Pursuаnt to the Medical Device Amendments (“MDA”), 21 U.S.C. § 360c,
et seq.,
to the Food, Drug and Cosmetic Act (“FDCA”), 21 U.S.C. § 301,
et seq.,
the Food & Drug Administration (“FDA”) regulates the introduction of medical devices into interstate commerce by requiring that a device meets certain rigorous standards. The United States of America (“Government”) filed a civil action seeking a permanent injunction against Endotec, Inc. and its two owners, Michael Pappas and Frederick F. Buechel
1
(collectively, “Appellees”), alleging that they (1) manufactured and distributed adulterated ankle, knee, and jaw devices and (2) exceeded the scope of an approved clinical study of an ankle device, all in violation of the FDCA. In response, the Appellees assert that the ankle, knee, and jaw devices fall under the custom device exemption to the FDCA requirements and that they took certain remedial measures to cure any violations of the clinical study. After a three-day bench trial, the district court enjoined the Appellees from manufacturing and distributing the knee devices but rejected the Government’s requests to enjoin the manufacture and distribution of the ankle and jaw devices.
See Endotec, Inc.,
For the reasons that follow, we affirm the district court’s order as to the knee and jaw devices but reverse as to the ankle device and remand with instructions to the district court to enter a permanent injunction in favor of the Government.
I.
A. Statutory scheme
In 1976, Congress passed the MDA, which amended the FDCA and imposed a regime of detailed federal oversight for medical devices. The MDA divided medical devices into three classes “based on the risk that they pose to the public.”
Medtronic, Inc. v. Lohr,
Medical devices in interstate commerce at the time of the passage of the MDA were grandfathered and allowed to remain on the market unless and until the FDA promulgated a regulation requiring premarket approval. See id. § 360e(b)(l)(A). Generally, any medical device introduced into interstate commerce for commercial *1190 distribution after the passage of the MDA is classified in Class III unless (1) the FDA promulgates a regulation classifying the device in Class I or Class II, or (2) the device is “substantially equivalent” to another pre-existing device on the market. 2 Id. § 360c(f)(l). Because all the medical devices at issue here were introduced into interstate commerce for commercial distribution after May 28, 1976, and because neither party asserts that the medical devices at issue have been reclassified or deemed substantially equivalent to a Class I or II device, they constitute Class III devices. See Tr. of R., Volume 6, at 10:23-24 (Testimony of Robert Gatling, Jr., Director of the Program Operations Staff, Office of Device Evaluation, Center for Devices and Radiological Health) (testifying that the medical devices “at issue in this case are all Class III devices”).
The FDCA prohibits the introduction into interstate commerce of any adulterated or misbranded device. See 21 U.S.C. § 331(a), (k). To show a violation of § 331(a) and (k), the Government must prove: (1) Appellees’ products are “devices” within the meaning of the FDCA; (2) the devices are adulterated or misbranded; and (3) the devices move in interstate commerce. A device is “adulterated” under the FDCA if it is required to receive premarket approval from the FDA but moves in commerce even though it did not receive premarket approval. See id. § 351(f)(1)(B). In other words, a Class III device moving in interstate commerce that has not received premarket approval constitutes an adulterated device.
The FDCA and MDA contain several exemptions, two of which arise in this case. First, the investigational device exemption (“IDE”) allows an adulterated device to be distributed as part of a clinical investigation if certain conditions are met. See id. § 360j(g). Second, the custom device exemption exempts from performance standards and premarket approval requirements a device that meets the definition specified in the statute. See id. § 360j(b). Lastly, section 332 of the FDCA provides that “[t]he district courts of the United States and the United States courts of the Territories shall have jurisdiction, for cause shown to restrain violations of section 331 of this title, except paragraphs (h), (1) , and (j).” Id. § 332(a) (emphasis added).
