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Article

Is the U.S. Approval Process for New Medicines Fundamentally Changing?

April 17, 2025
By Mary Kosinski

The sweeping changes seen since January 2025 represent tectonic shifts in the foundations of healthcare in the U.S.–transformations that are likely to have targeted impacts on how new medicines are discovered, regulated and potentially even promoted. Furthermore, as the Food and Drug Administration (FDA) sets global standards in many ways, any disruptions or shifts in its operations could create a ripple effect in other regulatory agencies around the world, including the European Medicines Agency (EMA).  

Some of these impacts will be felt long-term, and others may become apparent much sooner. Recent media stories have spotlighted staffing shortages as a cause for potential delays in medicine approvals, but the implications may run deeper. Beyond timing, we could see fundamental shifts in how drugs are evaluated and approved, as evolving administrative priorities reshape the regulatory pathway itself.

The Reduction in Workforce as a Factor in Potential Delay

The reduction in federal workforce policies are far reaching. With respect to FDA, the impact is complex and needs to be viewed from multiple perspectives to assess the potential full implications on the approval process for medicines.

While mid-February saw an initial wave of terminations across the entire agency, it was followed by a broader reduction of 10,000 staffers across the Department of Health and Human Services (HHS). And in the wake of each, there were subsequent modifications to the actions taken. For example, medical device and drug reviewers were deemed exempt from the terminations. Following the April layoffs, media outlets reported that HHS Secretary Robert F. Kennedy, Jr. stated that approximately 20% of the staffers who were discharged in the latest round may be erroneous and could be reinstated. However, no plan has yet been announced for effecting that correction.  

The attrition of staff through layoffs is further compounded by those leaving the agency for other reasons. In January, the federal government offered employees an option to resign by February 6, 2025, and retain salary and benefits through September 2025. In March, HHS extended another offer to buy out employees. While it has been estimated that tens of thousands of employees accepted, the specific number of FDA employees who have left is not currently publicly available.

What is known is that many key personnel who would be involved in new medicine approvals have also voluntarily left the agency, including the Director of the Office of New Drugs within the Center for Drug Evaluation and Research (CDER), the Director of the Center for Biologics Evaluation and Research (CBER) and the Deputy Director of CBER. In addition, prior to the start of the new administration, the head of CDER also resigned.

Some of the vacated positions have been replaced from within. However, due to the hiring freeze that was put into effect by executive order on January 20, 2025, the agency is losing key staff without an ability to recruit and replace them. Clouding the situation further, the HHS reductions in personnel may face legal challenges.

Finally, the drug approval process is long and complex and not solely left to the reviewers whose jobs have been exempted from the workforce reduction. Reductions in communications and legal staff may also disrupt key processes, while cuts to FDA inspection personnel, particularly those responsible for overseeing foreign manufacturing facilities, could delay new approvals if inspection capacity is diminished.

Has all this disruption negatively impacted the new approval of drugs?

At this stage, the answer is not clear. One way to assess it is by examining the timeliness of the agency in meeting its approval commitments. Under the Prescription Drug User Fee Act (PDUFA), first enacted in 1992 and periodically reauthorized by Congress, FDA accepts user fees from pharmaceutical companies allowing expansion of resources to review new medicines, and in return, agrees to review a new drug application in a set time frame. These are referred to as “action dates” or “PDUFA dates.”  While these dates are proprietary information, companies do often reveal the timing of when a decision is expected by FDA.

In reviewing publicly known action dates for 2025, while some have been altered or missed, there does not seem to be a pattern to indicate that FDA is proceeding at any interrupted pace.

Another resource to consider is the approval of novel drug applications, also known as new molecular entities (NMEs), which are reported by FDA on its website. The number of NMEs approved for 2025 is lower than in any year since 2021, but this dip could stem from a range of factors. Only over time will it become clear whether this reflects a true slowdown or normal variation.

The Potential for Change in the Process for Approving Drugs

When a new application is submitted to FDA, it is likely there has been consultation with the agency prior to submission. The depth and scope of exchanges between agency and sponsor will vary depending on the drug, the treatment area and the status that is accorded the application.

Once submitted, FDA decisions regarding that new application have traditionally happened in one of two ways. The most common involves an in-depth analysis of every aspect of the application and assessment by qualified review staff at FDA. Once review staff have completed that task, barring any outstanding questions regarding clinical studies showing efficacy and safety, and following inspection of manufacturing facilities, the agency will issue a decision. This comes in the form of an approval or a Complete Response Letter (CRL) outlining what the agency would like to see to approve the application. This decision usually arrives on or before the PDUFA date.

