in 2009 The effectiveness of the joint fight against counterfeit medicines of china’s 13 ministries Joint conference system for inter-ministerial coordination to combat sales of counterfeit drugs was set up in April Three joint committee, one coordinators meeting, and a national television and telephone conference were held 546 illicit networks were closed(MITT) 323 registered cases, of which 320 were solved(Ministry of Public Security) A number of major and serious criminal cases of more than 10 million were uncovered More than 6000 pieces of illegal medical advertisements were investigated, fined 40 million yuan;16,000 cases of illegal advertisers were investigated, a fine of more than 60 million. Ordered to stop publishing more than 20,000 unlawful “sex drugs” ad(Trade and industry Bureau) 30 people in broadcast organizations have been dealt with (Radio Division) 606 times administrative compulsory measures to suspend false medical advertisements on illegal sales, revocation of 44 pharmacy license number, recovery or write-off of 12 health food approval number. Three “internet consumers in the safety alert bulletin” and one Joint Mechanism on Anti-Counterfeiting Activities among 13 Ministries in China Objective: to solve the difficult problem that one Ministry of Information single agency cannot deal with counterfeiting Ministry of Public Security, Industry: alone. to strengthen the supervision of cases by referring the Jurisdiction Explanations Combat on internet sale of Counterfeiting Drugs Combat on major and serious criminal cases To supervise the information on the internet Standardize the release of pharmaceutical ads SAIC: to strengthen the regulation on drug advertisement SFDA, to make full use of the joint mechanism Develop combined effects, strengthen supervision, , use associative mechanism appropriately Combat on distributing counterfeiting drugs through post system State Post Office: To strengthen the regulation on mailbox rent and posted drugs The Working Procedure on Joint Mechanism: the Joint Conference on Combat on Counterfeiting Drugs and the Functions of the Members of Joint Conference on Combat on Counterfeiting Drugs. For the combat on counterfeiting drugs distributed through internet or post system: Notice of the Specific Rectification Campaigns on Fraudulent Advertisement or Distribution through Post System and the Implementation Plan. Big Cases (over 10 million RMB) Li Bin Case on April 14 BOZHOU Case on July 19 SUINING Case (counterfeiting drugs through post system) YANTAI Case HUZHOU Changxing Website Case GUANGZHOU Case YANCHENG Case on Internet Sale of Counterfeiting Drugs Documents Issued by Members of the Joint Mechanism Ministry of Industry and Information Technology Ministry of Health Food and Drug Administration •Notice of the Specific Rectification Campaigns on the services of national internet health care and medicine information •Notice of establishing the management system of domestic illegal internet blacklist Ministry of Public Security Food and Drug Administration •Combined to publish “the interpretation of specific law application to handle with criminal cases of production , sale of counterfeiting drugs and drugs of inferior quality” on the “two high” to train public security organs and drug sector—to establish closer handling relationships and improve the investigation quality of counterfeit Ministry of Commerce Food and Drug Administration •“Strengthening the administration of the pharmaceutical distribution industry” required commercial departments at all levels actively cooperated with relevant departments to make the drug safety rectification work of drug circulation well Ministry of Commerce associated with Food and Drug Administration、 Ministry of foreign affairs、General Administration of Customs、Administration of Quality Supervision, Inspection and Quarantine •“The report on the export of non-drug” was submitted to the State Council , “study on the establishment of drug export management system” was the focus to be undertaken Thank you very much!