Department of Health and Human Services
Food and Drug Administration
Fiscal Year 2005

ANIMAL DRUGS AND FEEDS

FY 2003
Actual

FY 2004
Enacted 1/ 2/

FY 2005
Estimate

Increase
or Decrease

Program Level

$87,659,000

$88,897,000

$99,299,000

+ $10,402,000

     Center
$57,115,000
$59,705,000
$63,485,000
+ $3,780,000
     FTE
341
355
376
+ 21
     Field
$30,544,,000
$29,192,000
$35,814,000
+ $6,622,000
     FTE
255
276
296
+ 20

Budget Authority

$87,659,000

$84,147,000

$91,905,000

+ $7,758,000

Cost of Living--Pay 3/

$1,134,000

+ $1,134,000

Bovine Spongiform
     Encephalopathy

$15,811,000

$15,624,000

$23,649,000

+ $8,025,000

Administrative Efficiencies

- $1,401,000

- $1,401,000

     FTE
- 12
- 12

Budget Authority FTE

596

591

614

+ 23

User Fees

$4,750,000

$7,394,000

+ $2,644,000

     ADUFA 4/

$4,750,000

$7,394,000

+ $2,644,000

     FTE
40
58
+ 18

User Fee FTE

40

58

+ 18

1/Contains a Budget Authority rescission of 0.59 percent for a total of $499,000 for Animal Drugs and Feeds.
2/ In FY 2004, a total of 104 Human Resources FTE were transferred from the FDA to the Department as part of the Secretary's One HHS Initiative. The Animal Drugs and Feeds Program's share of this transfer was 5.
3/ Pay increases shown on separate line, and not reflected in individual initiative areas.
4/ For the purposes of the FY 2005 budget, FDA has assumed ADUFA's appropriations have been enacted and is in its second year.

 

Historical Funding and FTE Levels

Fiscal Year

Program Level

Budget Authority

User Fees

Program Level FTE

2001 Actual

$64,070,000

$64,070,000

$0

442

2002 Actual 5/

$85,643,000

$85,643,000

$0

570

2003 Actual

$87,659,000

$87,659,000

$0

596

2004 Enacted

$88,897,000

$84,147,000

$4,750,000

631

2005 Estimate

$99,299,000

$91,905,000

$7,394,000

672

5/Includes FDA's FY 2002 Appropriation and the Counterterrorism Supplemental.

MISSION

The Animal Drugs and Feeds Program is responsible for ensuring that animal drugs and medicated feeds are safe and effective for intended uses and that food from treated animals is safe for human consumption. The aim of the program is to:

BACKGROUND

The Animal Drugs and Feeds Program (Program) is administered by FDA's Center for Veterinary Medicine (CVM) and supported by the Office of Regulatory Affairs' (ORA) field force. The authority to regulate animal drugs and medicated feeds is derived from the Food, Drug, and Cosmetic Act, which in 1968 was amended to include sections specifically addressing animal drugs. These amendments were designed to ensure that animal drugs are safe and effective for their intended uses and that the drugs do not result in unsafe residues in foods.

The Animal Drugs and Feeds Program scope is far-reaching. The program's customers include:

  • 115 million dogs and cats
  • 6.9 million horses
  • 7.5 billion chickens
  • 292 million turkeys
  • 109 million cattle
  • 92 million pigs
  • 7 million sheep
  • 280 million humans in the U.S.

The safety of the food supply is a paramount concern for the Program, as the average American consumes nearly 200 pounds of meat and fish, 30 pounds of eggs, and 600 pounds of dairy products each year. While most of these food products are regulated by the Department of Agriculture, FDA plays an important role in ensuring that animal drugs and feeds used in the care of these animals do not result in unsafe residues in food products that are harvested or produced (e.g., eggs) from these animals. The Program's other priorities are animal drug review, antibiotic resistance, prevention of Bovine Spongiform Encephalopathy (BSE) or "mad cow disease", and the safety of food derived from genetically modified animals.

