998 F.3d 1302
11th Cir.2021Background
- US Stem Cell Clinic removed ~2 ounces of a patient’s adipose tissue, processed it (rinsing, enzymatic digestion, centrifugation, filtration) to isolate the stromal‑vascular fraction (SVF, containing stem cells), then reinjected the SVF into the same patient.
- Clinic marketed the SVF therapy to treat many chronic and degenerative diseases (e.g., Parkinson’s, ALS, diabetes, arthritis), claiming regenerative benefits.
- FDA inspections found sterility, contamination testing, and labeling deficiencies; FDA sued in 2018 alleging the SVF was an adulterated and misbranded drug under the FDCA.
- Clinic claimed two regulatory exemptions: the “same surgical procedure” exception (21 C.F.R. §1271.15(b)) and the lighter 361 HCT/P regulatory path based on “homologous use” (21 C.F.R. §1271.10).
- District court granted summary judgment to FDA, holding (1) the SVF is not the same HCT/P as the removed adipose tissue because of substantial processing, and (2) Clinic intended non‑homologous uses based on its marketing; permanently enjoined Clinic absent FDA approval.
- Eleventh Circuit affirmed: processing removed the materials from the same‑procedure exception, and marketing showed non‑homologous intended use for the 361 exception.
Issues
| Issue | Plaintiff's Argument (FDA) | Defendant's Argument (Clinic) | Held |
|---|---|---|---|
| Whether the “same surgical procedure” exception covers the Clinic’s SVF process | The SVF results from substantial processing (enzymatic digestion, isolation) and is not the same HCT/P removed (adipose tissue); therefore not exempt | The SVF is removed and reinjected into the same patient, so it is the same HCT/P and falls within the exception | Held for FDA: substantial processing means reinjected material is not “such HCT/Ps,” so exception does not apply |
| Whether the SVF qualifies as a 361 HCT/P under the “homologous use” requirement | Clinic’s marketing seeks therapeutic effects beyond adipose tissue’s basic functions (cushioning/support); SVF intended to treat many diseases -> nonhomologous | SVF’s basic function is regenerative/repair in adipose tissue and Clinic intends the same regenerative function post‑procedure -> homologous | Held for FDA: objective intent (marketing) shows intended therapeutic, non‑homologous uses; 361 exception not met |
Key Cases Cited
- Kisor v. Wilkie, 139 S. Ct. 2400 (2019) (standards for deference to agency interpretations of their own rules and when a regulation is genuinely ambiguous)
- Skidmore v. Swift & Co., 323 U.S. 134 (1944) (weight of an agency interpretation depends on its persuasiveness and reasoning)
- FDA v. Brown & Williamson Tobacco Corp., 529 U.S. 120 (2000) (Court’s discussion of agency core objectives and statutory interpretation in regulatory contexts)
- Bostock v. Clayton County, 140 S. Ct. 1731 (2020) (interpret laws in accord with ordinary public meaning at time of enactment)
- United States v. US Stem Cell Clinic, 403 F. Supp. 3d 1279 (S.D. Fla. 2019) (district court decision granting summary judgment to FDA on same record)
- Kamen v. Kemper Fin. Servs., 500 U.S. 90 (1991) (courts may consider grounds not advanced by the parties when properly before the court)
- Olson v. Superior Pontiac-GMC, Inc., 776 F.2d 265 (11th Cir. 1985) (permitting sua sponte consideration of issues in limited circumstances)
