OCTOBER TERM, 2001
Syllabus
THOMPSON, SECRETARY OF HEALTH AND HUMAN SERVICES, ET AL.
v. WESTERN STATES MEDICAL CENTER ET AL.
CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE NINTH
CIRCUIT
No. 01-344. Argued February 26, 2002-Decided April 29, 2002
Drug compounding is a process by which a pharmacist or doctor
combines, mixes, or alters ingredients to create a medication
tailored to an individual patient's needs. The Food and Drug
Administration Modernization Act of 1997 (FDAMA) exempts
"compounded drugs" from the Food and Drug Administration's (FDA)
standard drug approval requirements under the Federal Food, Drug,
and Cosmetic Act (FDCA), so long as the providers of the compounded
drugs abide by several restrictions, including that the
prescription be "unsolicited," 21 U. S. C. § 353a(a), and that the
providers "not advertise or promote the compounding of any
particular drug, class of drug, or type of drug," § 353a(c).
Respondents, a group of licensed pharmacies that specialize in
compounding drugs, sought to enjoin enforcement of the advertising
and solicitation provisions, arguing that they violate the First
Amendment's free speech guarantee. The District Court agreed and
granted respondents summary judgment, holding that the provisions
constitute unconstitutional restrictions on commercial speech under
Central Hudson Gas &
Elec. Corp. v.
Public
Servo Comm'n of N. Y.,
447 U. S. 557, 566.
Affirming in relevant part, the Ninth Circuit held that the
restrictions in question fail
Central Hudson's test because
the Government had not demonstrated that the restrictions would
directly advance its interests or that alternatives less
restrictive of speech were unavailable.
Held: The FDAMA's prohibitions on soliciting
prescriptions for, and advertising, compounded drugs amount to
unconstitutional restrictions on commercial speech. Pp.
366-377.
(a) For a commercial speech regulation to be constitutionally
permissible under the
Central Hudson test, the speech in
question must concern lawful activity and not be misleading, the
asserted governmental interest to be served by the regulation must
be substantial, and the regulation must "directly advanc[e]" the
governmental interest and "not [be] more extensive than is
necessary to serve that interest," 447 U. S., at 566. Pp.
366-368.
(b) The Government asserts that three substantial interests
underlie the FDAMA: (1) preserving the effectiveness and integrity
of the
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358 THOMPSON
v. WESTERN STATES MEDICAL CENTER
Syllabus
FDCA's new drug approval process and the protection of the
public health it provides; (2) preserving the availability of
compounded drugs for patients who, for particularized medical
reasons, cannot use commercially available products approved by the
FDA; and (3) achieving the proper balance between those two
competing interests. Preserving the new drug approval process is
clearly an important governmental interest, as is permitting the
continuation of the practice of compounding so that patients with
particular needs may obtain medications suited to those needs.
Because pharmacists do not make enough money from small-scale
compounding to make safety and efficacy testing of their compounded
drugs economically feasible, however, it would not make sense to
require compounded drugs created to meet the unique needs of
individual patients to undergo the entire new drug approval
process. The Government therefore needs to be able to draw a line
between small-scale compounding and large-scale drug manufacturing.
The Government argues that the FDAMA's speech-related provisions
provide just such a line: As long as pharmacists do not advertise
particular compounded drugs, they may sell compounded drugs without
first undergoing safety and efficacy testing and obtaining FDA
approval. However, even assuming that the FDAMA's prohibition on
advertising compounded drugs "directly advance[s]" the Government's
asserted interests, the Government has failed to demonstrate that
the speech restrictions are "not more extensive than is necessary
to serve [those] interest[s]."
Central Hudson, supra, at
566. If the Government can achieve its interests in a manner that
does not restrict commercial speech, or that restricts less speech,
the Government must do so.
E. g., Rubin v.
Coors Brewing
Co., 514 U. S.
476, 490-491. Several non-speech-related means of drawing a
line between compounding and large-scale manufacturing might be
possible here. For example, the Government could ban the use of
commercial scale manufacturing or testing equipment in compounding
drug products, prohibit pharmacists from compounding more drugs in
anticipation of receiving prescriptions than in response to
prescriptions already received, or prohibit them from offering
compounded drugs at wholesale to other state licensed persons or
commercial entities for resale. The Government has not offered any
reason why such possibilities, alone or in combination, would be
insufficient to prevent compounding from occurring on such a scale
as to undermine the new drug approval process. Pp. 368-373.
(c) Even if the Government had argued (as does the dissent) that
the FDAMA's speech-related restrictions were motivated by a fear
that advertising compounded drugs would put people who do not need
such drugs at risk by causing them to convince their doctors to
prescribe the drugs anyway, that fear would fail to justify the
restrictions. This
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concern rests on the questionable assumption that doctors would
prescribe unnecessary medications and amounts to a fear that people
would make bad decisions if given truthful information, a notion
that the Court rejected as a justification for an advertising ban
in,
e. g., Virginia Bd. of Pharmacy v.
Virginia Citizens
Consumer Council, Inc., 425 U. S. 748,770. Pp.
373-376.
(d) If the Government's failure to justify its decision to
regulate speech were not enough to convince the Court that the
FDAMA's advertising provisions were unconstitutional, the amount of
beneficial speech prohibited by the FDAMA would be. Forbidding the
advertisement of compounded drugs would prevent pharmacists with no
interest in mass-producing medications, but who serve clienteles
with special medical needs, from telling the doctors treating those
clients about the alternative drugs available through compounding.
For example, a pharmacist serving a children's hospital where many
patients are unable to swallow pills would be prevented from
telling the children's doctors about a new development in
compounding that allowed a drug that was previously available only
in pill form to be administered another way. The fact that the
FDAMA would prohibit such seemingly useful speech even though doing
so does not appear to directly further any asserted governmental
objective confirms that the prohibition is unconstitutional. Pp.
376-377.
238 F.3d
1090, affirmed.
O'CONNOR, J., delivered the opinion of the Court, in which
SCALIA, KENNEDY, SOUTER, and THOMAS, JJ., joined. THOMAS, J., filed
a concurring opinion,
post, p. 377. BREYER, J., filed a
dissenting opinion, in which REHNQUIST, C. J., and STEVENS and
GINSBURG, JJ., joined,
post, p. 378.
Deputy Solicitor General Kneedler argued the cause for
petitioners. With him on the briefs were Solicitor General Olson,
Assistant Attorney General McCallum, Matthew D. Roberts, Douglas N.
Letter, Alex M. Azar II, Daniel E. Troy, and Patricia
J.
Kaeding.
Howard M. Hoffmann argued the cause and filed a brief for
respondents. *
*Briefs of
amici curiae urging affirmance were filed for
the International Academy of Compounding Pharmacists by
Alan E.
Untereiner and
Arnon D. Siegel; for the National
Community Pharmacists Association by
Kenneth S.
Geller and
John M. Rector; and for Julian M.
Whitaker, M.D., et al. by
Jonathan W Emord and
Claudia A.
Lewis-Eng.
Michael H. McConihe filed a brief for the American
Pharmaceutical Association as
amicus curiae.
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360 THOMPSON
v. WESTERN STATES MEDICAL CENTER
JUSTICE O'CONNOR delivered the opinion of the Court. Section
127(a) of the Food and Drug Administration Modernization Act of
1997 (FDAMA or Act), 111 Stat. 2328, 21 U. S. C. § 353a, exempts
"compounded drugs" from the Food and Drug Administration's standard
drug approval requirements as long as the providers of those drugs
abide by several restrictions, including that they refrain from
advertising or promoting particular compounded drugs. Respondents,
a group of licensed pharmacies that specialize in compounding
drugs, sought to enjoin enforcement of the subsections of the Act
dealing with advertising and solicitation, arguing that those
provisions violate the First Amendment's free speech guarantee. The
District Court agreed with respondents and granted their motion for
summary judgment, holding that the provisions do not meet the test
for acceptable government regulation of commercial speech set forth
in
Central Hudson Gas &
Elec. Corp. v.
