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Pharma Workshop 4 – Data exclusivity – provision and availability around the world

AIPPI Forum & ExCo Helsinki6 September 2013

Panel: David Rosenberg, Vice‐President, Corporate IP Policy, GlaxoSmithKlineYoichi Okumura, General Manager, IP Department, Takeda Pharmaceutical Company LimitedGabriel Di Blasi, Partner, Di Blasi Parente & Associados (in absentia)

Moderator: Sarah Matheson, Deputy Reporter General, AIPPI

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Pharma Workshop 4Data exclusivity – provision and availability around the worldAIPPI Forum & ExCoHelsinki6 September 2103

David RosenbergVice-President, Corporate IP PolicyGlaxoSmithKline

A brief introduction

The need for R&D incentives for pharmaceuticalsWhat is data exclusivity A brief historyThe interface between patents and data exclusivityNational and international legal framework

Developing new medicines for patients

The need for incentives

For every 5-10,000 compounds tested, 1 reaches the market Average time to market – 10-12 years (eating into patent term)Most pharmaceuticals easy and cheap to manufacture once safety and efficacy of innovator have been provedGSK spent £3.5 billion on R&D in 2012

Patents and Data Exclusivity

Patents protect the invention and entitle the patent holder to protect its product by excluding potential competitors from reproducing the patented product/processData Exclusivity (DE) is a form of IP right which protects the value of the extensive pre-clinical and clinical data that establish a drug’s safety and efficacy and identifies appropriate clinical indications and uses. Without such data, regulatory agencies cannot grant a marketing authorization.

– Not dependent on factors affecting patent validity e.g. novelty, inventive step

– Basis of right is the effort expended to produce the data

The “ideal” DE law

Requires States (through regulatory agencies) to protect proprietary pharmaceutical registration data generated by the originator of a new medicine against unauthorized disclosure to or reference by a third party for a fixed period of time

– During the DE period, other companies and regulatory authorities are not allowed to rely, directly or indirectly, on the registration data in their applications to register generic versions of the originator drug. Regulatory agencies do not grant generic manufacturers marketing approvals during the DE period unless they have produced and submitted their own safety and efficacy test data.

– After the DE period expires, generic applicants can rely on originator’s data to obtain a marketing approval for their versions of the originator drug. They only need to prove the bioequivalence of their version of the originator drug and show that their manufacturing process complies with good manufacturing practices

The origins of DE

1984 – US Hatch-Waxman Act – previous unlimited DE limited to 5 years for new chemical entity, 3 years for new indication and 6 months for paediatric indication1987 – EU Directive 87/21 – 6 or 10 years for NCE1994 – USA, Canada, Mexico (NAFTA) – no less than 5 years1995 – TRIPs Art 39.3

– Members, when requiring, as a condition of approving the marketing of pharmaceutical or of agricultural chemical products, which utilize new chemical entities, the submission of undisclosed test or other data, the origination of which involves a considerable effort, shall protect such data against unfair commercial use. In addition, Members shall protect such data against disclosure, except where necessary to protect the public or unless steps are taken to ensure that the data are protected against unfair commercial use.

DE and patents - separate but complementary protections

Patents– run from date of filing - term of effective exclusivity depends on

development time and is usually much less than 20 years, even with patent term restoration

– fact of exclusivity (i.e. commercial value) depends on validity and de facto enforceability

DE – provides fixed duration of protection against generic products enforced by the state independent of technical patent validity issuesDE does not prevent innovative products coming to marketDE rarely extends period of exclusivity on the market beyond patent term

0 12 20 21 22 23 25 25.5

Patent Filing Date

IP and the development process (EU example)

Years

First MAin EEA

PatentExpiry

SPCExpiry

SPCExtensionExpiry

Data excl 8 yrs +1yr

Patent + SPC protection = 13 years + 6 months paediatric

+ 2 yrs

The significance of DE

DE rarely extends period of exclusivity on the market beyond patent termCommercial significance most likely where:

– Development time is unusually long– Biological products are involved. “Compound/product” patent

protection relatively rare and process patents may not give adequate exclusivity

– There are validity/infringement issues which might prevent enforcement of patent against generic competitors

– DE may provide more effective protection for new indications than patents

– Patent enforcement system is weak

The exclusivity regimes of USA, EU and Japan(non-patent)

USA EU Japan**

New chemical entity 5 years12 years for

biologics

10 years(8 years before application

+2 years before marketing)

