Vanda Pharmaceuticals, Inc. v. FDA

Court of Appeals for the D.C. Circuit·Decided August 18, 2026·No. 25-5041·Published

Opinion

United States Court of Appeals FOR THE DISTRICT OF COLUMBIA CIRCUIT

Argued March 12, 2026 Decided August 18, 2026

No. 25-5041

VANDA PHARMACEUTICALS, INC., APPELLANT

v.

UNITED STATES FOOD AND DRUG ADMINISTRATION, ET AL., APPELLEES

Appeal from the United States District Court for the District of Columbia (No. 1:23-cv-00280)

Paul W. Hughes III argued the cause for appellant. With him on the briefs were Sarah Hogarth and Connor Suozzo.

David L. Peters, Attorney, U.S. Department of Justice, argued the cause for defendants-appellees. With him on the brief were Brett A. Shumate, Assistant Attorney General, and Daniel Tenny, Attorney.

Brian T. Burgess argued the cause for intervenor-appellee Teva Pharmaceuticals, USA, Inc. With him on the brief was Isabel M. Marin. Emmett Witkovsky-Eldred entered an appearance.

Before: MILLETT and PAN, Circuit Judges, and ROGERS, Senior Circuit Judge.

Opinion for the Court filed by Circuit Judge MILLETT.

MILLETT, Circuit Judge: Before a generic version of a name-brand drug can appear on pharmacy shelves, the Food and Drug Administration (“FDA”) must approve both the drug and its labeling. That labeling includes not just the basic information and graphics on the container, but also all of the accompanying instructions, warnings, and in-depth information about the drug.

As part of that approval process, the generic manufacturer must show that its labeling is “the same as” the name-brand drug’s. 21 U.S.C. § 355(j)(2)(A)(v). This case centers on an exception to that sameness requirement for “changes required * * * because the [generic] drug and the [name-brand] drug are produced or distributed by different manufacturers[.]” Id.

Vanda Pharmaceuticals, Inc., markets a drug with the established (generic) name tasimelteon under the brand name Hetlioz. Tasimelteon treats Non-24-Hour-Sleep-Wake Disorder. That condition predominantly affects visionimpaired individuals. The FDA approved labeling for Hetlioz that includes the brand name “Hetlioz” and the dosage “20 mg” embossed in braille on the bottle, as well as accompanying instructions in roman script to pharmacists: “Do not cover Braille” and “Dispense in original container.” J.A. 242.

A competitor, Teva Pharmaceuticals, USA, Inc., applied to market generic tasimelteon with labeling that omits both the braille lettering and the associated pharmacy instructions. The FDA approved Teva’s generic and its labeling.

Shortly thereafter, Vanda filed both a citizen petition with the FDA and this lawsuit arguing that the FDA’s approval of Teva’s labeling was contrary to law and arbitrary and capricious.

The district court granted the FDA’s and intervenor Teva’s motions for summary judgment on the ground that removal of the braille and its accompanying instructions fell into the exception for changes “required” because of a change in manufacturers. The court also rejected Vanda’s arbitrary and capricious claims.

We affirm in part and vacate in part. We vacate the grant of summary judgment only as to the FDA’s approval, in reliance on the different-manufacturer exception, of a label without “20 mg” in braille and without the accompanying pharmacy instructions. We remand to the district court with instructions to remand to the agency without vacatur to decide whether the label nonetheless satisfies the baseline statutory requirement that Teva’s label be “the same as” the Hetlioz label, which would make the inclusion of any braille script and the accompanying pharmacy instructions unnecessary. We otherwise affirm the grant of summary judgment in favor of the FDA and Teva.

I

A

1

Under the Food, Drug, and Cosmetic Act (“FDCA”), the Secretary of Health and Human Services must approve all drugs sold in the United States. 21 U.S.C. § 355(a). To bring a novel drug to market, a manufacturer must submit to the FDA

a new drug application (“NDA”) that contains, among other things, a full statement of the drug’s composition, studies supporting the safety and efficacy of the drug, and “specimens of the labeling proposed to be used for such drug[.]” Id. § 355(b). The FDCA’s definition of labeling sweeps broadly, encompassing “all labels and other written, printed, or graphic matter * * * upon any article or any of its containers or wrappers, or * * * accompanying such article.” Id. § 321(m).

The FDCA sets minimum requirements for the content and format of labeling, backed up by criminal penalties. See 21 U.S.C. §§ 331(a)–(c), 333, 352. A drug is deemed “misbranded” if:

any word, statement, or other information required by or under authority of this chapter to appear on the label or labeling is not prominently placed thereon with such conspicuousness * * * and in such terms as to render it likely to be read and understood by the ordinary individual under customary conditions of purchase and use.

Id. § 352(c). Under FDA regulations, a “word, statement, or other information” can lack the required “conspicuousness” due to “[s]mallness or style of type in which such word, statement, or information appears, insufficient background contrast, obscuring designs or vignettes, or crowding with other written, printed, or graphic matter.” 21 C.F.R. § 201.15(a)(6).

One of the words that must appear on every drug’s labeling is the drug’s “established name[,]” 21 U.S.C. § 352(e)(1)(A), “which is a nonproprietary name assigned to the drug by the FDA[,]” Novartis Pharms. Corp. v. Leavitt, 435 F.3d 344, 346

(D.C. Cir. 2006).1 Tasimelteon is the established name the FDA assigned to the drug at issue in this case. The established name must be printed “prominently and in type at least half as large as that used thereon for any proprietary name or designation for such drug[.]” 21 U.S.C. § 352(e)(1)(B). Congress imposed this requirement to “bring to the attention of doctors and patients the fact that many of the drugs sold under familiar trade names are actually identical to drugs sold under their ‘established’ or less familiar trade names at significantly lower prices.” Abbott Laboratories v. Gardner, 387 U.S. 136, 138 (1967).

FDA regulations fill in additional details. The established name must “accompany [the] proprietary name or designation each time it is featured on the label or in the labeling for the drug[.]” 21 C.F.R. § 201.10(g)(1). Also, the established name must have “a prominence commensurate with the prominence with which such proprietary name or designation appears, taking into account all pertinent factors, including typography, layout, contrast, and other printing features.” Id. § 201.10(g)(2).

A drug that does not satisfy these requirements, either at the NDA stage or post-approval, may not be sold in interstate commerce. 21 U.S.C. § 331(a)–(c).

2

The Drug Price Competition and Patent Term Restoration Act of 1984, Pub. L. No. 98-417, 98 Stat. 1585 (codified at 21

1 Because the established name in this case is the same as the generic name, this opinion uses the phrases “established name” and “generic name” interchangeably. The established name in this case is also the same as the active ingredient.

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