Cell and Gene Therapy Licensing: Navigating the Hospital Exemption
ATMPs developed under hospital exemption face uncertain boundaries. Scale, geography, and commercial intent determine where the authorization line falls.
Advanced therapy medicinal products sit where the regulatory framework was written for something else. The hospital exemption draws an uncertain line between an authorized product and a treatment made for one patient, and scale, geography and commercial intent decide which side a program falls on; clinical manufacturing moves from research-grade to GMP through gray zones that can cost a development plan years; the SoHO Regulation brings the human-origin starting materials under EU oversight from August 2027; and the EU Pharma Package recodes orphan exclusivity onto the active substance while opening a statutory sandbox for cell, gene and AI-enabled therapies. Downstream, the EU HTA Regulation's Joint Clinical Assessment has covered advanced therapies since January 2025. The analyses below follow a US developer through authorization, manufacturing, supply and market access.
6 insights ยท latest June 2026
ATMPs developed under hospital exemption face uncertain boundaries. Scale, geography, and commercial intent determine where the authorization line falls.
The transition from research-grade to GMP manufacturing presents biotechnology companies with regulatory uncertainties that can delay clinical programs by years.
The EU Pharma Package introduces a statutory regulatory sandbox for ATMPs and AI-enabled medicinal products, with no clean analogue in the FDA expedited-program suite. US cell, gene, and AI therapeutics developers gain a new EU pathway to weigh.
From 7 August 2027 the SoHO Regulation replaces the Blood and Tissues and Cells Directives, extending EU oversight of human-origin starting materials up to the manufacturer's door and requiring US cell and gene therapy sponsors to repaper supply agreements.
The EU Pharma Package shifts orphan exclusivity to the active substance, caps new-indication prolongation at two grants, and removes the paediatric +2-year reward. The change reshapes how US rare-disease biotechs value indication-stacking and M&A earnouts.
The EU HTA Regulation has required a Joint Clinical Assessment for new oncology medicines and ATMPs since 12 January 2025; it harmonizes the clinical dossier, not national pricing, and its PICO comparators are fixed at trial design.
Counsel on this topic: Life sciences regulatory counsel.
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