8 years

New indication(s) 3 years 1 year for compound if significant clinical benefit

compared to existing therapies

≤6 years

Paediatric indication 0.5 years 0.5 years*

Orphan drug*** 7 years (<) 10 years 10 years

Off-patent drug 8+2 years for paediatricuse

Notes: * EU paediatric exclusivity is an extension of the SPC but rewards the generation of data, irrespective of patentability. ** DE in Japan is known as ‘reexamination period after approval of new medicines production’. *** Orphan drug incentives may not be strictly DE regimes

Drug Re-Examination/Data Exclusivity in JAPAN and Neighboring Countries

AIPPI Forum & ExCo Workshop Pharma IV

September 6, 2013 at Helsinki

Yoichi OKUMURA

Takeda Pharmaceutical Company, Ltd.

Japan Pharmaceutical Manufacturers & Association

What is the Re-examination Term?Re-examination term

・Term for carrying out post-marketing examination to ensure efficacy and safety of the drug

・No marketing application for generic drugs during this term

Substantial Regulatory Data Exclusivity!

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10 years + α

4 years + α

8 years + α

Re-examination System in Japan

Generic Drug Entry

Filing date Issue date

Date of 1st marketing approval

Patent termMaximum 25 years + β

Re-examination term

Expiration of Exclusivity

New active ingredient

Additional indication

Orphan or Pediatric*

α : Term between generic drug application and its approval/price listingβ : Term between generic drug approval and its price listingPediatric*: Pediatric an be extendable to original term up to 10 years 16

Date of 2nd marketing approval

Grounds for 8th Year Re-examination (1/2)

・Peak for modification/revision of important drug info is the 7th year.Most of such modifications are made five to eight years after approval of the new active ingredient, the peak being the seventh year

・70% of the modifications/revisions are revised within 8 years.About 70% of all drug package inserts are revised within 8 years

after approval of the new active ingredient.

Dealt with by revision of implementing rules, not laws

Safety Measures

Re-examination on the 8th year

Grounds for 8th Year Re-examination (2/2)Period from Marketing Approval of Drugs to Revision of Cautions during Use of Drug

New active ingredient (6th year reexamination)New active ingredient (10th year “ )New administration route (6th year “ )Accumulated Percentage

Revision of C

autions duringU

se (Num

ber of Ingredients)

Note 1) Those added changes to cautions during use dictated by a directive of the manager of the safety policy department from July 2003 to July 2006 are counted.

Note 2) Drugs containing new active ingredients which have been approved since 1989 are counted.Source: Pharmaceutical and Medical Safety Bureau, Ministry of Health, Labour and Welfare

Introduction of Twice-a-Year Generic Drug Price Listing System

Twice-a-Year Generic Drug Price Listing

Promotion of Generic Drugs

Expiration of approval

Next Jul.This Jul.

In the past

Period between approval and price listing: 4 ～16 months

Period between approval and price listing: 4 ～10 months

After 2007

March

Expiration of approval

This Jun.This Dec.

February This December

This July Next July

Price listingPrice listing

This June August

Next June

Next March

Expiration of approval

Expiration of approval

Korean DE

Korean Effective PMS： 4 ‐ 6 years• Items to be re‐examined six (6) years :  New Drugs. Ethical Drugs different from already licensed drugs in terms of active 

ingredients or mixture ratios. Ethical Drugs different from already licensed ones in the route of 

administration, while containing the same active ingredients.• Items to be re‐examined four (4) years:  Ethical drugs which are identical to already licensed drugs in terms of 

active ingredients and route of administration but distinctively different in added indications.

Other drugs whose re‐examination is deemed necessary by the Commissioner of the Korean FDA.

• During PMS period, third parties cannot obtain approval for generic versions of the same product unless they can submit data which are: a) different from the data submitted for the first approval; and b) equivalent to or exceeds the scope of data submitted for the first approval. → The re‐examination (PMS) period in effect works as data exclusivity in Korea.

DE in Korea‐US Free Trade Agreement• The Korean Patent Act currently provides six (6) or four (4) years of 

data exclusivity under the “drug re‐examination” system.  

• As part of the FTA, Korea agreed to provide five (5) or three (3) years of data exclusivity for information relating to the safety and efficacy submitted in support of the marketing approval of pharmaceutical product.

