Eli Lilly And Company v. RXCOMPOUNDSTORE.COM, LLC

CourtDistrict Court, S.D. Florida
DecidedApril 9, 2024
Docket1:23-cv-23586
StatusUnknown

This text of Eli Lilly And Company v. RXCOMPOUNDSTORE.COM, LLC (Eli Lilly And Company v. RXCOMPOUNDSTORE.COM, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eli Lilly And Company v. RXCOMPOUNDSTORE.COM, LLC, (S.D. Fla. 2024).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

CASE NO. 23-cv-23586-ALTMAN/Reid

ELI LILLY AND COMPANY,

Plaintiff,

v.

RXCOMPOUNDSTORE.COM, LLC,

Defendant. _________________________________/

ORDER GRANTING MOTION TO DISMISS The Defendant has moved to dismiss the Plaintiff’s Amended Complaint. See Motion to Dismiss [ECF No. 26]. Having carefully reviewed the Motion, the Response, the Reply, and the governing law, we now GRANT the Defendant’s Motion to Dismiss .1 THE FACTS2 On September 19, 2023, our Plaintiff (Eli Lilly & Co.) sued our Defendant (RXCompoundStore.com, LLC), asserting violations of Florida’s Drug and Cosmetic Act (the “Florida DCA”) and Florida’s Deceptive and Unfair Trade Practices Act (“FDUTPA”). See generally Complaint [ECF No. 1]. Eli Lilly has since filed an Amended Complaint [ECF No. 18], which is the operative complaint here. On the same day that it filed its initial complaint against RXCompoundStore (a compounding pharmacy based in Miami), Eli Lilly sued two other pharmacies in the Middle District of Florida, lodging virtually identical complaints. See Eli Lilly & Co. v. Archangel Raphael LLC d/b/a Better Life Pharmacy, 23-cv-02111 (M.D. Fla. Sept. 19, 2023) (Scriven, J.); Eli Lilly & Co. v. Wells Pharmacy

1 The Motion to Dismiss is ripe for resolution. See Plaintiff’s Response to Motion to Dismiss (the “Response”) [ECF No. 29]; Defendant’s Reply Memorandum in Support of Motion to Dismiss (the “Reply”) [ECF No. 33]. 2 We take the following facts from the Plaintiff’s Amended Complaint and accept them as true for purposes of this Order. Network, LLC, 23-cv-00576 (M.D. Fla. Sept. 19, 2023) (Moody, J.). It also filed other similar complaints in courts around the country. See, e.g., Eli Lilly & Co. v. Revive RX, LLC, 23-cv-03521 (S.D. Tex. Sept. 19, 2023) (Rosenthal, J.). In each of these cases, Eli Lilly seeks to prevent the defendant-pharmacy from selling compounded versions of the “pharmaceutical ingredient tirzepatide.” Amended Complaint ¶ 15. Eli Lilly has a vested interest in preventing the Defendant from selling these drugs because it’s “the only

company that has an FDA-approved drug containing tirzepatide[3] as its active pharmaceutical ingredient,” ibid., and because it’s the “only supplier of FDA-approved tirzepatide drugs in the United States,” id. ¶ 25. Eli Lilly contends that our Defendant’s tirzepatide products have not been “approved under section 505 of the [Federal Food, Drug, and Cosmetic Act (the ‘FDCA’)]” or by the United States Food and Drug Administration (the “FDA”). Id. ¶¶ 31, 48. “Because Defendant’s tirzepatide drugs have not been tested in clinical trials and their composition is unknown given their lack of approval,” the Plaintiff adds, “it is unknown whether they are safe and effective.” Id. ¶ 30. Plus, Eli Lilly says, the Defendant’s sale of drugs containing tirzepatide has “injured Lilly [both] financially” and reputationally. Id. ¶¶ 50–52. The Florida DCA provides that no person may “sell, offer for sale, hold for sale, manufacture, repackage, distribute, or give away any new drug unless an approved application has become effective under s. 505 of the federal act or unless otherwise permitted by the Secretary of the United States

