Every breakthrough medication starts somewhere. That somewhere is either a New Chemical Entity (NCE) or a New Biological Entity (NBE).
But what’s the difference?
And why does it matter for clinical trial supply and drug development?
What is a New Chemical Entity (NCE)?
An NCE is a small-molecule drug with a unique chemical structure. It contains no active moiety previously approved by regulatory authorities, such as the FDA. Think of it as a completely novel compound emerging from drug discovery labs.
NCEs are chemically synthesized. They have well-defined structures. Common examples include many tablets and capsules you see in pharmacies.
The FDA defines an active moiety as the molecule responsible for the drug’s pharmacological action. If that molecule hasn’t been approved before, you have an NCE.
What is a New Biological Entity (NBE)?
An NBE is different. It’s a complex biological product derived from living sources. This includes vaccines, gene therapies, recombinant proteins, and monoclonal antibodies.
NBEs are larger and more complex than NCEs. They contain proteins, sugars, nucleic acids, or combinations of these substances. Unlike NCEs, they cannot be easily synthesized in a lab.
CBER is the U.S. Food and Drug Administration (FDA) division that regulates vaccines, blood products, gene therapies, and other biologics. These products offer revolutionary treatments for diseases previously difficult to manage.

Why Both Matter in Pharma
NCEs and NBEs drive innovation. They provide new treatment options where existing therapies fall short. Each successful compound can become a blockbuster drug, generating revenue that funds further research.
For clinical trial supply chains, understanding this distinction is critical. NCEs and NBEs require different handling, storage, and distribution protocols. Biological entities are particularly sensitive to temperature and environmental conditions.
The Filing Process: Key Differences
Both NCEs and NBEs undergo rigorous testing. However, the regulatory pathways for both of them differ widely:
- NCEs are submitted through New Drug Applications (NDAs) under section 505 of the Federal Food, Drug, and Cosmetic Act.
- NBEs require Biologics License Applications (BLAs) under section 351 of the Public Health Service Act.
Both use the Common Technical Document (CTD) format for submissions across ICH regions. This standardization streamlines the process for manufacturers working globally.
The FDA grants 5-year exclusivity for approved NCEs. This protection incentivizes pharmaceutical companies to invest in drug development despite high costs and risks.
The FDA grants 12 years of exclusivity for approved biologics. This protection prevents the approval of any biosimilar during this period, giving the innovator product a secure, competition-free market window.
Conclusion
Whether you’re a CRO, biotech company, or regulatory professional, understanding NCEs and NBEs is fundamental. These entities represent the cutting edge of pharmaceutical innovation, bringing hope to patients worldwide through carefully managed clinical trial supply chains and rigorous regulatory processes.
At Spring Bio Solution, we support this innovation by ensuring reliable, compliant, and strategically sourced clinical trial supplies for global studies. Our expertise spans comparator sourcing, regulatory alignment, and end-to-end supply management. We empower our sponsors to navigate complex development pathways with confidence.
With our NCE/NBE exclusivity tracking grid, we also help generic and biosimilar developers stay informed about the market and the data exclusivity dates for both so that they can take action on their filings. By proactively monitoring these details, we enable teams to make timely, data-driven decisions that accelerate development and optimize market readiness.
FAQs
What is the full form of NCE in the pharmaceutical sector?
NCE stands for New Chemical Entity.
What is the full form of NBE in the pharmaceutical sector?
NBE stands for New Biological Entity.
What is the time period of NCE exclusivity?
New Chemical Entity (NCE) with an active ingredient never before approved by the FDA takes 5 years.
What is the basic difference between the NCE (New Chemical Entity) and the NBE (New Biological Entity)?
The basic difference between the NCE (New Chemical Entity) and the NBE (New Biological Entity) lies in the synthesis process of both molecules.