B. Factual background
Endotec is a Florida corporation engaged in the business of manufacturing and distributing medical devices. Pappas is Endotec’s President and co-owner, and Buechel is Endotec’s Vice-President, medical director, and co-owner. The devices at issue include (1) ankle replacement implants with mobile bearings; (2) two types of mobile bearings used with knee replacement implants; and (3) a temporomandibular joint (“TMJ”) implant, or a jaw device.
1. Ankle device
The Buechel-Pappas Total Ankle Replacement System (“B-P Ankle”) is a generic mobile bearing device that consists of three components: (1) a tibial component; (2) a talar component; and (3) a mobile bearing between them. 3 Since 1991, En *1191 dotec has filed six “510(k)” applications with the FDA, asserting that the B-P Ankle is substantially equivalent to a Class II device. The FDA has rejected each submission. In October of 1997, Endotec received conditional approval for an IDE clinical study of the B-P ankle limited to two hospitals and ten patients. In May of 1999, the FDA granted full approval to Endotec’s IDE clinical study of the B-P Ankle, limited to 109 patients. The IDE reached full enrollment in September of 2001.
The ankle devices at issue here include (1) all ankle devices distributed by Endotec for use in patients beyond the scope of the IDE clinical study for the B-P Ankle, and (2) all ankle devices distributed by Endotec as “custom” or “surgeon specials.”
See Endotec,
In 2001, Barbara Maulfair, an FDA investigator, inspected Endotee’s New Jersey facility to collect information with respect to the IDE clinical study of the B-P Ankle. At trial, she testified that “Endotec’s level of accountability was the worst she had ever seen and violated FDA’s regulations governing clinical trials.” Id. at *3. As a result, the FDA issued a Form 483 to Endotec listing “seventeen observations which were significant deviations from the regulations.” Id. Endotec’s database identified 4,000 ankle units, but the IDE only included 109 patients. Her inspection revealed that Dr. Feldman (a clinical investigator under the approved IDE clinical study) had implanted 17 ankle devices into 17 new patients but failed to notify Endotec of these patients. In addition, Dr. Feldman had implanted 10 additional ankle devices as “surgeon specials” and Dr. Buechel (not a clinical investigator under the approved IDE clinical study) had implanted 218 ankle devices as “surgeon specials.”
The 2001 inspection by Maulfair led the FDA to impose an Application Integrity Policy (“AIP”) to Endotec on or about February 14, 2002 as a result of “system-wide failure by Endotec to ensure the integrity of data and that data submitted to FDA regarding this study [was] unreliable.” Id. The AIP letter announced to Endotec that the FDA deferred action or review on any pending submissions or further submissions by Endotec “until questions regarding data integrity are resolved.” On March 15, 2002, the FDA also issued a warning letter, informing Endotec that its shipment of B-P Ankles to Drs. Feldman and Buechel were not covered under the approved IDE clinical study and did not constitute “custom devices.”
Maulfair conducted two additional inspections of Endotec’s New Jersey facility in 2002 and 2004. As a result of her second inspection, Maulfair determined that Endotec continued to ship ankle devices as custom devices. She observed that some of the ankle devices shipped to Dr. Buechel were marked with serial numbers “05,” which referred to B-P Ankle componеnts, and “95,” which referred to custom device components. However, con *1192 sidering- that the IDE had reached full enrollment, no B-P Ankle devices could be shipped under the IDE clinical study. As a result of her third inspection, Maulfair determined that Endotec continued to ship purported custom and standard B-P Ankle components.
Richard K. Vogel, an FDA investigator and a medical device specialist for the FDA, conducted two inspections of Endotec’s Orlando facility. First, in August of 2004, Vogel sought “to collect documents regarding Endotec’s shipment of ankle devices to two specific patients.” Id. at *4. When he returned to finish the inspection in January of 2005, however, his investigation “changed to the collection of documentation of the manufacturing and shipment in interstate commerce of ankle devices manufactured between September 2004 and January 2005.” Id. at *4. At the end of his investigation, Vogel explained to Pappas that the continued distribution of the B-P Ankle violated the law insofar as the IDE clinical study had reached full enrollment and that the ankle devices were not custom devices. Second, in November of 2005, Vogеl returned to the Orlando facility for a second inspection to investigate the distribution of unapproved devices and investigational devices outside the scope of the IDE for the B-P Ankle. Vogel observed that one shipment of a purported custom ankle device had been returned by the patient, sent back to Endotec’s Orlando facility, repackaged and relabeled, and sent to another patient.
