Drugs and Pharmaceuticals Industry Terminology
Abbreviated New Drug Application (ANDA)
The US application to market a generic drug by showing bioequivalence to a reference listed drug; typically does not require clinical efficacy trials; may include patent certifications (including Paragraph IV) and can confer 180-day exclusivity to the first filer.
Company filed an ANDA for generic atorvastatin; The ANDA included a Paragraph IV challenge to the Orange Book patent; FDA issued a Complete Response Letter on the ANDA due to CMC deficiencies.
Accelerated Approval
A US pathway allowing approval for serious or life-threatening conditions based on surrogate or intermediate clinical endpoints reasonably likely to predict clinical benefit; requires postmarketing confirmatory trials.
FDA granted accelerated approval based on tumor response rate; The label notes approval under the accelerated approval pathway; Sponsor initiated a confirmatory Phase 3 study to verify benefit.
Active Pharmaceutical Ingredient (API)
The biologically active substance in a drug product responsible for its therapeutic effect; manufactured under GMP with defined quality attributes and specifications.
API synthesis was transferred to a new CMO; API purity specification set at not less than 99.0% by HPLC; API scale-up from 10 kg to 200 kg per batch.
Adverse Event (AE)
Any untoward medical occurrence in a patient administered a medicinal product, not necessarily causally related; categorized by severity and seriousness; subject to reporting requirements.
Headache was the most common AE in Phase 2; All serious AEs must be reported within 24 hours; The DSMB reviewed AE rates and recommended continuing the trial.
Bioavailability
The fraction of an administered dose that reaches systemic circulation and the rate at which it does so; reported as absolute or relative bioavailability.
The new formulation improved oral bioavailability from 35% to 60%; High-fat meals reduced bioavailability by 20%; IV reference enabled calculation of absolute bioavailability.
Biologics License Application (BLA)
US submission seeking approval to market a biologic product under PHSA section 351; includes CMC, nonclinical, clinical, and facility information; can be 351(a) or 351(k) for biosimilars.
Company plans to file a BLA for its monoclonal antibody in Q4; The BLA pre-approval inspection identified no 483 observations; FDA accepted the 351(k) BLA for a proposed biosimilar.
Biomarker
A measurable indicator of normal biological processes, pathogenic processes, or responses to an exposure or intervention; can be diagnostic, prognostic, predictive, pharmacodynamic, or surrogate.
PD-L1 expression served as a predictive biomarker; Reduction in CRP was used as a pharmacodynamic biomarker; The FDA-qualified biomarker accelerated patient selection.
Breakthrough Therapy Designation
FDA designation to expedite development and review when preliminary clinical evidence indicates substantial improvement over existing therapies on clinically significant endpoints.
Our asset’s BT designation allows more frequent FDA interactions; Breakthrough status enabled rolling review of the NDA; The stock rose after the program received BTD.
Chemistry, Manufacturing, and Controls (CMC)
The body of information describing drug substance and product composition, manufacturing processes, controls, specifications, and stability to ensure consistent quality.
CMC Module 3 of the eCTD was updated for a new API supplier; Process validation is a key CMC milestone prior to filing; CMC comparability was required after a scale-up change.
Clinical Endpoint
A direct measure of clinical benefit (how patients feel, function, or survive) used to assess treatment effect; distinct from surrogate endpoints.
Overall survival is the primary clinical endpoint; The trial failed to meet its primary endpoint of HbA1c reduction; Patient-reported outcomes served as secondary clinical endpoints.
Clinical Hold
An FDA order to delay or suspend a clinical investigation for safety, protocol, or manufacturing concerns; can be full or partial.
FDA placed the IND on clinical hold after a liver toxicity signal; A partial hold limited dosing above 100 mg; The hold was lifted after submitting additional nonclinical data.
Companion Diagnostic
An in vitro diagnostic that provides information essential for the safe and effective use of a corresponding therapeutic product; often required in labeling for targeted therapies.
Therapy requires a companion diagnostic to detect EGFR mutations; CDx and drug were co-developed and co-labeled; Reimbursement hinges on availability of the approved CDx.
Contract Research Organization (CRO)
A company that provides outsourced R&D services such as trial management, monitoring, data management, and preclinical studies.
We engaged a CRO to run our global Phase 2 program; CRO oversight is a key sponsor responsibility under GCP; The CRO provided FSP resources for biostatistics.
Current Good Manufacturing Practice (cGMP)
Regulatory quality standards governing manufacturing, processing, packing, and holding of drugs and biologics to ensure safety, identity, strength, quality, and purity.
A cGMP deviation triggered a product recall; The facility operates under 21 CFR Parts 210 and 211; EU cGMP requires QP certification for batch release.
Data Exclusivity
A period during which regulators cannot rely on the innovator’s data to approve generics or biosimilars; varies by jurisdiction (e.g., US 5 years NCE, 3 years for certain changes, 12 years biologics).
Data exclusivity delays ANDA approvals despite patent expiry; EU offers 8+2+1 years of data and market protection; 505(b)(2) applications may rely partly on published data.
Drug Master File (DMF)
A confidential submission to FDA providing details about facilities, processes, or articles used in manufacturing; referenced by applicants via a Letter of Authorization.
