Abortion pill ruling could be "catastrophic" for new drug development

The Supreme Court today will hear a challenge to the FDA's approval of mifepristone, a medicine used to help induce abortions.

Why it matters: Were SCOTUS to rule in favor of mifepristone's opponents, it could chill future biotech investment for almost every medical indication.

Zoom out: The core question in the case is over whether the FDA has sole discretion to determine a drug's efficacy and safety, or if courts also can play a role.

The former is how biotech has traditionally operated. It's not cheap, but at least the process is understood and uniform.

Introducing the possibility of litigation creates costly new variables, to the point that investors may no longer think the reward is worth the risk. Particularly given that the timeline for challenging FDA decisions could be boundless.

Between the lines: Imagine court cases on everything from vaccines to Viagra to Ozempic. Or drugs whose development included the use of embryonic stem cells.