Dr. Pappas testified that, after Endotec received the 2002 warning letter, it limited the manufacture and distribution of ankle devices to custom designs. Dr. Buechel testified that while he was not a clinical investigator under the IDE clinical study for the B-P Ankle, he implanted B-P ankle devices as “surgeon specials before the 2002 warning letter from the FDA.” 4 Dr. Buechel testified that he implanted only custom ankle devices after the letter. In April of 2007, however, he implanted a BP Ankle device, but explained that it “must have been an emergency situation.” Id. at *6.
2. Knee device
Endotec manufactures artificial knee devices with two types of designs: (1) the FlexGuide Knee Bearing with Anterior Stop, and (2) the Fenning Modular Bearing. Both devices were distributеd to one surgeon, Dr. John Fenning.
3. Jaw device
The Hemi temporomandibular joint (“Hemi TMJ”) is a partial jaw implant that Endotec distributed to one doctor for use in one particular patient not covered by an IDE clinical study as to a similar jaw device. 5 The patient who received the Hemi TMJ device was missing a large piece of bone in his jaw as a result of a tumor.
*1193 C. Procedural background
On August 23, 2007, the Government filed its “Amended Complaint for Permanent Injunction” against Endotec, Pappas, and Buechel in the United States District Court for the Middle District of Florida, seeking to enjoin the distribution of alleged adulterated and misbranded ankle, knee, and jaw implants in violation of 21 U.S.C. § 331(a), (k). 6 Specifically, the Government alleged that the specific devices distributed by Endotec (1) constituted class III devices that did not qualify for any exemption from premarket approval, and, (2) as to the ankle device only, were subject to an IDE approved by the FDA but failed to comply with its requirements. As relief, the Government sought a permanent injunction and the disgorgement of profits. On September 4, 2007, the Appellees filed their “Amended Counter-Claim for Declaratory and Injunctive Relief and Damages,” in which they sought (1) declaratory judgment of their rights; (2) a permanent injunction against the Government “from interfering with their manufacture of medical devices ordered by physicians or surgeons for use in their practice for their patients;” and (3) an order requiring the FDA to submit the B-P Ankle to a panel of independent experts for proper classification. 7 The Government moved for summary judgment, which the district court denied except with regard to the Appellees’ request for referral of the B-P Ankle to an expert panel.
Beginning on March 18, 2008, the district court held a three-day bench trial. After the conclusion of the trial, the parties submitted written briefs and, on April 30, 2008, the district court issued its Order.
See Endotec,
On May 1, 2008, the district court entered judgment in favor of the Appellees. On June 26, 2008, the Government filed a Notice of Appeal as to the district court’s conclusions related to the ankle and jaw devices. On July 10, 2008, the Appellees filed a Notice of Appeal as to the district court’s conclusions related to the knee device.
*1194 II.
“We review the ultimate decision of whether to grant a preliminary injunction for abuse of discretion, but we review
de novo
determinations of law made by the district court en route.”
Owner-Operator Independent Drivers Ass’n, Inc. v. Landstar System, Inc.,
In considering the Government’s request for a permanent injunction under the FDCA, the district court did not consider the traditional equitable criteria for injunctive relief.
