In our blog in December 2024, we provided an update on the U.S. Food and Drug Administration (FDA) final rule, revising the regulatory definition of an in vitro diagnostic (IVD) to explicitly capture IVDs manufactured by laboratories (known as laboratory developed tests or LDTs). We noted that two cases had been filed challenging the FDA’s authority to regulate LDTs.

On March 31, 2025, the Eastern District of Texas granted the laboratory plaintiffs’ motions for summary judgment and vacated the FDA’s LDT Final Rule, ruling in favor of the American Clinical Laboratory Association (ACLA) and the Association for Molecular Pathology (AMP). The ruling was widely anticipated and is among the first challenges to FDA rulemaking decided post-Loper Bright. In rejecting the final rule, the court agreed with ACLA and AMP that laboratory-developed tests are services, not devices.

Read our Advisory for details on this ruling.

The Association of the British Pharmaceutical Industry (ABPI) has published a report (the Report) setting out its members’ concerns regarding the operation of the 2024 Voluntary Scheme for Branded Medicines Pricing, Access and Growth (VPAG).

VPAG is an agreement between the Department of Health and Social Care (DHSC), NHS England and ABPI, which came into effect on 1 January 2024.  It is the latest in a series of voluntary schemes, intended to manage NHS expenditure on branded health service medicines and operates by controlling prices, limiting profits and, importantly, by imposing a requirement for scheme members to make repayments to Government, reflecting NHS expenditure on medicines in excess of permitted growth and calculated as a percentage of eligible sales.  A key driver for changes introduced in VPAG was recognition that the level of repayments under the previous scheme had become unsustainably high (21.2% in 2023).  Therefore, while industry accepted what is described in the Report as an “exceptionally tough deal” this was in the expectation that the new scheme would, over time, bring repayment rates for newer medicines down to below 10%, consistent with the position up until 2021. However, while the repayment rate for newer medicines was set at 15.1% in the first year of VPAG, the rate for 2025 is 22.9% (with an additional 0.6% payable under an investment programme). The Report describes rates of this magnitude as “unsustainable”.

The Report analyses the reasons that repayment rates for newer medicines have ended up so much higher than predicted under VPAG, and calls for the Government to work with industry on its proposed solutions. It also sets out the consequences of requiring industry to pay such high repayments rates, including worse access to medicines for UK patients and lower investment by industry in the UK.

Continue Reading ABPI calls for changes to “unsustainable” medicines pricing scheme

On February 24, 2025, new rules came into force in the UK transforming the public procurement landscape. The new regime aims to provide a simplified and flexible framework for contracting authorities when conducting procurement processes, including the purchase of medicinal products by the National Health Service (NHS).

Under the new Act, a number of elements of the procurement processes have changed, and we set out the background in our previous post. For tenderers, the changes are mainly procedural, including the framework for the tender process and the timelines, rather than fundamental changes to how the procurement will operate. Nevertheless, it is important to take note of the new procedures. We set out some of the key aspects in our Advisory.

Continue Reading UK Public Procurement Landscape Transformed: What Does It Mean for Medicines?

Welcome to the latest installment of Arnold & Porter’s Virtual and Digital Health Digest. This digest covers key virtual and digital health regulatory and public policy developments during February and early March 2025 from the United States, United Kingdom, and European Union.

Artificial intelligence (AI) has been the focus this month, with certain aspects of the EU AI Act now in force and key guidance being published by the European Commission. In addition, the much criticized AI Liability Directive has been withdrawn by the European Commission. In the UK, the UK government published its AI Action Plan setting out its proportionate, flexible regulatory approach towards AI, and the Medicines and Healthcare products Regulatory Agency (MHRA) hosted an Innovation Showcase demonstrating how it is using digital technologies and AI throughout the regulatory lifecycle.

Continue Reading Virtual and Digital Health Digest – March 2025

We recently published this Advisory for our US clients, but thought it may be a useful reminder for UK and EU teams given the number of updates in this area.