Public
Servo Comm'n of N.
Y., 447 U. S. 557, 566
(1980). The court invalidated the relevant provisions, severing
them from the rest of § 127(a).
The Court of Appeals for the Ninth Circuit affirmed in part and
reversed in part, agreeing that the provisions regarding
advertisement and promotion are unconstitutional but finding them
not to be severable from the rest of § 127(a). Petitioners
challenged only the Court of Appeals' constitutional holding in
their petition for certiorari, and respondents did not file a
cross-petition. We therefore address only the constitutional
question, having no occasion to review the Court of Appeals'
severability determination. We conclude, as did the courts below,
that § 127(a)'s provisions regarding advertisement and promotion
amount to unconstitutional restrictions on commercial speech, and
we therefore affirm.
I
Drug compounding is a process by which a pharmacist or doctor
combines, mixes, or alters ingredients to create
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a medication tailored to the needs of an individual patient.
Compounding is typically used to prepare medications that are not
commercially available, such as medication for a patient who is
allergic to an ingredient in a mass-produced product. It is a
traditional component of the practice of pharmacy, see J. Thompson,
A Practical Guide to Contemporary Pharmacy Practice 11.3 (1998),
and is taught as part of the standard curriculum at most pharmacy
schools, see American Council on Pharmaceutical Education,
Accreditation Standards and Guidelines for the Professional Program
in Pharmacy Leading to the Doctor of Pharmacy Degree, Standard
10(a) (adopted June 14, 1997). Many States specifically regulate
compounding practices as part of their regulation of pharmacies.
See,
e. g., Cal. Code Regs., tit. 16, §§ 1716.2, 1751
(2002); Ind. Admin. Code, tit. 856, §§ 1-30-8, 1-30-18, 1-28-8
(2001); N. H. Code Admin. Rules Ann. Pharmacy, pts. PH 404, PH
702.01 (2002); 22 Tex. Admin. Code § 291.36 (2002). Some require
all licensed pharmacies to offer compounding services. See,
e. g., 49 Pa. Code § 27.18(p)(2) (2002); w. Va. Code
St. Rules, tit. 15, § 19.4 (2002). Pharmacists may provide
compounded drugs to patients only upon receipt of a valid
prescription from a doctor or other medical practitioner licensed
to prescribe medication. See,
e. g., Okla. Admin.
Code §§ 535:15-10-3, 535:1510-9(d) (2001); Colo. State Board of
Pharmacy Rule 3.02.10 (2001).
The Federal Food, Drug, and Cosmetic Act of 1938 (FDCA), 21 U.
S. C. §§ 301-397, regulates drug manufacturing, marketing, and
distribution. Section 505(a) of the FDCA, 52 Stat. 1052, as
amended, 76 Stat. 784, provides that "[n]o person shall introduce
or deliver for introduction into interstate commerce any new drug,
unless an approval of an application filed [with the Food and Drug
Administration] is effective with respect to such drug." 21 U. S.
C. § 355(a). "[N]ew drug" is defined by § 201(p)(1) of the FDCA, 52
Stat. 1041, as amended, 76 Stat. 781, as "[a]ny drug ... not
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v. WESTERN STATES MEDICAL CENTER
generally recognized, among experts qualified by scientific
training and experience to evaluate the safety and effectiveness of
drugs, as safe and effective for use under the conditions
prescribed, recommended, or suggested in the labeling thereof." 21
U. S. C. § 321(p). The FDCA invests the Food and Drug
Administration (FDA) with the power to enforce its requirements. §
371(a).
For approximately the first 50 years after the enactment of the
FDCA, the FDA generally left regulation of compounding to the
States. Pharmacists continued to provide patients with compounded
drugs without applying for FDA approval of those drugs. The FDA
eventually became concerned, however, that some pharmacists were
manufacturing and selling drugs under the guise of compounding,
thereby avoiding the FDCA's new drug requirements. In 1992, in
response to this concern, the FDA issued a Compliance Policy Guide,
which announced that the "FDA may, in the exercise of its
enforcement discretion, initiate federal enforcement actions ...
when the scope and nature of a pharmacy's activities raises the
kinds of concerns normally associated with a manufacturer and ...
results in significant violations of the new drug, adulteration, or
misbranding provisions of the Act." Compliance Policy Guide 7132.16
(hereinafter Guide), App. to Pet. for Cert. 76a. The Guide
explained that the "FDA recognizes that pharmacists traditionally
have extemporaneously compounded and manipulated reasonable
quantities of drugs upon receipt of a valid prescription for an
individually identified patient from a licensed practitioner," and
that such activity was not the subject of the Guide.
Id., at
71a. The Guide said, however, "that while retail pharmacies ... are
exempted from certain requirements of the [FDCA], they are not the
subject of any general exemption from the new drug, adulteration,
or misbranding provisions" of the FDCA.
Id., at 72a. It
stated that the "FDA believes that an increasing number of
establishments with retail pharmacy licenses are engaged in
363
manufacturing, distributing, and promoting unapproved new drugs
for human use in a manner that is clearly outside the bounds of
traditional pharmacy practice and that constitute violations of the
[FDCA]."
Ibid. The Guide expressed concern that drug
products "manufactured and distributed in commercial amounts
without [the] FDA's prior approval" could harm the public health.
Id., at 73a.
In light of these considerations, the Guide announced that it
was FDA policy to permit pharmacists to compound drugs after
receipt of a valid prescription for an individual patient or to
compound drugs in "very limited quantities" before receipt of a
valid prescription if they could document a history of receiving
valid prescriptions "generated solely within an established
professional practitioner-patient-pharmacy relationship" and if
they maintained the prescription on file as required by state law.
Id., at 73a-75a. Compounding in such circumstances was
permitted as long as the pharmacy's activities did not raise "the
kinds of concerns normally associated with a manufacturer."
Id., at 76a. The Guide listed nine examples of activities
that the FDA believed raised such concerns and that would therefore
be considered by the agency in determining whether to bring an
enforcement action. These activities included: "[s]oliciting
business
(e. g., promoting, advertising, or using
salespersons) to compound specific drug products, product classes,
or therapeutic classes of drug products"; "[c]ompounding,
regularly, or in inordinate amounts, drug products that are
commercially available ... and that are essentially generic copies
of commercially available, FDA-approved drug products"; using
commercial scale manufacturing or testing equipment to compound
drugs; offering compounded drugs at wholesale; and "[d]istributing
inordinate amounts of compounded products out of state."
Id., at 76a-77a. The Guide further warned that pharmacies
could not dispense drugs to third parties for resale to individual
patients without losing their status as retail entities.
Id., at 75a.
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364 THOMPSON
v. WESTERN STATES MEDICAL CENTER
Congress turned portions of this policy into law when it enacted
the FDAMA in 1997. The FDAMA, which amends the FDCA, exempts
compounded drugs from the FDCA's "new drug" requirements and other
requirements provided the drugs satisfy a number of restrictions.
