FDA Wins Vanda Trade Secret Case
The U.S. Court of Federal Claims has granted the federal government’s motion for summary judgment in a case in which Vanda Pharmaceuticals alleged that FDA improperly disclosed the company’s trade secrets and confidential commercial and proprietary information to competitors seeking approval of generic drugs. In a 1/18/2024 decision, the court had granted in part and denied in part FDA’s motion to dismiss the company’s complaint for lack of subject matter jurisdiction and failure to state a claim on which relief could be granted. At that time, the court declined to dismiss Vanda’s 5th Amendment takings claim. Rather, it posed several “novel” questions about whether Vanda could assert a cognizable property interest in an alternative dissolution specification that the agency proposed to the company during the drug approval process.
In its 1/22 decision granting the government summary judgment on the 5th Amendment question, the court held that Vanda failed to plead a viable 5th Amendment taking since the dissolution specifications ultimately adopted for the company’s Fanapt (iloperidone) and Hetlioz (tasimelteon) were not developed by Vanda or submitted to FDA. Instead, it said, they were generated by FDA and proposed to and accepted by Vanda during the NDA process to secure approval to market.
The court further held that the impurities testing and micronization information related to the active pharmaceutical ingredient in Hetlioz was already in the public domain at the time of FDA’s alleged disclosures.
“Vanda included the cited data in a publicly filed patent application six months before FDA reportedly used the information in reviewing ANDAs,” it said. “Accordingly, defendant is entitled to judgment on the pleadings.”