Congressional Report Critical of FDA Enforcement Protocol
Client Alert | 1 min read | 06.20.12
On June 15th, 2012, the U.S. House Committee on Oversight and Government Reform, led by Chairman Darrel Issa, released a sharply worded staff report entitled "FDA's Contribution to the Drug Shortage Crisis." The report's harsh criticism of FDA, which comes on the heels of an Executive Order, Government Accounting Office report, FDA draft Guidance, and proposed legislation that all address the growing problem of drug shortages, underscores that this topic will continue to be a political hot potato for the foreseeable future.
The House report attributes the rise in drug shortages to caps imposed on drug reimbursements by the Medicare Modernization Act, signed into law in 2003 by President Bush, and FDA's more aggressive enforcement posture toward drug manufacturers, particularly manufacturers of generic injectable medications. It finds that such manufacturers, undertaking efforts to upgrade facilities in the face of threatened FDA enforcement actions, have reduced their manufacturing capacity by 30%, thereby restricting the supply of critical cancer and other life-saving drugs. The report criticizes FDA for not taking into account the substantial impact of heightened enforcement activity on the supply of critical drugs.
All drug manufacturers should be aware if drugs in their product portfolio are in shortage or at risk of being in shortage. In addition to possible future reporting obligations, companies should consider what a shortage might mean if confronted with an FDA enforcement action. If the agency moves to take control of compliance problems before shortages becomes acute, manufacturers of drugs in shortage could find themselves targets of even more aggressive enforcement actions. Agency-proposed consent decrees for manufacturers of drugs in shortage could include more onerous terms, requiring disgorgement of profits or compelling manufacturers to prioritize less profitable, or even unprofitable, product lines. Alternatively, manufacturers of drugs in shortage may hold more leverage in negotiations with the agency to limit or even avoid temporary shut-downs.
Given the partisan tone of the report, it is unlikely to have meaningful impact on current FDA enforcement activity. We are advising our clients to continue to be vigilant about their compliance efforts in this environment. We are also developing innovative strategies for responding to FDA concerns that are tailored to the agency's current compliance expectations.
Contacts
Insights
Client Alert | 4 min read | 06.25.26
Twin Executive Orders Seek to Spur Quantum Leap in Technology and Cybersecurity
On June 22, 2026, President Trump signed two executive orders, “Securing the Nation Against Advanced Cryptographic Attacks” (Quantum Security EO) and “Ushering in the Next Frontier of Quantum Innovation” (Quantum Innovation EO), marking the most significant federal action on quantum technology since the Quantum Computing Cybersecurity Preparedness Act of 2022, which directed agencies to harden their information systems against quantum-enabled hacking. The orders seek to speed the development of quantum computers, which are advanced processors that can calculate multiple possibilities simultaneously and thus solve problems exponentially faster than traditional computers. At the same time, the orders look to protect against the danger that quantum technology can “break” traditional encryption by easily decoding it. Of particular note for government contractors, the Quantum Security EO directs agencies to update federal acquisition regulations to require contractors by 2031 to adopt information processing standards that resist quantum-enabled codebreaking.
Client Alert | 7 min read | 06.24.26
Client Alert | 3 min read | 06.24.26
Client Alert | 4 min read | 06.23.26
EPA Hands Over AI Data Center Regulation to States and Communities to Develop Best Practices

