A new chemical entity (NCE) (also known as new molecular entity (NME)) is, according to the U.S. Food and Drug Administration, a drug that contains no active moiety that has been approved by FDA in any other application submitted under section 505(b) of the Federal Food, Drug, and Cosmetic Act."

An active moiety is a molecule or ion, excluding those appended portions of the molecule that cause the drug to be an ester, salt (including a salt with hydrogen or coordination bonds), or other noncovalent derivative (such as a complex, chelate, or clathrate) of the molecule, responsible for the physiological or pharmacological action of the drug substance.

A NCE is a chemical molecule developed by the innovator company in the early drug discovery stage, which after undergoing clinical trials could translate into a drug that could be a cure for some disease. Synthesis of NCE is the first step in the process of development of a drug. Once the synthesis of the NCE has been completed, companies have two options before them. They can either go for clinical trials on their own or license the NCE to another company. In the latter option, companies can avoid the expensive and lengthy process of clinical trials, as the licensee company would be conducting further clinical trials and subsequently launching the drug. Companies adopting this model of business would be able to generate high margins as they get a huge one-time payment for the NCE apart from entering into a revenue sharing agreement with the licensee company.

Under the Food and Drug Administration Amendments Act of 2007, all new chemical entities must first be reviewed by an advisory committee before FDA can approve these products.

[edit] See also

• Medicinal chemistry
• Drug development

[edit] External links

• NME's worldwide and in Germany
• CDER Drug and Biologic Approval Reports

v • d • e Topics in Medicinal Chemistry ADME · Bioavailability · Chemogenomics · Drug design · Drug discovery · Enzyme inhibitor · Mechanism of action · New chemical entity · Pharmacodynamics · Pharmacokinetics · Pharmacology · Pharmacophore · Quantitative structure-activity relationship

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