8
See Siegel v. LePore,
Rather, the Government argues that the district court erred in finding that (1) ankle and jaw devices constitute a custom device and (2) that the Appellees did not violate the IDE clinical study of the BP Ankle. Likewise, the Appellees argue in their cross-appeal that the district court erred in finding that the knee device did not constitute a custom device. In doing so, both parties challenge the district court’s findings as to the applicability of an exemption to a statutory scheme. Significantly, the Appellees in their cross-appeal do not argue that the Government failed to meet its burden of proof to demonstrаte the propriety of a permanent injunction as to the knee device, or the ankle and jaw devices. As such, we need not speculate as to the proper standard of review for injunctive relief pursuant to section 332 of the FDCA and we decline to consider whether the Government met its burden. 9
*1195
Rather, as to both the Government’s appeal and the Appellees’ cross-appeal, the dispute concerns whether the medical devices fall under an exception to premarket approval, specifically the custom device exemption as to the ankle, knee, and jaw devices and the IDE exemption as to the ankle device. As such, in line with the district court’s analysis as well as the parties’ briefs, we limit our discussion to whether the respective medical devices meet the statutory criteria of the exemptions
only.
The Appellees bear that burden.
10
See United States v. First City Nat. Bank of Houston,
III.
The Government challenges the district court’s order as to the ankle and jaw devices insofar as it found both devices fall under the custom device exemption. The Government also challenges the district court’s finding that the Appellees did not exceed the scope of the IDE clinicаl study of the B-P Ankle. The Appellees challenge the district court’s order as to the knee device insofar as it found that said device did not fall under the custom device exemption. We will address each medical device in turn.
A. Ankle device
The Government asserted two distinct yet related claims as to the manufacture and distribution of the ankle device. First, the Government contended that the Appellees violated 21 U.S.C. § 331(a), which prohibits the introduction into interstate commerce of any adulterated device, and 21 U.S.C. § 331(k), which prohibits causing a device to become adulterated while being held for sale after shipment in interstate commerce. The Appellees defended that claim by asserting protection under the custom device exemption. Second, the Government contended that the Appellees failed to comply with the FDA’s IDE regulations in their clinical study of the B-P Ankle device in violation of 21 U.S.C. §§ 351(i) and 331(q)(l). The Appellees asserted that they implemented remedial measures to cure any past problems. We will address first the custom device exemption and then the IDE exemption.
1. Custom device exemption
The MDA exempts “сustom devices” from premarket approval. A custom device is one that
*1197 necessarily deviates from an otherwise applicable performance standard or requirement prescribed by or under section 360e of this title if (1) the device is not generally available in finished form for purchase or for dispensing upon prescription and is not offered through labeling or advertising by the manufacturer, importer, or distributor thereof for commercial distribution, and (2) such device—
(A) (i) is intended for use by an individual patient named in such order of such physician or dentist (or other specially qualified person so designated) and is to be made in a specific form for such patient, or
(ii) is intended to meet the special needs of such physician or dentist (or other specially qualified person so designated) in the course of the professional practice of such physician or dentist (or other specially qualified person so designated), and
(B) is not generally available to or generally used by other physicians or dentists (or other specially qualified persons so designated).
21 U.S.C. § 360j(b). Stated differently, 21 C.F.R. § 812.3 tracks the statutory language for the most part but breaks down the custom device requirements into a list format:
Custom device means a device that:
(1) Necessarily deviates from devices generally available or from an applicable performance standard or premarket approval requirement in order to comply with the order of an individual physician or dentist;
(2) Is not generally available to, or generally used by, other physicians or dentists;
(3) Is not generally available in finished form for purchase or for dispensing upon prescription;
(4) Is not offered for commercial distribution through labeling or advertising; and
(5) Is intended for use by an individual patient named in the order of a physician or dentist, and is to be made in a specific form for that patient, or is intended to meet the special needs of the physician or dentist in the course of professional practice.
21 C.F.R. § 812.3(b) (emphasis added).
As a threshold matter, we note that the district court considered issues outside the scope of the definition of a custom device. In particular, the district court noted that “the Government did not present any evidence to indicate that the ankle devices wеre potentially dangerous.”
Endotec,
The district court concluded that the ankle devices distributed by Endotec beyond the scope of the IDE clinical study constituted custom devices and hence were exempt from premarket approval. The Government argues that the district court abused its discretion in concluding that the ankle devices qualified as custom devices. Specifically, the Government asserts that the ankle devices fail each prong of the definition of a custom device. We conclude that the district court erred with respect to one prong of the custom device definition and, because a device must meet all five prongs of the custom device definition, we decline to address the remainder.