First, they must be compounded by a licensed pharmacist or
physician in response to a valid prescription for an identified
individual patient, or, if prepared before the receipt of such a
prescription, they must be made only in "limited quantities" and in
response to a history of the licensed pharmacist's or physician's
receipt of valid prescription orders for that drug product within
an established relationship between the pharmacist, the patient,
and the prescriber. 21 U. S. C. § 353a(a). Second, the compounded
drug must be made from approved ingredients that meet certain
manufacturing and safety standards, §§ 353a(b)(1)(A)-(B), and the
compounded drug may not appear on an FDA list of drug products that
have been withdrawn or removed from the market because they were
found to be unsafe or ineffective, § 353a(b)(1)(C). Third, the
pharmacist or physician compounding the drug may not "compound
regularly or in inordinate amounts (as defined by the Secretary)
any drug products that are essentially copies of a commercially
available drug product." § 353a(b)(1)(D). Fourth, the drug product
must not be identified by the FDA as a drug product that presents
demonstrable difficulties for compounding in terms of safety or
effectiveness. § 353a(b)(3)(A). Fifth, in States that have not
entered into a "memorandum of understanding" with the FDA
addressing the distribution of "inordinate amounts" of compounded
drugs in interstate commerce, the pharmacy, pharmacist, or
physician compounding the drug may not distribute compounded drugs
out of state in quantities exceeding five percent of that entity's
total prescription orders. § 353a(b)(3)(B). Finally, and most
relevant for this litigation, the prescription must be
"unsolicited," § 353a(a), and the pharmacy, licensed pharmacist, or
licensed physician
365
compounding the drug may "not advertise or promote the
compounding of any particular drug, class of drug, or type of
drug," § 353a(c). The pharmacy, licensed pharmacist, or licensed
physician may, however, "advertise and promote the compounding
service."
Ibid.
Respondents are a group of licensed pharmacies that specialize
in drug compounding. They have prepared promotional materials that
they distribute by mail and at medical conferences to inform
patients and physicians of the use and effectiveness of specific
compounded drugs. Fearing that they would be prosecuted under the
FDAMA if they continued to distribute those materials, respondents
filed a complaint in the United States District Court for the
District of Nevada, arguing that the Act's requirement that they
refrain from advertising and promoting their products if they wish
to continue compounding violates the Free Speech Clause of the
First Amendment. Specifically, they challenged the requirement that
prescriptions for compounded drugs be "unsolicited," 21 U. S. C. §
353a(a), and the requirement that pharmacists "not advertise or
promote the compounding of any particular drug, class of drug, or
type of drug," § 353a(c). The District Court granted summary
judgment to respondents, finding that the FDAMA's speech-related
provisions constitute unconstitutional restrictions on commercial
speech under
Central Hudson, 447 U. S., at 566, and that
their enforcement should therefore be enjoined.
Western States
Medical Center v.
Shalala, 69 F. Supp. 2d 1288 (Nev.
1999). The District Court, however, found those provisions to be
severable from the rest of § 127(a) of the FDAMA, 21 U. S. C. §
353a, and so left the Act's other compounding requirements
intact.
The Government appealed both the holding that the speech-related
provisions were unconstitutional and the holding that those
provisions were severable from the rest of § 127(a). The Court of
Appeals for the Ninth Circuit affirmed in part and reversed in
part.
Western States Med-
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366 THOMPSON
v. WESTERN STATES MEDICAL CENTER
ical Center v.
Shalala, 238
F.3d 1090 (2001). The Court of Appeals agreed that the FDAMA's
advertisement and solicitation restrictions fail
Central
Hudson's test for permissible regulation of commercial speech,
finding that the Government had not demonstrated that the speech
restrictions would directly advance its interests or that
alternatives less restrictive of speech were unavailable. The Court
of Appeals disagreed, however, that the speech-related restrictions
were severable from the rest of § 127(a), 21 U. s. C. § 353a,
explaining that the FDAMA's legislative history demonstrated that
Congress intended to exempt compounding from the FDCA's
requirements only in return for a prohibition on promotion of
specific compounded drugs. Accordingly, the Court of Appeals
invalidated § 127(a) in its entirety.
We granted certiorari, 534 U. S. 992 (2001), to consider whether
the FDAMA's prohibitions on soliciting prescriptions for, and
advertising, compounded drugs violate the First Amendment. Because
neither party petitioned for certiorari on the severability issue,
we have no occasion to review that portion of the Court of Appeals'
decision. Likewise, the provisions of the FDAMA outside § 127(a),
which are unrelated to drug compounding, are not an issue here and
so remain unaffected.
II
The parties agree that the advertising and soliciting prohibited
by the FDAMA constitute commercial speech. In
Virginia Bd. of
Pharmacy v.
Virginia Citizens Consumer Council, Inc.,
425 U. S. 748
(1976), the first case in which we explicitly held that commercial
speech receives First Amendment protection, we explained the
reasons for this protection: "It is a matter of public interest
that [economic] decisions, in the aggregate, be intelligent and
well-informed. To this end, the free flow of commercial information
is indispensable."
Id., at 765. Indeed, we recognized that a
"particular consumer's interest in the free flow of commercial
information ... may be as keen, if not keener by far, than
367
his interest in the day's most urgent political debate."
Id., at 763. We have further emphasized:
"The commercial marketplace, like other spheres of our social
and cultural life, provides a forum where ideas and information
flourish. Some of the ideas and information are vital, some of
slight worth. But the general rule is that the speaker and the
audience, not the government, assess the value of the information
presented. Thus, even a communication that does no more than
propose a commercial transaction is entitled to the coverage of the
First Amendment." Edenfield v. Fane, 507 U. S. 761, 767
(1993).
Although commercial speech is protected by the First Amendment,
not all regulation of such speech is unconstitutional. See
Virginia Bd. of Pharmacy, supra, at 770. In
Central
Hudson, supra, we articulated a test for determining whether a
particular commercial speech regulation is constitutionally
permissible. Under that test we ask as a threshold matter whether
the commercial speech concerns unlawful activity or is misleading.
If so, then the speech is not protected by the First Amendment. If
the speech concerns lawful activity and is not misleading, however,
we next ask "whether the asserted governmental interest is
substantiaL"
Id., at 566. If it is, then we "determine
whether the regulation directly advances the governmental interest
asserted," and, finally, "whether it is not more extensive than is
necessary to serve that interest."
Ibid. Each of these
latter three inquiries must be answered in the affirmative for the
regulation to be found constitutional.
Neither party has challenged the appropriateness of applying the
Central Hudson framework to the speech-related provisions at
issue here. Although several Members of the Court have expressed
doubts about the
Central Hudson analysis and whether it
should apply in particular cases, see,
e. g., Greater New
Orleans Broadcasting Assn., Inc. v.
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368 THOMPSON
v. WESTERN STATES MEDICAL CENTER
United States, 527 U. S. 173, 197 (1999)
(THOMAS, J., concurring in judgment);
J,J, Liquormart,
Inc. v.
Rhode Island, 517 U. S. 484, 501, 510-514 (1996)
(opinion of STEVENS, J., joined by KENNEDY and GINSBURG, JJ.);
id., at 517 (SCALIA, J., concurring in part and concurring
in judgment);
id., at 518 (THOMAS, J., concurring in part
and concurring in judgment), there is no need in this case to break
new ground. "
'Central Hudson, as applied in our more recent
commercial speech cases, provides an adequate basis for
decision.'''
Lorillard Tobacco Co. v.
Reilly,
533 U. S. 525,
554-555 (2001) (quoting
Greater New Orleans, supra, at
184).
III
The Government does not attempt to defend the FDAMA's
speech-related provisions under the first prong of the
Central
Hudson test; i.
e., it does not argue that the
prohibited advertisements would be about unlawful activity or would
be misleading. Instead, the Government argues that the FDAMA
satisfies the remaining three prongs of the
Central Hudson
test.
