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* Companies may do shorter, fewer trials for approval

* Proposal likely to pass as part of FDA user fee bill

By Anna Yukhananov

WASHINGTON, May 9 (Reuters) – Experimental drugs that show a

big effect early in development for treating serious or

life-threatening diseases would get a faster and cheaper path to

U.S. approval, under a proposal likely to become law this year.

U.S. drug regulators would be able to label such treatments

“breakthrough” therapies, and work with companies to speed up

clinical trials, for example by testing the drugs for a shorter

time or enrolling fewer patients.

The U.S. Food and Drug Administration has said it supports

the proposal, which is included in both versions of an FDA

“must-pass” funding bill currently working its way through

Congress and set to be passed by the end of the summer.

The plan fits with President Barack Obama’s aim to foster

innovation as a means of spurring job creation, and may pacify

some critics who say the FDA lags European countries in

approving new medicines or medical devices.

Dr. Janet Woodcock, head of the FDA’s drugs center, has said

the FDA needs more flexibility to bypass “business as usual”

when it sees unexpected effects, or when a new medicine can

greatly help patients.

“What happens when you have a breakthrough drug that shows

an effect that’s never been seen before?” she told reporters in

March, discussing the proposal.

“If we’d done business as usual during the AIDS epidemic, we

would have never controlled that epidemic,” Woodcock said.

During a spike in new cases of AIDS in the early 1990s, the

FDA created an “accelerated approval” process to get new AIDS

drugs to the market more quickly by allowing companies to show

indirect measures of how the drug helped people.

Jeff Allen, executive director of Friends of Cancer

Research, said the time was right for another avenue to speed

innovative treatments to patients.

Allen said new understanding of human biology and of

diseases meant companies could create more effective drugs, but

with fewer side effects, because they would be more targeted to

specific patients or disease types.

He said a good example was Roche Holding AG’s skin

cancer drug Zelboraf, approved last year; people taking the pill

were 63 percent less likely to die from melanoma than people on

standard chemotherapy.

There was also Pfizer Inc’s targeted lung cancer

drug Xalkori, which could shrink or eliminate tumors in 10 to 12

months for people with a specific genetic mutation.

“The most promising drugs show an effect early,” Allen said.

“(But) there’s a mentality among drug developers or FDA

reviewers that you have to go through this multi-step approach”

to get a drug to market.

“We’re hoping to encourage getting away from that,” he said.

Allen said the FDA would retain its power to require

companies to do post-approval studies, or withdraw drugs from

the market if initial evidence of benefit was not shown in

follow-up trials.