An alternative path for a new drug application arises when the FDA has unresolved questions and seeks input from both external experts and the public. In that case, FDA calls an advisory committee meeting and embarks on a more transparent process. There are 17 different panels of advisors across various therapeutic categories, each one staffed by an FDA employee.

If an advisory committee is called, historically a public meeting is announced in the Federal Register and a public docket is opened for written input from the public, which is then distributed to the panel of advisory experts. Prior to the meeting date, the FDA publishes on its website all relevant aspects of the drug application, enunciates questions for discussion and proposes a vote on one or more of them, usually ultimately voting to recommend or not the approval of the application – advice that FDA may or may not follow. The meeting is held to discuss the application, and the public – often involving clinical investigators and patients – is invited to give in-person comments during a portion of the meeting.

The reductions in workforce affect both of these approval pathways. In addition to FDA review staff, legal and communications support – both impacted by staffing cuts – help facilitate the application assessment process.

Additional Factors Adding to Approval Process Uncertainty

An early action by the administration was to put into place a communications freeze for federal agencies. The impact on FDA has been notable, with few press releases issued since the beginning of the new administration. The FDA Roundup, typically containing multiple news items published several times a week is now at a near standstill. There have been scant notices about agency activities published in the Federal Register, none of which have been for the purpose of announcing a meeting. FDA Advisory Committee meetings that had been scheduled were postponed. In short, the process for Advisory Committee meetings described above is in limbo. It is not clear whether FDA has the staff that would be necessary to conduct such a meeting and, if so, how key stakeholder perspectives, like those of patients, would have the ability to contribute.

Other factors also raise concerns about the current process.

  • HHS Secretary Robert F. Kennedy, Jr. has expressed discomfort with the relationship between FDA and industry. One area of concern is the existence of potential conflicts of interest of members of committees advising NIH and specifically CDC and FDA committees related to vaccines. It is not clear if that view encompasses all advisory committees.  
  • As a part of that concern, the Secretary has also expressed criticism of the Prescription Drug User Fee Act, which supplies a substantial portion of the FDA budget to shorten the review times of applications. While negotiations for the next round of PDUFA reauthorization are not scheduled until 2027, media reports that existing staff who facilitate activities in support of the PDUFA fee structure have been largely eliminated, calling into question the more immediate impact on the PDUFA system.
  • Secretary Kennedy has also expressed reservation about the need for public input into HHS decisions. It is unclear at this time if this will extend to the role of public comment in the FDA review process.

In short, the existing process for the review of drugs appears to be in stasis, with many aspects potentially coming under scrutiny and facing the possibility of change or elimination. Currently, there are many compounds in the pipeline awaiting FDA process for decision-making. Between the staff changes and the potential for new policy developments in relation to the process, delay is a distinct possibility.

Worldwide implications?

It would be remiss to not also recognize the far-reaching impact that changes at the FDA may have on regulatory bodies worldwide. These changes are likely to have significant global implications, particularly for the EMA, which often relies on FDA data and early approvals to expedite its own drug review processes. Disruptions at FDA, whether due to staffing reductions or policy shifts, could lead to delays not only in the U.S. approval process but also in other key global markets.

The EMA, which frequently aligns its review processes with the FDA’s, could face challenges in synchronizing approval timelines, potentially slowing access to critical medicines in Europe. Similarly, regulatory bodies in other regions – such as Japan’s Pharmaceuticals and Medical Devices Agency (PMDA) and Health Canada – may also be affected. These agencies often monitor and adapt to FDA decisions, so delays or changes in FDA operations could trigger a cascade effect, potentially slowing the global approval process for new therapies.

Implications for Communications

For communicators supporting this process, either from inside the pharmaceutical and biotech industries, or the agencies that support them, there are an array of implications. Policies enacted are broad, sometimes vague in scope and can be unclear in their application. Therefore, in planning around new approvals and pipeline medicines, a new level of uncertainty must be built into the equation by communications teams.

Navigating uncharted waters demands close monitoring of the evolving landscape, regular assessments of potential scenarios and an understanding of vulnerabilities to those changes. It also requires strategic planning, both operationally and communicatively, to reinforce preparedness and mitigate risks.

Communications planning must be both broad enough to reflect the landscape and specific enough to address the circumstances of a particular drug or therapeutic category. It also must encompass the ability to anticipate and respond quickly to unfolding developments. Moreover, it needs to consider scenarios that accompany not just a single delay, but multiple delays.

Ultimately, applying the traditional model of communications around approvals for the future may be a thing of the past. Communications teams will have to build a new model built around greater uncertainties in the process moving forward.

