No Surprise: The FDA appeals Federal Judge Bernal in the Cell Surgical Network Case

No Surprise: The FDA appeals Federal Judge Bernal in the Cell Surgical Network Case

Yesterday, October 27th, the Feds filed a notice of appeal of Judge Jesus Bernal’s decision awarding Cell Surgical Network and their founders, the late Mark Berman and Eliot Lander, judgment in the FDA’s attempt to shut them down for their SVF (stromal vascular fraction) stem cell treatment.

Of course, the feds were going to appeal. Contrary to the Florida district court and the Eleventh Circuit in the US Stem Cell case, Judge Bernal found that SVF was not more than minimally manipulated and that it was the same thing as what was removed from the patient. I guess he also found that the use (or regardless of the actual use) was homologous.

Even more surprising (and just as pleasing to me and many others) Judge Bernal found that expanding stem cells is not more than minimal manipulation, which is contrary to the DC Circuit’s opinion in the Regenerative Science case, and which has been settled law for about a decade. The DC circuit is first among technical equals when it comes to interpreting federal administrative law because of its location, as many federal administrative cases are brought in DC.

I like and personally agree that Judge Bernal’s decision should end up being the law. However, I doubt it will be the law after the Ninth Circuit completes its review. The heretofore successful defense lawyers have their work cut out for them. If there was a vegas book on it, I’d call it 20-1 against them, but I am probably widely optimistic for the defense.

But in the meantime, SVF and expanded cells are perfectly legal in California, I would assume, but don’t count on the FDA agreeing with me on that. It is for sure illegal in the Eleventh Circuit (Florida and Georgia). As to the rest of the country, it’s anyone’s guess, but I wouldn’t be spending big money upfront to open up new clinics providing SVF.

This is probably mostly moot because as I have repeatedly said, the private stem cell clinics space has moved on to different products like bone marrow and exosomes. I don’t see any real future for SVF because of its probable illegality outside of FDA-approved clinical trials. I don’t see clinical trials happening on SVF because of the cost of the studies and the little fact that the product is not patentable. Though there is or could be possible patent protection relating to some distinct processes, I don’t see that as a sufficient incentive to dump tens of millions of dollars into the FDA approval process.

I feel about the same about pretty much any autologous use HCT/P product, but I hope I am wrong.

So, except for perhaps some holdout clinics that are trying to stay low profile, and despite Judge Bernal’s brave decision, I don’t see a long-term future for the SVF part of the private stem cell clinic story. The smarter play is the newer products, until the cycle begins anew with the FDA, and on it goes.

Rick Jaffe, Esq.

3 thoughts on “No Surprise: The FDA appeals Federal Judge Bernal in the Cell Surgical Network Case

  1. You’ve written quite a bit on this topic as well as constitutional issues regarding mandatory COVID vaccines. I am ashamed to say that I have not kept up with all of your postings. Are you perhaps planning to write an update to Galileo’s Lawyer with further chapters on regenerative medicine clinics, and mandatory vaccinations?

    1. not an update to GL, but I’ve been thinking about those two topics a lot, especially the whole mandate and government restrictions. Something new if I could maintain focus long enough, between work and other interests/hobbies. So hopefully sooner rather than later. Thx for inquiring. RAJ

  2. Why are the odds so stacked against the defense on expansion? Haven’t analysts commented that the case for regulation was always tenuous? Is it that the attitudes of the presiding judges are slanted toward the government?

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