The Government asserts that three substantial interests underlie
the FDAMA. The first is an interest in "preserv[ing] the
effectiveness and integrity of the FDCA's new drug approval process
and the protection of the public health that it provides." Brief
for Petitioners 19. The second is an interest in "preserv[ing] the
availability of compounded drugs for those individual patients who,
for particularized medical reasons, cannot use commercially
available products that have been approved by the FDA."
Id.,
at 19-20. Finally, the Government argues that "[a]chieving the
proper balance between those two independently compelling but
competing interests is itself a substantial governmental interest."
Id., at 20.
Explaining these interests, the Government argues that the
FDCA's new drug approval requirements are critical to the public
health and safety. It claims that the FDA's
369
experience with drug regulation demonstrates that proof of the
safety and effectiveness of a new drug needs to be established by
rigorous, scientifically valid clinical studies because impressions
of individual doctors, who cannot themselves compile sufficient
safety data, cannot be relied upon. The Government also argues that
a pre market approval process, under which manufacturers are
required to put their proposed drugs through tests of safety and
effectiveness in order to obtain FDA approval to market the drugs,
is the best way to guarantee drug safety and effectiveness.
While it praises the FDCA's new drug approval process, the
Government also acknowledges that "because obtaining FDA approval
for a new drug is a costly process, requiring FDA approval of all
drug products compounded by pharmacies for the particular needs of
an individual patient would, as a practical matter, eliminate the
practice of compounding, and thereby eliminate availability of
compounded drugs for those patients who have no alternative
treatment."
Id., at 26. The Government argues that
eliminating the practice of compounding drugs for individual
patients would be undesirable because compounding is sometimes
critical to the care of patients with drug allergies, patients who
cannot tolerate particular drug delivery systems, and patients
requiring special drug dosages.
Preserving the effectiveness and integrity of the FDCA's new
drug approval process is clearly an important governmental
interest, and the Government has every reason to want as many drugs
as possible to be subject to that approval process. The Government
also has an important interest, however, in permitting the
continuation of the practice of compounding so that patients with
particular needs may obtain medications suited to those needs. And
it would not make sense to require compounded drugs created to meet
the unique needs of individual patients to undergo the testing
required for the new drug approval process. Pharmacists do not make
enough money from
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v. WESTERN STATES MEDICAL CENTER
small-scale compounding to make safety and efficacy testing of
their compounded drugs economically feasible, so requiring such
testing would force pharmacists to stop providing compounded drugs.
Given this, the Government needs to be able to draw a line between
small-scale compounding and large-scale drug manufacturing. That
line must distinguish compounded drugs produced on such a small
scale that they could not undergo safety and efficacy testing from
drugs produced and sold on a large enough scale that they could
undergo such testing and therefore must do so.
The Government argues that the FDAMA's speech-related provisions
provide just such a line, i.
e., that, in the terms of
Central Hudson, they "directly advanc[e] the governmental
interest[s] asserted." 447 U. S., at 566. Those provisions use
advertising as the trigger for requiring FDA approval-essentially,
as long as pharmacists do not advertise particular compounded
drugs, they may sell compounded drugs without first undergoing
safety and efficacy testing and obtaining FDA approval. If they
advertise their compounded drugs, however, FDA approval is
required. The Government explains that traditional (or, in its
view, desirable) compounding responds to a physician's prescription
and an individual patient's particular medical situation, and that
"[a]dvertising the particular products created in the provision of
[such] service (as opposed to advertising the compounding service
itself) is not necessary to ... this type of responsive and
customized service." Brief for Petitioners 34. The Government
argues that advertising particular products is useful in a broad
market but is not useful when particular products are designed in
response to an individual's "often unique need[s]."
Ibid.
The Government contends that, because of this, advertising is not
typically associated with compounding for particular individuals.
In contrast it is typically associated, the Government claims, with
large-scale production of a drug for a substantial market. The
Government argues that advertis-
371
ing, therefore, is "a fair proxy for actual or intended
largescale manufacturing," and that Congress' decision to limit the
FDAMA's compounding exemption to pharmacies that do not engage in
promotional activity was "rationally calculated" to avoid creating
"'a loophole that would allow unregulated drug manufacturing to
occur under the guise of pharmacy compounding.'"
Id., at 35
(quoting 143 Congo Rec. S9839 (Sept. 24, 1997) (statement of Sen.
Kennedy)).
The Government seems to believe that without advertising it
would not be possible to market a drug on a large enough scale to
make safety and efficacy testing economically feasible. The
Government thus believes that conditioning an exemption from the
FDA approval process on refraining from advertising is an ideal way
to permit compounding and yet also guarantee that compounding is
not conducted on such a scale as to undermine the FDA approval
process. Assuming it is true that drugs cannot be marketed on a
large scale without advertising, the FDAMA's prohibition on
advertising compounded drugs might indeed "directly advanc[e]" the
Government's interests.
Central Hudson, 447 U. S., at 566.
Even assuming that it does, however, the Government has failed to
demonstrate that the speech restrictions are "not more extensive
than is necessary to serve [those] interest[s]."
Ibid. In
previous cases addressing this final prong of the
Central
Hudson test, we have made clear that if the Government could
achieve its interests in a manner that does not restrict speech, or
that restricts less speech, the Government must do so. In
Rubin v.
Coors Brewing Co., 514 U. S. 476 (1995), for
example, we found a law prohibiting beer labels from displaying
alcohol content to be unconstitutional in part because of the
availability of alternatives "such as directly limiting the alcohol
content of beers, prohibiting marketing efforts emphasizing high
alcohol strength ... , or limiting the labeling ban only to malt
liquors."
Id., at 490-491. The fact that "all of [these
alternatives] could advance the Government's asserted inter-
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372 THOMPSON
v. WESTERN STATES MEDICAL CENTER
est in a manner less intrusive to ... First Amendment rights"
indicated that the law was "more extensive than necessary."
Id., at 491. See also
J,J, Liquormart, Inc. v.
Rhode Island, 517 U. S., at 507 (plurality opinion)
(striking down a prohibition on advertising the price of alcoholic
beverages in part because "alternative forms of regulation that
would not involve any restriction on speech would be more likely to
achieve the State's goal of promoting temperance").
Several non-speech-related means of drawing a line between
compounding and large-scale manufacturing might be possible here.
First, it seems that the Government could use the very factors the
FDA relied on to distinguish compounding from manufacturing in its
1992 Guide. For example, the Government could ban the use of
"commercial scale manufacturing or testing equipment for
compounding drug products." Guide, App. to Pet. for Cert. 76a. It
could prohibit pharmacists from compounding more drugs in
anticipation of receiving prescriptions than in response to
prescriptions already received. See
ibid. It could prohibit
pharmacists from "[o]ffering compounded drug products at wholesale
to other state licensed persons or commercial entities for resale."
Id., at 77a. Alternately, it could limit the amount of
compounded drugs, either by volume or by numbers of prescriptions,
that a given pharmacist or pharmacy sells out of state. See
ibid. Another possibility not suggested by the Guide would
be capping the amount of any particular compounded drug, either by
drug volume, number of prescriptions, gross revenue, or profit that
a pharmacist or pharmacy may make or sell in a given period of
time. It might even be sufficient to rely solely on the
non-speechrelated provisions of the FDAMA, such as the requirement
that compounding only be conducted in response to a prescription or
a history of receiving a prescription, 21 U. S. C. § 353a(a), and
the limitation on the percentage of a pharmacy's total sales that
out-of-state sales of compounded drugs may represent, §
353a(b)(3)(B).
