FDA Grants Drug Supply Chain Act Exemptions to Prevent Disruptions

The FDA extends compliance deadlines for some drug manufacturers and distributors, avoiding potential supply chain issues.

The Food and Drug Administration (FDA) has issued exemptions from the Drug Supply Chain Security Act’s final implementation deadline for certain drug manufacturers and distributors, providing them with additional time to ensure compliance and avoid potential supply chain disruptions.

Navigating Regulatory Compliance in the Pharmaceutical Supply Chain

The FDA’s recent regulatory guidance, dated October 9, outlines exemptions from the Drug Supply Chain Security Act’s current final implementation deadline for some drug manufacturers and distributors. These exemptions are applicable to partners who have made documented compliance efforts but are still grappling with data exchange challenges. The FDA’s move aims to prevent supply chain disruptions that could potentially affect patients’ access to necessary medications.

New Deadlines and Their Implications

The duration of the deadline extension varies among eligible trading partners. Notably, these partners are not required to notify the FDA if they utilize the exemptions. The revised deadlines are as follows:

  • Manufacturers and repackagers: May 27, 2025
  • Wholesale distributors: August 27, 2025
  • Dispensers with 26 or more full-time employees: November 27, 2025

The Drug Supply Chain Security Act, enacted in November 2013, mandates complete end-to-end supply chain visibility for pharmaceutical products. The implementation deadline, which has been postponed multiple times, is currently set for November 27, 2024.

Small Dispensers and the Path Forward

Small dispensers, defined as pharmacies with 25 or fewer full-time employees, will also receive an exemption from certain Drug Supply Chain Security Act requirements to help stabilize their operations. It is up to the pharmacies to determine whether they meet the definition of a small dispenser.

Unqualified trading partners can still request a waiver, exception, or exemption if they are unable to meet the enhanced drug distribution security requirements, according to the agency’s guidance. The FDA has committed to responding to all requests by November 27.

The move to extend the compliance deadline has been welcomed by industry groups and members of Congress who have been advocating for additional time to comply with the stringent track and trace requirements. The phased-in approach will enable supply chain partners to better align their data exchange processes to achieve full implementation, ensuring the stability and security of the pharmaceutical supply chain.

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