• South Korea‐US Free Trade Agreementhttp://www.ustr.gov/trade‐agreements/free‐trade‐agreements/korus‐fta/final‐text

• Five (5) years' data exclusivity applies, from the date of marketing approval, to all safety and efficacy information submitted in the process of a marketing approval if the origination of this information involves a considerable effort (Article 18.9.1, FTA). 

• Three (3) years' data exclusivity applies, from the date of marketing approval, to new clinical information that is submitted in the process of obtaining marketing approval for product containing a chemical entity (Article 18.9.2, FTA).

Incrementally Modified DrugThree categories of drug approval1. New Drug Approval2. Drug approval with  minimum required Data

‐ so called as " Incrementally Modified Drug", which is similar to the U.S. 505(b)(2) 3. Generic  drug Approval

Korean Incrementally Modified Drug (IMD) Approval IMD modification can encompass modification of the structure, formulation, or 

indication of existing drugs. IMD is generally recognized as an improved version of the original drug in terms of safety, efficacy or convenience.  

Hanmi's Incrementally Modified Drug, Esomezol, Enters US market recently.  This is the first Korean case of overcoming the Hatch‐Waxman patent barrier of the US. 

Pharmaceutical Companies can reduce  astronomical budget required to develop a new drug.

→ Be careful about Green List of Patent Linkage

Chinese DE

Regulations for Implementation of the Drug Administration Law of the People’s Republic of China (Decree of the State Council No. 360)

Article 35 ‐ The State protects undisclosed data of drug study and others which are independently acquired and submitted by drug manufacturers or sellers to obtain production or marketing approval of the drugs in question which contain new chemical entities. No one may make unfair commercial use of the said data.Within six years from the date a drug manufacturer or seller obtains the approval documents for producing or marketing a drug containing new chemical entities, if any other applicant uses the data mentioned in the preceding paragraph to apply for approval for production or marketing of the drug in question without permission of the original applicant who has obtained the approval, no approval may be given to any other applicant by the drug regulatory department except that the data submitted are acquired independently. No drug regulatory department may disclose the data set forth in the first paragraph of this Article except (1) for the need of public interests; or(2) where steps are taken to ensure that the data are protected against unfair commercial use.

Data Exclusivity： 6 years

Possible Problem on Data Exclusivity?  It is still unclear how this DE would apply to import drugs, which are manufactured abroad to be marketed within China.

The last portion of the article sets out exception when the State may disclose clinical trial data. Therefore it does not support the construction that the state will not give marketing approval to a generic company following the establishment of the national standards of the new drug. 

2013 Special 301 Report pointed that there is evidence that generic manufacturers have, in fact, been granted marketing approvals by the State Food and Drug Administration (SFDA) prior to the expiration of this period, and in some cases, even before the originator’s product has been approved. 

IPR Protection for Pharmaceutical Products 

The United States is very concerned about barriers in China to IPR protection for pharmaceutical products. In the patent area, China’s revised implementation of Article 26.3 of its patent law has led the State Intellectual Property Office (SIPO) to refuse to consider post‐filing supplementary test data supporting previously filed patent applications, contrary to the practice of the major patent offices around the world. This has led Chinese authorities not only to reject pending patent applications but also retroactively to revoke previously granted patents. These revisions make obtaining protection of patents of a reasonable scope very difficult in China when compared to other major markets. In addition, the United States continues to encourage China to provide an effective system for expeditiously addressing patent issues in connection with applications to market pharmaceutical products. 

In addition, the United States continues to have concerns about the extent to which China provides effective protection against unfair commercial use, as well as unauthorized disclosure, of undisclosed test or other data generated to obtain marketing approval for pharmaceutical products. China’s law and its WTO accession commitments require China to ensure that no subsequent applicant may rely on the undisclosed test or other data submitted in support of an application for marketing approval of new pharmaceutical products for a period of at least six years from the date of marketing approval in China. However, there is evidence that generic manufacturers have, in fact, been granted marketing approvals by the State Food and Drug Administration (SFDA) prior to the expiration of this period, and in some cases, even before the originator’s product has been approved. The United States was encouraged by China’s 2012 JCCT commitment to define “new chemical entity,” a term that is central to the marketing approval process, in a manner consistent with international research and development practice. The United States looks forward to China’s implementation of this commitment without undue delay. 

