John D. Copanos and Sons, Inc. And Kanasco, Ltd. v. Food and Drug Administration and Frank E. Young, M.D., ph.d., Commissioner of Food and Drugs

854 F.2d 510, 272 U.S. App. D.C. 101, 1988 U.S. App. LEXIS 11387, 1988 WL 85478
CourtCourt of Appeals for the D.C. Circuit
DecidedAugust 19, 1988
Docket87-1464
StatusPublished
Cited by28 cases

This text of 854 F.2d 510 (John D. Copanos and Sons, Inc. And Kanasco, Ltd. v. Food and Drug Administration and Frank E. Young, M.D., ph.d., Commissioner of Food and Drugs) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John D. Copanos and Sons, Inc. And Kanasco, Ltd. v. Food and Drug Administration and Frank E. Young, M.D., ph.d., Commissioner of Food and Drugs, 854 F.2d 510, 272 U.S. App. D.C. 101, 1988 U.S. App. LEXIS 11387, 1988 WL 85478 (D.C. Cir. 1988).

Opinion

Opinion for the Court filed by Circuit Judge D.H. GINSBURG.

D.H. GINSBURG, Circuit Judge:

John D. Copanos & Sons, Inc., and Ka-nasco, Ltd., affiliated enterprises owned by John D. Copanos (hereinafter referred to collectively as Kanasco), manufacture and distribute human and veterinary drugs, including, until recently, a number of sterile injectable products. These injectable drugs were produced pursuant to a number of New Drug Applications (NDAs) and New Animal Drug Applications (NADAs) approved by the respondent Food and Drug Administration (FDA). On March 10, 1987, the FDA published a Notice of Opportunity for a Hearing (NOOH) in the Federal Register, proposing to withdraw Kanasco’s NDAs and NADAs for sterile injectable products on the ground that the methods, facilities, and controls used to produce *514 these drugs were inadequate to assure their identity, strength, quality, and purity. Kanasco responded to this Notice, and requested a hearing, but on August 6, 1987, the agency denied the hearing and summarily withdrew its approval of the company’s applications, effectively barring Ka-nasco from producing the subject drugs.

Upon the company’s petition for review, we conclude that Kanasco received adequate notice of the basis for the FDA’s action, and that the agency did not err in proceeding by summary judgment to withdraw its approvals of Kanasco’s applications. Accordingly, we deny the petition for review.

I. STATUTORY BACKGROUND

The Federal Food Drug and Cosmetic Act, 21 U.S.C. § 301 et seq. (1982 & Supp. IV 1986) (FDCA), prohibits the introduction into interstate commerce of any new drug, or any new animal drug, unless an NDA or an NADA for that drug has been approved by the FDA. 21 U.S.C. § 355(a) (NDAs); id. at § 360b(a)(l)(A) (NADAs). Each application must include, among other things, reports of all investigations of the safety and efficacy of the drug, and “a full description of the methods used in, and the facilities and controls used for, the manufacture, processing, and packing of such drug.” 21 U.S.C. § 355(b)(1) (NDAs); id. at § 360b(b) (NADAs).

The Act also establishes procedures whereby the FDA, “after due notice and opportunity for hearing to the applicant,” can withdraw its prior approval. 21 U.S.C. § 355(e) (NDAs); id. at § 360b(e) (NADAs). One of the statutory grounds for such withdrawal is that:

the Secretary finds ... that on the basis of new information before him, evaluated together with the evidence before him when the application was approved, the methods used in, or the facilities and controls used for, the manufacture, processing and packing of such drug are inadequate to assure and preserve its identity, strength, quality, and purity and were not made adequate within a reasonable time after receipt of written notice from the Secretary specifying the matter complained of.

Id. at § 355(e) (NDAs); id. at § 360b(e)(2)(B) (NADAs). The standards for determining whether a manufacturer’s “methods[,] ... facilities and controls” are adequate “to assure and preserve [the] identity, strength, quality and purity” of its drugs are set forth in the FDA’s “Current Good Manufacturing Practice” (CGMP) regulations. See 21 C.F.R. Part 211. Those regulations govern numerous aspects of the manufacturing process, including (1) the qualifications and responsibilities of personnel; (2) standards for the design and construction of buildings, facilities, and equipment; (3) laboratory controls; and (4) requirements for record keeping, packaging and labeling. Drugs produced in violation of these CGMP regulations are deemed to be adulterated without the agency having to show that they are actually contaminated. 21 U.S.C. § 351(a)(2)(B); see, e.g., United States v. Bel-Mar Laboratories, Inc., 284 F.Supp. 875, 880-81 (F.D.N.Y.1968).

FDA has rarely withdrawn its approval of an application for failure to comply with CGMP. Indeed, Kanasco maintains, without contradiction by the agency, that the only previous withdrawal actions based on this ground were uncontested and involved animal feed applications. See Pembroke Elevator and Seed Co., 45 Fed.Reg. 79165 (1980); Kahle Turkey Farms & Hatchery, 43 Fed.Reg. 32866 (1978); Standard Milling Co., Inc., 34 Fed.Reg. 6004 (1969); see also 21 U.S.C. § 360b(m)(3)(C). The order before us here, therefore, is the first contested withdrawal of approval of a NDA or a NADA on CGMP grounds. The circumstances leading up to the FDA’s unprecedented action are briefly set forth below.

II. FACTS

Both the NOOH and the final agency order withdrawing approval of Kanasco’s NDAs and NADAs discuss in detail the unhappy regulatory history leading up to the present proceeding. We will therefore limit our narrative to those events that are essential to our decision. In particular, we *515 will confine our attention to events occurring in and after 1984. We pause here only to note that, in view of several earlier encounters with the FDA, Kanasco was no regulatory naif at the outset of this episode.

From late August through early October 1984, the FDA conducted a CGMP inspection of Kanasco’s oral dosage form manufacturing facility. This inspection revealed numerous deficiencies in the company’s manufacturing and quality control procedures, including inaccurate and even falsified manufacturing records, failure to calibrate laboratory equipment, unsanitary conditions in the manufacturing area, and production of a subpotent and impure animal drug. At the conclusion of the inspection, the FDA left with the company a Form FDA-483 listing the deficiencies noted in the inspection. See 21 U.S.C. § 374(b).

Based on the results of this inspection, the United States sought to enjoin Kanasco from the further manufacture and shipment of pharmaceuticals. See Complaint for injunction, United States v. John D. Copanos & Sons, Inc., No. JH-84-3957 (D.Md.). The complaint and the accompanying exhibits described in detail the CGMP deficiencies revealed in the August-October inspection, noting, in particular, that “[t]here is not an adequate number of qualified personnel to perform and supervise the manufacture, processing, packing, labeling, and holding of each product.” Id. at 12.

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854 F.2d 510, 272 U.S. App. D.C. 101, 1988 U.S. App. LEXIS 11387, 1988 WL 85478, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-d-copanos-and-sons-inc-and-kanasco-ltd-v-food-and-drug-cadc-1988.