Pediamed Pharmaceuticals, Inc. v. Breckenridge Pharmaceutical, Inc.

419 F. Supp. 2d 715, 2006 U.S. Dist. LEXIS 8565, 2006 WL 544525
CourtDistrict Court, D. Maryland
DecidedMarch 6, 2006
DocketCiv.A. DKC 2003-3443
StatusPublished
Cited by10 cases

This text of 419 F. Supp. 2d 715 (Pediamed Pharmaceuticals, Inc. v. Breckenridge Pharmaceutical, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pediamed Pharmaceuticals, Inc. v. Breckenridge Pharmaceutical, Inc., 419 F. Supp. 2d 715, 2006 U.S. Dist. LEXIS 8565, 2006 WL 544525 (D. Md. 2006).

Opinion

MEMORANDUM OPINION

CHASANOW, District Judge.

Presently pending and ready for resolution in this Lanham Act unfair competition case are: a motion by Plaintiff for partial summary judgment (paper 72); a motion by Defendants for summary judgment on all counts (paper 100); two motions by Plaintiff to seal exhibits (papers 73, 109); five motions by Defendants to seal exhibits (papers 79, 93, 99, 101, 112); a motion by Plaintiff for leave to supplement and to strike (paper 115); and a motion by Defendants for leave to file a surreply (paper 124). The issues are fully briefed and the court now rules pursuant to Local Rule 105.6, no hearing being deemed necessary. For the reasons that follow, the court will deny Plaintiffs motion for partial summary judgment; deny Defendants’ motion for summary judgment; deny Plaintiffs and Defendants’ motions to seal exhibits; deny as moot Plaintiffs motion to supplement and to strike; and deny as moot Defendants’ motion to file a surreply. Finally, the court will require Plaintiff to show cause why Count 5 should not be dismissed because the count involves claims against individuals who are not parties to this suit.

I. Background

A. Factual Background

1. The Parties

The following facts are undisputed unless noted. Plaintiff, PediaMed Pharmaceuticals, Inc., whose principal place of business is Florence, Kentucky, is a pharmaceutical company that focuses on developing medicines for children. In 2001, Plaintiff contracted with Kiel Laboratories to manufacture Viravan-S (“Viravan”). 1 Kiel produces Viravan using Tannate Conversion Technology (“TCT process”), a patented process that combines the active ingredients with tannic acid, which results in a prolonged release of the active ingredients and an improved ability to mask the taste. The process also results in fewer impurities in the finished product. 2 Designed for children, Viravan has a grape flavor that Plaintiff asserts gives the medicine a pleasing texture, smell, and flavor. *719 One of Viravaris benefits is that it is administered only twice per day rather than four times per day. Plaintiff spends millions of dollars building awareness of Vira-van. Plaintiff markets Viravan directly to doctors, and has distributed hundreds of thousands of samples to doctors.

Defendant Breckenridge Pharmaceutical, Inc. (“Breckenridge”), whose principal place of business is Boca Raton, Florida, is a privately held pharmaceutical company specializing in marketing, research, and development. Breckenridge considers itself to be one of the “leading generic pharmaceutical drug companies in the United States.” (Paper 72, ex. 8, Lapila dep. I, 43). At some point, Breckenridge decided to produce and market a generic version of Viravan, and in mid-2003, Breckenridge contracted with co-Defendant Scientific Laboratories, Inc. (“SLI”), whose principal place of business is Lanham, Maryland, to manufacture V-Tann. 3 Breckenridge began selling V-Tann in September 2003. V-Tann's advertising materials expressly identify Viravan as the comparable brand and state: “Compare the active ingredients in Viravan-S.” (Paper 72, ex. 27). Breckenridge markets its products primarily to drug wholesalers, distributors, chain drugstores, and pharmacists. 4 Breekenridge and SLI (collectively, “Defendants”) do not dispute Plaintiffs assertion that they market V-Tann by comparing it to Viravan.

2. Viravan and V-Tann

Viravan and V-Tann have two active ingredients: phenylephrine tannate, a nasal decongestant, and pyrilamine tannate, an antihistamine. The labels on both products claim to have 12.5 mg of pheny-lephrine tannate and 30 mg of pyrilamine tannate per 5 milliliters. Plaintiff asserts that Viravan and V-Tann are different in several ways. First, V-Tann was formulated to contain 15% more of both pheny-lephrine tannate and pyrilamine tannate than Viravan. Lane J. Brunner, an expert for Plaintiff, stated that for this reason the two products are not pharmaceutically equivalent. Second, SLI manufactures V-Tann with a broader range of acceptable variation for the active ingredients than the specification range used by Kiel. Plaintiff asserts that Kiel uses a specification range of 90%-110%, while the specification range for V-Tann is 80%-120%. Lamar Furr, an expert for Plaintiff, stated that an 80%-120% deviation from the label “would be unacceptable” and “demonstrates a poorly controlled manufacturing process” (paper 72, ex. 5, Furr rep., 2), and Dr. Brunner stated that because the two products have different specification ranges, the two products are not pharmaceutically equivalent.

Third, Viravan is made with United States Pharmacopeia/National Formulary (“USP”) -grade ingredients, while V-Tann contains non-USP grade active ingredients. 5 Fourth, the TCT process used by *720 Kiel is a different manufacturing process than the process used by SLI. Before launching V-Tann, SLI did not perform tests to determine whether V-Tann and Viravan are .bioequivalent. 6

3. Generic Equivalency and Substitution of Drugs

The substitution of a brand name drug with a generic drug is governed by state law. Certain states, including Maryland, mandate the use of the Approved Drug Products with Therapeutic Equivalence Evaluations, also known as the “Orange Book,” as the substitution standard. 7 According to the Orange Book, which is compiled by the Food and Drug Administration (“FDA”), two products are phar-maceutically equivalent if they:

[CJontain the same active ingredient(s), are of the same, dosage form, route of administration and are identical in strength or concentration ... Pharma-ceutically equivalent drug products are formulated to contain the same amount of active ingredient in the same dosage form and to meet the same or compendial or other applicable standards (i.e. strength, quality, purity, and identity), but they may differ in characteristics such as shape, scoring configuration, release mechanisms, packaging, excipients (including colors, flavors, preservatives), expiration time, and, within certain limits, labeling.

Approved Drug Products with Therapeutic Equivalence Evaluations, vii (25th ed.2005); see also 21 C.F.R. § 320.1(c) (“Pharmaceutical equivalents means drug products in identical dosage forms that contain identical amounts of the identical active drug ingredients ... and meet the identical compendial or other applicable standard of identity, strength, quality, and purity, including potency and, whenever applicable, content uniformity, disintegration times, and/or dissolution rates.”). Norman Campbell, one of Plaintiffs experts, declared that in states that use the Orange Book as the reference standard, a pharmacist may not legally substitute a drug if it is not listed in the Orange Book.

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Bluebook (online)
419 F. Supp. 2d 715, 2006 U.S. Dist. LEXIS 8565, 2006 WL 544525, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pediamed-pharmaceuticals-inc-v-breckenridge-pharmaceutical-inc-mdd-2006.