Lori Ellis Head of Insights | Biospace
+ Pharmaceuticals
Patient Daily | Jul 6, 2026

Biotech leaders urge FDA to modernize regulatory approach amid shift of early trials overseas

The Food and Drug Administration is facing calls to modernize its regulatory framework as an increasing number of biotech companies choose to conduct first-in-human clinical trials outside the United States, according to a July 6 article by the CEO and president of MassBio. The author said that during a recent meeting with ten biotech executives, none were running their initial human studies in the U.S., highlighting concerns about the current system.

The article attributes this trend to outdated FDA processes that do not adequately address the needs of smaller, early-stage biotechnology firms. "One of the main drivers of this change is that the FDA was built for a different era and type of drug development," the author said. The piece argues that while large pharmaceutical companies may fit into existing frameworks, leaner biotechs face challenges due to limited resources and less predictable timelines.

Vacancies at key positions within the agency, including commissioner and director roles at critical centers, are cited as reasons for slow progress in adapting regulations. The author called on new leadership at the FDA to prioritize transparency and clear guidance tailored specifically for biotech firms: "It must prioritize transparency, clear guidance and regulatory processes that reflect how drug development happens today."

Recent initiatives such as Operation TrialBlazer—a joint effort between the FDA and Department of Health and Human Services—have introduced measures like clearer Phase 1 requirements, streamlined pre–Investigational New Drug pathways, sponsor resources, a new contact center for Phase 1 inquiries, and an expedited IND pilot program. However, industry leaders say these steps fall short without permanent policy changes or dedicated functions within the agency focused on emerging biotechs.

A MassBio survey referenced in the article found that 55% of respondents considered written feedback from FDA ambiguous or confusing; only 22% reported receiving face-to-face meetings with minutes when requesting meetings over five years. Countries such as China—which reportedly offers trial timelines up to 70% faster than other regions—and Australia are becoming more attractive destinations for early-stage research due to their clearer communication channels and more predictable review processes.

The author concluded by emphasizing that U.S.-based science retains its competitive edge but risks losing ground if regulatory hurdles persist: "Get the regulatory environment right by delivering speed, clarity and engagement...and the strongest reason to look anywhere but here disappears."

Organizations in this story