We are sure that you are aware that the European Union (EU) medical devices framework has been subject to significant changes over recent years. However, implementation of the new rules has been problematic since the beginning, as both the industry and the EU institutions, national authorities, and notified bodies have found it difficult to adapt to the stricter and demanding new legal requirements. There are ongoing delays in companies obtaining CE marks under the new regime, criticism that the rules are stifling innovation, and concerns about the impact on patients.

Given the calls for change, criticism, and ongoing consultations, this Advisory sets out the current status of developments and what is important to know when seeking to do business in the EU.

Continue Reading EU Medical Devices Legislation: What You Need To Know Given Latest Developments and Ongoing Challenges

UK Prime Minister Kier Starmer announced yesterday that NHS England will be abolished to “cut bureaucracy” and bring management of England’s health service “back into democratic control”. NHS England will be brought back into the Department of Health and Social Care (DHSC) over the next two years.

The Government aims to remove a “burdensome layer of bureaucracy” and “put an end to the duplication resulting from 2 organisations doing the same job”. In doing so, the intention is to save hundreds of millions of pounds, enabling funds to be channelled towards enhancing patient care, reducing waiting lists and increasing staff salaries.  However, exactly how this will be done and what impact this will have on patients, staff and the many partners of the NHS in England, including pharmaceutical companies, is not yet known.

Continue Reading UK Prime Minister Announces that NHS England will be abolished

The ICO recently announced its plan to bring the UK’s top 1,000 websites into compliance with applicable data protection law, in relation to their use of cookies. At the time of the announcement, the ICO had already checked 200 websites, and communicated its concerns to 134 of their operators. This suggests a prevalence of non-compliant cookies use. 

The ICO has not publicly confirmed which are the top 1,000 UK websites, but it would be prudent to assume that life sciences companies will appear on the list. At the same time, privacy rights group NOYB (which was responsible for the demise of the Safe Harbor and the Privacy Shield) views non-compliant website cookies as a serious concern, and uses automated mass website scanning to call them out. As a result, there is currently a real possibility of non-compliant website cookies becoming the subject of a complaint. For life sciences businesses, the risk is exacerbated since tracking website visitors may reveal sensitive information about their health, and we would advise companies to review their use of cookies across their websites to ensure that they comply with applicable legislation.

You can read more in our recent advisory.

On 11 March 2025, the European Commission published a proposal for a Critical Medicines Act (CMA).

The CMA introduces measures to improve the security of supply chains and availability of critical medicinal products and medicinal products of common interest in the European Union (EU). Some of the proposed measures directly affect Life Sciences companies, while other measures targeting the EU Member States can have a significant indirect impact on Life Sciences companies.

Continue Reading European Commission Publishes Proposal for EU Critical Medicines Act

On 6 February 2025, EU Member States announced the launch of a new pilot scheme for coordinated assessment of clinical investigations of medical devices (CI) and performance studies for in vitro diagnostic (IVD) medical devices (PS). Supported by the European Commission, the pilot allows sponsors to submit a single CI or PS application for review across multiple Member States, rather than each Member State conducting independent standalone reviews. The pilot scheme aims to make the application process for multi-national CI and PS more efficient and to reduce the duplication of activities by both the sponsor and competent authorities. As this has been a major cause of delays and complications in conducting CIs, this pilot will be welcomed by industry.

Continue Reading EU announces pilot coordinated assessment for clinical investigations of medical devices

On 5 March 2025, Regulation 2025/327 (EHDS Regulation), creating a European Health Data Space (EHDS), was published in the European Union Official Journal (EU Official Journal), marking the end of the legislative process of the EHDS Regulation.

As set out in a previous blog, the EHDS Regulation allows Life Sciences companies to apply for access to health data for secondary use while requiring them to share certain health data when acting as data holders.

The EHDS Regulation will become law on March 25, 2025, 20 days after its publication in the EU Official Journal.

For details on the key elements of the EHDS Regulation for Life Sciences companies, see our Advisory here.