Bentex Pharmaceuticals, Inc. v. Richardson
Bentex Pharmaceuticals, Inc. v. Richardson
Opinion of the Court
This appeal turns on a construction of the Federal Food, Drug, and Cosmetic Act of 1938, as amended in 1962.
Under the 1938 Act, a new drug was one “not generally recognized, among experts * * * as safe for use.” The Amendments added “effectiveness” as well as “safety” to the definition. Simply stated, the change effected by the Amendments was that, whereas prior to the 1962 Amendments a drug which was generally recognized as safe was not a “new drug”, the Amendments defined a drug as “new” if it were not generally recognized as both safe and effective. Furthermore, they replaced the provision for automatic approvals of applications not disapproved within a fixed time with a requirement of a positive act of approval on the part of FDA.
The “grandfather clause” set forth in Section 107(c) (4) simply continues for the products satisfying its criteria the pre-1962 definition of a “new drug”. Its effect is to assure that a drug which was generally recognized by qualified experts as safe for the purposes recommended for its use on October 9, 1962, need not be NDA’d as effective under the new requirements for the issuance of an NDA as a “new drug”. But any drug, whether requiring an NDA or not, whether a “new drug” or an “old drug”, is subject to the misbranding provisions of the Act and may be proceeded against on that basis. A false claim of either safety or effectiveness constitutes misbranding, rendering a drug subject to both civil and criminal penalties. United States v. Article of Drug Labeled Decholin (D.C.Mich. 1967) 264 F.Supp. 473, 482-483; United States v. Lanpar Company (D.C.Tex. 1968) 293 F.Supp. 147, 153-154.
Prior to the filing of this action, however, the defendants withdrew their advice that products such as those distributed by the plaintiffs were “old drugs” and contended that such products did not qualify for exemption under the “grandfather clause”, Section 107(c) (4). The basis for this contention was the claim (1) that these drugs were not generally recognized by qualified experts as safe as of the effective date of the Amendments of 1962 and (2) that they wez’e “me-too” drugs, whose marketability without FDA clearance depended in turn on the NDA’s granted the basic drug, and for that reason must be regarded as drugs covered by an effective NDA on the effective date of the Amendments.
The District Court sustained the right of the plaintiffs to maintain a suit for a declaratory judgment and the jurisdiction of the Court in such action to determine judicially whether the products of the plaintiffs were “new drugs”, on the effective date of the Amendments, and whether they were or were not entitled to the benefits of the “grandfather clause”.
The defendants, on the other hand, have not cross-appealed and have accordingly acquiesced in the decision of the District Court that the action is properly maintainable as a declaratory judgment proceeding under Section 2201, 28
The FDA has neither primary jurisdiction, as the defendants argue, nor concurrent jurisdiction, as the District Court concluded, to adjudicate whether a product is an old or a new drug. It may, in its prosecutorial role, reach a conclusion that a product being marketed is a “new drug” requiring pre-marketing approval; but that opinion is not adjudicatory, it is only the basis on which the FDA, as the prosecutor or initiator of either a seizure or injunctive action in the District Court, may invoke the jurisdiction of that Court to determine, among other issues, whether the drug challenged is a “new drug”. There is manifestly no provision in the Act for an administrative proceeding before the Secretary to compel the filing of a “new drug” application or to halt the marketing of a drug for which there is no approval, by the Secretary. It is not without significance that, so far as the official reports reflect, the Secretary has never attempted directly to exercise such jurisdiction. The only occasions on which he has sought to assert such jurisdiction has been as an element in his defense to a declaratory judgment action.
