Abbott Laboratories v. Mylan Pharmaceuticals, Inc.

15 So. 3d 642, 2009 Fla. App. LEXIS 8512, 2009 WL 1741035
CourtDistrict Court of Appeal of Florida
DecidedJune 22, 2009
Docket1D08-0602
StatusPublished
Cited by9 cases

This text of 15 So. 3d 642 (Abbott Laboratories v. Mylan Pharmaceuticals, Inc.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abbott Laboratories v. Mylan Pharmaceuticals, Inc., 15 So. 3d 642, 2009 Fla. App. LEXIS 8512, 2009 WL 1741035 (Fla. Ct. App. 2009).

Opinion

VAN NORTWICK, J.

Abbott Laboratories (Abbott), the manufacturer of a levothyroxine sodium (LS) drug product, Synthroid®, appeals a summary final order of an administrative law judge (ALJ) in a rule challenge proceeding brought by Mylan Pharmaceuticals, Inc. (Mylan), appellee, the manufacturer of a competing generic drug. In the summary final order, the ALJ ruled that Florida Administrative Code Rule 64B16-27.500(6), which was part of the negative drug formulary (NDF) rule established pursuant to section 465.025(6), Florida Statutes (2007), and which listed LS on the NDF, was invalid on the grounds that it constituted an invalid exercise of legislative delegated authority because it conflicted with the provisions of section 465.0251(1), Florida Statutes (2007). Section 465.0251(1) removes a generic drug from the NDF if the generic drug is “A” rated as therapeutically equivalent to a reference listed drug as referred to in the “Orange Book” 1 published by the United States Food and Drug Administration (FDA). The ALJ’s order, in effect, removes LS from the NDF and permits Florida pharmacists to substitute Mylan’s generic LS product for a prescription for Synthroid® or any other “A” rated LS drug product, except as provided in section 465.025(2), Florida Statutes (2007). Because the ALJ erred in interpreting section 465.0251(1) to apply to editions of the *645 Orange Book subsequent to the date of the 2001 enactment of the statute, we reverse and remand. Finally, we reject the contention of Mylan that Abbott lacks standing to bring this appeal and that the mootness doctrine should apply to this appeal.

Regulatory Background

As is undisputed from this record, approval by the FDA is required before a prescription drug product may be marketed, distributed, or sold in the United States. 21 U.S.C. § 355(a) (2006). When a product contains a new active ingredient or otherwise differs significantly from previously approved products, the sponsor must provide the FDA with data demonstrating the product’s safety and effectiveness for the intended use. See 21 U.S.C. § 355(b) (2006). When a product is a copy of a previously approved product — what is commonly called a “generic” version of the original drug — proof of safety and effectiveness is not required. Instead, the FDA requires a showing that, with regard to certain characteristics, the proposed generic product is essentially the same as the approved product it purports to copy, which is referred to as the “listed drug.” See 21 U.S.C. § 355(j) (2006) (because of the language in section 465.0251(1), we will refer to a “reference listed drug”). The FDA’s previous finding that the reference listed drug is safe and effective is then imputed to the generic product.

Levothyroxine sodium (LS) is a leading treatment for hypothyroidism, -which is the failure of the thyroid gland to produce sufficient thyroid hormone. In 1979, the Florida Legislature directed the Board of Medicine and the Board of Pharmacy to establish by rule a list of those drugs that “demonstrate clinically significant biological or therapeutic inequivalence and which, if substituted, would pose a threat to the health and safety of patients receiving prescription medicine.” § 465.025(6), Fla. Stat. (1979). The rule establishing the NDF is Florida Administrative Code Rule 64B16-27.500. LS has been listed on the NDF since 1984. The NDF rule, prior to the action taken by the ALJ, provided, in pertinent part, as follows:

