Pharmanex, Inc. v. Shalala

35 F. Supp. 2d 1341, 1999 U.S. Dist. LEXIS 1659, 1999 WL 80950
CourtDistrict Court, D. Utah
DecidedFebruary 16, 1999
Docket2:97 CV 0262 K
StatusPublished

This text of 35 F. Supp. 2d 1341 (Pharmanex, Inc. v. Shalala) is published on Counsel Stack Legal Research, covering District Court, D. Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pharmanex, Inc. v. Shalala, 35 F. Supp. 2d 1341, 1999 U.S. Dist. LEXIS 1659, 1999 WL 80950 (D. Utah 1999).

Opinion

ORDER

KIMBALL, District Judge.

Plaintiff Pharmanex, Inc. (“Pharmanex”) filed this case seeking judicial review of an administrative decision issued by the Food and Drug Administration (“FDA”) on May 20, 1998 (the “FDA Decision”). In that decision, FDA ruled that Cholestin, a product marketed by Pharmanex, is a drug, rather than, as Pharmanex contends, a dietary supplement. Pharmanex seeks an order holding the FDA Decision unlawful under the Administrative Procedure Act (“APA”), 5 U.S.C. § 706(2) (A) and (C), a declaration that Cho-lestin is a dietary supplement and not a drug, and a permanent injunction prohibiting FDA from continuing to bar entry into the United States of red yeast rice by Pharmanex for use in the manufacture of Cholestin.

Before the Court are Pharmanex’s Motion to Hold Unlawful and Set Aside FDA’s Decision of May 20, 1998, and FDA’s Motion to Affirm Administrative Decision.

Background

1. Statutory Overview.

This case requires interpretation of the Federal Food, Drug, and Cosmetic Act (“FDCA”), 21 U.S.C. § 301, et seq., as amended by the Dietary Supplement Health and Education Act of 1994 (“DSHEA”), Pub.L. No. 103-417, 108 Stat. 4-325 (1994). Congress enacted DSHEA in recognition of the valuable role played by dietary supplements in improving health, preventing disease, and reducing health care costs. Pub.L. No. 103-417(2), 108 Stat. 4325-26 (1994), 21 U.S.C. § 321 note (setting forth Congressional findings). Specifically, Congress acted to protect “the right of access of consumers to safe dietary supplements” and to remove “unreasonable regulatory barriers limiting or slowing the flow of safe products and aceu- *1343 rate information to consumers” that had been imposed by FDA. Id.

DSHEA fulfills that purpose by, among other things, defining dietary supplements, directing FDA that they are not to be regulated as drugs or food additives, and placing the burden on FDA to prove that a dietary supplement is unsafe before it can be removed from the marketplace. 1 See S.Rep. No. 103-410, at 2 (1994). The definition of dietary supplement added by DSHEA contains two inelusionary clauses and one exclusionary. 21 U.S.C. § 321 (ff). The two inclu-sionary clauses are not at issue in this suit. These clauses include within the definition products that are intended to supplement the diet by increasing total dietary intake, that contain an ingredient such as a vitamin, mineral, herb, or amino acid, and that are intended for ingestion in a tablet, capsule, powder, softgel, or form other than conventional food. 21 U.S.C. § 321(ff)(1) and (2). FDA does not dispute that Cholestin satisfies the requirements of these clauses.

The exclusionary clause, which is at issue in this case, is itself composed of two clauses. The first is the so-called prior market clause, which provides that the definition of dietary supplement does include “an article that is approved as a new drug under section 355 [that] was, prior to such approval, certification, or license, marketed as a dietary supplement or as a food” unless FDA has issued a regulation finding that the article as used as or in the dietary supplement constitutes adulterated food, which is defined and made unlawful in another section of the FDCA. 21 U.S.C. § 321(ff)(3)(A). The second clause provides that the definition does not include “an article that is approved as a new drug under section 355” that was not, before such approval, marketed as a dietary supplement. 2 21 U.S.C. § 321(ff)(3)(B).

The Senate Committee on Labor and Human Resources explained the origin and purpose of the exclusionary clause as follows:

The committee intends that the FDA should regulate dietary supplements as food and not as drugs, including dietary supplements that provide information about their nutritional impact on the structure or function of the human body. [DSHEA’s definition of dietary supplement] is intended to make the point unequivocally clear for the future.
On occasion, a substance that is properly included as a dietary ingredient in a dietary supplement (food) product may also function as an active ingredient in a drug product. There is nothing particularly surprising about this fact.
As an example, the dietary substance L-carnitine may properly be used as an ingredient in a dietary supplement (as FDA itself has acknowledged), although it is also the active ingredient in a drug product that has been approved by FDA for a particular prescription-only usage. Similarly, the substance caffeine is a natural component of food products such as coffee and tea; it is used as an added ingredient in other foods, including carbonated beverages, and it has also been approved by FDA as a drug ingredient.
In general, it is the intended use of a particular finished product (as shown by representations made for it in promotional materials) that determines whether tha[t] product and its ingredients are subject to regulation as a food or as a drug. If a vitamin product or an herbal product, for example, is represented for use as a “dietary supplement,” it is a food; if it is represented to cure, mitigate, treat, or prevent disease, it is a drug.
*1344 During consideration of [DSHEA], concerns were expressed that manufacturers or importers of drugs could avoid the drug approval process by marketing drug products as dietary supplements. Although current authorities should be adequate to deal with such potential problems, the committee is sensitive to those concerns. Accordingly, Senators Harkin and Hatch agreed to formulate additional language prior to consideration of [DSHEA] in the Senate.
Under the substitute to [DSHEA] as approved by committee, a substance which has been marketed as a dietary ingredient in a dietary supplement, or otherwise as a food, does not lose its status as a food (assuming it is intended for use as a dietary supplement or other food purpose as shown by its promotional materials) just because FDA approves the substance for use as an active ingredient in a new drug, certifies a finished product containing the substance as an antibiotic, or licenses a finished product containing the substance as a biologic. Those types of products would be drugs because they would be promoted with drug claims.

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35 F. Supp. 2d 1341, 1999 U.S. Dist. LEXIS 1659, 1999 WL 80950, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pharmanex-inc-v-shalala-utd-1999.