http://MedicalDevicesGroup.net Sydney-based regulatory affairs expert Arthur Brandwood discusses the recent changes made by the Australian Therapeutic Goods Administration (TGA).
He also covers:
• Australia’s aggressive deregulatory agenda
• The Australian tax incentive (43.5% for R&D expenditure)
• The simple process for regulation of clinical trials in Australia
• TGA’s web based submission process for device approvals
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TGA changes for Medical Devices in Australia
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The Big Changes in Australia in Medical Devices Product Development and Market Access Down Under
Dr Arthur Brandwood
•Previous Director Devices Registration and Assessment at TGA and Director, TGA Biomaterials and Engineering Laboratories
•Past National Chair and Chair Regulatory Expert Panel AusMedtech
•Member of AHWP SG1 and Leader of Combination Products Task group
•Adviser and trainer to multiple Asia Pacific regional regulators
•Australian Delegation Leader to ISO TC 194 – Biocompatibility and Clinical Trials and ISO TC 150 – Implantable Devices
•Past President Australian Society for Biomaterials
•Visiting Professor in Biomedical Engineering, University of Sydney
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Medical Devices and IVDs
Asia Pacific Focus
Global Perspective
Highly Networked
Highly Engaged
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The Single Largest Manufacturing Sector Exporting from Australia to China is Therapeutics (Medical Devices and Pharmaceuticals)
Australian Bureau of Statistics
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Limited Resources: <100 in Devices
Acts as both Competent Authority and Conformity Assessment Body
Strong scientific culture – this was once a laboratory building!
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Therapeutic Goods Act 1989 http://www.tga.gov.au/industry/legislation.htm
Chapter 1—Preliminary
Chapter 2—Australian Register of Therapeutic Goods
Chapter 3—Medicines and other therapeutic goods that are not medical devices
Part 3-1—Standards
Part 3-2—Registration and listing of therapeutic goods
Part 3-3—Manufacturing of therapeutic goods
Chapter 4—Medical devices
Part 4-1—Introduction
Part 4-2—Essential principles and medical device standards
Part 4-3—Conformity assessment procedures
Part 4-4—Conformity assessment certificates
Part 4-5—Including medical devices in the Register
Part 4-6—Suspension and cancellation from the Register
Part 4-7—Exempting medical devices from inclusion in the Register
Part 4-8—Obtaining information
Part 4-9—Public notification and recovery of medical devices
Part 4-10—Assessment fees
Part 4-11—Offences and civil penalty provisions relating to medical devices
Chapter 5—Advertising, counterfeit therapeutic goods and product tampering
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Therapeutic Goods (Medical Devices) Regulations 2002 Includes AIMDs and IVDs
5.7 Active implantable medical devices (1) An active implantable medical device is classified as Class AIMD.
Four New Rules for IVDs
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Special Access
Clinical Trials
Authorised Prescriber
Custom Made
CTN
CTX
SAS B
SAS A
ARTG Inclusion
Exempt Goods
Personal Imports
AIMD Act Implant
III
IIb
I
NO TGA assessment of safety
MUST MEET safety and performance requirements
Generally humanitarian exemptions or advance access to new technology pending completion of TGA regulatory assessment
For Investigational use only – for research or to gather clinical data to support subsequent TGA assessment
This is a unique Australian regulatory peculiarity – a person may import any device or medicine (except S8 poisons e.g. narcotics) for personal use at own risk
These are single devices individually manufactured to clinical prescription for a named patient (e.g. dental crowns, orthotic braces)
These are very low risk goods (e.g. hospital bedding, protective clothing, conventional toothpastes)
These devices and IVDs are subject to TGA regulatory assessment which increases with higher numbered risk class
These devices are NOT assessed by TGA and are EXEMPT from inclusion on ARTG – but they must still meet safety and performance regulations and are subject to postmarket monitoring
IIa
IVD 4
IVD 3
IVD 2
IVD 1
Australian Regulatory Requirements
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Sponsor – the Australian Authorized Representative
Must be Australian company
May be third party
Provides manufacturer info to TGA on demand
•Contractual arrangement with manufacturer
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TGA accepts CE certificates in lieu of Australian Certificates for most devices
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Manufacturer Sponsor TGA
Determine
AU Class
Technical
File Data
Australian
D.o.C
CE
Certification
Accepted
Manufacturer
Evidence
Sponsor
Makes ARTG
Application for
Device
Sponsor
Submits To TGA
e Assess
e Assess ARTG Entry
Application
Audit
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Exclusions to the CE Fast Track
Class III with integral medicine
•Also requires TGA medicine assessment
Class III with biological component
•Includes recombinant products, blood products
•Some low risk exceptions e.g. gelatine
All Australian manufactured devices
•Direct TGA assessment is mandatory for the locals
•TGA may abridge assessment if device is CE marked
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“As an important first step, the Government will enable Australian manufacturers of medical devices the option of using European Union certification in place of TGA certification. This will place Australian manufacturers on the same footing as overseas competitors.”