Department of Health and Human Services for shipment in interstate commerce.” Id. ¶ 27 (quoting FLA. STAT. § 499.023). FDUTPA, on the other hand, creates a private right of action for violations of “[a]ny law, statute, rule, regulation, or ordinance which proscribes unfair methods of competition, or

3 Eli Lilly has “regulatory approval” from the FDA to market and sell Mounjaro® as a “treatment for type 2 diabetes mellitus.” Amended Complaint ¶ 17. “In addition to Mounjaro®, [the] FDA recently approved Lilly’s Zepbound™ (tirzepatide) for chronic weight management for adults with obesity . . . or those who are overweight . . . and also have weight-related medical problems.” Id. ¶ 15 n.1. unfair, deceptive, or unconscionable acts or practices.” Id. ¶¶ 2–3 (quoting FLA. STAT. §§ 501.203(3)(c), 501.211).4 Eli Lilly, therefore, brings this case under FDUTPA “to stop [RXCompoundStore] from engaging in unfair trade practices by unlawfully manufacturing and selling unapproved drugs in Florida,” in violation of the Florida DCA and without FDA approval. Id. ¶ 1. Eli Lilly requests a “permanent injunction enjoining Defendant from continuing [its] unlawful and unfair business practices,” “[a] judgment that Defendant violated FDUTPA,” “[d]eclaratory relief,” and attorneys’

fees and costs. Id. ¶¶ 64–67. On February 5, 2024, Judge Moody granted the defendant-pharmacy’s motion to dismiss in one of the parallel Eli Lilly cases, dismissing the entire action “with prejudice” on the ground that any “further amendment [would be] futile.” Order on Mot. to Dismiss, Wells Pharmacy Network, ECF No. 30 at 1; see also Defendant’s Notice of Filing Supplemental Authority in Support of its Pending Motion to Dismiss [ECF Nos. 34 & 34-1]. The defendant-pharmacy’s motion to dismiss is still pending in Judge Scriven’s case. See Mot. to Dismiss, Archangel Raphael LLC, ECF No. 24. THE LAW To survive a motion to dismiss under Rule 12(b)(6), “a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). To meet this “plausibility standard,” a plaintiff must “plead[ ] factual content that allows the court to draw the

reasonable inference that the defendant is liable for the misconduct alleged.” Id. (citing Twombly, 550 U.S. at 556). The standard “does not require ‘detailed factual allegations,’ but it demands more than an unadorned, the-defendant-unlawfully-harmed-me accusation.” Id. (quoting Twombly, 550 U.S. at

4 According to the Plaintiff, the Florida legislature “included a safe harbor in FDUTPA making clear that that statute does not prohibit ‘[a]n act or practice required or specifically permitted by federal or state law.’ . . . . As a result, if a practice complies with federal law, it is not ‘unfair’ under FDUTPA and not actionable.” Amended Complaint ¶ 4 (quoting FLA. STAT. § 501.212(1)). 555). “[T]he standard ‘simply calls for enough fact to raise a reasonable expectation that discovery will reveal evidence’ of the required element.” Rivell v. Private Health Care Sys., Inc., 520 F.3d 1308, 1309–10 (11th Cir. 2008) (quoting Twombly, 550 U.S. at 545). “The plausibility standard is not akin to a ‘probability requirement,’ but it asks for more than a sheer possibility that a defendant has acted unlawfully.” Iqbal, 556 U.S. at 678. On a motion to dismiss, “the court must accept all factual allegations in a complaint as true and take them in the light most favorable to plaintiff.” Dusek v.

JPMorgan Chase & Co., 832 F.3d 1243, 1246 (11th Cir. 2016). ANALYSIS The Defendant moves to dismiss the Complaint for three reasons: First, it argues that the Plaintiff lacks standing to pursue its requests for declaratory and injunctive relief. See Motion to Dismiss at 8. Second, it says that the “Plaintiff’s claim is preempted by the FDCA,” which “makes clear there shall be no private claims to enforce the statute.” Id. ¶ 11. Third, the Defendant contends that the Plaintiff “fails to plausibly allege a claim under FDUTPA” because it “does not allege any facts to support deception[,] [n]o consumers were misled, and Plaintiff makes only conclusory allegations of unfairness[.]” Id. ¶ 18.

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