Mylan Pharmaceuticals, Inc. v. Proctor & Gamble Co.

443 F. Supp. 2d 453, 2006 U.S. Dist. LEXIS 6712, 2006 WL 435471
CourtDistrict Court, S.D. New York
DecidedFebruary 21, 2006
Docket03 Civ. 10150(PKC)
StatusPublished
Cited by6 cases

This text of 443 F. Supp. 2d 453 (Mylan Pharmaceuticals, Inc. v. Proctor & Gamble Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mylan Pharmaceuticals, Inc. v. Proctor & Gamble Co., 443 F. Supp. 2d 453, 2006 U.S. Dist. LEXIS 6712, 2006 WL 435471 (S.D.N.Y. 2006).

Opinion

MEMORANDUM AND ORDER

CASTEL, District Judge.

This is a Lanham Act action brought by Mylan Pharmaceuticals Inc. (“Mylan”) against The Procter & Gamble Company (“P & G”) asserting that P & G’s now-discontinued advertisements for Prilosec OTC were false or misleading. In 1989, the Food and Drug Administration (“FDA”) approved the sale of prescription omeprazole as a drug to treat, among other specifically identified conditions, gas-troesophageal reflux disease (“GERD”). Non-party Astra Zeneca PLC (“AZ”) marketed the product under the brand name “Prilosec”. With FDA approval, plaintiff Mylan now manufactures and markets a generic version of prescription omeprazole. As described below, defendant P & G, having first obtained a license from AZ, received FDA approval to market an over-the-counter version of omeprazole under the name “Prilosec OTC”. Mylan alleges that P & G’s advertising statements falsely claim that (1) Prilosec OTC “is the same drug product as” prescription omeprazole and (2) Prilosec OTC “is approved for conditions as to which [prescription ome-prazole] (but not Prilosec OTC) has been *455 proven safe and effective.” (Complaint ¶ 3)

The parties’ motions for summary judgment present issues that lie at the intersection of the authority of the FDA to approve drugs and their labeling under the Food, Drug and Cosmetics Act (“FDCA”), 21 U.S.C. § 331 et seq., and the right of a competitor to seek redress for false or deceptive advertising under the Lanham Act, 15 U.S.C. § 1125(a). Defendant P & G seeks summary judgment in its favor dismissing the Lanham Act and related state law claims in their entirety. Plaintiff Mylan seeks partial summary judgment on its literal falsity claims. The factual record has been fully developed through discovery.

Viewed in their context, certain statements by P & G can be reasonably read to expressly claim that Prilosec OTC is the same product as prescription omeprazole. These statements are objectively verifiable and compare the two products. The advertising statements stand or fall on whether there are material differences between the two products. For the reasons discussed below, I conclude that there are genuine and material disputes of fact as to the falsity of statements arguably equating the two products and, therefore, deny summary judgment to both parties.

Mylan’s claim of implied falsity stands on a different footing. It asserts that implicit in any claim that Prilosec OTC is the same as prescription omeprazole is an implied statement falsely asserting that P & G’s product “is approved for conditions” for which prescription omeprazole has been approved. It is settled law that there is no private right of action under the FDCA for a claim that a product has been unlawfully promoted for a non-approved or off-label use. See p. 12 below. A consistent line of authority has foreclosed claims, regardless of legal theory, that a manufacturer or distributor has unlawfully promoted a product to treat a condition for which it has not been approved by the FDA. See id. Moreover, in view of the FDA approval of its labeling, there could be no viable claim that the name Prilosec OTC is inherently misleading because of its association with a branded version of omeprazole. But here, Mylan pursues a different theory. Mylan has come forward with a consumer survey supporting its claim that, by reason of P & G’s statements of equivalence, consumers are confused into believing that the two products have been approved for treatment of the same conditions. I conclude that this theory is not foreclosed by the FDCA and, because there are disputed issues of material fact, may be presented to the jury. Facts

For the purposes of these motions, I have accepted as true only those facts that have not been disputed. Where multiple inferences may be drawn from a fact, I have drawn only the inference most favorable to the non-movant.

