Vanda Pharmaceuticals, Inc. v. Food and Drug Administration

District Court, District of Columbia·Decided February 13, 2025·No. Civil Action No. 2023-0280·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

VANDA PHARMACEUTICALS, INC., Plaintiff,

v.

UNITED STATES FOOD AND DRUG ADMINISTRATION, et al., Civil Action No. 23-280 (TSC)

Defendants,

and TEVA PHARMACEUTICALS USA, INC., Intervenor-Defendant.

MEMORANDUM OPINION

Plaintiff Vanda Pharmaceuticals, Inc. has sued the Food and Drug Administration (“FDA”); its Commissioner, Robert M. Califf; the Department of Health and Human Services; and its Secretary, Xavier Becerra (collectively, “Defendants”). Am. Suppl. Compl. ¶¶ 9–13, ECF No. 44-1. Plaintiff alleges that Defendants violated the Administrative Procedure Act (“APA”) in approving an application by Teva Pharmaceuticals USA, Inc. (“Teva”) to market the generic drug tasimelteon, and in denying Plaintiff’s petition to revoke that approval. Id. ¶¶ 3–8. Teva intervened as a defendant, see Feb. 5, 2023 Min. Order, and the parties have cross-moved for summary judgment. For the reasons set forth below, the court will DENY Plaintiff’s Motion for Summary Judgment, ECF No. 47; GRANT Teva’s Cross-Motion for Summary Judgment, ECF No. 48; and GRANT Defendants’ Cross-Motion for Summary Judgment, ECF No. 50.

I. BACKGROUND

A. Statutory and regulatory framework The Federal Food, Drug, and Cosmetic Act (“FDCA”) requires that drug manufacturers apply for and receive FDA approval before marketing any new drugs. 21 U.S.C. § 355(a). When a drug is the first of its kind, applicants must submit extensive information about its safety, effectiveness, composition, production, and labeling. Id. § 355(b)(1)(A). The FDA must carefully evaluate that information—verifying its accuracy and considering the new drug’s risks and benefits—before approving an application. Id. § 355(d). The process of securing approval for such “pioneer” drugs is thus often “expensive and time-consuming.” Am. Bioscience, Inc. v. Thompson, 269 F.3d 1077, 1079 (D.C. Cir. 2001).

In contrast, if a manufacturer seeks approval to market a generic version of a pioneer drug that the FDA has already approved, it can do so through an abbreviated new drug application (“ANDA”). 21 U.S.C. § 355(j). The ANDA need not provide independent evidence that the proposed generic drug is safe or effective for its intended use. Instead, it must show that the generic drug is “the same” as its pioneer counterpart. 21 U.S.C. § 355(j)(2)(A)(i)–(v), 355(j)(4)(B)–(G); 21 C.F.R. §§ 314.94, 314.127. That showing allows the generic manufacturer to “piggyback[] on the original manufacturer’s evidence of safety and efficacy,” Teva Pharms., USA, Inc. v. Leavitt, 548 F.3d 103, 104 (D.C. Cir. 2008), and thus to “develop generic drugs inexpensively, without duplicating the clinical trials already performed on the equivalent brand-name drug,” PLIVA, Inc. v. Mensing, 564 U.S. 604, 612 (2011). “In creating this shortcut, Congress sought to encourage the development of generic drugs to increase competition and lower prices,” Amgen Inc. v. Hargan, 285 F. Supp. 3d 351, 358 (D.D.C. 2018) (citation and quotation marks omitted), thereby increasing the availability of beneficial drugs without introducing any new dangers.

By law, each ANDA must contain certain information demonstrating that the generic drug is the same—and therefore as safe—as the pioneer one. For instance, the ANDA must show that

(1) the generic drug is “bioequivalent” to the pioneer drug; (2) its active ingredients, route of administration, strength and dosage form are “the same as” those of the pioneer drug; and (3) the inactive ingredients are not “unsafe for use under the conditions prescribed, recommended, or suggested in the labeling proposed for the drug.”

