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Trump’s FDA Cuts Are Putting Drug Development at Risk

Mar 03, 2025 - wired.com
Budget and staffing cuts at the FDA, orchestrated by President Donald Trump, are raising concerns among pharmaceutical companies about potential delays in drug development and approval processes. Companies like Xenon Pharmaceuticals and Rezolute have expressed worries in their SEC filings that these cuts, along with executive actions aimed at reducing expenditures, could hinder the FDA's ability to conduct necessary inspections and reviews. The Department of Government Efficiency (DOGE) has laid off hundreds of FDA employees, causing uncertainty around grant applications, clinical trials, and drug approvals. Additionally, Trump's executive orders on deregulation and budget cuts, along with potential changes to drug regulations, are creating pressures on the pharmaceutical industry.

Pharmaceutical companies are also concerned about the impact of Trump's policies on research funding and diversity in clinical trials. Companies like iBio and Beam Therapeutics have highlighted uncertainties regarding NIH funding and the potential for delays in clinical trials due to reduced research funding. Verve Therapeutics has raised issues with Trump's executive action against federal funding for companies with Diversity, Equity, and Inclusion policies, which conflicts with the 2022 Food and Drug Omnibus Reform Act. Furthermore, Trump's tariffs, potential cuts to Medicare and Medicaid, and the possibility of repealing the Affordable Care Act are additional concerns for the industry, as they could affect operational costs and supply chains.

Key takeaways:

  • Budget and staffing cuts at the FDA under President Trump could delay or prevent the development, approval, and commercialization of new drugs.
  • Pharmaceutical companies are concerned about the impact of Trump's executive actions and budget cuts on the FDA's regulatory and oversight activities.
  • Trump's policies, including potential changes to drug regulations and NIH funding cuts, could negatively affect clinical trials and drug commercialization.
  • Companies are worried about the impact of Trump's tariffs, potential ACA repeal, and cuts to Medicare and Medicaid on their operations and supply chains.
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