The negative drug formulary is composed of medicinal drugs which have been specifically determined by the Board of Pharmacy and the Board of Medicine to demonstrate clinically significant biological or therapeutic inequi-valence and which, if substituted, could produce adverse clinical effects, or could otherwise pose a threat to the health and safety of patients receiving such prescription medications.... The generic name of a drug shall be applicable to and include all brand-name equivalents of such drug for which a prescriber may write a prescription. Substitution by a dispensing pharmacist on a prescription written for any brand name equivalent of a generic named drug product listed on the negative formulary or for a drug within the class of certain dosage forms as listed, is strictly prohibited. In cases where the prescription is written for a drug listed on the negative drug formu-lary but a brand name equivalent is not specified by the prescriber, the drug dispensed must be one obtained from a manufacturer or distributor holding an approved new drug application or abbreviated new drug application issued by the Food and Drug Administration, United States Department of Health and Welfare permitting that manufacturer or distributor to market those medicinal drugs or when the former is non-appliea-ble, those manufacturers or distributors supplying such medicinal drugs must show compliance with other applicable Federal Food and Drug Administration marketing requirements. The following *646 are included on the negative drug for-mulary:
(6) Levothyroxine Sodium.

Fla. Admin. Code R. 64B16-27.500(6).

“Until the mid-1970s, nearly all states required pharmacists to dispense the exact drug specified by the prescribing physician, even if equivalent generic products were available.” Jessie Cheng, An Antitrust Analysis of Product Hopping in the Pharmaceutical Industry, 108 Colum. L. Rev. 1471, 1479 (2008). Currently, with the advent of strict federal drug laws, most states more freely allow substitution in order to contain the high cost of drugs. Id. Thus, in Florida, when a patient receives a prescription for a brand name drug and takes it to a Florida pharmacy, the pharmacist is required by law to substitute a less expensive generic drug unless: (1) the patient requests otherwise; (2) the doctor directs otherwise; or (3) the drug is listed on Florida’s NDF. § 465.025(2), Fla. Stat. Because LS was listed on the NDF, prior to the invalidation of rule 64B16-27.500(6), when a doctor prescribed a specific LS drug product, the patient would only receive that product, whether it was a brand name or a generic. § 465.025(6)(b), Fla. Stat. As a result of the order under review, except as provided in section 465.025(2), Florida pharmacists may substitute Mylan’s generic LS product for a prescription for Synthroid® or any of the other brand name or generic LS products.

The ALJ’s decision invalidating rule 64B-27.500(6) rests on the interpretation and application of section 465.0251, enacted in 2001, and section 465.025 first enacted in 1979. Section 465.025, Florida Statutes (2007), entitled “Substitution of Drugs” provides, in pertinent part, as follows:

(1) As used in this section:
(a) “Brand name” means the registered trademark name given to a drug product by its manufacturer, labeler, or distributor.
(b) “Generically equivalent drug product” means a drug product with the same active ingredient, finished dosage form, and strength.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

ALEX GARCIA v. DANIEL JUNIOR, etc.
District Court of Appeal of Florida, 2021
JFK Medical Center Limited etc. v. Shands Jacksonville Medical Center etc.
259 So. 3d 247 (District Court of Appeal of Florida, 2018)
Iezzi Family Limited Partnership v. Edgewater Beach Owners Association, etc.
254 So. 3d 584 (District Court of Appeal of Florida, 2018)
Delgado v. Agency for Health Care Admin.
237 So. 3d 432 (District Court of Appeal of Florida, 2018)
J.S. v. C.M.
135 So. 3d 312 (District Court of Appeal of Florida, 2012)
Martin County Conservation Alliance v. Martin County
73 So. 3d 856 (District Court of Appeal of Florida, 2011)
Lamar Outdoor Advertising-Llakeland v. Florida Department of Transportation
17 So. 3d 799 (District Court of Appeal of Florida, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
15 So. 3d 642, 2009 Fla. App. LEXIS 8512, 2009 WL 1741035, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abbott-laboratories-v-mylan-pharmaceuticals-inc-fladistctapp-2009.