MEMORANDUM OPINION
The plaintiffs filed this action to challenge a decision by the Food and Drug Administration (“FDA”), which permits the sale of brand generic drugs
1
during the generic exclusivity period provided for in 21 U.S.C. § 355(j)(5)(B)(iv)(I). Verified Amended Complaint (“Compl.”) ¶¶ 119-24.
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The parties have filed cross-motions for summary judgment. Currently before the Court are (1) the Plaintiffs’ Memorandum of Law in Support of Their Motion for Partial Summary Judgment (“Pis.’ Mem.”); (2) the Federal Defendants’ Memorandum in Support of Motion to Dismiss Amended Complaint or, in the Alternative, for Summary Judgment; and in Opposition to Plaintiffs’ Motion for Partial Summary Judgment (Defs.’ Mem.); and (3) the Memorandum of Law in Opposition to Defendants’ Motion to Dismiss and in Further Support of Plaintiffs’ Motion for Summary Judgment (“Pis.’ Reply”).
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For the following reasons, this Court will grant the
I. Statutory Scheme
Prior to the passage of the Federal Food, Drug and Cosmetic Act (“FDCA”), 21 U.S.C. § 301
et. seq.,
commonly referred to as the Hatch-Waxman Amendments, all drug manufacturers — brand-name and generic — were required to conduct controlled human clinical studies to demonstrate that the drug that they wanted to introduce into the market was safe and effective.
Allergan, Inc. v. Alcon Lab., Inc.,
The approval of an ANDA depends, in part, upon the applicant submitting “a certification ... with- respect to each patent which claims [a] listed drug [previously approved by the Secretary of Health and Human Services (‘HHS’) for safety and effectiveness or whose approval has been withdrawn or suspended] or which claims a use for such a listed drug for which the applicant is seeking approval 21 U.S.C. §§ 355(j)(2)(A)(vii), 355(7). In, addition, the certification must state one of the following:
(I) that the required patent information relating to such patent has not been filed;
(II) that such patent has expired;
(III) that the patent will expire on a particular date;
(IV) that such patent is invalid or will not be infringed upon by the drug for which approval'is sought.
35 U.S.C. § 355(j)(2)(A)(vii). “If [a] certification is made under paragraph I or II indicating that patent information pertaining to the drug or its use has not been filed with the FDA or that the patent has expired, approval of the ANDA may be made effective immediately.”
Barr Labs. Inc. v. Thompson,
Because of the likelihood of litigation, the filing of a paragraph IV certification can be costly. Thus, to encourage the investment in ANDA generic drugs, Congress granted an economic incentive to the first generic company to file a paragraph IV certification.
Pharmachemie B.V. v. Barr Labs., Inc.,
If the [ANDA] contains a [paragraph IV] certification ... and is for a drug for which a previous [ANDA] has been submitted [containing] such a certification, the [ANDA] shall be made effective not earlier than one hundred and eighty days after ... the first commercial marketing of the drug under the previous ANDA. 5
21 U.S.C. § 355(j)(5)(B)(iv)(I) (2001). In this case, the Court is asked to interpret this provision in light of the facts and circumstances of this case.
II. Factual Background
The facts in this case are not significantly in dispute and will only briefly be reviewed. On June 9, 2004, Teva filed a citizen petition with the FDA pursuant to 21 U.S.C. § 355; 21 C.F.R. § 10.30. Administrative Record (“A.R.”), tab 1. The petition sought to have the FDA declare that the generic exclusivity period of a generic drug manufacturer could not be infringed upon by the brand-drug manufacturer’s introduction into the market of its own brand generic drug. A.R., tab 1 at 1. The June 9, 2004 citizen’s petition concerned a generic version of the drug Accu-pril®, which is administered to treat high blood pressure.
Id.
On July 2, 2004, the FDA responded to the petition and concluded that it did not have the authority under the FDCA to prevent brand generic drugs from being marketed during the 180-day marketing exclusivity period of the first ANDA filer. A.R., tab 4 (“FDA decision”) at 2. Teva did not challenge the
The plaintiffs seek relief in this case because they allege that Pfizer will begin selling a brand generic form of Neurotin® prior to the expiration of the generic exclusively period that will be shared by Teva and Purepac Pharmaceutical Co. 6 Compl. ¶ 3. The plaintiffs allege that the FDA has decided, through final agency action concerning Accuril®, that brand generic drugs may be sold prior to the expiration of the Generic Exclusivity Period regardless of whether the generic exclusivity period is based upon the text of the FDCA. Compl. ¶ 2-3. Accordingly, the plaintiffs seek declaratory and injunctive relief declaring the FDA’s denial of Teva’s citizen’s petition as arbitrary, capricious, an abuse of discretion, and a violation of the FDCA, 21 U.S.C. § 301 et seq., and the Administrative Procedure Act (“APA”), 5 U.S.C. § 701 et seq.