Of these priorities, the Program's BSE efforts have sought to limit the exposure of BSE in the food and feed supply through a program of regulation and enforcement. In 1997, FDA issued a regulation prohibiting the use of most animal proteins in feeds for cattle and other ruminants. In its enforcement strategy, FDA initiated a comprehensive inspectional program using the Field and its State partners covering 100 percent of the affected industry. With its educational emphasis and other outreach efforts, the result has been that more than 99 percent of all renderers and feed mills in the U.S. are in compliance with the 1997 regulation.

The ORA field force supports the Program by conducting inspections of both foreign and domestic establishments and bioresearch monitoring of clinical research; and inspections of manufacturing facilities to determine if the factory is able to manufacture the product to the specifications stated in the application. The Field also conducts risk-based domestic and foreign postmarket inspections of animal drug manufacturers to assess their compliance with Good Manufacturing Practice and biennial inspection requirements, and monitoring and sampling imports to ensure the safety of animal drugs and feed products. In addition to overseeing regulated products on a surveillance or "for cause" basis when a problem is encountered, ORA staff also responds to emergencies and investigates incidents of product tampering and terrorist events or natural disasters that may impact FDA-regulated goods. To complement the regular field force, the Office of Criminal Investigations (OCI) investigates instances of criminal activity in FDA regulated industries.

Animal Drugs and Feeds Program Increases for FY 2005
By FDA Strategic Goal

FDA Strategic Goal

FY 2005 Increase

What the Increase Buys Related Performance Goal(s)
Strong FDA

Cost of Living-Pay -- + $1,134,000

  • Review and act on animal drug applications (new, investigational, and generic) and reactivations; and,
  • Monitor marketed animal drugs and medicated feeds to minimize harm to humans or animals.
  • Complete review and action on 90 percent of original NADAs and reactivations received in FY 2005 within 270 days.
Efficient Risk Management: The Most Public Health Bang for our Regulatory Buck

Bovine Spongiform Encephalopathy (BSE) --

+ $8,025,000

  • Conduct additional risk based BSE inspections and targeted sample collections and analyses of animal feed or feed components;
  • Improve data quality and data management practices to better monitor industry compliance and improve the usefulness of state data; and,
  • Conduct outreach to inform industry of the requirements to prevent BSE from contaminating animal feed.
  • Maintain biennial coverage by inspecting 50 percent of 1,440 registered animal drugs and feed establishments; and,
  • In conjunction with state inspections, conduct targeted BSE inspections of 100 percent of all known renderers and feed mills processing products containing prohibited material.

PROGRAM RESOURCES CHANGES

Budget Authority

Cost of Living- Pay: + $1,134,000

FDA's request for pay cost increases is essential to accomplishing its mission. Without a specially trained national cadre of scientific staff, FDA's ability to adequately carry out the mission of protecting public health and providing consumer safety will be compromised. FDA must maintain staffing levels and scientific capabilities that meet the demands of an increasing workload and new challenges. Payroll costs, which account for over 60 percent of our total budget, significantly impact all FDA activities.

The total Agency request for pay increases is $14,352,000. The Animal Drugs and Feeds portion of this increase is $1,134,000. Without this, the FDA's ability to fulfill its mission to protect the public health by helping safe and effective products reach the market in a timely way, and monitoring products for continued safety after they are in use will be significantly reduced.

Bovine Spongiform Encephalopathy (BSE): + $8,025,000 and + 35 FTE

In responding to the discovery of a cow infected with BSE in Washington State, the USDA implemented additional safeguards to protect the nation's food supply from further outbreaks. In supporting these USDA safeguards, FDA announced that it would increase its efforts to meet its expanded responsibilities for protecting the safety of the food and feed supply. With the increase funding in FY 2005, FDA will fund the following activities:

Administrative Efficiencies: - $1,401,000 and - 12 FTE

To fully embrace the President's Management Agenda, FDA is delayering its organizational structure, performing competitive sourcing reviews, modernizing its financial management system, and consolidating its information technology infrastructure. The Animal Drugs and Feeds program portion of these management improvements consists of - $1,401,000 and - 12 FTE.

