The U.S. Court of Appeals for the Fifth Circuit recently ruled in NicQuid, L.L.C. v. FDA, No. 24-60272 (5th Cir. Aug. 19, 2026), that the U.S. Food and Drug Administration’s (FDA) “comparative efficacy standard” is a substantive rule that was adopted in violation of the Administrative Procedure Act’s (APA) notice-and-comment rulemaking requirements.
The NicQuid decision notably creates a circuit split with the Ninth Circuit, which recently held in Drip More LLC v. FDA, No. 21-71380 (9th Cir. Aug. 10, 2026) that the comparative efficacy standard is not a substantive rule under the APA’s notice-and-comment requirements. We assume that FDA will appeal its loss in NicQuid—either to an en banc panel of the Fifth Circuit or to the U.S. Supreme Court.