III. The Parties’ Arguments
The plaintiffs raise a number of arguments in support of their motion for summary judgment. First, the plaintiffs contend that the challenged FDA decision is contrary to the purpose of the exclusivity period provision of the FDCA and is therefore arbitrary, capricious and contrary to law. Pis.’ Mem. at 13-14. Specifically, the plaintiffs’ opine that the purpose of the exclusivity provision is to provide a commercial incentive for ANDA applicants to undertake the paragraph IV certification process. According to the plaintiffs, if brand generic drugs are permitted to enter the market during the exclusivity period, this incentive is diminished. Pis.’ Mem. at 15-16. Moreover, the plaintiffs assert that permitting brand generic drugs to enter the market during the exclusivity period benefits the NDA, not the ANDA, which is also contrary to the purpose of the exclusivity period provision of the FDCA. Id. at 17-19. Finally, the plaintiffs argue that both the FDA and courts have recognized that ANDA generic drugs and other brand generic drugs are legally and commercially equivalent, and therefore consistent with this determination, § 355(j)(5)(B)(iv) should be read to prohibit the marketing of both brand generic and ANDA generic drugs during the exclusivity period. Id. at 18-26. In the alternative, the plaintiffs seek a ruling from this Court that the FDA’s interpretation of § 355(j)(5)(B)(iv) is inconsistent with prior agency and judicial precedent and therefore, this case should be remanded back to the FDA. Pis.’ Reply at 13-32. The federal defendants counter that they have no statutory authority to delay the entry into the market of brand generic drugs. The FDA opines that the plain language of the statute at issue gives the FDA authority to delay entry into the market of ANDA generic drugs but not brand generic drugs. Def.’s Mem. at 9-12. Moreover, the federal defendants assert that the FDA’s decision in this case is not inconsistent with prior FDA decisions and thus a remand is not appropriate. Id. at 12-16.
IV. Standard of Review
This Court may grant a motion for summary judgment under Federal Rule of Civil Procedure 56(c) if “the pleadings, depositions, answers to interrogatories and
Under the Administrative Procedure Act, 5 U.S.C. § 706(2)(A), this Court may vacate a decision by the FDA only if the decision is “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with the law.” This standard is highly deferential to the agency.
See Citizens to Pres. Overton Park, Inc. v. Volpe,
The Supreme Court developed in
Chevron U.S.A., Inc. v. Natural Res. Def. Council,
Y. Legal Analysis
In determining whether
Chevron
deference should be accorded to the FDA’s decision, this Court must first determine, by “employing traditional tools of statutory construction,” whether “Congress had an intention on the precise question at issue -”
Chevron,
Despite the plaintiffs lengthy argument that the FDA interpreted the statute in a manner that is inconsistent with the purpose of the FDCA and thus arbitrary, capricious, and contrary to law, this Court concludes that it need not go beyond the plain language of the statute to resolve the issues presented in this case. The statute at issue in this case states:
If the application contains a certification described in subclause (IV) of paragraph (2)(A)(vii) and is for a drug for which a previous application has been submitted under this subsection eont[ain]ing such a certification, thé application shall be made effective not earlier than one hundred and eighty days after—
(I) the date the Secretary receives notice from the applicant under the previous application of the first commercial marketing of the drug under the previous application, or
(II) the date of a decision of a court in an action described in clause (iii) holding the patent which is the subject of the certification to be invalid or not infringed,
whichever is earlier.
21 U.S.C. § 355(j)(5)[B)(iv) (2001). The statute, unambiguously on its face applies only to ANDA applications, not NDA applications. The statue makes clear that the FDA must delay approval of an ANDA until after the expiration of the 180 day exclusivity • period for any “application” that “contains a certification described in subclause (IV) of paragraph (2)(A)(vii) and is for a drug for which a previous application has been submitted under this subsection cont[ain]ing such a certification.” This subsection applies only to applications submitted under paragraph 2 of this section. § 355(j)(5)(B)(iv). Paragraph (j)(2), in turn, explicitly applies only to “abbreviated application^] for a new drug” — AN-DAs. § 355(j)(2)(A). Accordingly, the statute only prohibits the FDA from approving subsequent
ANDAs
until after the 180 day exclusivity period has expired. Nothing in the statute provides any support for the argument that the FDA can prohibit NDA holders- from entering the market with a brand generic drug during the exclusivity period. “Where, as here, the plain language of the statute is clear, the court generally will not inquire further into its meaning.”
Qi-Zhuo v. Meissner,
Because the statute is clear and unambiguous in that it covers only AN-DAs, the Court must “presume that Congress meant precisely what it said.”
Nat’l Public Radio, Inc. v. F.C.C.,
In the alternative, the plaintiffs argue that the Court should remand this case back to the FDA because its interpretation of the exclusivity period provision is inconsistent with prior interpretations of the FDCA that have been approyed by the Supreme Court and courts of this Circuit.
VI. Conclusion
For the foregoing reasons, this Court concludes that all the FDA has done is give effect to the plain and unambiguous language of 21 U.S.C. 21 U.S.C. § 355(j)(5)(B)(iv)(I). Accordingly, this Court must deny the plaintiffs’ motion for summary judgment and grant the defendants’ motion for summary judgment.