User Fee

Animal Drug User Fee Act (ADUFA): + $2,644,000 and + 18 FTE

The Animal Drug User Fee Act, enacted into law on November 18, 2003 (P.L. 108-130), will ensure the availability of safe and effective animal drugs benefiting both food producing and companion, service animals. These safe and effective animal drugs will allow food animal producers to maintain healthy animals with the assurance that resulting food products will be safe, wholesome, and free of harmful drug residue. Ingestion of animal drug residues in food products could potentially cause unsafe conditions for humans, ranging from drug allergies to cancer. The availability of safe and effective drugs also ensures companion, service animals that assist the disabled, and other animals such as zoo animals will live healthier and longer lives. The Animal Drug User Fee Program which requires new animal drug applicants, sponsors, and manufacturers to incur a fee to expedite their respective applications, will help provide a cost-efficient, high quality animal drug review process that is predictable and performance driven. This fee has strong industry support and provides a complementary set of incentives to all interested parties -- industry, consumers, Congress, and FDA. This fee is modeled after the Prescription Drug User Fee Act, a successful partnership between the Federal government and stakeholders to improve and expedite the review of applications. The net increase of $2,644,000 will cover inflationary costs, as well as overhead and rent costs, for additional staff associated with the implementation of ADUFA.

PROGRAM ASSESSMENT RATING TOOL (PART)

In the FY 2004 review, FDA was assessed as five distinct programs (Foods, Human Drugs, Biologics, Veterinary Medicine, and Medical Devices and Radiological Health) and was rated as "results not demonstrated" due to a lack of long-term outcome goals. To address this concern, long-term outcome goals were developed.

For FY 2005, the Office of Management and Budget conducted a second program review that treated FDA as a single agency program. In this review, FDA received a rating of "moderately effective" and score of 77 percent, up from 59 in FY 2004. This was due to considerable improvements in developing long-term agency-wide outcome goals that will demonstrate its effectiveness and impact on the public health. FDA also reduced the number of performance goals, and made various management improvements that further streamline its infrastructure while supporting core, mission-critical public health activities.

The Animal Drugs and Feeds Program shares in an agency-wide outcome goal of reducing administrative overhead through the reduction of the number of administrative staff. All of the Agency's outcome goals support the Department's priorities and Administration's initiatives with the intent to improve the health and well-being of the American public.

JUSTIFICATION OF BASE

EFFICIENT RISK MANAGEMENT: THE MOST PUBLIC HEALTH BANG FOR OUR REGULATORY BUCK

Base resources will be used to conduct science-based risk management in all agency regulatory activities; so that the Agency's limited resources can provide the most health promotion and protection at the least cost for the public. These activities include compliance activities related to the BSE regulation; premarket review; and, imports and inspections.

Bovine Spongiform Encephalopathy (BSE)

BSE or "Mad Cow Disease" is a deadly chronic, degenerative disorder affecting the central nervous system. Feed containing remnants of the slaughtering process, such as the brain and spinal cord, may harbor the agent that causes BSE. To ensure such substances are not contained in animal feed, and to prevent the establishment and amplification of BSE through animal feed, the FDA finalized a regulation on August 4, 1997 entitled "Animal Proteins Prohibited from use in Animal Feed". FDA will:

Premarket Review

The availability of safe and effective animal drugs allows food animal producers to maintain healthy animals with assurance that products will be safe, wholesome, and free of harmful drug residues when they reach the consumer. Over time, animal drug use has moved from therapeutic treatment to save animals intended for human consumption, to the routine use of production drugs, which helps the producers maintain a profit margin while keeping safe and wholesome animal products available at a reasonable cost to the American consumer. FDA needs to improve product review by keeping pace with the increased volume and complexity of review workload. Keeping pace with technological advances will also improve the efficiency of agency reviews, and decrease review time. FDA will:

EMPOWERING CONSUMERS: IMPROVING HEALTH THROUGH BETTER INFORMATION

Base resources will be used to better enable consumers to make informed decisions weighing benefits and risks of FDA-regulated products. These activities include:

IMPROVING PATIENT AND CONSUMER SAFETY

Base resources will be used to promote improved patient and consumer safety by reducing risks associated with FDA-regulated products.

