Pharma companies just filed a legal petition to stop the FDA from publishing drug rejection letters. A read of the ones already out shows why access to them matters for smaller companies that cannot afford their own regulatory teams.
A coalition of pharmaceutical companies filed a citizen petition with the FDA on Wednesday asking the agency to halt its new practice of releasing Complete Response Letters (the letters the FDA sends when it refuses to approve a drug), arguing the policy bypassed required public comment periods and violated rules protecting confidential commercial information, Endpoints News reported. This is the first organized legal challenge to Commissioner Marty Makary's transparency initiative, which his office said would help smaller drug developers learn from each other's mistakes.
But there is a more immediate question, and it can be answered by reading the letters that are already public: are they actually useful, or are they mostly blacked out?
Arnold & Porter, a firm that represents large pharma clients, reviewed the batch the FDA released last year. Their finding: nearly every letter cited manufacturing or compliance deficiencies as one of the agency's concerns. That sounds vague, but the distinction matters. A letter that flags a manufacturing problem tells you the failure was not about whether your drug works — it was about whether the factory passed inspection. A letter that flags a compliance problem tells you something was wrong with how your clinical trial was run. These are completely different problems requiring completely different fixes, and a startup that knows which one to look for has a better chance of not making the same mistake twice.
The redactions are real. Arnold & Porter noted that the letters "were not always consistently redacted," and some still reflected information the agency was supposed to protect. Sidley Austin, another major pharmaceutical law firm, separately noted that the FDA's redaction capacity had been "significantly affected by reductions in force at the Agency."
The legal argument is procedural, not substantive. The coalition's core claim is that the FDA sidestepped required public comment periods and may have overreleased confidential commercial information. Arnold & Porter had already warned in September that a court challenge was "only a matter of time." The letters' content is not the pharma industry's target — the policy is.
This is where the asymmetry bites hardest. Large pharmaceutical companies have regulatory affairs teams, in-house counsel, and consultants who navigate FDA interactions as a core business function. For them, public letters are context. For a startup that has never run an FDA submission before and cannot afford a team of regulatory specialists, the letters used to be the only way to learn what failure looks like from the inside.
"If you can't afford a team of FDA lawyers, you used to be able to read everyone else's rejection letters," said a regulatory consultant who advises smaller biotech companies, speaking without attribution because their clients also have relationships with large pharma. "Now that door is closing."
The FDA's policy was itself a response to a White House directive on government transparency. The agency released hundreds of previously unpublished letters in batches last year, with a promise to publish going forward.
What happens next depends on courts and on the agency's willingness to defend the policy under challenge. The letters that are already public remain available for now. Whether they stay that way is the practical question.