Good News on the Horizon for Pharmaceuticals

Implications: The decision on medical devices is good news for pharmaceuticals. If medicines get the same protection -- it could bode well -- for reasons beyond the obvious.

Analysis: In a sister case to be heard in March, drug companies could get the same protection the device makers just got -- namely, FDA approval would prevent plaintiffs from relying on state laws to sue manufacturers.

While the drug case is not exactly the same on all points as the device case, I wouldn't want to have to explain to the court why their recent arguments shouldn't apply to the case at hand.

Obviously, if drug makers could simply state that their drugs were approved by the FDA and therefore not  be subject to stricter state standards, they'd be protected from many lawsuits.


But the implications for the drug makers could be further reaching. Blessed with more product liability predictability, they'd be freed up to invest more in researching new drugs, knowing the FDA approval grants them a level of protection against litigation -- an assurance not existing earlier. With one of the major risks of developing new drugs minimized, look for increased investment.