RARE DISEASE
Charting the FDA’s course in the post-Prasad era
Will the FDA’s regulatory policies, particularly for rare disease drugs, shift in the wake of Vinay Prasad’s imminent departure from the agency?
STAT's Adam Feuerstein says he's paying close attention to the fate of six companies steering five drugs in front of the FDA over coming months. Collectively, how the agency handles these drugs should tell us more about the agency's current position on regulatory flexibility.
Among the companies: Replimune Group, Capricor Therapeutics, and Uniqure.
Check out the latest edition of "Adam's Biotech Scorecard" for more about those companies and the other three.
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animal testing
FDA, NIH nudge drugmakers away from animal testing
HHS is accelerating a shift away from animal testing, with the FDA issuing draft guidance that effectively opens the door for drugmakers to use alternative methods, such as AI models and organ-like cell systems, without waiting for formal agency validation. And the NIH is taking action too, offering more than $150 million in funding for institutions studying ways to better simulate human biology, STAT’s Lizzy Lawrence writes.
“Technological advances are allowing us to move beyond animal testing in drug development, which has a poor track record of predicting safety and efficacy in humans,” FDA Commissioner Marty Makary said in a statement.
That said, some animal rights groups say the government’s efforts aren’t strong enough, while research advocates warn against sidelining animal studies too quickly.
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rebranding
Drug pricing reform risks recreating 340B dynamics
The coming rollout of Medicare drug price negotiation for Part B drugs in 2028 could unintentionally recreate a system that resembles the 340B drug discount program, opines Sujith Ramachandran, an associate professor of pharmacy administration at the University of Mississippi. He says we need to “reform the root of the convoluted system” in place.
Lower negotiated prices will shrink the 6% add-on payments that outpatient clinics rely on, which ultimately could threaten billions in provider revenue — and trigger lobbying efforts on Capitol Hill.
“Reimbursement to health care providers for drug dispensing has been tied to the cost of the drug for far too long,” Ramachandran says in a new First Opinion. “Outpatient clinics should be compensated fairly for services they provide but not incentivized to dispense higher priced drugs just to get a larger profit from drug margin.
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