373
The Government has not offered any reason why these
possibilities, alone or in combination, would be insufficient to
prevent compounding from occurring on such a scale as to undermine
the new drug approval process. Indeed, there is no hint that the
Government even considered these or any other alternatives. Nowhere
in the legislative history of the FDAMA or petitioners' briefs is
there any explanation of why the Government believed forbidding
advertising was a necessary as opposed to merely convenient means
of achieving its interests. Yet "[i]t is well established that 'the
party seeking to uphold a restriction on commercial speech carries
the burden of justifying it.'"
Edenfield v.
Fane, 507
U. S., at 770 (quoting
Bolger v.
Youngs Drug Products
Corp., 463 U. S.
60, 71, n. 20 (1983)). The Government simply has not provided
sufficient justification here. If the First Amendment means
anything, it means that regulating speech must be a last-not
first-resort. Yet here it seems to have been the first strategy the
Government thought to try.
The dissent describes another governmental interest-an interest
in prohibiting the sale of compounded drugs to "patients who may
not clearly need them,"
post, at 379 (opinion of BREYER,
J.)-and argues that "Congress could ... conclude that the
advertising restrictions 'directly advance' " that interest,
post, at 384. Nowhere in its briefs, however, does the
Government argue that this interest motivated the advertising ban.
Although, for the reasons given by the dissent, Congress
conceivably could have enacted the advertising ban to advance this
interest, we have generally only sustained statutes on the basis of
hypothesized justifications when reviewing statutes merely to
determine whether they are rational. See L. Tribe, American
Constitutional Law 1444-1446 (2d ed. 1988) (describing the
"rational basis" or "conceivable basis" test); see also,
e. g.,
Minnesota v.
Clover Leaf Creamery Co., 449 U. S. 456, 466 (1981)
(sustaining a milk packaging regulation under the "rational basis"
test
374
374 THOMPSON
v. WESTERN STATES MEDICAL CENTER
because "the Minnesota Legislature could rationally have decided
that [the regulation] might foster greater use of environmentally
desirable alternatives" (emphasis deleted)). The
Central
Hudson test is significantly stricter than the rational basis
test, however, requiring the Government not only to identify
specifically "a substantial interest to be achieved by [the]
restrictio[n] on commercial speech," 447 U. S., at 564, but also to
prove that the regulation "directly advances" that interest and is
"not more extensive than is necessary to serve that interest,"
id., at 566. The Government has not met any of these
requirements with regard to the interest the dissent describes.
Even if the Government had argued that the FDAMA's
speech-related restrictions were motivated by a fear that
advertising compounded drugs would put people who do not need such
drugs at risk by causing them to convince their doctors to
prescribe the drugs anyway, that fear would fail to justify the
restrictions. Aside from the fact that this concern rests on the
questionable assumption that doctors would prescribe unnecessary
medications (an assumption the dissent is willing to make based on
one magazine article and one survey,
post, at 383-384,
neither of which was relied upon by the Government), this concern
amounts to a fear that people would make bad decisions if given
truthful information about compounded drugs. See
supra, at
368 (explaining that the Government does not claim the
advertisements forbidden by the FDAMA would be false or
misleading). We have previously rejected the notion that the
Government has an interest in preventing the dissemination of
truthful commercial information in order to prevent members of the
public from making bad decisions with the information. In
Virginia Bd. of Pharmacy, the State feared that if people
received price advertising from pharmacists, they would "choose the
low-cost, low-quality service and drive the 'professional'
pharmacist out of business" and would "destroy the
pharmacist-customer relationship" by going from one
375
pharmacist to another. We found these fears insufficient to
justify a ban on such advertising. 425 U. S., at 769. We
explained:
"There is, of course, an alternative to this highly
paternalistic approach. That alternative is to assume that this
information is not in itself harmful, that people will perceive
their own best interests if only they are well enough informed, and
that the best means to that end is to open the channels of
communication rather than to close them .... But the choice among
these alternative approaches is not ours to make or the Virginia
General Assembly's. It is precisely this kind of choice, between
the dangers of suppressing information, and the dangers of its
misuse if it is freely available, that the First Amendment makes
for us. Virginia is free to require whatever professional standards
it wishes of its pharmacists; it may subsidize them or protect them
from competition in other ways .... But it may not do so by keeping
the public in ignorance of the entirely lawful terms that competing
pharmacists are offering." Id., at 770 (citation
omitted).
See also
J,J, Liquormart, Inc. v.
Rhode
Island, 517 U. S., at 503 ("[B]ans against truthful,
nonmisleading commercial speech ... usually rest solely on the
offensive assumption that the public will respond 'irrationally' to
the truth .... The First Amendment directs us to be especially
skeptical of regulations that seek to keep people in the dark for
what the government perceives to be their own good" (citation
omitted)).
Even if the Government had asserted an interest in preventing
people who do not need compounded drugs from obtaining those drugs,
the statute does not directly advance that interest. The dissent
claims that the Government "must exclude from the area of permitted
drug sales ... those compounded drugs sought by patients who may
not
376
376 THOMPSON
v. WESTERN STATES MEDICAL CENTER
clearly need them."
Post, at 379. Yet the statute does
not directly forbid such sales. It instead restricts advertising,
of course not just to those who do not need compounded drugs, but
also to individuals who do need compounded drugs and their doctors.
Although the advertising ban may reduce the demand for compounded
drugs from those who do not need the drugs, it does nothing to
prevent such individuals from obtaining compounded drugs other than
requiring prescriptions. But if it is appropriate for the statute
to rely on doctors to refrain from prescribing compounded drugs to
patients who do not need them, it is not clear why it would not
also be appropriate to rely on doctors to refrain from prescribing
compounded drugs to patients who do not need them in a world where
advertising was permitted.
The dissent may also be suggesting that the Government has an
interest in banning the advertising of compounded drugs because
patients who see such advertisements will be confused about the
drugs' risks. See
post, at 387 ("[The Government] fears the
systematic effect ... of advertisements that will not fully explain
the complicated risks at issue"). This argument is precluded,
however, by the fact that the Government does not argue that the
advertisements are misleading. Even if the Government did argue
that it had an interest in preventing misleading advertisements,
this interest could be satisfied by the far less restrictive
alternative of requiring each compounded drug to be labeled with a
warning that the drug had not undergone FDA testing and that its
risks were unknown.
If the Government's failure to justify its decision to regulate
speech were not enough to convince us that the FDAMA's advertising
provisions were unconstitutional, the amount of beneficial speech
prohibited by the FDAMA would be. Forbidding the advertisement of
compounded drugs would affect pharmacists other than those
interested in producing drugs on a large scale. It would prevent
pharmacists
377
with no interest in mass-producing medications, but who serve
clienteles with special medical needs, from telling the doctors
treating those clients about the alternative drugs available
through compounding. For example, a pharmacist serving a children's
hospital where many patients are unable to swallow pills would be
prevented from telling the children's doctors about a new
development in compounding that allowed a drug that was previously
available only in pill form to be administered another way.
Forbidding advertising of particular compounded drugs would also
prohibit a pharmacist from posting a notice informing customers
that if their children refuse to take medications because of the
taste, the pharmacist could change the flavor, and giving examples
of medications where flavoring is possible. The fact that the FDAMA
would prohibit such seemingly useful speech even though doing so
does not appear to directly further any asserted governmental
objective confirms our belief that the prohibition is
unconstitutional.
Accordingly, we affirm the Court of Appeals' judgment that the
speech-related provisions of FDAMA § 127(a) are
unconstitutional.
So ordered.
JUSTICE THOMAS, concurring.
I concur because I agree with the Court's application of the
test set forth in
Central Hudson Gas &
Elec.
