CDER reviews New Drug Applications to ensure that the drugs are safe and effective. It is one of the Centers at the United States Food and Drug Administration. Its primary objective is to ensure that all prescription and over-the-counter (OTC) medications are safe and effective when used as directed.
CDER receives considerable public scrutiny, and thus implements processes that tend toward objectivity and tend to isolate decisions from being attributed to specific individuals. In keeping with this, reviews are generally staffed by teams that are intended to come to consensus on decisions. The decisions on approval will often make or break a small company's stock price (e.g. Martha Stewart and Imclone), so the markets closely watch CDER's decisions.
Within CDER "Review teams" of around 1,300 employees evaluate and approve new drugs. Additionally, the CDER employs a "safety team" with 72 employees to determine whether new drugs are unsafe or present risks not disclosed in the product's labeling.
The FDA's budget for approving, labeling, and monitoring drugs is roughly $290 million per year. The safety team monitors the effects of more than 3,000 prescription drugs on 200 million people with a budget of about $15 million a year. The FDA requires a four phased series of clinical trials, with phase three being the largest and usually requiring 1,000-3,000 patients.
As of December 2007, the position of the Director is empty. The former Director Dr. Steven K. Galson, is now the acting Surgeon General.