This case centers on the marketing and advertisement of an over-the-counter pharmaceutical drug known as Prilosec OTC. The product label of Prilosec OTC states that it contains the sole active ingredient “Omeprazole magnesium” in a “delayed-release tablet 20.6 mg (equivalent to 20 mg omeprazole).” (Weinberger Decl. Ex. G; PI. Resp. to Def. 56.1 ¶ 11). Omeprazole is a proton pump inhibitor, a drug that treats gastrointestinal conditions by shutting down acid pumps in the lining of the stomach. (PL Resp. to Def. 56.1 If 1) The parties agree that omeprazole is generally more effective than older gastrointestinal treatments such as antacids, which simply neutralize the acid already produced in the stomach. (Katz Decl. ¶ 5; Pl. Resp. to Def. 56.1 ¶ 1) Both sides also subscribe to the view that omeprazole is more effective *456 than the so-called “H2 antagonists” like Zantac or Tagamet, which interfere with the biological process that leads to the formation of acid. (Katz Deck ¶ 5; PI. Resp. to Def. 56.1 ¶ 1)

The FDA first approved omeprazole as a prescription product in 1989 to treat GERD, erosive esophagitis, duodenal ulcers, gastric ulcers, and pathological hy-persecretory conditions. (Allgood Deck ¶ 3; PI. Resp. to Def. 56.1 ¶2) Until 2002, AZ was the exclusive provider of omepra-zole in the world. (PL Resp. to Def. 56.1 ¶ 3) In the United States and certain other countries, AZ sold omeprazole under the name “Prilosec” in capsule form in dosages of 10 mg, 20 mg, and 40 mg, with the 20 mg dosage as the most commonly prescribed. (PI. Resp. to Def. 56.1 ¶ 3) In other countries, AZ sold omeprazole under the name “Losec”. (PI. Resp. to Def. 56.1 ¶ 3)

In 1997, defendant P & G entered into a license agreement with AZ to distribute and sell an over-the-counter version of Pri-losec to treat heartburn, subject to FDA approval of such a product. (Allgood Deck ¶ 5; PI. Resp. to Def. 56.1 ¶ 5) In January 2000, P & G and AZ jointly sought FDA approval for a tablet form of omeprazole, instead of a capsule form, because consumers preferred the tablet form and it was more resistant to tampering. (Allgood Deck ¶ 5; PI. Resp. to Def. 56.1 ¶¶ 5-6) P & G and AZ sought FDA approval of Prilosec OTC to treat a single condition, namely, frequent heartburn, which is a symptom of GERD; they did so because they believed that it was FDA policy to approve over-the-counter drugs only to treat symptoms that can be self-diagnosed. (Allgood Dep. at 55-56, 69; PI. Resp. to Def. 56.1 ¶ 6) As a result, P & G and AZ did not seek approval of, and the FDA did not approve, Prilosec OTC for the other gastrointestinal conditions treated by the prescription version of Prilosec because patients suffering from those diseases should presumably first be examined by their physician. (Allgood Dep. at 55-56, 69; PI. Resp. to Def. 56.1 ¶ 6)

The parties dispute whether Prilosec OTC can safely and effectively treat all of the conditions for which prescription ome-prazole was approved. (Def. Resp. to PI. 56.1 ¶¶ 9-10) The FDA noted at one point in time that Prilosec OTC was “an appropriate treatment for erosive esophagitis and Barrett’s esophagus,” although P & G concedes that the agency did not approve Prilosec OTC for these uses. (Brody Aff. Ex.

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Bluebook (online)
443 F. Supp. 2d 453, 2006 U.S. Dist. LEXIS 6712, 2006 WL 435471, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mylan-pharmaceuticals-inc-v-proctor-gamble-co-nysd-2006.