Schering-Plough Healthcare Products, Inc. v. Schwarz Pharma, Inc.

547 F. Supp. 2d 939, 2008 U.S. Dist. LEXIS 15728, 2008 WL 582738
CourtDistrict Court, E.D. Wisconsin
DecidedFebruary 29, 2008
Docket1:07-mj-00642
StatusPublished
Cited by6 cases

This text of 547 F. Supp. 2d 939 (Schering-Plough Healthcare Products, Inc. v. Schwarz Pharma, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schering-Plough Healthcare Products, Inc. v. Schwarz Pharma, Inc., 547 F. Supp. 2d 939, 2008 U.S. Dist. LEXIS 15728, 2008 WL 582738 (E.D. Wis. 2008).

Opinion

ORDER

J.P. STADTMUELLER, District Judge.

Plaintiff Schering-Plough Healthcare Products, Inc. (“Schering-Plough”) filed its complaint on July 12, 2007, alleging claims brought pursuant to Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a)(1)(B) and Wisconsin state law against defen *941 dants Schwarz Pharma Manufacturing, Inc. (“Schwarz”), Kremers Urban, LLC, Breckenridge Pharmaceutical, Inc., and Paddock Laboratories, Inc. Schering-Plough claims that the defendants made false and misleading statements in connection with the marketing and sale of Polyethylene Glycol 3350 Powder for Oral Solution laxative drugs (“Polyethylene Glycol 3350”). On August 13, 2007, Schering-Plough moved for partial summary judgment as to liability on its claim of false advertising in violation of Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a). The defendants have filed separate motions to dismiss. For the reasons set forth below, the court will deny Schering-Plough’s motion for partial summary judgment and grant the defendants’ motions to dismiss this action.

BACKGROUND

The material facts are not in dispute. All the parties in this action market drugs approved by the United States Food and Drug Administration (“FDA”) pursuant to a comprehensive drug approval and regulatory scheme under the Federal Food, Drug, and Cosmetic Act (“FDCA”), 21 U.S.C. §§ 301-399. Under the FDCA, a “new drug” cannot be sold unless it is first approved by the FDA. See 21 U.S.C. § 355(a). Approval is obtained either through a New Drug Application (“NDA”), see 21 U.S.C. § 355(b), 21 C.F.R. § 314.50, or an Abbreviated New Drug Application (“ANDA”). A product similar to an NDA approved drug may be approved and marketed based on an ANDA. See 21 U.S.C. § 355(j). An ANDA requires the manufacturer of the similar drug to demonstrate that the two drugs are therapeutically equivalent, that is pharmaceutically equivalent and bioequivalent. Id. at § 355(j)(2)(A)(i)-(viii). An ANDA also requires the manufacturer of the similar drug to demonstrate that the “labeling proposed for the new drug is the same as the labeling approved for the listed drug----” Id. at § 355(j)(2)(A)(v).

On February 18, 1999, the FDA approved Braintree Laboratories, Inc.’s (“Braintree”) NDA to market Polyethylene Glycol 3350 as a prescription-only drug under 21 U.S.C. § 355(b). (O’Mullane Decl. ¶¶ 7-8.) On October 6, 2006, the FDA approved Braintree’s NDA to market Polyethylene Glycol 3350 as an over-the-counter drug. (Id. at ¶ 12.) The FDA also granted Braintree three-year exclusivity to market Polyethylene Glycol 3350 as an over-the-counter drug, beginning October 6, 2006. (Id. at ¶ 13.) In August 2006, Braintree granted Schering-Plough an exclusive right to market over-the-counter Polyethylene Glycol 3350, and on February 19, 2007, Schering Plough began marketing its Polyethylene Glycol 3350 over-the-counter product, Mira LAX. (Id. at ¶ 14.) The polyethylene glycol 3350 molecule is the only ingredient in each of the parties’ Polyethylene Glycol 3350 products; there are no inactive ingredients. (Id. at ¶ 15.)

Between 2004 and 2006, the defendants filed ANDA’s in order to obtain FDA approval to market generic equivalent Polyethylene Glycol 3350. These ANDA’s were based upon the approved NDA filed by Braintree which allowed for the marketing of Polyethylene Glycol 3350 as a prescription-only drug. (Compl. ¶¶ 18-21.) Before the FDA approved Braintree’s NDA to market Polyethylene Glycol 3350 as an over-the-counter drug, the FDA approved the defendants’ ANDA’s, permitting the defendants to market Polyethylene Glycol 3350 as a prescription-only drug. (Id.) Because the FDA granted Braintree three-year exclusivity to market Polyethylene Glycol 3350 as an over-the-counter drug, the FDA currently cannot approve any ANDA’s for over-the-counter Polyethylene Glycol 3350.

*942 After the defendants’ ANDA’s were approved, the defendants began marketing and selling their Polyethylene Glycol 3350 products as “Rx only” or “prescription only” laxatives. (Howard Deck ¶¶ 12-20, Exs. 1-8.) Schering-Plough asserts that the defendants’ use of these “prescription only” statements on their labels constitutes false advertising in violation of the Lan-ham Act because Polyethylene Glycol 3350 is available from Schering-Plough without a prescription. The defendants contend that because their ANDA’s were based upon the approved NDA which allowed for the marketing of Polyethylene Glycol 3350 as a “prescription only” drug, their products’ labels are required by the FDA and FDCA to indicate that the products are available only by prescription.

ANALYSIS

Because the court is able to rule on Schering-Plough’s motion for partial summary judgment without the need to preemptively interpret and enforce FDA regulations, the court will address that motion first. Summary judgment is appropriate where the moving party establishes that there is no genuine issue of material fact and that the party is entitled to judgment as a matter of law. Fed. R.Civ.P. 56(c); Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). “Material facts” are those facts which “might affect the outcome of the suit,” and a dispute about a material fact is “genuine” if a reasonable finder of fact could find in favor of the nonmoving party. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). Summary judgment is appropriate where a party has failed to make “a showing sufficient to establish the existence of an element essential to that party’s case and on which the party will bear the burden of proof at trial.” Celotex, 477 U.S. at 322-23, 106 S.Ct. 2548. A party opposing summary judgment may not rest upon the mere allegations or denials of the adverse party’s pleading, but must set forth specific facts showing that there is a genuine issue for trial. Fed.R.Civ.P. 56(e). In determining whether a genuine issue of material fact exists, the court construes all facts and reasonable inferences in a light most favorable to the non-moving party. Anderson, 477 U.S. at 255, 106 S.Ct.

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547 F. Supp. 2d 939, 2008 U.S. Dist. LEXIS 15728, 2008 WL 582738, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schering-plough-healthcare-products-inc-v-schwarz-pharma-inc-wied-2008.