The District Court, in finding concurrent jurisdiction, held that “This grant of authority to approve or withhold approval of new drug application, * * * necessarily implies authority for F.D.A. to determine the threshold question of whether the article involved is a drug which required an approved new drug application for lawful interstate shipment.” This reasoning assumes that an application for approval by the Secretary under the Act poses as its initial issue whether the product is a new drug. No such issue is posed by the application. The very filing of the application is a concession and recognition by the applicant-manufacturer that the article is a “new drug”; otherwise, there would be no reason to file the application. As a matter of fact, in the prescribed form of application, the applicant describes his product as “a new drug”. 21 C.F.R. 130.4. The applicant makes the determination whether his product is a “new drug” and whether he must file for pre-marketing clearance by the Secretary. And when filed, the application puts in issue only one question: Is the article safe and effective? That and that alone is the issue to be considered by the Secretary in connection with an application for approval filed by a manufacturer under Section 355(d), 21 U.S.C. That issue is quite different from that presented when there is an issue whether a drug fits the statutory definition of “new drug” in the Act. The criterion for ascertaining whether a product is within the statutory definition of “new drug” under the Act is not safety and effectiveness per se, which, as we have observed, is the issue before the Secretary in connection with application for approval of a “new drug”, but “whether the government has shown by a preponderance of the evidence that the ‘drug is not generally recognized, among experts qualified by scientific training
Remanded, with directions.
. There was an earlier Food and Drug Act of 1906. 34 Stat. 768 (1906). It did not provide for any pre-marketing review of the safety of drugs. The sulfanilamide episode in 1938 prompted the enactment of the Federal Food, Drug and Cosmetic Act of that year to replace the earlier Act and to provide, inter alia, for such pre-marketing review of “new drugs”. See C. W. Dunn, Federal Food, Drug and Cosmetic Act — A Statement of Its Legislative Record, pp. 1316-27 (1938). The fears generated by the thalidomide tragedies gave the impetus for the Amendments of 1962. See Note, Drug Efficacy and the 1962 Drug Amendments, 60 Georgetown Law Journal, 185 at p. 191, n. 45(1971).
. Section 355(a), 21 U.S.C.
The actual approval of a “new drug” under the Act is normally processed by the Food and Drug Administration (FDA) in the Department of Health, Education and Welfare (HEW), and the approvals, when granted, are generally referred to as New Drug Approvals (NDAs). FDA, when used herein, refers to the Food and Drug Administration, and NDA is intended to describe an approval by FDA of a “new drug” application under the Act.
. Section 321 (p) (1), 21 U.S.C.
See, also, United States v. Articles of Drug Labeled “Quick-O-Ver” (D.C.Md. 1967) 274 F.Supp. 443, 445, n. 2:
“The statutory definition of the phrase ‘new drug’ controls this case, regardless of any other meaning attributable to the phrase or to the word ‘new’ by common understanding or other authority.”
. Section 355(h), 21 U.S.C.
. 21 C.F.R. 130.39.
. Cf. United States v. Dotterweich (1943) 320 U.S. 277, 281, 64 S.Ct. 134, 136, 88 L.Ed. 48, where, speaking of the Act of 1938, the Court said:
“In the interest of the larger good it puts the burden of acting at hazard upon a person otherwise innocent but standing in responsible relation to a public danger.”
. Section 334, 21 U.S.C.
. Section 332, 21 U.S.C.
. Section 333, 21 U.S.C.
. Section 355(c), 21 U.S.C.
. Section 107(c) (3), P.L. 87-781, Section 321, Supplement 1972, 21 U.S.C.
. Section 107(c) (4), P.L. 87-781, Section 321, 1972 Supplement, 21 U.S.C.; see, also, Tyler Pharmacal Distrib. Inc. v. U. S. Dept. of Health, E. & W. (7th Cir. 1969) 408 F.2d 95, 99.
It should be noted that Section 321 (p) (1) provides a “grandfather clause” applicable to pre-1938 drugs. This clause is not relevant to this action, which is concerned with drugs introduced between 1938 and 1962, and the subsequent references to “grandfather clause” in this opinion are to section 107 (c) (4).
. Note, Drug Efficacy and the 1962 Drug Amendments, 60 Georgetown Law Journal, p. 196 (1971).
