Supreme Court Hears Generic Liability Case Today

After months of anticipation, the US Supreme Court today will hear a case that will determine whether generic drugmakers can be sued for alleged flaws in the design of their medications. At issue is whether federal law preempts - or supercedes - such claims from proceeding in state courts and if drugmakers can be held liable if they decline to withdraw their medicines.

However, the same notion might also be applied to brand-name drugmakers and, for this reason, has set the entire pharmaceutical industry on edge. For this reason, the Obama administration filed a brief in support of drugmakers over concerns that the FDA regulatory review process could be undermined if medicines deemed safe and effective by the agency could later be considered "unreasonably dangerous" (here is the US brief).

Here is the background: The court agreed to review an appeal by Mutual Pharmaceutical to overturn a $21 million jury award to Karen Bartlett, a New Hampshire woman who in December 2004 had taken its generic non-steroidal anti-inflammatory, or NSAID, called sulindac for shoulder pain. But a few months later, she developed Stevens-Johnson Syndrome and toxic epidermal necrolysis.

As a result, she is nearly permanently blind and suffered burn-like lesions on 65 percent of her body due to a hypersensitivity reaction. She spent 70 days at Massachusetts General Hospital, including 50 days in its burn unit; suffered two septic shock episodes and 12 major eye surgeries;, she is unable to read, drive or work, and must use a feeding tube, according to court documents.

Barlett and her husband subsequently sued Mutual for alleged design defects under New Hampshire state law, and last May, a federal appeals court upheld the award (read here). Mutual, however, continues to argue that federal law preempts this type of claim because the FDA had already approved sulindac and federal law requires a generic drug to have the same design as the brand-name medication.

As we have noted previously, Mutual points to a Supreme Court ruling in June 2011 that found generic drugmakers are not required to strengthen product labeling if alerted to side effects, when the same change has not been made to the labeling for the branded medicine (back story). The case was known as Pliva vs. Mensing.

Bartlett, however, argues that the FDA should never have approved the drug and claimed the medicine was inherently dangerous based on the number of incident reports of the skin reaction that were filed with the FDA. On that basis, Bartlett and her attorneys have maintained that the design of the drug was "unreasonably dangerous" and defective.

In a brief supporting Mutual, however, the Generic Pharmaceutical Association argued that the appeals court ruling “reopens avenues of liability” that the Supreme Court closed with its decision in Pliva vs. Mensing.

"Judgments of safety and efficacy of prescription drugs should rest with the scientific experts at the FDA," says GPHA president Ralph Neas in a statement. "This case, if decided incorrectly, threatens to undermine the authority of the FDA, which is the only body that has the scientific knowledge, regulatory experience, and complete data to make these decisions."

However, such concerns may later be rendered moot, because the FDA is considering a change in its regulations that may require generic drugmakers to update labeling to reflect what brand-name drugmakers disclose in their labeling (see this). And for more on what may happen, please read this op-ed by Kate Greenwood, a research fellow and Lecturer in Law at Seton Hall Law School Center for Health & Pharmaceutical Law & Policy, who previously worked at the Covington & Burling law firm where she represented drugmakers.

supreme court pic thx to robcrawley on flickr

6 Comments

Mar 19, 2013 - 9:37am
.... Hi ED: I don't understand the point of this piece. Many other media outlets have done this same story. The news is what happens today and analysis from supreme court experts, etc. No offense, but this is LAME !!!
Mar 19, 2013 - 10:40am
Generic manufacturers need to take some of the responsibility of their product, especially since they have none of the responsibility of the development costs.

If they dont want the liability responsibility, they shouldn't be making the drug in the fist place.

Dear Ramsey,

Thanks for your note, but if you stop by here as often as your comments suggest, you might have noticed that this topic has been covered several times in recent months. A search for 'Bartlett' will provide still more background, although there are links in this piece to some older stories.

And since this hearing has gotten attention - thanks to other media coverage that more recently began following the story - there is nothing wrong with a reminder piece that points out that the highest court in the land will take notice today.

Regards ed

Mar 19, 2013 - 2:46pm
I agree that this is potentially a very important case on many levels, and worthy of notice. Obviously, we won't have a decision today. But the way the issues are framed and discussed is itself important. It would seem nuts for Pharmalot not to note it's happening today.

I have one specific question that is basic and still, for me, unclear.

1. Understanding that this case is framed around design defect rather than inadequate warning (unlike Levine), I am still uncertain where associated Medwatch reports go--to generic, brand, or both? (along with FDA itself

Thanks for clarification on that.

Mar 19, 2013 - 7:01pm
As Paul Harvey used to say "Now you know the rest of the story". Suing a small generic house to the tune of $22 million might be a tough stretch. Nobody would waste $500/hour lawyers fees suing a small independent generic house.

But not when that company is part of a large conglomerate, in this case Pharmaceutical Holdings, Inc, based in Philadelphia. Greedy lawyers see deep pockets, and that's exactly what's going on here.

Mar 20, 2013 - 3:04pm
Perhaps there will be another post on this, but let me try to call the shot....

To many people's surprise, I predict Bartlett will be upheld. Based on some of the colloquy yesterday, New Hampshire's strict liability regime will be key, especially for Roberts, and that position will garner enough additional votes for different reasons. I'd expect many opinions on both sides.

As far as "greedy lawyers," it's interesting the Obama administration--which, as we all know, is entirely reliant on the plaintiffs' bar for campaign contributions (except for whatever they can extort from "union bosses")-- would be taking a position against their Masters. No doubt the Greedy Trial Lawyers will disappear their first-born children as a consequence. That's, after all, what Greedy Trial Lawyers do (when their not just sucking on jugular veins).