Corp. v.
Public Servo Comm'n of N.
Y., 447 U. S. 557 (1980). I
continue, however, to adhere to my view that cases such as this
should not be analyzed under the
Central Hudson test. "I do
not believe that such a test should be applied to a restriction of
'commercial' speech, at least when, as here, the asserted interest
is one that is to be achieved through keeping would-be recipients
of the speech in the dark."
J,J, Li
quormart, Inc. v.
Rhode Island, 517 U. S. 484, 523 (1996)
(opinion concurring in part and concurring in judgment).
378
378 THOMPSON
v. WESTERN STATES MEDICAL CENTER
BREYER, J., dissenting
JUSTICE BREYER, with whom THE CHIEF JUSTICE, JusTICE STEVENS,
and JUSTICE GINSBURG join, dissenting.
Federal law requires strict safety and efficacy testing of all
"new" prescription "drugs." 21 U. S. C. § 355. See 21 CFR §
310.3(h) (2002) (defining "new drug" broadly). This testing process
requires for every "new drug" a preclinical investigation and three
separate clinical tests, including small, controlled studies of
healthy and diseased humans as well as scientific double-blind
studies designed to identify any possible health risk or side
effect associated with the new drug. Practical Guide to Food and
Drug Law and Regulation 95-102 (K. Pifia & w. Pines eds. 1998).
The objective of this elaborate and time-consuming regulatory
regime is to identify those health risks-both large and small-that
a doctor or pharmacist might not otherwise notice.
At the same time, the law exempts from its testing requirements
prescription drugs produced through "compounding"-a process "by
which a pharmacist or doctor combines, mixes, or alters ingredients
to create a medication tailored to the needs of an individual
patient."
Ante, at 360-361. The exemption is available,
however, only if the pharmacist meets certain specified conditions,
including the condition that the pharmacist not "advertise or
promote the compounding of any
particular drug." 21 U. S. C.
§ 353a(c) (emphasis added).
The Court holds that this condition restricts "commercial
speech" in violation of the First Amendment. See
Central Hudson
Gas &
Elec. Corp. v.
Public Servo Comm'n of
N.
Y., 447 U.
S. 557, 564 (1980). It concedes that the statutory provision
tries to "[p]reserv[e] the effectiveness and integrity of the ...
new drug approval process,"
ante, at 369, and it assumes
without deciding that the statute might "'directly advance'" that
interest,
ante, at 371. It nonetheless finds the statute
unconstitutional because it could advance that interest in other,
less restrictive ways.
Ante, at 372-373. I disagree with
this conclusion, and I believe that the Court
379
seriously undervalues the importance of the Government's
interest in protecting the health and safety of the American
public.
I
In my view, the advertising restriction "directly advances" the
statute's important safety objective. That objective, as the Court
concedes, is to confine the sale of untested, compounded, drugs to
where they are medically needed. But to do so the statute must
exclude from the area of permitted drug sales
both (1) those
drugs that traditional drug manufacturers might supply after
testing-typically drugs capable of being produced in large amounts,
and (2) those compounded drugs sought by patients who may
not clearly need them-including compounded drugs produced in small
amounts.
The majority's discussion focuses upon the first exclusionary
need, but it virtually ignores the second. It describes the
statute's objective simply as drawing a "line" that will
"distinguish compounded drugs produced on such a
small
scale that they could not undergo safety and efficacy testing
from drugs produced and sold on a
large enough
scale that they could undergo such testing and therefore
must do so."
Ante, at 370 (emphasis added). This description
overlooks the need for a second line-a line that will
distinguish (1) sales of compounded drugs to those who
clearly need them from (2) sales of compounded drugs to those for
whom a specially tailored but untested drug is a convenience but
not a medical necessity. That is to say, the statute, in seeking to
confine distribution of untested tailored drugs, must look both at
the amount supplied (to help decide whether ordinary manufacturers
might provide a tested alternative) and at the nature of demand (to
help separate genuine need from simple convenience). Cf. 143 Congo
Rec. S9840 (Sept. 24, 1997) (remarks of Sen. Kennedy)
(understanding that "some of the conditions are intended to ensure
that the volume of compounding does not approach that ordinarily
asso-
380
380 THOMPSON
v. WESTERN STATES MEDICAL CENTER
BREYER, J., dissenting
ciated with drug manufacturing" while others are "intended to
ensure that the compounded drugs that qualify for the exemption
have appropriate assurances of quality and safety since [they]
would not be subject to the more comprehensive regulatory
requirements that apply to manufactured drug products").
This second intermediate objective is logically related to
Congress' primary end-the minimizing of safety risks. The statute's
basic exemption from testing requirements inherently creates risks
simply by placing untested drugs in the hands of the consumer.
Where an individual has a specific medical need for a specially
tailored drug those risks are likely offset. But where an untested
drug is a convenience, not a necessity, that offset is unlikely to
be present.
That presumably is why neither the Food and Drug Administration
(FDA) nor Congress anywhere suggests that all that matters is the
total
amount of a particular drug's sales. That is why the
statute's history suggests that the amount supplied is not the
whole story. See S. Rep. No. 105-43, p. 67 (1997) (statute seeks to
assure "continued availability of compounded drug products as a
component of
individualized therapy, ... while ...
prevent[ing]
small-scale manufacturing under the guise of
compounding" (emphasis added)); accord, H. R. Conf. Rep. No.
105-399, p. 94 (1997). That is why the statute itself, as well as
the FDA policy that the statute reflects, lists several
distinguishing factors, of which advertising is one. See FDA
Compliance Policy Guide 7132.16, reprinted in App. to Pet. for
Cert. 71a-77a (hereinafter Compliance Policy Guide). And that is
likely why, when faced with the possibility of severing the
advertising restriction from the rest of the statute, the
Government argued that the "other conditions in section 353a alone
are inadequate to achieve Congress's desired balance among
competing interests." See Brief for Appellants in No. 99-17424
(CA9), p. 57. See also
id., at 55 (to nullify
advertising restrictions would undermine" 'finely tuned balance' "
achieved
381
by requiring that "pharmacies refrain from promoting and
soliciting prescriptions for particular compounded drug products
until they have been proven safe and effective").
Ensuring that the risks associated with compounded drug
prescriptions are offset by the benefits is also why public health
authorities, testifying in Congress, insisted that the doctor's
prescription represent an
individualized determination of
need. See,
e. g., FDA Reform Legislation: Hearings
before the Subcommittee on Health and the Environment of the House
Committee on Commerce, 104th Cong., 2d Sess., 120 (1996)
(hereinafter FDA Reform Legislation) (statement of Mary K.
Pendergast, Deputy Commissioner of the FDA and Senior Advisor to
the Commissioner) (Allowing traditional compounding is "good
medicine" because "an individual physician" was making "an
individualized determination for a patient"). See also National
Association of Boards of Pharmacy, Model State Pharmacy Act and
Rules, Art. I, § 1.05(e) (1996) (hereinafter NABP Model Act)
(defining "[c]ompounding" as involving a prescription "based on the
Practitioner/patient/Pharmacist relationship in the course of
professional practice").
And that, in part, is why federal and state authorities have
long permitted pharmacists to advertise the fact that they compound
drugs, while forbidding the advertisement of individual compounds.
See Compliance Policy Guide 76a; Good Compounding Practices
Applicable to State Licensed Pharmacies, N ABP Model Act, App.