See, also, United States v. Allan Drug Corp. (10th Cir. 1966) 357 F.2d 713, 719, note 9, quoting from the Supplemental Report of the Senate Committee on Drug Amendments of 1962, as set forth in the notes to Section 321, 21 U.S.C.:
“Thirdly, in the case of a drug on the market which was never subject to the new-drug procedure before, the amendments to the new drug definition relating to drug effectiveness would not apply to existing labeling claims.”
In the Conference Report of the House Managers on the Amendments, it was stated th(it the Amendments included “the Senate language providing with respect to existing labeling claims of drugs that have never previously been subject to the new-drug procedure substantially the same savings provisions as the corresponding provision of the House bill (Sec. 107 (d)).” U.S. Code Congressional and Administrative News, 87th Congress, 2d Session (1962), p. 2932. Again, in H.R. Rep. # 2526, p. 23, it is stated that the exemption granted by the “grandfather clause” applies “to existing claims of drugs that have never been subject to the new-drug procedure”.
. See, also, Pfizer, Inc. v. Richardson (2d Cir. 1970), 434 F.2d 536, 548:
“A good case could certainly be made that, quite apart from this, the ‘efficacy’ of a drug is necessarily related to the use recommended.”
. See, also, Senate Report # 1744, U.S. Code Congressional and Administrative News, 87th Cong., 2d Sess. (1962), pp. 2892 and 2893, where, in justifying the Amendments, it is stated :
“ * * * where a drug is essentially innocuous, it [(FDA)] must clear the drug despite the fact that its claim of effectiveness is not borne out by the evi*368 dence. In such onses the Food and Drug' Administration may proceed against the drug manufacturer by seizure of the drug for misbranding. However, the Department believes that the manufacturer should satisfy the Food and Drug Administration that his product is effective for the purposes claimed before it is marketed. * * * No question of safety is involved, and the Food and Drug Administration presently has ample power, including seizure, to proceed against any safe drug for which unsupported claims of effectiveness are made.”
. This was the day “immediately preceding the enactment date” of the Amendments of 1962.
. It is, of course, axiomatic that such opinions or advice can create no estoppel against the Government. AMP Incorporated v. Gardner (D.C.N.Y. 1967) 275 F.Supp. 410, 412, n. 1, aff. 389 F.2d 825, cert. den. 393 U.S. 825, 89 S.Ct. 86, 21 L.Ed.2d 95, reh. den. 395 U.S. 917, 89 S.Ct. 1738, 23 L.Ed.2d 231. The most that can bo claimed for such opinions is that they lend color and good faith to the plaintiffs’ claims. FDA not only lias the right but is obligated to change its opinion if it learns its prior position was erroneous. United States v. 60 28-Capsule Bottles, More or Less, etc. (D.C.N.J. 1962) 211 F.Supp. 207, 215, aff. 325 F.2d 513.
. The defendants assert that three “new drug” applications filed by other manufacturers and earlier approved by the FDA covered drugs similar in every particular to those marketed by the plaintiffs. Proceedings for withdrawal of the approval of such “new drugs” had been begun by FDA in advance of the filing of this action. In fact, such proceedings to a large extent prompted this action. It is the contention of the defendants that the withdrawal of what they describe as “the primary NDAs” operates to remove the marketability from what they assert are the “me-toos” or non-
. In support of the right of the plaintiffs to maintain a suit for declaratory judgment, the District Court relied on Abbott Laboratories v. Gardner (1967) 387 U.S. 130, 87 S.Ct. 1507, 18 L.Ed.2d 681 and the companion case of Toilet Goods Assn. v. Gardner (1967) 387 U.S. 158, 87 S.Ct. 1520, 18 L.Ed.2d 697. Additional support for such right is found in AMP, Incorporated v. Gardner, supra; Durovic v. Richardson (D.C.I11. 1971) 327 F.Supp. 386; Lemmon Phamacal Co. v. Richardson (D.C.Pa. 1970) 319 F.Supp. 375. The right of the Court to determine the applicability of the “grandfather clause” is equally clear and has been sustained in United States v. Articles of Drug Labeled “Quick-O-Ver” (D.C.Md. 1967) 274 F.Supp. 443, 445; and United States v. Article Consisting of 36 Boxes, etc. (D.C.Del. 1968) 284 F.Supp. 107, 112, n. 13, aff. 415 F.2d 369.