A custom device is a device that “[i]s not offered for commercial distribution through labeling or advertising.” 21 C.F.R. § 812.3(b)(4); 21 U.S.C. § 360j(b) (providing that a custom device “is not offered through labeling or advertising by the manufacturer, importer, or distributor thereof for commercial distribution”). The district court found that “[the Appellees] did not offer the custom ankle devices for commercial distribution through advertising or labeling.”
11
Endotec,
First, the Appellees advertised the custom devices through a July/August 2006 edition of Orthopaedic News, containing an advertisement for “Endotec customs.” 12 The subsequent text refers to, inter alia, custom ankle devices as Endotec’s “speciality.” On its face, the advertisement offers custom ankle devices by Endotec for commercial distribution. By its own language, this advertisement cannot be attributed to the B-P Ankle device as it explicitly refers to “Endotec customs,” which we read as a reference to custom ankle devices, not the B-P Ankle. Such a reference constitutes an impermissible advertisement of a custom device. Endotec offers no explanation to the contrary, except to assert that the Federal Register allows them to advertise custom devices of a “generic type.” However, even if we were to endorse a “generic type” exception to the prohibition against advertisement for commercial distribution, this advertisement is anything but generic. On the contrary, the advertisement specifically refers to Endotec custom ankle devices.
Second, the district court found that any advertisement on Dr. Buechel’s medical practice website (South Mountain Orthopaedic Associates) referred to the B-P Ankle, not the custom ankle devices.
See Endotec,
The district court found that “Dr. Buechel implanted B-P Ankles as
surgeon specials
until 2002 when [the] FDA issued its warning letter to Endotec.”
Endotec,
In defense of the advertisement, the Appellees do not echo the district court’s finding that the advertisement referred only to the B-P Ankle. Rather, they provide another explanation: a disclaimer on the website advising that the B-P Ankle is only available through the “compassionate use” program cures any violation of the prohibition against the commercial distribution of custom ankle devices. 15 We disagree. The Appellees fail to direct us to аny statute, rule, or case that allows for a disclaimer exception to the commercial distribution prong and they bear the burden to demonstrate that their device constitutes a custom device. Moreover, we refuse to allow a disclaimer to shield the Appellees from what otherwise constitutes blatant advertisement of their purported custom ankle devices. Such a rule would render the commercial distribution prong of the custom device definition ineffective and meaningless.
Given the nature of the custom device definition, either of the advertisements of the custom ankle devices, standing alone, removes the ankle device from the protection of the custom device exemption. Accordingly, we find that the Appellees have failed to carry their burden as to the commercial distribution prong.
2. IDE
The Government contends that the district court erred in refusing to enjoin the Appellees from manufacturing and distributing the B-P Ankle until they fully complied with the IDE regulations. Specifically, according to the Government, the evidence demonstrates that the Appellees’ repeatedly violated the requirements of the IDE clinical study, including Dr. Feldman’s implantation of 10 ankle devices beyond the scope of the IDE clinical study and Dr. Buechel’s implantation of 217 ankle devices, even though he was not an investigator under the IDE clinical study. The Appellees respond that, after receipt of the AIP and March 2002 warning letter, it took remedial measures to obtain compliance with the IDE clinical study on the B-P Ankle and the FDA lifted the AIP.
The FDCA provides for an “investigational device exemption” in 21 U.S.C. § 360j(g) to remove what would otherwise be a “catch-22:” a Class III device may not be shipped in interstate commerce until it has been approved by the FDA, but, to obtain the test data needed for approval, a device has to be shipped in interstate commerce to physicians who will test the device in patients under controlled circumstances. Accordingly, the IDE exemption lifts the prohibition on shipment in interstate commerce of an unapproved Class *1201 III device and permits the investigational use of unapproved devices by experts qualified by scientific training and experience to investigate the safеty and effectiveness of such devices pursuant to protocol imposed by the FDA. 21 U.S.C. § 3603(g). To obtain an IDE exemption, a manufacturer must satisfy the requirements of 21 U.S.C. § 360j(g) as well as 21 C.F.R. § 812.20.