Article

Tariffs: No Pause for the Weary but Potential for the Wise

April 16, 2025
By Donna Fontana and Tim Streeb

Last week’s news of the 90-day pause on many of President Trump’s tariffs should not be interpreted as a chance for U.S. corporate leaders to rest, whether you are one of the many who have been riding the tariff roller coaster since Inauguration Day, or part of a cohort who was caught off guard by the breadth and depth of the policies announced on April 2. 

We are now in a phase where both risk and opportunity must be tracked and evaluated with extra vigilance. The escalation of penalties imposed by the Trump administration on China, and the retaliation from Beijing on US imports, will affect companies and critical supply chain materials and have a major impact on nearly every segment of our economy. As of April 15, Industry-specific Section 232 tariffs persist on steel and aluminum and automobiles, investigations have been announced on semiconductors and pharmaceuticals and a sectoral threat continues against lumber. And more sectors and companies will be lifted or rattled by the regular information coming out about the state of tariff negotiations with critical trading partners.

“Liberation day” and the following news and market activity provided every industry with a window into the potential business, media and reputation impact of tariff policies and the economic reaction. It’s increasingly clear that tariffs are not the end of this story, and whether the impact of tariffs is seen as a worthwhile disruption or a threat to economic stability, all companies will need to address the likely impact on supply chain cost increases, pricing increases, changes and decline in consumer demand and other impacts. From a communications perspective, these 90 days are not a pause but rather a prompt to prepare for ongoing tariff news cycles that will need deeper and different strategic approaches.

What are three things all companies should do?

  • Partner with policy, investor relations, supply chain and marketing teams to frame your exposure and the fundamentals to manage it. Consider not just what works right now, but what may be needed in the context of concurrent economic contraction. To instill investor confidence, what must be clear is your company’s unique ability to manage volatility and long-term uncertainty. A key outcome is a succinct point of view that differentiates you from competitors, allowing you to frame future conversations around your strengths versus reacting to the media spin cycle of new developments and analysis
  • Align on the executive team’s risk tolerance. Knowing where key lines are will enable quick decision making and clear communications of those decisions.
  • Remember that perception is fact. The cadence, tone of voice and channel of any proactive communication—or lack thereof—is what stakeholders will remember than any one fact or metric. And perception of who is best prepared can change in an instant—so be vigilant about tracking not just tariffs, but your competitive set’s response and positioning.

What mistakes could be made by companies?

  • Misinterpreting silence from supply chain partners as preparedness. Value chain partners are also reacting to real-time changes and may lack the clarity needed to make significant go-forward decisions. Every organization needs to scenario plan around what may happen to their partners up and down their value chain and be prepared for how partners’ actions may impact your business.
  • Ignoring key stakeholder groups. While shareholders, suppliers and customers are top of mind, employees are experiencing this pause as part of the company and as consumers and need to hear from the organization. Don’t neglect internal communications over the next 90 days but remember that anything shared with employees is likely to leak, so keep your messaging transparent, yet tight.
  • Rely solely on an outside organization. Trade organizations galvanize industries in turbulent situations, but to leverage their influence, your company first needs to determine and then communicate the specific positions that are best for you.
  • Viewing communications through a US or market-specific lens: Remember that anything communicated in U.S. media will quickly reach your international markets and employees – and vice versa. Any messages about potential onshoring or other supply chain changes will be received differently overseas and must be approached with sensitivity to local stakeholder concerns. Similarly, any comments made by international leadership will be cited by domestic outlets, dictating the need for careful coordination and tight spokesperson control.

What else should we be watching for?

  • Retaliatory actions from trade partners. The landscape of both tariff and non-tariff retaliatory action continues to evolve with every new U.S. action. In the shortest term, staying apprised of developments from China matters for nearly every company and sector.
  • Supply Chain Shocks. From potentially empty shelves to financially challenged suppliers, media will be eager to highlight signals of greater impact.
  • Earnings reports—both in and outside your sector. The expectation is these now increasingly closely watched presentations will not share nitty gritty details—leading global companies have already noted it is not possible to share full details of go-forward plans and many have pulled guidance. But questions from your suppliers and customers about the projected strength of their business will be key to framing your company’s report.
  • Broader Administration actions. With the Trump Cabinet fully in place, broader policy agendas will be taking shape during this window and could culminate in a period of even greater change and communications challenges.
  • Pro- and Anti-American sentiments. Brands and businesses have the potential to be pulled into conversations, “Buy American” promotions and/or boycotts.

Your company’s best response sits at the intersection of your operational insulation, current public profile and the tariff world order at that exact moment. Internal—but also external—decisions will impact your organization far beyond 2025.

Using these 90 days for readiness instead of rest will prepare you for these next three months and beyond.

