Supreme Court of the United States · Official docket →
Vanda Pharmaceuticals Inc. v. Centers for Medicare & Medicaid Services, et al.
Paid petition · United States Court of Appeals for the Fourth Circuit, No. 23-1457 · judgment April 10, 2024
Before the decision, modestly above the 4.1% base rate. The model weighted this up for counsel who has won certiorari before, a business petitioner, and a petition citing one or two dissents, and down for a business respondent.
Questions presented
This case addresses the “line extension” provision of the Medicaid rebate statute. For a decade, CMS construed the statute as written, covering drugs introduced as gamesmanship to avoid a penalty provision. Recently, however, CMS adopted a regulatory definition of “line extension” that, by the agency’s own admission, was “much broader” than its earlier views. In so doing, CMS failed to recognize a key statutory constraint on its authority. Per Congress, the “line extension” provision applies to “a single source drug or an innovator multiple source drug.” 42 U.S.C. § 1396r-8(c)(2)(C)(i). Congress established that “the term ‘line extension’ means, with respect to a drug, a new formulation of the drug.” Id. § 1396r-8(c)(2)(C). The new formulation, accordingly, must be the same drug as the original. Congress tethered this inquiry to “a new drug application approved by” FDA. Id. §§ 1396r-8(k)(7)(A)(ii) & (iv). If a drug is approved pursuant to its own New Drug Application, it is not the same “drug” and thus not a “line extension.” The court of appeals disregarded this express statutory definition as “wandering on the periphery.” App., infra, 21a. The questions presented are:
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Does a decision that upholds an agency statutory interpretation merely because it is “perfectly sensible” or “reasonable and consistent with the statutory framework” comport with Loper Bright Enterprises v. Raimondo, 144 S. Ct. 2244 (2024)?
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Is an agency free to disregard reliance interests engendered by its prior interpretation of the statute it administers simply because that interpretation was announced in a non-binding document like a notice of proposed rulemaking?
Counsel of record
For petitioner
Paul Whitfield Hughes
McDermott Will & Emery
For respondent
Elizabeth B. Prelogar
Solicitor General
Case
Conference history
Distributed for 1 conference
Linked docket
23A1105
Order
Order list, January 13, 2025 · Certiorari denied
Proceedings
- Jan 13 2025Petition DENIED.
- Dec 24 2024DISTRIBUTED for Conference of 1/10/2025.
- Dec 23 2024Reply of petitioner Vanda Pharmaceuticals Inc. filed. (Distributed)
- Dec 05 2024Brief of respondents United States, et al. in opposition filed.
- Oct 21 2024Motion to extend the time to file a response is granted and the time is further extended to and including December 5, 2024.
- Oct 18 2024Motion to extend the time to file a response from November 12, 2024 to December 5, 2024, submitted to The Clerk.
- Sep 19 2024Motion to extend the time to file a response is granted and the time is extended to and including November 12, 2024. See Rule 30.1.
- Sep 18 2024Motion to extend the time to file a response from October 10, 2024 to November 11, 2024, submitted to The Clerk.
- Sep 06 2024Petition for a writ of certiorari filed. (Response due October 10, 2024)
- Jun 11 2024Application (23A1105) granted by The Chief Justice extending the time to file until September 6, 2024.
- Jun 07 2024Application (23A1105) to extend the time to file a petition for a writ of certiorari from July 9, 2024 to September 6, 2024, submitted to The Chief Justice.