The district court’s own findings of fact intimate that the Appellees manufactured and distributed the B-P Ankle device in violation of the IDE clinical study:
Dr. Buechel admitted that he is not a clinical investigator for the B-P Ankle and that means he cannot implant B-P Ankles pursuant to the approved IDE. However, Dr. Buechel implanted B-P Ankles as surgeon specials until 2002 when FDA issued its warning letter to Endotec. Since 2002, Dr. Buechel has only implanted what he describes as custom ankle devices. Dr. Buechel admitted that in April 2007, he implanted an ankle device in which all the component numbers began with ’05,’ indicating that it was the standard B-P Ankle. Dr. Buechel offered that the particular situation must have been an emergency situation. In other situations, Dr. Buechel used components that had been originally manufactured for another patient because it offered the patient the best fit.
Endotec,
The district court’s decision not to enjoin the Appellees’ manufacture and distribution of the B-P Ankle relied upon findings irrelevant to whether they complied with the IDE clinical study of the B-P Ankle. The district court determined that Endotec had not violated 21 U.S.C. §§ 351(i) and 331(q)(l),
17
finding that, “since the March 2002 warning letter, [Endotec] ha[s] been in substantial compliance regarding the B-P Ankle.”
Endotec,
First, similarly to the custom device exemption, neither the statute providing for the IDE exemption nor the applicable regulations require the Government to allege, much less to prove, that a device (alleged to exceed the scope of an IDE) is “unsafe” or “dangerous.” The district court cited no authority for the new “dangerous” requirement and the Appellees fail to cite tо any binding or persuasive case law in support thereof. 18 We find the Sixth Circuit instructive here:
It is not the government’s burden to prove that a product is not safe and effective. FDCA regulations exist to allow the public to assume that marketed devices have received the imprimatur of FDA approval. To circumvent the law by marketing illegally without approval is to deceive the public both as purchasers and users of the device.
United States v. Universal Mgmt. Services, Inc., Corp.,
Second, the district court’s commentary that the FDA’s interpretation of the MDA stymies, rather than advances, innovation fails to justify its ruling.
See Endotec,
Accordingly, we conclude that the district court employed faulty reasoning in finding that the Appellees had not violated sections 351(i) and 331(q)(l). Considering that the district court is better acquainted with the evidence and the parties, we remand to givе the district court another opportunity: (1) to consider whether the Appellees violated sections 351(i) and *1203 331(q)(l) through the manufacture and distribution of the B-P Ankle outside the IDE clinical study based on the record evidence; (2) to consider, in the first instance, whether this issue as to the IDE clinical study is now moot in light of the fact that the FDA has lifted the AIP; and (3) to resolve any other issues related to the IDE clinical study that the district court deems appropriate.
B. Knee device
On cross-appeal, the Appellees argue that the district court abused its discretion in determining that the knee device did not constitute a custom device, specifically as to the “special needs” clause of the custom device exemption that falls under the last prong of the definition. The Government responds arguing that the district court committed no error.
The district court concluded that the two knee devices did not qualify as custom devices. As to the Flex Guide Knee Bearing with Anterior Stop, the district court found that the Appellees did not identify any “special need” of Dr. Fenning and “the same bearing was implanted repeatedly in different patients.”