Article

The Transatlantic Toll: U.S.-EU Pharma at Risk Under Trump’s Tariffs

March 11, 2025
By Emma Cracknell

Since taking office, President Trump has prioritized tariffs as a key element of his trade policy, aiming to protect domestic industries, address trade imbalances and enhance U.S. negotiating power. As his approach shifts from country-specific tariffs to broader industry targets, he has signaled plans to impose 25% tariffs on automobiles and similar duties on key sectors as early as April 2, creating potential economic uncertainty for industries like pharmaceuticals. These tariffs are designed to support reshoring with the aim of creating jobs, strengthening domestic industries and reducing reliance on foreign supply chains. As the administration states: “The goal is to ensure that American workers and companies are on a level playing field, and to bring critical industries back to the United States enhancing national security and economic stability.” However, while such efforts aim to boost U.S. industry, these policies could also have significant implications for the health and life sciences sector, potentially driving up costs, disrupting supply chains and altering pharmaceutical trade dynamics between the United States, Europe and China. The question remains: what impact will this have on the availability, affordability and innovation of medicines in both the United States and Europe?

The U.S. reliance on global pharmaceutical supply chains

The U.S. administration’s push to reshore manufacturing has raised questions about potential impacts on the health and life sciences industries, which rely on global supply chains. In 2023, the United States became the world’s largest pharmaceutical importer, bringing in $170 billion worth of products. This included sourcing 80% of active pharmaceutical ingredients (APIs), primarily from China and India, as well as from the European Union (EU). In 2024, pharmaceuticals were the top U.S. import from the EU, including $127 billion worth of semaglutide, a key ingredient in widely used weight loss medications. The United States also led globally in medical instrument imports, bringing in $37.7 billion worth in 2023, reinforcing its position as the world’s largest importer in this category. Proposed tariffs on these essential imports could have significant implications for the U.S. healthcare system, potentially affecting costs, access and the broader supply chain. As a result, businesses across industries should assess how potential shifts in trade policy may impact their own supply chains and plan accordingly to mitigate risks and maintain stability.

The proposed tariffs are likely to raise domestic costs, forcing companies to either absorb import costs or pass them on to payers and consumers, potentially affecting the affordability of essential medications and healthcare services. This could place additional financial pressure on patients and providers, exacerbating access challenges.

Tariffs could also disrupt clinical research by driving up costs for investigational drugs and medical equipment, prompting companies to shift trials to more cost-effective regions or alternative supply sources. This could lead to delays in drug development, slower innovation and setbacks in addressing unmet medical needs. Additionally, relocating trials to regions with differing regulatory standards may raise concerns about treatment quality and safety, potentially eroding patient trust in new therapies. To navigate these challenges, global operations must assess the impact on supply chains, research processes and market strategies while ensuring compliance across multiple regions.

The medtech industry, heavily reliant on international materials and assembly, faces similar risks. Industry groups like AdvaMed warn that tariffs could disrupt supply chains, drive up manufacturing costs, and slow R&D investment, delaying the development of critical technologies. Higher production costs could also be passed on to payers and patients, worsening affordability and creating potential shortages of essential products.

Ultimately, companies across all sectors may need to reduce staff or adjust operations to offset rising costs, potentially weakening global competitiveness. Industry leaders must proactively evaluate these risks and develop strategies to sustain innovation, manage supply chains and maintain operational efficiency.

While the BIOSECURE Act encourages a shift away from reliance on China, reshoring U.S. pharmaceutical production presents significant challenges due to limited domestic manufacturing capacity and the industry’s ongoing dependence on global supply chains. Such a shift could offer opportunities for economic growth, including job creation and increased investment in U.S.-based manufacturing. Still, the full impact of these changes remains uncertain, especially as businesses across sectors must carefully evaluate the implications of this potential shift on supply chains, costs and long-term innovation. These evaluations should be done through comprehensive risk assessments, considering factors such as market stability, geopolitical influences, cost-effectiveness and the availability of skilled labor, to ensure strategic decisions align with both short-term and long-term objectives.

The EU’s struggle for competitiveness and strategic autonomy

On the other side of the Atlantic, Europe is pursuing its own competitiveness and strategic autonomy agenda as it grapples with the economic fallout from the pandemic and geopolitical instability. Pharmaceuticals were designated as a strategic sector for EU economic growth in the hailed 2024 Mario Draghi report on the future of European competitiveness and key initiatives such as the Critical Medicines Act reflect efforts to strengthen the European pharmaceutical sector and its global standing.

