Draft guidance on terms and conditions for human and veterinary drugs: Compliance and enforcement

Market authorization holder does not comply with terms and conditions

All terms and conditions (T&Cs) are enforceable under section 21.7 of the Food and Drugs Act (FDA). MAHs may be held criminally liable for not fulfilling or complying with T&Cs, including failing to submit trials and studies as per their deadlines outlined in the T&Cs letter.

Health Canada may also take compliance and enforcement actions as outlined within the policy:

We will apply a risk-based approach when taking regulatory actions related to information generated by the T&Cs, indicating that the:

Regulatory actions may result in:

For subsequent-entry drugs, sometimes the MAH of a CRP or CRBP fails to fulfill their T&Cs or discontinues their DIN, and the CRP or CRBP or any indications of these products are then withdrawn. In such cases, further regulatory action with the MAH of the subsequent-entry drug may be required. For example, in cases where the MAH of the subsequent-entry drug wishes to continue marketing the drug, they may be required to provide evidence to support continued approval of the subsequent-entry drug. We will decide whether that evidence is sufficient to support continued approval.

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2025-12-12