Here's the classification sleight of hand that's hiding in plain sight: the same therapeutic delivery system can be a Class III drug requiring 10+ years of trials, or a Class II medical device cleared through 510(k) predicate comparison in 6 months. The difference is how you frame the mechanism of action.
Consider nanoparticle drug delivery. As a "drug product," it requires full NDA with Phase I/II/III trials proving safety and efficacy of the drug-device combination. But frame it as a "drug delivery device" with a previously approved therapeutic payload, and it becomes a medical device with substantial equivalence to existing predicate devices.
The key insight: FDA regulates the primary mode of action, not the technology itself. If the primary action is therapeutic (drug effect), it's a drug. If the primary action is mechanical (controlled release, targeted delivery, enhanced bioavailability), it's a device.
This explains why insulin pumps cleared as devices while insulin itself is a biologic. The pump's primary function is delivery mechanism, not glycemic control. The innovation is in the mechanics, not the molecule.
The pathway arbitrage opportunity is massive for BioDAOs. Instead of developing "novel drug-device combinations," develop "enhanced delivery devices for approved therapeutics." Same science, different regulatory universe.
Consider psychedelic therapeutics. Psilocybin as a drug requires full clinical programs. But a device that delivers precise psilocybin doses with integrated biometric monitoring? That's potentially a Class II device if it has substantia