Our ANDA references a Type II DMF for the API; The DMF holder issued a Letter of Authorization; FDA requested an update to the excipient DMF.
eCTD (electronic Common Technical Document)
The standardized electronic format and structure for regulatory submissions consisting of modules 1–5 and lifecycle sequences.
Publishing the eCTD required granularity per ICH guidelines; A new sequence was submitted to address the CRL; The agency rejected the submission due to eCTD technical errors.
European Medicines Agency (EMA)
The European Union regulatory agency responsible for scientific evaluation, supervision, and safety monitoring of medicines; coordinates centralized approvals.
EMA’s CHMP issued a positive opinion; We will pursue the centralized procedure via EMA; Post-authorization safety studies were requested by EMA.
Fast Track Designation
FDA program to expedite development of drugs for serious conditions with unmet medical need; provides rolling review and more frequent communications.
Fast Track enabled earlier submission of CMC sections; The asset has both Fast Track and Orphan designation; Fast Track does not guarantee Priority Review.
First-in-Human (FIH) Study
The initial clinical trial in humans, usually Phase 1, assessing safety, tolerability, and pharmacokinetics via single-ascending and multiple-ascending dose cohorts.
The FIH SAD/MAD study enrolled healthy volunteers; Dose escalation was guided by a Bayesian model; Sentinel dosing was used in the first cohort.
Food and Drug Administration (FDA)
The US federal agency that regulates human drugs, biologics, and medical devices through centers such as CDER and CBER, with authority over approvals, manufacturing, and safety surveillance.
FDA issued a Complete Response Letter on the NDA; A Type C meeting with FDA is scheduled; PDUFA timelines guide FDA review milestones.
Formulation Development
The process of designing and optimizing the drug product composition and dosage form to ensure stability, bioavailability, manufacturability, and patient acceptability.
Switching to an amorphous solid dispersion improved solubility; A pediatric formulation was developed as an oral suspension; Excipient compatibility studies informed the formulation.
Generic Drug
A drug product with the same active ingredient, dosage form, strength, route, and labeling (with permissible differences) as a reference listed drug, demonstrating bioequivalence.
AB-rated generics were launched at 80% discount; The generic failed bioequivalence on Cmax; Authorized generic entry eroded brand share.
Good Clinical Practice (GCP)
An international ethical and scientific quality standard for designing, conducting, recording, and reporting clinical trials involving human subjects.
The audit found GCP noncompliance in informed consent documentation; The TMF must demonstrate GCP compliance; Investigator training on ICH E6(R2) was completed.
Good Laboratory Practice (GLP)
Quality principles governing nonclinical laboratory studies that support research or marketing applications, ensuring data integrity and traceability.
The 28-day tox study was conducted under GLP; QA audited the GLP facility; Raw data archiving is a GLP requirement.
Hatch-Waxman Act
US law balancing innovation and generic competition by creating the ANDA pathway, establishing Orange Book listings, patent certification and stays, and 180-day exclusivity.
A Paragraph IV challenge under Hatch-Waxman triggered litigation; The 30-month stay delayed generic entry; The act enables 505(b)(2) approvals.
Health Technology Assessment (HTA)
Systematic evaluation of the clinical, economic, and societal value of a health technology to inform reimbursement and coverage decisions.
NICE’s HTA recommended use with a managed access agreement; HTA dossiers include cost-effectiveness models; Local HTA outcomes impact market access timelines.
In Vitro Diagnostic (IVD)
Tests performed on samples taken from the human body to provide information for diagnosis, monitoring, or therapy selection; regulated as medical devices.
The IVD detects BRAF mutations for therapy selection; CE-IVD marking is required in the EU; The LDT will transition to an FDA-cleared IVD.
Intellectual Property (IP) Strategy
The plan to create, protect, and leverage patents, trade secrets, trademarks, data exclusivities, and regulatory protections to maximize asset value.
We filed a composition-of-matter patent and method-of-use claims; Freedom-to-operate analysis guided the formulation choice; SPC filings extend protection in the EU.
Investigational New Drug (IND)
Regulatory submission to FDA requesting authorization to begin clinical trials in humans; includes CMC, nonclinical, clinical protocol, and investigator information.
The IND became effective after the 30-day review; An IND amendment added a new cohort; A safety update was filed to the IND.
Key Opinion Leader (KOL)
Influential clinicians or scientists whose expertise and perspectives shape treatment guidelines, trial design, adoption, and payer perceptions.
A KOL advisory board refined the target product profile; Engagement with KOLs supported publication planning; KOLs presented Phase 3 data at a major congress.
Labeling (Prescribing Information/USPI)
The legally approved description of a prescription medicine’s indications, usage, dosing, contraindications, warnings, adverse reactions, and clinical data.
The USPI includes a boxed warning for hepatotoxicity; Dosage and administration were updated via sNDA; The medication guide is part of the labeling.
Licensing Deal (In-/Out-Licensing)
A contractual agreement to transfer rights to develop and/or commercialize an asset in exchange for upfront payments, milestones, royalties, and other considerations.