Notes
. The Court’s use of the terms “brand generic drugs” or "authorized generic drugs” references generic drugs that are put on the market by the holder of a New Drug Application (“NDA”) as opposed to a "ANDA generic drug,” which is put on the market by the holder of an Abbreviated New Drug Application ("ANDA”).
. This case has a complicated procedural history. On August 20, 2004, the plaintiffs filed a one-count complaint against the FDA seeking the same relief they seek in the present motions. However, on October 8, 2004, the plaintiffs filed an amended nine-count complaint, which joined Pfizer, Inc. and Green-stone, Ltd. as defendants. On this same date, the plaintiffs also filed a motion for a temporary restraining order, a motion for a preliminary injunction, and a motion for summary judgment. On October 13, 2004, this Court conducted a hearing on the plaintiffs’ motion for a temporary restraining order and orally denied the motion at the conclusion of the hearing. Shortly after the hearing, the plaintiffs voluntarily dismissed Pfizer, Inc. and Greenstone Ltd. as defendants and all claims pertaining to those defendants, thus leaving only the federal defendants as parties to the action. However, on October 19, 2004, Greenstone and Pfizer filed a motion to intervene, which this Court later granted. On October 21, 2004, the plaintiff voluntarily dismissed the second claim for relief against the FDA. At the conclusion of the foregoing procedural maneuvering by the parties, only one count of the amended complaint remained and the parties began the process of preparing and filing dispositive motions, which are now ripe for resolution by the Court.
. The Court also has before it (1) the Defendant-intervenors Pfizer Inc.’s and Greenstone Ltd.’s Motion to Dismiss Based on Plaintiffs' Failure to State a Claim Upon Which Relief can be Granted ("Def.-Intervenors’ Mem.”); (2) the Plaintiffs' Memorandum of Law in Opposition to Defendant-intervenors Pfizer Inc.'s and Greestone Ltd.’s Motion to Dismiss Based on Plaintiffs’ Failure to State a Claim Upon Which Relief can be Granted ("Pis.' Opp'n to Def.-Intervenors’ Mem.”); and (3) the Defendant-intervenors Pfizer Inc.’s and Greenstone Ltd.’s Memorandum in Opposition to Plaintiffs’ Motion for Summary Judgment and Reply in Further Support of Motion to Dismiss ("Def.-Intervenors’ Reply”). Because both the federal defendants and the defendant-intervenors raise essentially the same arguments, the Court will cite primarily to the papers submitted by the federal defendants for clarity and conciseness.
. If the patent holder brings an infringement suit in district court within 45 days of receiving notice of the paragraph IV certification, the suit triggers an automatic stay of the FDA approval of the ANDA for 30 months. 21 U.S.C. § 355(j)(5)(B)(iii). If the patent holder or NDA holder does not bring suit within 45 days after it has received notice, the unexpired patent itself will not bar the FDA’s approval of the ANDA; rather, it is eligible for immediate approval. 21 U.S.C. § 355(j)(5)(B)(iii); 21 C.F.R. § 314.107(f)(2).
. In 2003, Congress passed the Medicare Prescription Drug Improvement and Modernization Act of 2003 (“MMA”), Pub.L. No. 108-
173, § 1102(a)(1). This Act slightly altered the language of the FDCA exclusivity provision. Currently, 21 U.S.C. § 355(j)(5)(B)(iv)(I). The provision now reads:
[I]f the application contains a certification described in [paragraph IV] and is for a drug for which a first applicant has submitted an application containing such a certification, the application shall be made effective on the date that is 180 days after the date of the first commercial marketing of the drug (including the commercial marketing of the listed drug) by any first applicant.
21 U.S.C. § 355(j)(5)(B)(iv)(I)(2003).
. Purepac Pharmaceutical Company ("Pure-pac”) is actually entitled to the 180 days of marketing exclusivity, as the first paragraph IV filer. However, through a business arrangement, Purepac has agreed to waive its marketing exclusivity for generic gabapentin products with respect to Teva, thereby permitting Teva to sell generic gabapentin products before the expiration of the gabapentin generic exclusivity period. Compl. ¶ 92.
. The plaintiffs also seem to argue that it is not surprising that the statute is silent on the issue of whether the FDA can prohibit the sale of the brand generic drugs because the introduction of brand generic drugs into the market did not begin to occur until after the exclusivity provision was most recently revised. Pis.’ Mem. at 32. Thus, since Congress was not confronted with the question presented in this case, it appears that the plaintiffs contend that this creates an ambiguity in the statute.
Id.
(citing
PDK Labs. Inc.
v.
DEA,
. While a court should almost always defer to the plain and unambiguous language of the statute, in “rare cases [in which] the literal application of a statute will produce a result demonstrably at odds with the intentions of its drafters.” the court should look to other sources to determine Congress’ intent.
United States v. Ron Pair Enterp., Inc.,