Endotec,
In support of its argument that the knee devices constitute custom devices, the Appellees invoked the “special needs” clause of the custom device exemption. See 21 U.S.C. § 360j(b)(A)(ii) (providing that a custom device “is intended to meet the special needs of such physician or dentist (or other specially qualified person so designated) in the course of the professional practice of such physician or dentist (or other specially qualified person so designated)”); 21 C.F.R. § 812.3(b)(5) (providing that a custom device “is intended to meet the special needs of the physician or dentist in the course of professional practice”). On appeal, the Appellees fail to demonstrate that the district court abused its discretion. As to either knee device, the Appellees fail to identify a “special need” of Dr. Fenning; rather, the Appellees merely argue that the special needs provision “permits a physician to use the same medical [sic] to treat more than one patient in the course of his professional practice.” Even if taken as true, the Appellees’ argument still fails to address the “special need” requirement. As to the Fenning Modular Bearing, moreover, the district court concluded that Endotec advertised it in a flyer posted on Endotec’s website in violation of the commercial distribution prong. Endotec attempts to explain the flyer advertisement as “testing] the waters” and, when the device garnered no interest, it pulled the flyer. This argument lacks merit because there is no “testing] the waters” exception to the commercial distribution prong of the custom device definition. 19 The Government *1204 nonetheless contends that the flyer advertisement remains posted on Endotec’s website.
Accordingly, Endotec has failed to show that the district court abused its discretion as to the knee device.
C. Jaw device
The Government argues that the district court abused its discretion in determining that the Hemi TMJ device constituted a custom device because the Appellees failed to show that it was “not generally available to, or generally used by, other physicians or dentists.” 20 In support, the Government points to an FDA regulation addressing this type of implant. 21 The Appellees respond that Dr. Pappas testified that the device available did not meet the patient’s specific needs because he had lost a bone in his jaw.
The district court found that the Hemi TMJ device used for that particular patient “was not generally available to or used by other physicians.”
Endotec,
The Government’s argument amounts to one of degree. While Dr. Pappas testified that the commercially available device did not meet the patient’s needs because of his tumor-related bone loss and the Government concedes that the Hemi TMJ included special features designed for the particular patient, the Government merely demands more evidence. The custom device definition requires that the device at issue — the Hemi TMJ device — “[i]s not generally available to, or generally used by, other physicians or dentists.” The district court concluded that the Appellees met their burden and the Government has failed to show that it abused its discretion as to the Hemi TMJ.
IV.
In summary, we find no reversible error as to the knee and jaw device and we affirm the district court’s entry of a permanent injunction as to the same. As to the ankle device, however, we find that the district court abused its discretion in denying the Government’s request for a permanent injunction. Because Endotec has not carried its burden to demonstrate that the ankle device falls under the custom device exemption, we reverse the district court’s ruling as to the ankle device and remand with instructions for the district court to enter a permanent injunction as to the ankle device in favor of the Government. 22 As to the regulatory IDE violation, we remand to the district court for consideration in light of this Opinion.
*1205 AFFIRMED in part as to the permanent injunction for the knee and jaw devices, and REVERSED in part as to the ankle device with instructions to enter a permanent injunction, and REMANDED to the district court for further proceedings consistent with this Opinion.
Notes
. On appeal, both parties spell his name "Buechel.” While the district court did the same in its caption, it spelled his name "Beuchel” throughout the text of its Order.
See United. States v. Endotec, Inc.,
No. 6:06-cv-1281-Orl-18KRS,
. The FDA’s review for substantial equivalence is known as the "510(k)” process, named after the section of the MDA in which it can be found. "Most new Class III devices enter the market through § 510(k). In 2005, for example, the FDA authorized the marketing of 3,148 devices under § 510(k) and granted premarket approval to just 32 devices.”
Riegel v. Medtronic, Inc.,
- U.S. -,
. The tibia is the shin bone and the talus is the bone at the top of the foot.
. The phrase “surgeon specials” is one used by Endotec and, as far as we know, has no meаning under the FDCA or case law.
. Endotec has an FDA-approved IDE for a replacement TMJ device known as the Hoffman-Pappas temporomandibular joint (“H-P TMJ”). In 1997, the FDA approved an IDE clinical study for the H-P TMJ. The Government’s case included the distribution of two H-P TMJ devices used for revision surgeries in patients enrolled in the IDE clinical study. The Government requested injunctive relief as to the two H-P TMJ devices, arguing that the revision surgeries went beyond the scope of the IDE protocol. The district court disagreed and found that the "two H-P TMJ devices used for revision surgeries did not constitute deviations from the study protocol, did not require prior approval from the FDA, and were exempt from [premarket approval] requirements.”
