Once the company determines that the market for the potential product is sufficient to justify development and that the drug candidate is safe and effective, the drug enters the development phase.

This phase begins with the drug sponsor submitting a development plan to the CVM. This plan includes a description of proposed safety and effectiveness studies designed to generate the extensive data needed to fulfill the stringent regulatory requirements for a New Animal Drug Application (NADA). The drug sponsor and CVM conduct Pre-Submission Conferences to negotiate a binding agreement between the drug sponsor and the CVM on a Development plan designed to fulfill all NADA requirements.

After concurrence with CVM on a Development Plan is achieved, the drug sponsor conducts the required pivotal safety and effectiveness studies. These studies are large and require strict adherence to the FDA’s regulatory standards. The effectiveness of the drug product is typically evaluated in double-blind studies conducted in pets with the disease that the product indication is targeting. Safety studies are conducted in laboratory animals and must demonstrate that the drug has an acceptable margin of safety. Additionally, user safety must be demonstrated to ensure that the product can be safely administered by the pet owner. The safety and effectiveness studies that are conducted in the development phase must result in data that conclusively supports all components of proposed product labeling, including the dosage regimen and product indication, and the safety of the drug in the targeted population.

Another major component of the development phase is generation of data to fulfill very strict FDA manufacturing requirements. These requirements are held to the same standard that human pharmaceutical products are held to. All data must meet FDA’s Good Manufacturing Practice (GMP) standards. Fundamentally, the manufacturing section of a NADA must document and validate the quality, purity, potency, and stability of each batch of the product manufactured.

The product development phase typically encompasses 2-4 years and requires an investment of $5-10 million and can be a risky venture.

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