The proposed 25% tariff on pharmaceutical APIs from China could have far-reaching effects on M&A transactions within the life sciences and healthcare industries. Since a significant portion of pharmaceutical raw materials originate in China, companies may face increased costs not only in sourcing but also in sales, as Canada considers imposing its own tariffs. This could disrupt global supply chains, making due diligence even more critical for buyers evaluating international pharmaceutical and biotech companies. Traditionally, M&A analysis focuses on vendor agreements, but in light of these tariffs, companies must now assess the entire supply chain—including alternative sourcing options, regulatory approvals for suppliers, and potential delays in manufacturing. Some predict this will drive more companies to acquire U.S.-based API manufacturers to reduce dependency on foreign supply chains, especially if domestic tax incentives, such as potential Trump-era tax cuts, make U.S.-based production more attractive. If these factors align, the industry could see a shift toward reshoring pharmaceutical manufacturing and a surge in domestic M&A transactions as companies adapt to a changing trade landscape.

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In this discussion, Edye Edens and Helen Maurer dive into the critical topic of data privacy and security in clinical research, particularly in light of potential federal oversight. Helen, an expert in compliance and quality assurance within oncology research, emphasizes the need for clinical trial sites—especially those at major academic medical centers—to understand whether their privacy regulations fall under state or federal jurisdiction. They explore hypothetical scenarios where federal agencies or other entities might request access to clinical trial data, questioning the potential motivations behind such requests, including public health initiatives or policy changes. Edye and Helen stress the importance of ensuring that participant data remains protected, that any data-sharing aligns with consent agreements, and that institutions are prepared to navigate these complex regulatory challenges. Given the rapidly shifting legal landscape, they highlight the need for vigilance and proactive compliance strategies to safeguard sensitive healthcare data.

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Stephanie Trunk and Darshan Kulkarni discuss the evolving landscape of the pharmaceutical industry under the Trump Administration in 2025. They highlight the uncertainty surrounding regulatory changes, particularly with new leadership at the FDA, CMS, and HHS (with RFK confirmed). There is concern over shifting prosecutorial priorities, overturned FDA diversity initiatives, and potential scrutiny of diversity efforts in private companies.

A major focus is the changing environment of off-label marketing, where reliance on FDA guidances is being replaced by stricter adherence to statutory regulations due to court rulings like Coronia and Loper Bright. This shift creates uncertainty for regulated industries, as enforcement becomes less predictable.

Key Topics Discussed:

Off-Label Promotion & Enforcement:

• Off-label use is legal, but off-label promotion remains a complex issue.
• Enforcement is increasingly driven by the False Claims Act, with oversight from multiple agencies (FDA, FTC, DOJ, OIG, CMS).
• The blurring of lines between medical and sales functions is a growing concern, especially with AI chatbots playing a role in medical communications.

Compounding & the GLP-1 Market:

• The discussion explores drug compounding, particularly regarding GLP-1 weight loss medications.
• Regulatory challenges stem from drug shortages, compounding rules, and market competition, with potential Lanham Act violations and unfair competition claims.
• The Inflation Reduction Act and its implications for drug shortages and penalties are also considered.

Key Compliance Considerations:

• Maintaining clear separation between sales and medical functions.
• Ensuring compliance with FDA promotional material regulations.
• Managing risks related to AI chatbots and speaker programs.
• Implementing robust compliance programs in line with DOJ, OIG, and FDA guidelines.
• Understanding the growing role of state attorneys general and competitor-driven enforcement actions.

The overall sentiment reflects industry uncertainty as pharmaceutical companies navigate regulatory and legal shifts in this new landscape.

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