FDA Loses Eagle Orphan Drug Appeal

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In a 2-1 ruling, the Court of Appeals for the DC Circuit has said that Eagle Pharmaceuticals deserves a seven-year orphan drug exclusivity for its Bendeka (bendamustine HCl). FDA approved Bendeka for marketing in 2015 but denied exclusivity because it said the company failed to prove that it was clinically superior to a previously designated and approved version of the same drug.

The company claimed the Orphan Drug Act requires FDA to grant marketing exclusivity upon designating the drug as an orphan drug and approving it for marketing. A federal district court upheld the company’s position and granted it summary judgment. FDA then appealed to the Court of Appeals.

The appeals court affirmed the lower court decision because the law’s text “unambiguously entitles a manufacturer to marketing exclusivity upon designation and approval.”

In a dissent, senior circuit judge Stephen Williams said the “majority’s interpretation of the statute runs counter to the best reading of the congressional language and fundamentally upsets the basic economic bargain that Congress so carefully struck.”

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