The FDA's credibility is under fire as a recent scandal involving its top drug regulator, George Tidmarsh, has sparked controversy. In September, Tidmarsh publicly criticized Aurinia and its drug voclosporin, which treats lupus nephritis, claiming it lacked sufficient clinical evidence and necessary trials. This bold statement caused a stir, with Aurinia's share price dropping significantly, resulting in a substantial market value loss. The situation has become even more complex as Tidmarsh resigned, only to later reconsider his decision and fight the investigation. The implications of these allegations are severe, as they could indicate egregious behavior from a federal regulator. The industry is concerned that this high-stakes drama is damaging the FDA's reputation, with one investor describing it as a 'clown show.' The controversy raises questions about the agency's stability and consistency, which are crucial for patient trust and the sector's credibility. As the situation unfolds, the FDA's leadership faces scrutiny, leaving many to wonder how this affects the sector's perception and the trust of investors and the public.