2013 Special 301 report ‐China

Provisions for Drug Registration(SFDA Order No. 28) Section 3 ‐ New Drug Observation Period

Article 66 ‐ In order to protect the public health, the State Food and Drug Administration may set an observation period for any new drug approved for production. The observation period of a new drug shall be no longer than five years from the date the drug is approved for production.During the observation period of a new drug, the State Food and Drug Administration shall not approve other manufacturers to produce, change dosage form of or import the drug. 

=> It is still unclear how this Observation Period would apply to import drugs.  Applications for clinical trials submitted by Chinese local company will be acceptable.

Article 71 ‐ Starting from the date a new drug enters the observation period, other registration applications for the same drug shall no longer be accepted. The other applicants’ applications for the same drug already accepted but not yet approved for clinical trials shall be returned; upon the expiration of the observation period of the drug, the registration of a generic or import drug may be applied for.

=> Such Period is applied to the drug of a non‐originator, a local company.  Due to that, even an IND request of the drug originator cannot be accepted.

New Drug Observation Period?

Provisions and Availability Around the World

Workshop Pharma 4 Data Exclusivity

Gabriel Di Blasi

Provisions and Availability Around the World

Workshop Pharma 4 Data Exclusivity

Gabriel Di Blasi

DATA EXCLUSIVITY IN BRAZIL –DRUGS FOR HUMAN BEINGS

Law No. 9,279/96 (art. 195, XI, XII and XIV)

No specific period of time for data protection Criminal sanctions under Unfair Competition Disclosure by government entities possible

when necessary to protect the public health/based on public interest No prohibition to use data for request of

authorization for the commercialization ofthe drug No administrative procedure to prevent the

disclosure of data

DATA EXCLUSIVITY FOR VETERINARY AND AGROCHEMICAL USE

Law No. 10,603, December 17TH, 2002

Originated by the Provisional Act 69/02

Provides for protection for non-disclosed information for veterinary and agrochemicalproducts only

Up to 10 years protection

Does not apply for data for medicines for human beings

DATA EXCLUSIVITY – BRAZILIAN MARKET OVERVIEW

The generic market represents 25% of theglobal pharmaceutical market

Brazilian pharma companies provide 88%of the generics in the market

GENERIC SALES IN BRAZIL

1. Brazil 88%

2. Switzerland 5,1%

3. India 3,6%

4. Germany 1,8%

5. USA 1,1%

6. Canada 0,3%

DATA EXCLUSIVITY IN BRAZILCOMPARATIVE ANALYSIS

Lundbeck AS and Lundbeck Brasil Ltda ./. ANVISABrazilian Superior Court – STJ – SLS nº 1425/DFThe STJ reversed the decision suspending the marketing approval provided by the ANVISA based on public interest. The maintainance of the suspension decision would weaken the National policy of the acess to generic drugs and would worsen the public health economy. Also, this decision strengthens the Brazilian Generic Market.

Eli Lilly and Company and Eli Lilly do Brasil LTDA ./. ANVISACase No. 51068-23.2011.4.01.3400The application of the 10 years protection term, as encompassed for pharmaceutical products for veterinary use, fertilizing and agrochemical, cannot be extended to pharmaceutical products destined for human use.

Possible issues for debate• Are there ways of satisfying TRIPs 39.3 requirements without “classic” DE?   

Would payment of a reasonable royalty  protect against unfair commercial use?

• What is a new chemical entity?  Patentable?  Marketed for the first time in the country concerned?  Marketed for the first time anywhere in the world?

• What is the minimum time required  for DE by TRIPs?• When should DE run from?  First authorisation anywhere or in the country 

concerned?  (The “permanent exclusivity” issue) • Should DE be extended beyond NCEs?• Is there a tension between increasing pressure (e.g. in Europe) for 

transparency of clinical trial data and DE? • Is DE just a way for “big pharma” to extend its “monopoly position”?• Does DE prevent access to medicines?• What is the likely role of DE in emerging markets? How might it benefit 

emerging market economies?35

TRIPS Article 39(3)

Members, when requiring, as a condition of approving the marketing of pharmaceutical or of agricultural chemical products which utilize new chemical entities, the submission of undisclosed test or other data, the origination of which involves a considerable effort, shall protect such data against unfair commercial use. In addition, Members shall protect such data against disclosure, except where necessary to protect the public, or unless steps are taken to ensure that the data are protected against unfair commercial use.

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Thank youありがとう

ObrigadoKiitos

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