Endotec,
. The Government filed its original complaint approximately one year before its amended complaint, on or about August 28, 2006.
. The Appellees filed their original counterclaim on or about May 7, 2007.
. The district court did not specifically indicate the standard of review that it applied for a permanent injunction under the FDCA.
. We have not yet had the occasion to address expliсitly the proper standard of review for injunctive relief under the FDCA. Fifth Circuit precedent, however, suggests that a moving party need prove only a violation of the statute at issue. In
United States v. Hoxsey Cancer Clinic,
In the same way, the Second and Ninth Circuits have applied modified standards to a request fоr injunctive relief pursuant to the FDCA. In
United States
v.
Diapulse Corp. of America,
. The Appellees do not argue to the contrary.
. While the district court found that Endotec did not offer the custom ankle devices for commercial distribution through advertising or labeling, it included language that appeared to contradict its own conclusion. After finding that Endotec advertised only the B-P Ankle, the district cоurt warned Endotec regarding its future advertising and marketing, seemingly conceding that it had unlawfully advertised or marketed the custom ankle devices: "The Court cautions ... that Defendants must scrutinize their website and other marketing materials carefully to avoid the unlawful advertising or marketing these devices.”
Endotec,
. The district court made no mention of this advertisement.
. The advertisement is dated February 26, 2007.
. Ms. Maulfair testified that Endotec's "sur *1200 geon specials" and the purported custom ankle devices manufactured and distributed by Endotec contain "the same three components," specifically the tibial, the talar, and the mobile bearing. See Tr. of R., V. 7, 15:3— 7 (Deposition of Barbara J. Maulfair).
. The compassionate use exception allows a drug company to distribute an unapproved drug if: (1) the drug is for a serious or life-threatening disease, (2) there is no good alternative, (3) the drug is currently under investigation in a clinical trial, and (4) the sponsor is actively pursuing marketing approval. 21 C.F.R. § 312.34. However, even if the drug meets these criteria, the FDA may still deny the compassionate use if there is insufficient evidence of the drug's safety. Id.
. In all likelihood, “remedial measures” refer to the Appellees' contention that, after the March 2002 warning letter, they manufactured and distributed only custom ankle devices, or "surgeon specials.” We have already rejected that argument.
. Section 331, entitled "Prohibited acts,” prohibits the failure or refusal to comply with the IDE requirements under section 360j(g), see 21 U.S.C. § 331(q)(l), and section 351, entitled "Adulterated drugs and devices,” provides that failure to comply with requirements under which a device was exempted for investigational use renders the device adulterated, see 21 U.S.C. § 351(1).
. At oral argument, counsel for the Appellees even agreed that dangerousness was not a proper consideration.
. In support of their "test[ing] the waters” theory, the Appellees rely upon 21 C.F.R. § 812.2(c), whiсh lists exemptions from the IDE regulations including the custom device exemption. In particular, the Appellees point to the "consumer preference testing” provision, which exempts “[a] device undergoing consumer preference testing, testing of a modification, or testing of a combination of two or more devices in commercial distribulion, if the testing is not for the purpose of determining safety or effectiveness and does not put subjects at risk.” 21 C.F.R. § 812.2(c)(4). The Appellees' argument is misguided, however, insofar as they attempt to use the "consumer preference testing” exemption to define the scope of one of the prongs of the custom device exemption. Further, the Appellees fail to show that any "con *1204 sumer preference testing” did not "put subjects at risk.” Id.
. The Government does not address any other prong under the custom device definition as to the Hemi TMJ and, therefore, neither do we.
. Section 872.3950 identifies a "glenoid fossa prosthesis” as a Class III device "that is intended to be implanted in the temporomandibular joint to augment a glenoid fossa or to provide an articulation surface for the head of a mandibular condyle.” 21 C.F.R. § 872.3950(a)-(b).
. We leave it to the district court to craft the proper permanent injunction.