Food Safety

Millions of people get sick each year from food they eat. Some foodborne illness is due to harmful or illegal residues in animal products while other illness is due to microbiological infection. Concerns over chemical residues have grown considerably over the past few years because of change in consumer eating habits, such as eating more meals away from home and demanding seasonal foods year round making transportation and refrigeration of foods increasingly important. In order to safely manage animal drug use at home and abroad, we must have the knowledge to make proactive, sound science based decisions. The Agency will:

PROTECTING AMERICA FROM TERRORISM

Base resources will be used to strengthen FDA's capability to identify, prepare for, and respond to terrorist threats and incidents.

The goals of the Animal Drugs and Feeds Program are to protect the health and safety of all food producing, companion, and other non-food animals; and assure that food from animals is safe for human consumption.FDA must work to develop profiles of possible or probable food threats and points of attack and must have the capacity to quickly and accurately identify outbreaks that may be happening or about to occur at any point in the food chain, and take prompt action to mitigate their effects. Base funding will enable FDA to:

SELECTED FY 2003 ACCOMPLISHMENTS

EFFICIENT RISK MANAGEMENT: THE MOST PUBLIC HEALTH BANG FOR OUR REGULATORY BUCK

Bovine Spongiform Encephalopathy (BSE)

Premarket Review

CVM Significant Approvals

Type of Approvals

FY 01

FY 02

FY 03

Totals

39

59

64

Originals

22

30

44

Supplementals

16

28

19

Food Additive Petitions

1

0

1

Public Master File

0

1

0

Sample of Significant
Approval Types (Non-Add):

 

 

New Chemical Entity
2
4
4
New Indication
2
8
4
New Species / Class
6
8
8
New Minor Species
1
1
0
ADAA
7
16
2

In FY 2003, the Program experienced 8 percent increase in the number of significant approvals of new animal drugs.

The number of approvals is expected to increase in the next several years as FDA implements the newly enacted Animal Drug User Fee Act of 2003 that is intended to improve the efficiency of the review of animal drugs and shorten the time for new or improved therapies.

Biotechnology

Imports, Inspections, and Surveillance

Emerging Issue -- Monkey-Pox

Interim Rule to Prevent Transmission of Monkeypox

To prevent the transmission of monkeypox, a rare viral disease, today the Food and Drug Administration (FDA) and the Centers for Disease Control and Prevention (CDC) issued an interim final rule to establish new restrictions and modify existing restrictions on the import, capture, transport, sale, barter, exchange, distribution and release of African rodents, North American prairie dogs and certain other animals in the United States.

"This interim measure further enhances HHS's efforts to protect the public health by preventing the spread of communicable diseases," said FDA Commissioner, Mark B. McClellan, M.D., PhD. "Today's actions will minimize the likelihood of additional problems related to monkeypox."

Earlier this year, an outbreak of monkeypox linked to exotic animals caused 37 confirmed, 12 probable, and 22 suspect cases in the United States. Monkeypox is a communicable viral disease that occurs primarily in rain forest regions of central and west Africa. Discovered in 1958 in Africa, monkeypox was first reported in prairie dogs and humans in the United State sin May 2003.

IMPROVING PATIENT AND CONSUMER SAFETY

Antimicrobial Resistance

Guidance on Evaluating the Safety of Antimicrobial New Animal Drugs

The FDA issued a guidance document (Guidance for Industry #152 ("Evaluating the Safety of Antimicrobial New Animal Drugs with Regard to their Microbiological Effects on Bacteria of Human Health Concern") that for the first time outlines a comprehensive evidence-based approach to preventing antimicrobial resistance that may result from the use of antimicrobial drugs in animals. Antimicrobial drugs, such as antibiotics, are medicines often used to treat bacterial infections in both humans and animals. Their use has been one of the great advances in modern medicine -- helping to prevent many of the leading causes of death for most of human history.

