Florida federal judge G. Kendall Sharp ruled against FDA on four out of five counts in U.S. v. Endotec Inc. It was the fifth consecutive federal court loss for the agency, spanning 17 years.
In Endotec, Sharp, a 1983 Reagan appointee, took the opportunity to lecture the agency that its “stringent regulations and strict interpretation of procedural requirements are resulting in technological innovation being stymied, rather than advanced.”
As in all of FDA’s other defeats, in Endotec the agency made no allegations of patient injuries from the challenged devices, or even likely safety risks. The judge emphasized this fact in his order.
The case involved CDRH charges that Endotec (South Orange, NJ) and its two principals—president and coowner Michael Pappas and vice president, medical director, and coowner Frederick Buechel—marketed unapproved, adulterated, and misbranded implantable devices.
The government sought a permanent injunction and an order of disgorgement. On the basis of several FDA inspections between 2001 and 2005, it charged that the company had shipped about 4000 devices when its investigational device exemption (IDE) allowed only 109 for clinical trials. (Endotec was unable to say how many devices were exported versus shipped domestically.) FDA also alleged shipments to physicians who were not enrolled in Endotec’s clinical studies, distribution of devices that differed from their approved design and did not have required labeling, and distribution “under the guise of the ‘custom device’ exemption…even though the devices did not qualify for such exemption,” among other violations.
The devices cited in FDA’s complaint were knee, ankle, and temporomandibular joint replacements. Endotec contended that its manufacture and distribution of these devices was at all times protected by the “custom device” or IDE provisions of FDA regulations. CDRH dental devices branch chief Mary Susan Runner acknowledged weaknesses in the government’s case against the firm.
Sharp’s decision follows four others—Utah Medical Products (2005), Andersen Products (1997), Laerdahl (1994), and BioClinical Systems (1988)—in which CDRH-sourced prosecutions have failed in federal court when contested. In each of these defeats, CDRH interpretations of regulatory terms and requirements figured prominently. In Endotec, Sharp found a definition of custom device by CDRH associate director for regulatory guidance and government affairs Casper Uldriks “so narrow as to make the definition useless.”
CDRH’s losing streak involves an enforcement policy that is reminiscent of the court battles its drugs counterpart, CDER, fought against the generic drug industry more than 20 years ago. Notably, in U.S. v. Barr Laboratories, the presiding judge became so exasperated with FDA’s interpretation of its archaic drug GMP regulations that he rewrote a large section of them.
Since those battles have faded from memory, CDER has adjusted to a new judicial climate. Federal judges are much less likely than before to defer to federal agencies’ interpretations absent evidence of actual harm to public well-being.
As I wrote in 1999, this judicial shift required FDA policymakers to collaborate more intimately with the Office of Chief Counsel in recrafting enforcement and compliance policies if they wished to avoid continuing reversals. CDER seems to have done this, but not CDRH. This intransigence was most recently seen in its civil case against TMJ Implants Inc.
The chief counsel seems to support both CDER’s and CDRH’s approaches, notwithstanding their apparent divergence. Perhaps this is evidence of an unintended consequence of an HHS General Counsel instruction issued in the Reagan era. It elevated the “lawyer-client” relationship between FDA and the chief counsel to a controlling ethic. Could it be that this move also spawned a “my client, right or wrong” advocacy mentality among FDA lawyers in place of the old, collegial collaborator’s role in designing the legally soundest policies?
A comment on the Web site www.fdaweb.com that could have come from an FDA enforcement official may shed some light on CDRH’s position. It stated that CDRH’s current policies are seen inside the center as having “been more than accommodating to the medical device industry. It gets kid-glove treatment compared with other industries. For example, the inspections are preannounced and 483s are annotated with the firm’s comments. For some years, FDA held off on issuing warning letters to device manufacturers to allow them time to respond to 483s and prevent issuance of such letters.”
The observer went on to say that these accommodations were implemented after “FDA had grassroots-level meetings with industry [stakeholders] to address their concerns about being regulated and their opposition to inspections and investigators. At that time, the industry group accused investigators of being renegades, when in fact they were only guilty of being competent and dedicated. It also griped about the lack of consis-tency in inspections and FDA responded by implementing the use of canned-language 483s.
“The QSRs [quality system regulations] were spearheaded within FDA by individuals with industry experience and in conjunction with industry. Industry had opportunities during rulemaking to comment on the QSRs,” the statement continued. “Seems like FDA has bent over backwards to coddle the industry, but they are still just not happy to be regulated. Instead of just complying with the regulations that were promulgated with their input, they still blame FDA for doing its job. They skewer the investigators and mock the attorneys.”
– James G. Dickinson