C.2, subpart A (forbidding pharmacists to "solicit business
(e. g., promote, advertise, or use salespersons) to compound
specific drug products"). The definitions of drug manufacturing and
compounding used by the NABP and at least 13 States reflect similar
distinctions. NABP Model Act, Art. I, §§ 105(e), (t), and (u)
(defining drug manufacturing to "include the promotion and
marketing of such drugs or devices" but excluding any reference to
promotion or marketing from the definition of drug compounding);
Alaska Stat. §§ 08.80.480(3) and (15) (2000)
382
382 THOMPSON
v. WESTERN STATES MEDICAL CENTER
BREYER, J., dissenting
(same); La. Stat. Ann. §§ 37:1164(5) and (25) (West 2000)
(same); Miss. Code Ann. §§ 73-21-73(c) and (s) (Lexis 19732000)
(same); Mont. Code Ann. § 37-7-101(7) (1997) (same); N. H. Rev.
Stat. Ann. §§ 318-1(III) and (VIII) (Supp. 2001) (same); N. M.
Stat. Ann. §§
61-11-2(C) and (Q) (2001) (same); Ohio Rev.
Code Ann. § 3715.01(14) (West Supp. 2002) (same); Okla. Stat., Tit.
59, §§ 353.1(20) and (26) (Supp. 2002) (same); S. C. Code Ann. §§
40-43-30(7) and (29) (2001) (same); Tenn. Code Ann. §§ 63-10-404(4)
and (18) (1997) (same); Tex. Occ. Code Ann. §§ 551.003(9) and (23)
(2002 Pamphlet) (same); W. Va. Code §§ 30-5-1b(c) and (0)
(1966-1998) (same).
These policies and statutory provisions reflect the view that
individualized consideration is more likely present, and
convenience alone is more likely absent, when demand for a
compounding prescription originates with a doctor, not an
advertisement. The restrictions try to assure that demand is
generated doctor-to-patient-to-pharmacist, not
pharmacist-to-advertisement-to-patient-to-doctor. And they do so in
order to diminish the likelihood that those who do not genuinely
need untested compounded drugs will not receive them.
There is considerable evidence that the relevant meansthe
advertising restrictions-directly advance this statutory objective.
No one denies that the FDA's complex testing system for new drugs-a
system that typically relies upon double-blind or other scientific
studies-is more likely to find, and to assess, small safety risks
than are physicians or pharmacists relying upon impressions and
anecdotes. See
supra, at 378.
Nor can anyone deny that compounded drugs carry with them
special risks. After all, compounding is not necessarily a matter
of changing a drug's flavor, cf.
ante, at 377, but rather it
is a matter of combining different ingredients in new, untested
ways, say, adding a pain medication to an antihistamine to
counteract allergies or increasing the ratio of approved
ingredients in a salve to help the body absorb it
383
at a faster rate. And the risks associated with the untested
combination of ingredients or the quicker absorption rate or the
working conditions necessary to change an old drug into its new
form can, for some patients, mean infection, serious side effects,
or even death. See,
e. g., J. Thompson, A Practical
Guide to Contemporary Pharmacy Practice 11.5 (1998) (hereinafter
Contemporary Pharmacy Practice). Cf. 21 CFR § 310.3(h)(1) (2002)
(considering a drug to be "new" and subject to the approval process
if the "substance which composes such drug" is new); § 310.3(h)(3)
(considering a drug to be "new" and subject to the approval process
if approved ingredients are combined in new proportions).
There is considerable evidence that consumer oriented
advertising will create strong consumer-driven demand for a
particular drug. See,
e. g., National Institute for
Health Care Management, Factors Affecting the Growth of
Prescription Drug Expenditures iii (July 9, 1999) (three
antihistamine manufacturers spent $313 million on advertising in
1998 and accounted for 90% of prescription drug antihistamine
market); Kritz, Ask Your Doctor About ... Which of the Many
Advertised Allergy Drugs Are Right for You? Washington Post, June
6, 2000, Health, p. 9 (The manufacturer of the world's top selling
allergy drug, the eighth best-selling drug in the United States,
spent almost $140 million in 1999 on advertising); 1999 Prevention
Magazine 10 (spending on direct-to-consumer advertising of
prescription medicine increased from $965.2 million in 1997 to
$1.33 billion in 1998).
And there is strong evidence that doctors will often respond
affirmatively to a patient's request for a specific drug that the
patient has seen advertised. See
id., at 32 (84% of
consumers polled report that doctors accommodate their request for
a specific drug); Henry J. Kaiser Family Foundation, Understanding
the Effects of Direct-to-Consumer Prescription Drug Advertising 3
(Nov. 2001) (A foundation survey found that more than one in eight
Americans had asked
384
384 THOMPSON
v. WESTERN STATES MEDICAL CENTER
BREYER, J., dissenting
for-and received-a specific prescription from their doctor in
response to an advertisement).
In these circumstances, Congress could reasonably conclude that
doctors will respond affirmatively to a patient's request for a
compounded drug even if the doctor would not normally prescribe it.
When a parent learns that a child's pill can be administered in
liquid form, when a patient learns that a compounded skin cream has
an enhanced penetration rate, or when an allergy sufferer learns
that a compounded antiinflammatory/allergy medication can alleviate
a sinus headache without the sedative effects of antihistamines,
that parent or patient may well ask for the desired prescription.
And the doctor may well write the prescription even in the absence
of special need-at least if any risk likely to arise from lack of
testing is so small that only
scientific testing, not
anecdote or experience, would reveal it. It is consequently not
surprising that 71% of the active members of the American Academy
of Family Physicians "believe that direct-to-consumer advertising
pressures physicians into prescribing drugs that they would not
ordinarily prescribe." Rosenthal, Berndt, Donohue, Frank, &
Epstein, Promotion of Prescription Drugs to Consumers, 346 New Eng.
J. Med. 498-505 (2002) (citing Lipsky, The Opinions and Experiences
of Family Physicians Regarding Direct- To-Consumer Advertising, 45
J. Fam. Pract. 495-499 (1997)).
Of course, the added risks in any such individual case may be
small. But those individual risks added together can significantly
affect the public health. At least, the FDA and Congress could
reasonably reach that conclusion. And that fact, along with the
absence of any significant evidence that the advertising
restrictions have prevented doctors from learning about, or
obtaining, compounded drugs, means that the FDA and Congress could
also conclude that the advertising restrictions "directly advance"
the statute's safety goal. They help to assure that demand for an
untested compounded drug originates with the doctor, responding to
an
385
individual's special medical needs; they thereby help to
restrict the untested drug's distribution to those most likely to
need it; and they thereby advance the statute's safety goals. There
is no reason for this Court, as a matter of constitutionallaw, to
reach a different conclusion.
II
I do not believe that Congress could have achieved its safety
objectives in significantly less restrictive ways. Consider the
several alternatives the Court suggests. First, it says that "the
Government could ban the use of 'commercial scale manufacturing or
testing equipment for compounding drug products.'"
Ante, at
372. This alternative simply restricts compounding to drugs
produced in small batches. It would neither limit the total
quantity of compounded drugs produced, nor help in any way to
assure the kind of individualized doctor-patient need determination
that the statute's advertising restriction are designed to help
achieve.
Second, the Court says that the Government "could prohibit
pharmacists from compounding more drugs in anticipation of
receiving prescriptions than in response to prescriptions already
received."
Ibid. This alternative, while addressing the
issue of quantity, does virtually nothing to promote the second,
need-related statutory objective.
Third, the Court says the Government "could prohibit pharmacists
from '[o]ffering compounded drug products at wholesale to other
state licensed persons or commercial entities for resale."
Ibid. This alternative is open to the same objection.
Fourth, the Court says the Government "could limit the amount of
compounded drugs, either by volume or by numbers of prescriptions,
that a given pharmacist or pharmacy sells out of state."