When bacteria develop resistance, human and animal health is at risk because the medicines that we depend on to treat infections become ineffective. There are several important sources of this problem, including inappropriate use of antibiotics in people, but the new FDA guidance addresses the issue of the use of antimicrobials in food producing animals as a contributing factor to the development of antimicrobial resistance.

The guidance provides a scientific process for assessing the likelihood that an antimicrobial drug used to treat an animal may cause an antimicrobial resistance problem in humans consuming meat or other byproducts from that animal. This process can help prevent antimicrobial drugs with a high risk of causing such problems from being improperly used in food producing animals, and thereby potentially leading to antimicrobial resistance in humans. The guidance is directed at animal drug sponsors who seek FDA approval of an antimicrobial for use in food-producing animals. More information is available online at ww.fda.gov/oc/antimicrobial/questions.html.

National Antimicrobial Resistance Monitoring System (NARMS)

FDA Conducts Retail Meat Pilot Study

Retail foods such as raw meat may be contaminated with resistant organisms. FDA conducted a pilot study as a part of the NARMS to collect data on the prevalence and antimicrobial drug susceptibility of foodborne bacteria in retail meat; develop laboratory methods for the testing of retail meat products; and, determine the feasibility of conducting on-going surveillance of retail meats. A random sample of 300 of approximately 500 retail groceries located in Iowa was selected with a total of 981 samples from 263 groceries were collected as part of the Iowa Pilot Study and more than 2,000 bacterial isolates were tested at FDA. The results from this study will generate prevalence and antimicrobial drug susceptibility data on foodborne organisms such as Salmonella, Campylobacter, and Enterococcus spp. The study will also help quantify the role contaminated food plays in spreading antibiotic resistant bacteria.

PROTECTING AMERICA FROM TERRORISM

Counterterrorism

STRONG FDA

Under this strategic goal, the Animal Drugs and Feeds Program supports the Agency efforts to strengthen its infrastructure, enhance employee performance, and take other steps to build a high functioning organization. Some of the accomplishments achieved in CVM include:

Animal Drugs and Feeds Program Activity Data

Program Workload and Output 1

FY 2003
Actuals

FY 2004
Estimate

FY 2005
Estimate

New Animal Drug Applications (NADAs):2

     Received

28

25

25

     Completed

29

25

25

     Approved

18

19

19

     Pending 3

11

11

11

          NADAs - review & act on 90% w/in 1

295 days

270 days

New Animal Drug Application Supplements:2 4

     Received

568

596

626

     Completed

570

598

628

     Approved

439

457

475

     Pending 3

225

223

221

  Safety & Efficacy -- review & act on 90% w/in 1

320 days

285 days

      Manufacturing -- review & act on 90% w/in 1

225 days

190 days

Abbreviated New Animal Drug Applications: 2

     Received

49

49

49

     Completed

54

54

54

     Approved

26

26

26

     Pending 3

41

36

31

Abbreviated New Animal Drug Application Supplements::2 4

     Received

143

150

158

     Completed

128

135

142

     Approved

87

92

97

     Pending 3

61

76

92

Investigational New Animal Drug (INAD) Files:5

     Received

2,175

2,200

2,200

     Completed

2,521

2,200

2,200

     Pending 3

293

293

293

          Protocols -- review & act on 90% w/in 1

125 days

100 days

1 CVM is transitioning to user fee goals (reference CVM budget justification and performance plan). A sample of the enhanced performance under the ADUFA program is reflected by the improved timeliness (number of days). At this time, it is not possible to anticipate a large increase in submissions from industry. Also, FY 2003-2005 figures do not include invited labeling change supplemental applications because it is not possible to accurately project sponsor or CVM requests for this type of application.
2 Includes originals and reactivations. If the application is not approvable, the sponsor may submit additional information until the Agency is able to approve the application.
3 Reflects submissions (received during the fiscal year) which still require review.
4 A supplemental application is a sponsor request to change the conditions of the existing approval. They can be significant (a new species or indication), or routine (product manufacturing changes).
5 An INAD or JINAD file is established at the request of the sponsor to archive all sponsor submissions for a phased drug review including: request for interstate shipment of an unapproved drug for study, protocols, technical sections, data sets, meeting requests, memos of conference and other information.