Sweeping U.S. tariffs on the sector threaten to derail these ambitions, with Member States such as Belgium, Germany, Denmark and Ireland more vulnerable than others. In the first 10 months of 2024, Belgium exported over $73 billion of pharma products of which 25% went to the United States, and the pharma industry accounts for 15% of total Belgian exports. In Ireland, pharmaceuticals accounted for 55% of total exports in 2022, with 35% destined for the United States, making the sector one of the largest contributors to national GDP. Increased tariffs could force European manufacturers to absorb higher costs or cut margins and even question future investment decisions on the continent. While the EU prepares a potential response, the timing of this presents a major challenge for Europe’s pharmaceutical industry, already facing regulatory uncertainty under the EU’s General Pharmaceutical Legislation (GPL) revision. Proposed cuts to regulatory data protection (RDP), alongside tariff threats, further risk undermining Europe’s competitiveness and contradicting its life sciences ambitions. At a time of geopolitical instability, weakening RDP could make innovation models unsustainable, driving investment and R&D elsewhere. With GPL negotiations ongoing, there is still a window for industry to reframe the conversation highlighting how geopolitical shifts are further threatening its competitiveness and how Europe should be and how Europe should be pushing for policies that both strengthen Europe’s innovation ecosystem while reinforcing its commitment to strategic autonomy.

The transatlantic toll and considerations for sector response

The proposed tariffs on EU pharmaceuticals present significant challenges for the pharmaceutical industry, with far-reaching implications on both sides of the Atlantic. Effective communication will be crucial to mitigate risks, protect interests and maintain strong stakeholder relationships. As pharmaceutical companies navigate this evolving policy landscape, here are key recommendations for effective communications and government affairs engagement in this dynamic environment:

  • Proactively manage expectations on both costs and supply chain disruptions: Companies should transparently communicate the potential impacts of rising import costs, particularly in the United States, which could lead to higher medicine prices. Clearly communicate the factors driving these changes and how they might affect patients, payers and healthcare providers. Similarly, companies facing supply chain challenges should provide timely updates on delays, shortages, and potential risks while emphasizing efforts to minimize disruptions and maintain access to essential medicines, reinforcing the company’s dedication to affordability. This could include plans to diversify partnerships or adjusting strategies to minimize disruptions and continue serving the market effectively. A proactive and transparent communication strategy mitigates uncertainty, and fosters trust by showcasing accountability and a commitment to long-term resilience.
  • Engage key stakeholders with targeted and nuanced messaging: For both U.S. and European companies, it is essential to communicate directly with key stakeholders, including policymakers, to ensure clarity and consistency in messaging. Establish a clear, data-driven narrative about the impact of tariffs on the industry, focusing on the challenges and potential consequences for patients, payers and healthcare providers. By aligning to the political landscape and tailoring messages for specific audiences, alongside utilizing diverse communication channels, companies can ensure their concerns are heard and their position is clearly understood. A stakeholder audit can help to assess how tariffs impact different groups, their current beliefs, and which messages will resonate. Direct engagement, trade associations and public communications each carry different reputational risks and opportunities. A well-balanced approach ensures concerns are addressed while maintaining credibility and trust across diverse audiences.
  • Mitigate risk through the integration of external communications functions: To effectively mitigate risks, government affairs should be integrated into broader external communications strategy. A cohesive, cross-functional approach ensures that policy engagement aligns with the company’s public messaging, leveraging insights from corporate affairs, public relations, and legal teams. By unifying these efforts, companies can clearly communicate potential risks and impacts to external stakeholders, such as regulators, investors, customers, and the media. This integration allows for consistent, transparent messaging across all external channels, grounded in credible data, and reinforces the company’s position on key issues, helping to manage public perception and minimize reputational risks.
  • Embed government affairs insights into business strategy: Pharmaceutical companies should ensure government affairs teams are a core business function, and not just a regulatory or communications tool. Government Affairs teams provide critical intelligence on legislative developments, policy trends and economic shifts that directly impact market access, pricing, and supply chains. By embedding these insights into commercial strategy and risk planning, companies can anticipate disruptions, adapt business models, and stay ahead of regulatory challenges. Establishing early warning systems, including through tracking domestic and global legislative developments, trade barriers, and evolving public sentiment, allows the business to make informed decisions rather than reacting to crises. A proactive, government affairs-informed business strategy ensures resilience in an unpredictable policy environment and strengthens long-term growth.

By adopting a proactive, transparent and coordinated communications and government affairs strategy, companies can navigate the uncertainties of proposed tariffs, mitigate risks and maintain strong relationships with both internal and external stakeholders. These steps will help organizations remain agile, protect their interests and ensure long-term resilience in a rapidly changing global environment.

The supply chain could be effected by Trump administration tariffs.