Ibid. This alternative, applying only to out-of-state sales,
would not significantly restrict sales, either in respect to
amounts or in respect to patient need.
386
386 THOMPSON
v. WESTERN STATES MEDICAL CENTER
BREYER, J., dissenting
In fact, it could prevent compounded drugs from reaching
out-of-state patients who genuinely need them.
Fifth, the Court says that the Government could "ca[p] the
amount of any particular compounded drug, either by drug volume,
number of prescriptions, gross revenue, or profit."
Ibid.
This alternative, like the others, ignores the patientneed problem,
while simultaneously threatening to prevent compounded drugs from
reaching those who genuinely need them, say, a patient whose
prescription represents one beyond the arbitrarily imposed
quantitative limit.
Sixth, the Court says that the Government could rely upon
"non-speech-related provisions of the FDAMA, such as the
requirement that compounding only be conducted in response to a
prescription."
Ibid. This alternative also ignores the
patient-need problem and was specifically rejected by the
Government in the Court of Appeals for the Ninth Circuit. See
supra, at 380-381.
The Court adds that "[t]he Government has not offered any reason
why these possibilities, alone or in combination, would be
insufficient."
Ante, at 373. The Government's failure to do
so may reflect the fact that only the Court, not any of the
respondents, has here suggested that these "alternatives," alone or
in combination, would prove sufficient. In fact, the FDA's
Compliance Policy Guide, from which the Court draws its first four
alternatives, specifically warned that these alternatives alone
were insufficient to successfully distinguish traditional
compounding from unacceptable manufacturing. See Compliance Policy
Guide 77a.
III
The Court responds to the claim that advertising compounded
drugs causes people to obtain drugs that do not promote their
health, by finding it implausible given the need for a prescription
and by suggesting that it is not relevant. The First Amendment, it
says, does not permit the Government to control the content of
advertising, where
387
doing so flows from "fear" that "people would make bad decisions
if given truthful information about compounded drugs."
Ante,
at 374. This response, however, does not fully explain the
Government's regulatory rationale; it fails to take account of
considerations that make the claim more than plausible (if properly
stated); and it is inconsistent with this Court's interpretation of
the Constitution.
It is an oversimplification to say that the Government "fear[s]"
that doctors or patients "would make bad decisions if given
truthful information."
Ibid. Rather, the Government fears
the safety consequences of multiple compound-drug prescription
decisions initiated not by doctors but by pharmacist-to-patient
advertising. Those consequences flow from the adverse cumulative
effects of multiple individual decisions each of which may seem
perfectly reasonable considered on its own. The Government fears
that, taken together, these apparently rational individual
decisions will undermine the safety testing system, thereby
producing overall a net balance of harm. See,
e. g.,
FDA Reform Legislation 121 (statement of David A. Kessler,
Commissioner of the FDA) (voicing concerns about "quality controls"
and the integrity of the drug-testing system). Consequently, the
Government leaves pharmacists free to explain through
advertisements what compounding is, to advertise that they engage
in compounding, and to advise patients to discuss the matter with
their physicians. And it forbids advertising the specific drug in
question, not because it fears the "information" the advertisement
provides, but because it fears the systematic effect, insofar as
advertisements solicit business, of advertisements that will not
fully explain the complicated risks at issue. And this latter fear
is more than plausible. See Part I,
supra.
I do not deny that the statute restricts the circulation of some
truthful information. It prevents a pharmacist from including in an
advertisement the information that "this pharmacy will compound
Drug X." Nonetheless, this Court
388
388 THOMPSON
v. WESTERN STATES MEDICAL CENTER
BREYER, J., dissenting
has not previously held that commercial advertising restrictions
automatically violate the First Amendment. Rather, the Court has
applied a more flexible test. It has examined the restriction's
proportionality, the relation between restriction and objective,
the fit between ends and means. In doing so, the Court has asked
whether the regulation of commercial speech "directly advances" a
"substantial" governmental objective and whether it is "more
extensive than is necessary" to achieve those ends. See
Central
Hudson, 447 U. S., at 566. It has done so because it has
concluded that, from a constitutional perspective, commercial
speech does not warrant application of the Court's strictest
speechprotective tests. And it has reached this conclusion in part
because restrictions on commercial speech do not often repress
individual self-expression; they rarely interfere with the
functioning of democratic political processes; and they often
reflect a democratically determined governmental decision to
regulate a commercial venture in order to protect, for example, the
consumer, the public health, individual safety, or the environment.
See,
e. g., J,J, Liquormart, Inc. v.
Rhode
Island, 517 U. S.
484, 499 (1996) ("[T]he State's power to regulate commercial
transactions justifies its concomitant power to regulate commercial
speech that is 'linked inextricably' to those transactions"); L.
Tribe, American Constitutional Law § 12-15, p. 903 (2d ed. 1988)
("[C]ommercial speech doctrine" seeks to accommodate "the right to
speak and hear expression
about goods and services" with
"the right of government to regulate the sales
of such goods
and services" (emphasis in original)).
I have explained why I believe the statute satisfies this more
flexible test. See Parts I and II,
supra. The Court, in my
view, gives insufficient weight to the Government's regulatory
rationale, and too readily assumes the existence of practical
alternatives. It thereby applies the commercial speech doctrine too
strictly. Cf.
Buckman Co. v.
Plaintiffs' Legal Comm.,
531 U. S. 341,
349 (2001) (flexibility necessary
389
if FDA is to "pursu[e] difficult (and often competing)
objectives"). See also
Illinois Bd. of Elections v.
Socialist Workers Party, 440 U. S. 173, 188-189
(1979) (Blackmun, J., concurring) (warning against overly demanding
search for less restrictive alternatives).
In my view, the Constitution demands a more lenient application,
an application that reflects the need for distinctions among
contexts, forms of regulation, and forms of speech, and which, in
particular, clearly distinguishes between "commercial speech" and
other forms of speech demanding stricter constitutional protection.
Otherwise, an overly rigid "commercial speech" doctrine will
transform what ought to be a legislative or regulatory decision
about the best way to protect the health and safety of the American
public into a constitutional decision prohibiting the legislature
from enacting necessary protections. As history in respect to the
Due Process Clause shows, any such transformation would involve a
tragic constitutional misunderstanding. See
id., at 189
(Blackmun, J., concurring).
IV
Finally, the majority would hold the statute unconstitutional
because it prohibits pharmacists from advertising compounded drugs
to doctors.
Ante, at 376-377. Doctors, however, obtain
information about individual drugs through many other channels. And
there is no indication that restrictions on commercial advertising
have had any negative effect on the flow of this information. See
e. g., Contemporary Pharmacy Practice 11.4
(compounded drug information "available" and "widely disseminated"
through books, journals, monographs, and vendors). Nor, with one
exception, have doctors or groups of doctors complained that the
statute will interfere with that flow of information in the future.
But see Brief for Julian M. Whitaker, M.D., et al. as
Amici
Curiae 1 (alleging, without evidentiary support, that the
regulations prevent doctors from knowing how to
390
390 THOMPSON
v. WESTERN STATES MEDICAL CENTER
BREYER, J., dissenting
get "competitively priced compounded drugs as efficiently as
possble").
Regardless, we here consider a facial attack on the statute.
The respondents here focus their attack almost entirely upon
consumer-directed advertising. They have not fully addressed
separate questions involving the effect of advertising restrictions
on information received by physicians. I would consequently leave
these questions in abeyance. Considering the statute only insofar
as it applies to advertising directed at consumers, I would hold it
constitutional.
For these reasons, I dissent.
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