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Exclusions to the CE Fast Track
Class III with integral medicine
•Also requires TGA medicine assessment
Class III with biological component
•Includes recombinant products, blood products
•Some low risk exceptions e.g. gelatine
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Multiple Reviews of TGA
3 Senate enquiries
Auditor General Review
HTA Review
…
TGA
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It’s all about Confidence…
TGA is undertaking Confidence Building with EC Notified Bodies
−Shared Audits
−Document reviews
−Information Exchange
Reduced Application audits for those in which TGA has Confidence
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Special Access
Clinical Trials
Authorised Prescriber
Custom Made
CTN
CTX
SAS B
SAS A
ARTG Inclusion
Exempt Goods
Personal Imports
AIMD Act Implant
III
IIb
I
NO TGA assessment of safety
MUST MEET safety and performance requirements
Generally humanitarian exemptions or advance access to new technology pending completion of TGA regulatory assessment
For Investigational use only – for research or to gather clinical data to support subsequent TGA assessment
This is a unique Australian regulatory peculiarity – a person may import any device or medicine (except S8 poisons e.g. narcotics) for personal use at own risk
These are single devices individually manufactured to clinical prescription for a named patient (e.g. dental crowns, orthotic braces)
These are very low risk goods (e.g. hospital bedding, protective clothing, conventional toothpastes)
These devices and IVDs are subject to TGA regulatory assessment which increases with higher numbered risk class
These devices are NOT assessed by TGA and are EXEMPT from inclusion on ARTG – but they must still meet safety and performance regulations and are subject to postmarket monitoring
IIa
IVD 4
IVD 3
IVD 2
IVD 1
Australian Regulatory Requirements
Clinical Trial Notification
•Ethics Committee assessment of the protocol and oversight of trial
•TGA may audit the trial
•Nominal Fees
•Notification only to TGA
•All devices have been done this way to date
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National Controls
http://www.australianclinicaltrials.gov.au/node/30
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“…it's CASH, paid quarterly, not a tax credit”
“Note the difference between the rebate and the tax rate - effectively the rebate is a subsidy way higher than the tax deductibility of these expenses”
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Free Money – from the Tax Man The Australian R&D Tax Incentive
45% Refundable Offset
−Non refundable for firms >$20M turnover
−For small firms – paid as refund, quarterly
Eligible Entities
−Australian companies
−Foreign companies in countries with double tax agreement which have permanent establishment in Australia
https://www.ato.gov.au/Business/Research-and-development-tax-incentive/
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The R&D challenge…
Clinical Challenge
•Bowel Preps available in Australia not effective
•Require significant investment to develop data
•High patient population requires significant sample size
Clinical Trial Required
•Multicentre
•Randomised
•CRA Audited
•300 Patients
•$ 1 Million budget
ANZ operations didn’t have budget to support
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R&D Tax Incentive
Given ANZ subsidiary, local profits 3-4%
Provided potential for legitimate cost savings and capability
Needed to demonstrate that proposed trial outcomes had not already been demonstrated ie: True R&D
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Employee Share Options
July 2015 commencement
Defer tax until exercise of options
Maximum time for deferral 15 years
Standardised documentation for establishment and maintenance of ESS.
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Start-up Concession for ESS Unlisted Co. / Aggregate Turnover <$50M / Inc. < 10 Years
Tax exempt first $1,000 for employees earning <$180,000
Shares at discount of up to 15% with no tax liability for discount
−Discounted portion is exempt from CGT at time of sale
Shares must be held at least 3 years
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Why Australia?
Deregulation
Clinical Trials
R&D Tax Concessions
Employee Options Tax Concessions
Trade with Asia
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Regulatory Trends in Asia Pacific
2015
ASEAN MDD Commences
2014
ASEAN harmonizes IVD registration format
New Provisions in China
Japan PMDL
Malaysia Regulations
2013
China SFDA becomes CFDA
2011
India Medical Devices
2010
HK Medical Devices Registrations
2009
Korea High-risk IVD Tougher regs
2008
HK IVD Voluntary Product Listing
Singapore Mandatory Registration
2007
Major Regulation Change in China
2006
Malaysia Voluntary Product Listing
2005
Japan PAL
2004
Hong Kong Medical Device Registration –excludes IVDs
Singapore Voluntary Listing
2002
China Mandatory Product Registration
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Let’s talk!
TGA Submissions
Australian Sponsor Service
−and others including China
Regulatory Strategy
Risk Analysis and Standards Compliance
Quality Systems
Clinical Trials
Postmarket Compliance
Reimbursement
Regulatory Intelligence
Training
Contact us for a free no- obligation consultation and quote
+61 2 9906 2984
help@brandwoodbiomedical.com
www.brandwoodbiomedical.com
Brandwood Biomedical has offices in Sydney, Wellington and Beijing and offers specialist expertise throughout the Asia Pacific