. See, Hynson, Westcott & Dunning, Inc. v. Richardson (Civ.No.21112, D.Md., decided 9/16/70) ; and Ciba Corp. v. Richardson (Civ.No.1210-70, D.N.J., decided 3/10/71) ; but cf., Lemmon Pharmacal, supra.
. See Pfizer, Inc. v. Richardson (2d Cir. 1970) 434 F.2d 536, 539, and 31 F.R. 9426.
. The authority of the Secretary to withdraw an approval of any “new drug” application filed under the Act of 1938 after hearing is specifically granted by Section 355(e), 21 U.S.C.
. Of course, in a proper case the Government may also institute criminal proeeedings in the District Court. See Section 333, 21 U.S.C.
. Cf. United States v. Allan Drug Corporation (10th Cir. 1966) 357 F.2d 713, 718, cert. den. 385 U.S. 899, 87 S.Ct. 203, 17 L.Ed.2d 131, in which the Secretary is quoted to the effect that, “ ‘As to drugs already on the market that have never been subject to the new-drug procedure but are not generally recognized as effective, the burden remains on the Government to prove m court, insofar as unchanged labeling claims are concerned, that they do not have their claimed effect. If the labeling claims are changed, however, these must be approved under the new-drug procedure.’ ” (Italics added.)
. See Turkel v. Food and Drug Administration, Dept. of H.E.W. (6th Cir. 1964) 334 F.2d 844, 846, cert. denied 379 U.S. 990, 85 S.Ct. 704, 13 L.Ed.2d 611, rehearing denied 380 U.S. 927, 85 S.Ct. 886, 13 L.Ed.2d 815: “The jurisdiction of the United States Courts of Appeal to review administrative acts of federal agencies is wholly dependent upon statute.”
. Section 355 (b), 21 U.S.C.
. Cf., Abbott Laboratories v. Gardner (1967) 387 U.S. 136, at p. 140, 87 S.Ct. 1507, at p. 1510, 18 L.Ed.2d 681.
. United States v. Articles of Drug Labeled “Quick-O-Ver”, supra, 274 F.Supp. 443 at pp. 445-446.
See, also:
AMP, Incorporated v. Gardner, supra, 389 F.2d 825 at p. 831:
“But the safety of the products is not what is at issue here. The question is whether there is general recognition among qualified experts of the products’ safety and effectiveness — if there is not, the products must be submitted to the Secretary of Health, Education and Welfare for a determination as to safety, adequacy of testing, etc.”
United States v. Article of Drug, etc. (5th Cir. 1969) 415 F.2d 390, 392:
“Both sides agree that the nature of expert opinion about Furestrol, and not its actual safety or effectiveness, is the ultimate fact issue.”
Cf., United States v. Seven Cartons, More or Less, etc. (7th Cir. 1970) 424 F.2d 1364, 1365.
. In discussing this case, the commentator in 60 Georgetown Law Journal, p. 199, note 87, says:
“In Lemmon Pharmaeal, the Court, while noting that determining safety and efficacy would normally be within the primary jurisdiction of the agency, concluded that the question of section 107(c) (4) protection was properly before it.”
. See United States v. Article Consisting of 36 Boxes etc., supra, 284 F.Supp. at p. 113.
Reference
- Full Case Name
- BENTEX PHARMACEUTICALS, INC. v. Elliot P. RICHARDSON, Secretary of the Department of Health, Education and Welfare and Charles C. Edwards, Commissioner of the Food and Drug Administration
- Cited By
- 8 cases
- Status
- Published