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FDA Targets Gene Editing Clinical Trials in China and other “Hostile Countries”

Client Alert | 3 min read | 06.26.25

In a somewhat ambiguous press release on Wednesday, June 18, 2025, the Food and Drug Administration (FDA) announced a halt and “immediate review” of new clinical trials where American patients’ cells are sent to China or other “hostile countries” for genetic engineering with the expectation that the cells will be infused back into U.S. patients.[1] A subsequent podcast published by the agency also said that therapies that involved cells that were sent to China for genetic engineering and intended for subsequent infusion into U.S. patients would not be approved going forward. The announcement said that there is “mounting evidence” that some clinical researchers failed to obtain informed consent from trial participants about the international transfer and manipulation of biological material.

In the announcement, FDA blames the Department of Justice (DOJ) bulk data rule finalized in the last months of the Biden Administration for allowing cells to be sent to China and other countries in FDA-regulated clinical trials. The DOJ rule prohibited and restricted certain transactions involving sensitive personal data, including health data, biometric data, and human genomic data, but allowed transactions that are part of FDA-regulated clinical investigations to move forward. Now calling this a “sweeping exemption” from a rule that was only recently implemented, FDA is using its clinical trial regulatory authority to add restrictions to those clinical trials that are exempt from the DOJ rule.

Specifically, FDA is “actively reviewing all relevant clinical trials that relied on this exemption and will require companies to demonstrate full transparency, ethical consent, and domestic handling of sensitive biological materials. New trials that cannot meet these standards will not proceed.” The announcement said that “additional enforcement and policy measures could be forthcoming.”

On an edition of the FDA Direct podcast published on June 19, 2025, Commissioner Martin Makary provided further detail on the announcement, saying that FDA would like to see clinical trials for gene editing done in the United States or in countries friendly to the United States, and FDA is “not going to approve any more of these gene therapies of American patients, that is, their cells, in China . . . from this point forward.” Commissioner Makary also seemed to open the door to the policy changing in the future, saying that it is “most likely that there is nothing nefarious going on” with gene editing of cells of American patients in China, and moving forward, the Center for Biologics Evaluation and Research would take steps to ensure “informed consent is accurate.”

Currently, the scope of the FDA’s policy on this matter remains unclear. For example, it is unclear how the policy will affect ongoing trials, to the extent they exist. Additionally, questions remain about the informed consent policies that have not yet been announced, including what an informed consent form must say in order to properly inform the patient, whether a patient whose cells have already been sent to China must re-consent to the transfer of their cells outside the US for genetic engineering, or whether the FDA deny approvals of therapies where the study is completed, if the agency determines appropriate informed consent was obtained.  

Stakeholders engaged in genetic engineering research or in transactions related to such research should review informed consent templates and the procedures around sending cells outside the US and monitor further announcements of policy from FDA and other federal regulatory agencies, especially if such research is conducted in whole or in part abroad.

 

[1] While “hostile countries” is not defined in the announcement, the Department of Justice has separately identified China, Russia, Iran, North Korea, Cuba, and Venezuela as “countries of concern” in its bulk data rule. 28 C.F.R. § 202.601.

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Client Alert | 4 min read | 08.07.25

File First, Facts Later? Eleventh Circuit Says That Discovery Can Inform False Claims Act Allegations in Amended Complaints

On July 25, 2025, the Eleventh Circuit Court of Appeals issued its decision in United States ex. rel. Sedona Partners LLC v. Able Moving & Storage Inc. et al., holding that a district court cannot ignore new factual allegations included in an amended complaint filed by a False Claims Act qui tam relator based on the fact that those additional facts were learned in discovery, even while a motion to dismiss for failure to comply with the heightened pleading standard under Federal Rule of Civil Procedure 9(b) is pending.  Under Rule 9(b), allegations of fraud typically must include factual support showing the who, what, where, why, and how of the fraud to survive a defendant’s motion to dismiss.  And while that standard has not changed, Sedona gives room for a relator to file first and seek out discovery in order to amend an otherwise deficient complaint and survive a motion to dismiss, at least in the Eleventh Circuit.  Importantly, however, the Eleventh Circuit clarified that a district court retains the discretion to dismiss a relator’s complaint before or after discovery has begun, meaning that district courts are not required to permit discovery at the pleading stage.  Nevertheless, the Sedona decision is an about-face from precedent in the Eleventh Circuit, and many other circuits, where, historically, facts learned during discovery could not be used to circumvent Rule 9(b) by bolstering a relator’s factual allegations while a motion to dismiss was pending.  While the long-term effects of the decision remain to be seen, in the short term the decision may encourage relators to engage in early discovery in hopes of learning facts that they can use to survive otherwise meritorious motions to dismiss....