Fisons Corp. v. Shalala

860 F. Supp. 859, 1994 U.S. Dist. LEXIS 12056, 1994 WL 462271
CourtDistrict Court, District of Columbia
DecidedMay 6, 1994
DocketCiv. A. 93-1552 (CRR)
StatusPublished
Cited by3 cases

This text of 860 F. Supp. 859 (Fisons Corp. v. Shalala) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fisons Corp. v. Shalala, 860 F. Supp. 859, 1994 U.S. Dist. LEXIS 12056, 1994 WL 462271 (D.D.C. 1994).

Opinion

MEMORANDUM OPINION

CHARLES R. RICHEY, District Judge.

I. INTRODUCTION

Before the Court are the Plaintiff’s Application for a Preliminary Injunction, the Defendants’ Motion to Dismiss, and Plaintiffs Motion to Compel Production of the Administrative Record. To advance the ends of justice and further judicial economy, the Court consolidated the Plaintiffs application for a preliminary injunction with its request for permanent injunctive relief, pursuant to Fed. R.Civ.P. 65(a)(2).

Seeking declaratory and injunctive relief, Plaintiff Fisons Corporation (“Fisons”) brought this action to prevent the Food and Drug Administration (“FDA”) from approving abbreviated new drug applications (“ANDAs”) for generic versions of Fisons’ Intal Nebulizer Solution (“Intal NebSol”) without requiring specific testing, information, and analysis. More specifically, Fisons claims that both (1) the FDA regulation permitting the waiver of certain testing for generic drug applications, 21 C.F.R. § 320.22(b), and (2) FDA’s policy of waiving testing and approval of these generic drugs, are arbitrary, capricious, an abuse of discretion and otherwise not in accordance with law, in violation of the Administrative Procedure Act (“APA”), 5 U.S.C. § 706.

After careful consideration of the papers filed by the parties, the arguments of counsel at oral argument, and the underlying law, the Court shall grant the Defendants’ Motion to Dismiss, and deny Plaintiffs Application for a Preliminary Injunction and Plaintiffs Motion to Compel Production of the Administrative Record.

II. BACKGROUND

This action was brought by a pharmaceutical company due to the expiration of a patent *861 for drug aiding in the treatment of asthmatics, and that company’s fear that generic drugs will soon flood the market and impair its economic position. Plaintiff Fisons Corporation (“Fisons”) is a manufacturer and distributor of pharmaceutical drug products, including cromolyn sodium drug products for the treatment of asthma and other diseases. Complaint, ¶¶ 11, 18. These products function as anti-inflammatory agents, and Intal NebSol — a liquid form of cromolyn sodium converted into an aerosol by a nebulizer — is inhaled by the user directly into the lungs, and does not rely on blood-stream absorption to achieve its therapeutic goal. 1 Complaint, ¶¶ 12, 15, 16, 17, 30.

The Drug Price Competition and Patent Term Restoration Act of 1984, Pub.L. No. 98-417, 98 Stat. 1585 (1984) (“Hatch-Wax-man Act”), which amended the Food, Drug, and Cosmetic Act (“FDCA”), 21 U.S.C. §§ 301-392, governs the FDA’s approval for applications for generic versions of pioneer drugs. Pursuant to 21 C.F.R. § 10.30, Fisons filed a Citizen Petition regarding potential generic competition to Intal NebSol on January 8, 1993. Fisons alleges that it filed this petition when it “became aware of the FDA’s intention to waive in vivo bioequivalence testing for generic versions of Intal NebSol.” Complaint, ¶52. After stating that such a waiver exceeded the FDA’s authority, Fisons requested that Defendant David Kessler, M.D., Commissioner of the FDA, “adopt an in vivo bioequivalence standard for ANDAs for inhaled dosage forms of cromolyn sodium based on Intal NebSol.” Complaint, ¶ 53. The FDA responded on August 6, 1993, informing the Plaintiff that the agency is still evaluating the requests made in the Petition. Defendants’ Motion, Exhibit 3. On May 18, ■ 1993, Fisons also filed a Petition for Stay of Action pursuant to 21 C.F.R. § 10.35, requesting that the FDA require a bioequivalence showing before approving any ANDAs for generic versions of Intal NebSol.

Fisons met with FDA officials on July 9, 1993, to discuss the petition. According to the Affidavit of Aaron M. Taub, Fisons’ Senior Director of Regulatory Affairs:

During the course of the meeting, FDA representatives stated that, based on the information presented by Fisons to date, FDA made a final determination that FDA will waive in vivo bioequivalence testing for ANDAs based on Intal NebSol. FDA representatives also stated that FDA does not require ANDA applicants to present impurity analyses to the same extent and level as that which FDA requires of applicants for full NDAs (new .drug applications).

Taub Affidavit, ¶¶ 8-9; see also Affidavit of Robert Parker, ¶¶ 6-9. The Plaintiff alleges that in this meeting, the FDA “unequivocally” told Fisons that it will approve ANDAs for generic versions of Intal NebSol lacking any showing of bioequivalence, and that the FDA will not demand the degree of impurity analysis mandated by statute and regulations.

Fisons’ patent protecting its monopoly profits on Intal NebSol expired on August 17, 1993, but despite its concern, no competitor’s generic product has been approved since that time. The FDA responded to the Petitions on March 31,1994, denying both (1) Fisons’ request that the agency require a demonstration of bioequivalence through comparative clinical trials for the generic counterparts of Intal NebSol, and (2) Fisons’ request that the FDA establish special controls for nebulizers. FDA’s Response to Fisons’ Citizen Petition, at 8-9. 2

III. THE PLAINTIFF HAS STANDING TO CHALLENGE THE FDA’S REGULATIONS UNDER THE CONSTITUTIONAL AND PRUDENTIAL PREREQUISITES TO STANDING, AS WELL AS THE FDA’S OWN REGULATIONS.

The parties agree that a challenger to agency action under an APA claim must *862 meet both prudential and constitutional standing requirements. Hazardous Waste Treatment Council v. Thomas (“HWTC IV’), 885 F.2d 918, 921 (D.C.Cir.1989).

Fisons satisfies the injury-in-fact test for constitutional standing. Under this test, a petitioner must assert “an injury in fact, fairly traceable to the challenged actions of the respondent, and likely to be redressed by a favorable court ruling.” Associated Gas Distributors v. FERC, 899 F.2d 1250, 1259 (D.C.Cir.1990). In challenging Fisons’ Article III standing to bring this action, the FDA makes two arguments. First, it claims that the alleged injury that is the basis for this suit, the approval of a generic competitor and the consequent loss of a monopoly market, is almost inevitable, even if Fisons prevails on the merits in this case. Valley Forge Christian College v. Americans United for Separation of Church and State, Inc.,

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Related

Pfizer Inc. v. Shalala
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Bluebook (online)
860 F. Supp. 859, 1994 U.S. Dist. LEXIS 12056, 1994 WL 462271, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fisons-corp-v-shalala-dcd-1994.