 

Animal Drugs and Feeds Program Activity Data

Program Workload and Output

FY 2003
Actuals

FY 2004
Estimate

FY 2005
Estimate

Investigational New Animal Drug (INAD) Files: (contd)

Data --review & act on 90% w/in 1

320 days

285 days

Generic Investigational New Animal Drug (JINAD) Files:

Received

132

100

100

Completed

235

108

108

Pending

26

18

10

Investigational Food Additive Petitions

42

40

40

Food (Animal) Additive Petitions 6 2

28

30

30

Production & Manufacturing Defect Reports - Received

- Reviewed

2,075

1,775

2,000

1,900

2,000

1,900

Adverse Experience Reports (AERs) - Received

- Reviewed

23,079

19,483

25,000

23,600

25,000

23,600

Animal/Medicated Feed Partnership Agreements

25

30

30

NARMS Salmonella Isolates Tested - 03 data not available yet*

*

12,000

12,000

PROGRAM OUTPUTS-DOMESTIC INSPECTIONS7

Preapproval/Bioresearch Monitoring Programs Inspections

102

190

190

Drug Process and New ADF Programs Inspections

255

260

260

BSE Inspections

2,598

2,800

3,720

Feed Contaminant Inspections

57

100

100

Illegal Tissue Residue Program Inspections

324

364

364

Feed Manufacturing Program Inspections

457

300

300

State Contract Inspections: BSE

3,119

3,100

5,600

State Contract Inspections: Feed Manufacturers

412

360

360

State Contract Inspections: Illegal Tissue Residue

407

670

670

State Partnership Inspections: BSE & Other

700

700

700

   Total FDA & State Contract Inspections

8,431

8,844

12,264

State Contract Animal Drugs/Feeds Funding

$1,650,000

$1,980,000

$5,000,000

Domestic Laboratory Samples Analyzed 8

1,374

2,400

2,400

PROGRAM OUTPUTS-IMPORT/FOREIGN INSPECTIONS

Foreign Preapproval/Bio Monitoring Programs Inspections

30

50

50

Foreign Drug Process and New ADF Program Inspections

16

10

10

   Total FDA Foreign Inspections

46

60

60

6 Non-drug substances added to animal feed are considered Food Additive Petitions and require review and approval.
7 An Inspection is any visit to a firm during which all or part of one or more phases of that establishment's operation is evaluated against appropriate Agency requirements.

Animal Drugs and Feeds Program Activity Data

Program Workload and Output

FY 2003
Actuals

FY 2004
Estimate

FY 2005
Estimate

Import Field Exams/Tests9

3,261

500

500

Import Laboratory Samples Analyzed8

388

775

775

Import Physical Exam (Subtotal)

3,649

1,275

1,275

Import Lines

146,360

173,000

204,000

   Percent --Physical Exams of Import Lines

2.5%

0.74%

0.63%

8 Laboratory Samples Analyzed are product samples physically analyzed in the laboratory to determine whether or not the product is in compliance with Agency requirements.
9 A Field Exam is the on-site examination of a product that is sufficient in itself to determine whether the product is in compliance with Agency requirements.

 


 

 

 

Laboratory Samples Analyzed are product samples physically analyzed in the laboratory to determine whether or not the product is in compliance with Agency requirements.

9 A Field Exam is the on-site examination of a product that is sufficient in itself to determine whether the product is in compliance with Agency requirements.