We out-licensed APAC rights with tiered royalties; The in-licensing deal included double-digit milestones; Territory splits and field of use were key terms.
Lifecycle Management (LCM)
Strategic and tactical activities to sustain and extend a product’s value post-launch, including new indications, formulations, combinations, and geographic expansions.
An extended-release formulation is part of the LCM plan; A pediatric sNDA can add 6 months of exclusivity; The brand pursued a device-enabled combination for LCM.
Market Access
The process of achieving reimbursement, pricing, and formulary inclusion by demonstrating clinical and economic value to payers and providers.
Early HEOR informed the market access strategy; The product secured preferred formulary status; Access was restricted via prior authorization.
Mechanism of Action (MoA)
The specific biochemical interaction through which a drug produces its pharmacological effect.
The MoA is EGFR tyrosine kinase inhibition; MoA differentiation supports positioning against competitors; Biomarker changes confirm the proposed MoA.
Medical Affairs
The function responsible for scientific exchange, evidence generation, and post-approval support, including MSLs, publications, IITs, and medical information.
Medical Affairs led advisory boards and congress strategy; MSLs engaged KOLs with balanced, non-promotional discussion; An IIT program generated real-world data.
Net Present Value (NPV)
The sum of expected future cash flows discounted to present value; often risk-adjusted (rNPV) to account for development probabilities and timing.
Portfolio decisions were based on rNPV and strategic fit; A delay reduced NPV due to lost exclusivity time; Sensitivity analysis tested NPV against price and uptake.
New Drug Application (NDA)
US submission to obtain approval to market a new drug; can be 505(b)(1) full application or 505(b)(2) relying partly on external data.
The NDA received Priority Review with a 6-month clock; FDA issued a label negotiation letter on the NDA; A CRL required additional CMC data.
Nonclinical Studies
Laboratory and animal studies assessing pharmacology, pharmacokinetics, and toxicology to support clinical trials and labeling; often conducted under GLP for pivotal tox.
The 2-species GLP tox package supported the IND; Safety pharmacology included CV, respiratory, and CNS studies; A carcinogenicity assessment was waived.
Orphan Drug Designation
Regulatory status for therapies intended to treat rare diseases (US: under 200,000 prevalence), offering incentives such as tax credits, fee waivers, and market exclusivity.
Orphan designation provides 7 years of US exclusivity; The program reduces PDUFA fees; EMA orphan status offers protocol assistance.
Patent Cliff
A sharp revenue decline when key patents or exclusivities expire and generics or biosimilars enter the market.
The company is approaching a 2027 patent cliff; LCM aims to soften the cliff with a new combo; Generic erosion exceeded 80% within a year.
Pharmacokinetics/Pharmacodynamics (PK/PD)
PK describes drug absorption, distribution, metabolism, and excretion; PD describes the relationship between drug concentration and effect; integrated to optimize dose and regimen.
PopPK modeling supported dose selection; Exposure-response analysis linked AUC to efficacy; Therapeutic drug monitoring is guided by PK/PD targets.
Pharmacovigilance
The science and activities relating to the detection, assessment, understanding, and prevention of adverse effects or other drug-related problems.
All ICSRs are processed in the safety database; Signal detection led to a new warning; PBRER/PSUR submissions were scheduled with EMA.
Pharmacy Benefit Manager (PBM)
Intermediaries that manage prescription drug benefits for payers, negotiating rebates, setting formularies, and processing claims.
PBM rebate negotiations determined net price; Step therapy requirements were imposed by the PBM; Exclusion from the PBM formulary hurt uptake.
Prescription Drug User Fee Act (PDUFA)
US law authorizing FDA to collect user fees from sponsors to fund the drug review process in exchange for performance goals and timelines.
The PDUFA date is set for October 15; Under PDUFA VII, FDA committed to new review goals; A 3-month extension moved the PDUFA goal date.
Quality by Design (QbD)
A systematic development approach that begins with predefined objectives and emphasizes product and process understanding and control based on sound science and quality risk management.
CQAs and CPPs were defined under QbD principles; Design space was established via DoE; The control strategy derives from the QbD risk assessment.
Randomized Controlled Trial (RCT)
A study in which participants are randomly assigned to intervention or control groups to evaluate causality and minimize bias; often blinded.
The Phase 3 RCT met its primary endpoint; Randomization was stratified by baseline severity; The DSMB reviewed interim RCT data.
Real-World Evidence (RWE)
Clinical evidence derived from analysis of real-world data such as electronic health records, claims, registries, and digital devices to inform effectiveness, safety, and utilization.
RWE supported label expansion for a new population; A retrospective cohort from EHRs assessed outcomes; The RWE plan was aligned with regulators early.
Risk Evaluation and Mitigation Strategy (REMS)
FDA-required safety program for certain drugs to ensure benefits outweigh risks; may include medication guides, communication plans, and elements to assure safe use (ETASU).
The product launched with a REMS requiring prescriber certification; REMS modifications were negotiated with FDA; Failure to comply with REMS can lead to enforcement.
Related Topics
Further Reading
Was this page helpful? We'd love your feedback — please email us at feedback@dealstream.com.
