When Siren Biotechnology CEO Nicole Paulk learned last month that top FDA official Peter Marks had
resigned
, she began looking outside the US for a place to host a planned clinical trial.
The US has traditionally attracted drug studies with its robust infrastructure, diverse patient population and a smoother regulatory path to the world’s largest pharmaceutical market. But growing uncertainty over the FDA’s timelines and approval processes appears to be accelerating an existing paradigm: US drugmakers testing their drugs abroad.
That follows the Trump administration’s cuts to the FDA and the departure of high-profile officials like Marks, who cited vaccine misinformation promoted by HHS Secretary Robert F. Kennedy Jr. in his resignation letter. Although best known for regulating vaccines, Marks also oversaw the review of cell and gene therapies.
San Francisco-based Siren, which developed a gene therapy targeting aggressive brain cancers, has been pursuing FDA approval to start human testing in the US. But after Marks’ departure, the company is considering Canada for what could be a more predictable regulatory environment.
“If I knew the FDA’s position definitively on certain regulatory pathways, that would be very different. But you can’t put all your eggs in one basket,” Paulk said.
In a statement forwarded by a spokesperson, the FDA said “companies can remain confident in the strength, stability, and reliability of the FDA’s regulatory processes,” and that the agency is “not seeing any interruption in core program functions.”
Likewise, some companies say that the FDA’s engagement has not fallen by the wayside,
including vaccine maker GSK
.
FDA Commissioner Marty Makary meanwhile has vowed to
accelerate approvals for rare disease therapies
, reduce animal testing requirements and streamline development timelines. For companies, his words are promising but only aspirational at this point.
“Since we are in the ultra-rare disease space, Makary’s words on creating paths for rare [diseases] creates hope, and we are looking forward to learning more about his plans,” Mahzi Therapeutics CEO Yael Weiss said.
Mahzi, which is working on treatments for rare neurodevelopmental disorders, plans to seek regulatory approval to launch a clinical trial for a therapy targeting Pitt-Hopkins syndrome that causes developmental delays.
The San Francisco company is exploring options abroad, in hopes of starting the study faster and due to “regulatory review timeline uncertainties,” Weiss said.
Fears over regulatory delays grew even more real on Tuesday, when
Stealth Therapeutics said the
FDA would not meet its deadline for approving or rejecting the company’s rare disease drug.
A person familiar with the situation said the company hadn’t been asked to run more trials or provide more data, that the FDA hadn’t identified any safety concerns, and that the agency hadn’t raised manufacturing issues — typical reasons for why it might reject a drug,
Endpoints News
reported.
Camille Samuels, who sits on various biotech boards, said that several companies she advises were already looking at the UK and Australia for early-stage studies, and that “the disaster that is the FDA only heightens the desire to explore that option.”
While an inviting concept now, experts urge companies not to make hasty decisions in case regulatory headwinds dissipate.
“My personal counsel, if someone did call me with that request, would be to just sit down, chill out and make a coffee,” said Anthony Davies, CEO of Dark Horse Consulting, which advises cell and gene therapy companies.
There are signs that the portion of clinical trials in the US is declining.
According to data
from the World Health Organization, about 20% of trials were conducted at least in part in the US in 2015. That percentage has declined over the last decade, to about 15%, as countries such as China and India have taken more share.
With confidence in the FDA wavering, countries across the world are stepping up campaigns to attract clinical trials that bring in billions in research funding, create jobs and support biotech hubs.
“While much public attention has focused on efforts to lure disillusioned US scientists, you could say similar initiatives exist to attract clinical trial activities,” said Aman Khera, a consultant and president of The Organisation for Professionals in Regulatory Affairs.
Even before the Trump administration, some US companies said that FDA bureaucracy and regulatory hurdles have enticed companies to go abroad for clinical trials. It can be less expensive and quicker to start testing drugs elsewhere.
Much of the recent interest in foreign clinical trial sites is coming from small to mid-sized biotech companies that face budget pressures due to an industry downturn. But even large pharma companies — which have long run multinational studies to obtain regulatory clearance in multiple regions — are looking to increase their international capacity, according to consultants.
Many companies are “showing interest in or have already taken steps to move clinical trials overseas” in response to the FDA reorganization, Khera said.
QurAlis, a Cambridge, MA-based company developing drugs for neurodegenerative diseases, was looking to run a Phase 2 clinical trial for an undisclosed program only in the US. But after FDA layoffs were announced, the company is now pursuing a multinational approach.
“There is a reorganization ongoing, and that has an impact,” QurAlis CEO Kasper Roet said. “And the impact at the very least builds in uncertainty.”
To some extent, international trials are more feasible because agencies in Europe, Canada, Australia and the UK have worked in recent years to harmonize guidelines with the FDA, whose decisions carry outsized weight globally
.
Still, overseas trials have limitations. Data from foreign trials may not always satisfy a common FDA requirement that study data reflect the US population.
Genetic or environmental differences among patient populations can complicate results, and so “running local studies ensures that data reflects the target population’s safety and efficacy outcomes,” Khera said.
For that reason, companies have incentive to run at least a portion of the studies for a drug in the US.