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VANDA PHARMACEUTICALS, INC. v. CENTERS FOR MEDICARE & MEDICAID SERVICES

No. 23-1457.

VANDA PHARMACEUTICALS, INC., Plaintiff-Appellant, v. CENTERS FOR MEDICARE & MEDICAID SERVICES; CHIQUITA BROOKS-LASURE, in her official capacity as Administrator of Centers for Medicare & Medicaid Services, Defendants-Appellees.

United States Court of Appeals, Fourth Circuit.

Decided: April 10, 2024.

Attorney(s) appearing for the Case

ARGUED: Paul Whitfield Hughes, III , McDERMOTT, WILL & EMERY, LLP, Washington, D.C., for Appellant.

David L. Peters , UNITED STATES DEPARTMENT OF JUSTICE, Washington, D.C., for Appellees.

ON BRIEF: Andrew A. Lyons-Berg , Alex C. Boota , McDERMOTT WILL & EMERY LLP, Washington, D.C., for Appellant.

Brian M. Boynton , Principal Deputy Assistant Attorney General, Alisa B. Klein , Civil Division, UNITED STATES DEPARTMENT OF JUSTICE, Washington, D.C.; Samuel R. Bagenstos , General Counsel, Janice L. Hoffman , Associate General Counsel, Susan Maxson Lyons , Deputy Associate General Counsel for Litigation, Kara Wilcox Mundy , UNITED STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES, Washington, D.C.; Erek Barron , United States Attorney, OFFICE OF THE UNITED STATES ATTORNEY, Baltimore, Maryland, for Appellees.

Affirmed by published opinion. Judge Wilkinson wrote the opinion, in which Chief Judge Diaz and Senior Circuit Judge Motz joined.

Under the Medicaid Drug Rebate Program, a drug manufacturer that increases its prices faster than inflation rises must reimburse Medicaid for the difference. These reimbursements are paid via rebates. Each drug's rebate amount is usually determined based on its own original price and inflation clock. But not always. Congress...

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