No Final LDT Framework in 2016: FDA Seeks Further Input from Stakeholders, New Administration

The U.S. Food and Drug Administration (FDA) has provided laboratories with some much needed good news—the agency will not finalize its laboratory-developed test (LDT) guidance document before the end of the year. In fact, the FDA confirmed Nov. 18 that it will instead work with the new administration on appropriate reforms to ensure LDTs are safe and effective.

According to a statement from the FDA, which G2 received in response to a request for confirmation of the status of the guidance document:

• "The FDA believes that patients and health care providers need accurate, reliable, and clinically valid tests to make good health care decisions— inaccurate or false test results can harm individual patients. We have been working to develop a new oversight policy for laboratory developed tests, one that balances patient protection with continued access and innovation, and realize just how important it is that we continue to work with stakeholders, our new Administration, and Congress to get our approach right. We plan to outline our view of an appropriate risk-based approach in the near future. It is our hope that such an approach will help guide continued discussions."

Agency representatives had previously indicated an intent to release before the end of 2016 a final version of the draft guidance document released in October 2014. That guidance set forth a framework for FDA oversight of LDTs.

Industry reaction mostly positive
The American Clinical Laboratory Association commended the agency's decision to work with lawmakers on LDT reforms, after having vigorously opposed the draft framework—even hiring high profile legal counsel and issuing a white paper in early 2015 detailing legal arguments against the FDA's authority to impose the framework. ACLA's legal team, former Solicitor General Paul D. Clement, now a partner with Bancroft PLLC, and Laurence H. Tribe, Professor of Constitutional Law at Harvard University, prepared a White Paper asserting that FDA regulation of LDTs is not supported in the language of the Food, Drug & Cosmetic Act (FDCA), the proposed regulation interferes with the practice of medicine, and FDA guidance flouts administrative law requirements for rulemaking.

"We appreciate the FDA's acknowledgment that stakeholder input and the ongoing bipartisan work carried out in the House and Senate is the appropriate process to advance comprehensive statutory reform of the LDT regulatory framework," said ACLA President Alan Mertz in a statement. "Today's announcement by the FDA has paved the way for a transparent discussion on meaningful reform that would protect diagnostic innovation and patient access."

Other laboratory industry stakeholders expressed similar happiness at the delay, as did congressional leaders who had been promoting alternatives to the FDA's framework, including Energy & Commerce Committee Chairman Fred Upton who stated it "was the right call" and imposing regulations "via non-binding guidance documents is not the best approach." He indicated the committee is working on bipartisan solutions and "forging significant consensus among a number of patient groups, labs, and manufacturers around a 21st century approach uniquely designed with all diagnostic tests in mind from the outset."

But not everyone is ecstatic about the delay. Andrew Fish, executive director of AdvaMed Diagnostics, a trade association serving the medical device industry issued a statement indicating that "AdvaMedDx is disappointed that FDA final guidance on LDT oversight is not forthcoming at this time." Echoing Upton's comments, Fish mentioned the need for a broader look at diagnostics oversight as a whole saying AdvaMedDx was "encouraged by congressional interest" in LDT oversight "in the context of broader diagnostics reform legislation." The statement emphasizes the organization's commitment to working with all stakeholders to achieve legislation addressing "risk-based oversight of all diagnostics, including LDTs" and stated it was "imperative that this legislation recognizes FDA's critical oversight role and serves public health and innovation, and we hope FDA will share its current thinking on LDT oversight to help inform the legislative discussion."

Delayed but not forgotten
As can be seen from AdvaMedDx's reaction to the delay, continued conversation is welcomed but concern regarding LDTs isn't going away.

Health care attorney Danielle Sloane, of Bass Berry & Sims in Nashville, commented that "Laboratories are collectively breathing a sigh of relief at the FDA's announcement in conjunction with the knowledge that congressional action is also less likely to come to fruition under the new administration. However, the issues that drew the FDA's concern remain, so I expect to see continued FDA vigilance in the market, particularly with respect to direct-to-consumer marketing of laboratory tests and situations in which the ordering practitioner is affiliated with the performing laboratories."

Highlighting the same concerns Mertz mentions in ACLA's statement, Jen Madsen, MPH, a health policy advisor at Arnold & Porter in Washington, DC, points out that "the FDA's announcement focuses on balancing patient protections and innovation which is really where the sticking point has been in the whole debate." She predicts that if Congress does not pass compromise legislation in the upcoming user fee negotiations in 2017, it could be a significant period of time before a revised regulatory approach emerges, given that it will take some time for the new administration to get people sworn in, including a new HHS Secretary.

"One barrier to congressional action is the lack of consensus in the community" about the right path to regulate LDTs, so the situation "will remain ambiguous for at least a while." Noting various stakeholders favor modernization of CLIA in addition to or in place of heightened FDA involvement in LDT oversight, Madsen adds "the device industry has also been arguing that statutory change is needed" because the FDA's medical device regulatory framework doesn't apply perfectly to diagnostics, she says, "so there are arguments that a different review process is needed for all diagnostics, not just lab tests."

This latest status update regarding FDA efforts is not a vast change from the agency's prior statements other than to step away from its indication it would finalize the framework this year. The expressed intent to work with stakeholders and Congress in addition to the new administration is in keeping with steps outlined in December 2015 by Jeffrey Shuren, director of the FDA's Center for Devices and Radiological Health, at a hearing before the U.S. House of Representatives Energy and Commerce Committee. Shuren indicated then that the agency planned the following steps before finalizing the guidance:

• Coordinate with CMS on laboratory oversight and FDA plans to develop draft guidance regarding quality system requirements for LDTs, "to provide clarity for laboratories on how they can leverage compliance with CLIA requirements to satisfy those applicable FDA guidelines";

• Work with CMS and accrediting bodies and CLIA-exempt state laboratory programs, "to identify any potential overlaps between CMS and FDA activities" and look for ways to increase efficiency; and

• "Ongoing meetings with stakeholders, including laboratories, patients, traditional IVD manufacturers, and medical practitioners."

Takeaway: Labs get at least a temporary reprieve from increased oversight of laboratory-developed tests as the FDA waits for the new administration and further congressional and stakeholder input.