Zeneca, Inc. v. Shalala, 213 F.3d 161, 164 (4th Cir. 2000) (quoting 21 U.S.C. § 355(j)(4)(C), (D), (H)).

Two ANDA requirements are particularly relevant here. First, the FDCA requires each ANDA to “show that the labeling proposed for the new drug is the same as the labeling approved for the [pioneer] drug.” 21 U.S.C. § 355(j)(2)(A)(v). That showing matters because the FDA’s approval of the pioneer drug depends on whether it is “safe for use under the conditions prescribed, recommended, or suggested in the proposed labeling thereof,” and whether its label is “false or misleading.” Id. § 355(d). The FDCA does not require that showing, however, if there are label “changes required . . . because the new drug and the [pioneer] drug are produced or distributed by different manufacturers.” Id. § 355(j)(2)(A)(v). FDA regulations elaborate on that exception and provide potential examples, explaining that such label changes “may include differences in expiration date, formulation, bioavailability, or pharmacokinetics, labeling revisions made to comply with current FDA labeling guidelines or other guidance, or omission of an indication or other aspect of labeling protected by patent or accorded exclusivity.” 21 C.F.R. § 314.94(a)(8)(iv).

The FDA has interpreted the “different manufacturers” exception to permit generic manufacturers to depart from the pioneer drug label where the original manufacturer had “voluntarily adopted” certain standards “that are more onerous or rigorous than the standards FDA has determined are necessary.” Corrected Confidential J.A. at 357, ECF No. 59-1 (“J.A.”). 1 For example, the FDA has approved generic labels that included “only one disposal method where the [pioneer drug] labeling included two,” or “did not include halal and kosher certifications in their labeling, where the [pioneer drug] did,” or “did not include a statement about peanut protein testing included in the [pioneer drug] labeling.” Id. at 885. Likewise, the FDA has approved a generic drug label that “included an ingredient safety warning that was not in the [pioneer drug] labeling, where the generic manufacturer chose to formulate its product with a different inactive ingredient.” Id. Finally, the FDA has “also considered differences in font, color, trade name, and other trade dress to be permissible differences due to different manufacturers,” noting that “nearly all generic drug product labeling” changes at least some of those aspects from the original brand-name drug label. Id.

The second relevant ANDA requirement is related to the first: Each ANDA must “show that the conditions of use prescribed, recommended, or suggested in the labeling proposed for the new drug have been previously approved” for a pioneer drug. 21 U.S.C. § 355(j)(2)(A)(i). The FDA defines “conditions of use” to refer to “how, to whom, and for which purposes a drug product is administered.” J.A. at 890. There are no exceptions to this requirement. B. Factual record This case involves medication developed to treat Non-24-Hour Sleep-Wake Disorder (“Non-24”). Mem. in Supp. of Pl.’s Mot. Summ. J. at 4, ECF No. 47-1 (“Pl.’s MSJ”). Non-24 is a “chronic disorder in which the body cannot synchronize its internal circadian rhythmicity—the process that regulates the sleep-wake cycle—with the 24-hour day.” Id. (citing J.A. at 500, 508–

1 The court’s citations to the J.A. refer to the Bates number of the cited page in the administrative record—e.g., this citation to page 357 corresponds to the J.A. page labeled “FDA000357,” even though that is the 180th page of the docketed PDF file containing the J.A.

21). Individuals affected by Non-24 experience patterns of sleep, body temperature, and hormone rhythm that misalign with ordinary day-night cycles, leading to nighttime insomnia and excessive daytime sleepiness. Id. at 4–5 (citing J.A. at 509–10, 512–13). People suffering from blindness are frequently affected by Non-24 because they do not “register the light signals which are needed to fine-tune the body clock to a 24-hour day.” Id. at 5 (quoting J.A. at 511). The FDA “estimate[s] that over half of totally blind individuals suffer from Non-24 and that approximately 100,000 people in the United States have the disorder.” Id. (quoting J.A. at 524).

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