Court Allows 1 Vanda Claim Against FDA
The United States Court of Federal Claims has denied in part and granted in part an FDA motion to dismiss a Vanda complaint against the agency for lack of subject matter jurisdiction and failure to state a claim upon which relief can be granted. The decision says the case involves the question of whether an innovator drug company can assert a viable 5th Amendment takings claim and/or a breach of an implied-in-fact contract based on a government official’s alleged disclosure, whether intentional or inadvertent, of claimed trade secrets and confidential commercial information to competitors seeking FDA approval of generic drugs.
The case involves Vanda’s Fanapt (iloperidone) tablets indicated to treat schizophrenia in adults, and Hetlioz (tasimelteon) capsules that treat non-24-hour sleep-wake disorder. The company’s suit says that as FDA considered and approved several ANDAs for generic forms of the two drugs, the agency illegally shared information with the generic manufacturers.
The court denied FDA’s request to dismiss the 5th Amendment taking claim. FDA had argued Vanda’s claims failed to plead a viable taking under the law of the Court of Claims. The court found that FDA review and approval of NDAs and ANDAs falls squarely within the scope of its statutorily authorized duties, even if certain acts were taken during the review process that were ultimately found to be unlawful.
The court granted, however, FDA’s motion to dismiss Vanda’s breach of contract claim as either an implied-in-law contract outside the court’s jurisdiction or an improvidently pleaded claim that is factually implausible as a matter of law. It also granted FDA’s motion to dismiss claims involving one of the generic manufacturers because they are time-barred.
FDA was told to file an answer to the order by 2/1.