Medical Center Pharmacy v. Mukasey

536 F.3d 383, 2008 U.S. App. LEXIS 15276, 2008 WL 2779229
CourtCourt of Appeals for the Fifth Circuit
DecidedJuly 18, 2008
Docket06-51583
StatusPublished
Cited by34 cases

This text of 536 F.3d 383 (Medical Center Pharmacy v. Mukasey) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Medical Center Pharmacy v. Mukasey, 536 F.3d 383, 2008 U.S. App. LEXIS 15276, 2008 WL 2779229 (5th Cir. 2008).

Opinion

JERRY E. SMITH, Circuit Judge:

In this appeal we clarify the extent to which the Federal Food Drug and Cosmetic Act of 1938 (the “FDCA” or the “Act”), 21 U.S.C. §§ 301-397, permits the Food and Drug Administration (“FDA”) to regulate a common practice of pharmacies known as “compounding.” Ten pharmacies specializing in compounding prescription drugs for human and animal use (the “Pharmacies”) sued various federal agencies (collectively, the “FDA”) for declaratory and injunctive relief permitting them to continue compounding drugs without obtaining the FDA approval required for “new drugs” under the Act, 21 U.S.C. § 321(p) and (v). Concluding that the FDCA, as amended, permits compounded drugs to avoid the new drug approval process but that the exception applies only in certain statutorily-delimited circumstances, we vacate and remand.

I.

A.

Drug compounding is the process by which a pharmacist combines or alters drug ingredients according to a doctor’s prescription to create a medication to meet the unique needs of an individual human or animal patient. 1 Compounding is “typically used to prepare medications that are not commercially available, such as medication for a patient who is allergic to an ingredient in a mass-produced product.” W. States, 535 U.S. at 361, 122 S.Ct. 1497. According to the American Pharmacists Association, as amici, pharmacists compound patient-specific medication for a variety of medical purposes, including cancer treatment, where dosages must be calibrated to a “patient’s body size, the type of *388 cancer, the size and type of tumor, and the clinical condition of the patient;” pediatric treatment, where available drug dosages must be modified and diluted for use in children; elderly hospice care, where patients who no longer benefit from curative treatment use compounded dosages therapeutically to “establish optimal pain and symptom control;” and hospital stays, where “intravenous admixtures” must be highly individualized to allow administration of drugs “not suitable for other routes of administration.”

Compounding has deep roots; it “is a traditional component of the practice of pharmacy and is taught as part of the standard curriculum at most pharmacy schools.” Id. (citation omitted). Since 1820, pharmacists have relied on compounding instructions contained in the U.S. Pharmacopeia, 2 an independent compendium of drug standards whose authority is recognized by reference in federal law. 3 “Many States specifically regulate compounding practices as part of their regulation of pharmacies. Some require all licensed pharmacies to offer compounding services.” Id. (citations omitted).

In 1938, Congress enacted the FDCA to regulate drug manufacturing, marketing, and distribution. The Act empowers the FDA to require approval of any “new drug,” 4 which the Act defines as “[a]ny drug (except a new animal drug ...) the composition of which is such that such drug is not generally recognized ... as safe and effective for use under the conditions prescribed, recommended, or suggested in the labeling thereof.” 5 The Act likewise requires approval of “new animal drugs” 6 and defines “new animal drug” in similar terms. 7

To be deemed “safe and effective” and thereby obtain FDA approval, a new drug must undergo an extensive application and approval process. 8 Under the FDCA, an FDA finding of “safe and effective” must be based on “substantial evidence” of expert consensus. 9 The “test is rigorous,” 10 *389 requiring expensive and time-consuming clinical trials estimated by some to cost more than $800 million per drug. 11

A question emerged from Congress’s enactment of the FDCA: When a pharmacist creates a compounded medication to suit an individual patient, does the resulting creation constitute a “new drug” requiring FDA approval? If each individualized drug product produced through compounding required FDA approval, few would undergo the costly and arduous approval process. And the lack of approval would in turn make nearly all compounding unlawful under the FDCA. Although the question whether compounded drugs are “new drugs” was not before it, the Court has noted in dictum that

it would not make sense to require compounded drugs created to meet the unique needs of individual patients to undergo the testing required for the new drug approval process. Pharmacists do not make enough money from small-scale compounding to make safety and efficacy testing of their compounded drugs economically feasible, so requiring such testing would force pharmacists to stop providing compounded drugs.

Id. at 369-70. 12

For roughly fifty years following the FDCA’s enactment, the compounding question lay dormant, without dispute and without answer. The FDA did not seek to enforce “new drug” approval requirements against compounding pharmacists but instead left regulation of compounding to the states, and pharmacists continued to compound drugs without seeking FDA approval. 13 In the early 1990’s, however, the FDA became concerned that some pharmacies were purchasing bulk quantities of drug products, “compounding” them into specific drug products before receiving individual prescriptions, and marketing those drugs to doctors and patients. Although the agency had long refrained from regulating pharmacist compounding, it believed that pharmacies engaging in large-scale bulk compounding were effectively manufacturing drugs under the guise of compounding them — using the FDA’s tra *390 ditional lenience toward compounding as an end-run around the new drug approval, adulteration, and misbranding provisions of the FDCA. 14

Ostensibly to prevent this end-run around its regulation of drug manufacturing, the FDA in 1992 promulgated Compliance Policy Guide No. 7132.16 (Mar.1992) (“CPG 7132.16”), deemed by this circuit in Professionals & Patients, 56 F.3d at 595-602, to be a valid agency rule under the Administrative Procedures Act. The Guide explained that “while retail pharmacies ... are exempted from certain requirements of the [FDCA], they are not the subject of any general exemption from the new drug, adulteration, or misbranding provisions.” CPG 7132.16, at 1.

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

Related

Harness v. Watson
Fifth Circuit, 2022
United States v. Conigliaro
15 F.4th 26 (First Circuit, 2021)
Wendy Nora v. IRS
Eighth Circuit, 2019
United States v. Conigliaro
384 F. Supp. 3d 145 (District of Columbia, 2019)
United States v. Kyle Hebert
Fifth Circuit, 2019
CGG Ams., Inc. v. Comm'r
147 T.C. No. 2 (U.S. Tax Court, 2016)
Cincinnati Insurance Co. v. Quorum Management Corp.
186 F. Supp. 3d 1307 (M.D. Florida, 2016)
Randol Mill Pharmacy v. Miller
465 S.W.3d 612 (Texas Supreme Court, 2015)
Dascola v. City of Ann Arbor
22 F. Supp. 3d 736 (E.D. Michigan, 2014)
Randol Mill Pharmacy v. Miller
413 S.W.3d 844 (Court of Appeals of Texas, 2013)
Apalachicola Riverkeeper v. Taylor Energy Co.
954 F. Supp. 2d 448 (E.D. Louisiana, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
536 F.3d 383, 2008 U.S. App. LEXIS 15276, 2008 WL 2779229, Counsel Stack Legal Research, https://law.counselstack.com/opinion/medical-center-pharmacy-v-mukasey-ca5-2008.