Vanda Says FDA Disclosed Trade Secrets to Competitors

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Vanda Pharmaceuticals is charging that FDA disclosed trade secrets from NDAs for the company’s Fanapt (iloperidone) and Hetlioz (tasimelteon) to companies submitting ANDAs for approval to market generic forms of the two drugs. In a 5/1 case filed with the United States Court of Federal Claims, Vanda says it supplied FDA with the highly confidential information in its NDAs “in reliance on FDA’s promise to maintain strict confidentiality of this information. To this day, details of the manufacturing process Vanda actually uses to manufacture the active ingredients for its drugs and those drugs’ formulations remain strictly confidential.”

The company says it obtained documents through Freedom of Information Act requests that show “FDA blatantly and forthrightly relied on data in one of Vanda’s drug applications and then disclosed that information to Vanda’s competitors. All the while, FDA continued to refuse to release the same information to the public, on the basis that it constituted trade secrets or confidential commercial information. And FDA’s misconduct does not appear isolated. The material available thus far through public record requests demonstrates that FDA routinely directly or indirectly discloses confidential portions of drug sponsors’ applications to competitors seeking to market generic knockoffs.”

FDA asks the court to:

  • declare that FDA’s disclosure of confidential information contained in an NDA to ANDA applicants constitutes a taking for purposes of the 5th amendment to the U.S. Constitution;
  • declare that the United States has taken Vanda’s proprietary information without providing just compensation in violation of the 5th amendment to the U.S. Constitution;
  • declare that the United States has breached an implied-in-fact contract by failing to maintain the confidentiality of Vanda’s trade secret and confidential commercial information;
  • award to Vanda just compensation and damages for the taking and breach in an amount to be determined at trial;
  • award Vanda its costs and reasonable attorney’s fees incurred in this action; and
  • award Vanda such other and further relief as the court deems just and proper.

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