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Pharma Will Continue Paying For Last Year’s Inflation Spike With FY 2024 User Fees

 
• By Derrick Gingery

Increases in the consumer price index helped drive some of the user fee increases that will take effect on 1 October, even though personnel costs declined in some FDA programs.

inflation
High inflation in 2022 likely will influence FDA user fees for the next two years. • Source: Shutterstock

The US may be recovering from the recent spike in inflation that hindered its economy, but the pharma industry likely will continue paying higher user fees because of it for several years.

Fees for many drug applications will jump significantly on 1 October thanks in part to the Consumer Price Index, which is used to adjust user fee revenue targets for inflation. The CPI increased 6.62% year-over-year in the Washington DC, Arlington and Alexandra, VA area in 2022, which forced prescription drug, biosimilar and generic drug user fees higher. The

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