Fear Not Law Articles: SAVIENT PHARMACEUTICALS, INC v. DEPARTMENT OF HEALTH SERVICES

SAVIENT PHARMACEUTICALS, INC v. DEPARTMENT OF HEALTH SERVICES

Filed 1/23/07

CERTIFIED FOR PUBLICATION

COPY

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

THIRD APPELLATE DISTRICT

(Sacramento)

SAVIENT PHARMACEUTICALS, INC.,

Plaintiff and Appellant,

DEPARTMENT OF HEALTH SERVICES et al.,

Defendants and Respondents,

RAMSELL CORPORATION,

Real Party In Interest and

Respondent.

C050171

Sup.Ct. No. 04CS00084)

APPEAL from a judgment of the Superior Court of Sacramento

County, Raymond M. Cadei, Judge. Reversed with directions.

Richard M. Ross for Plaintiff and Appellant.

Bill Lockyer, Attorney General, Thomas R. Yanger, Senior Assistant Attorney General, Joseph O. Egan and Michael V. Hammang, Deputy Attorneys General, for Defendants and Respondents.

Collette, Erickson, Farmer & O'Neill, William S.

Farmer and John J. O'Neill for Real Party In Interest and

Respondent.

Savient Pharmaceuticals, Inc. (Savient) challenges the structure and actions of a Department of Health Services program administered by Ramsell Corporation (Ramsell).

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Description	Department of Health Services is statutorily authorized to contract with private entity to administer AIDS drug program, and operation of program by such entity does not violate state constitution's civil service provisions since such operation is not a traditional function of the state civil service. AIDS drug formulary -- developed, maintained, and updated by DHS pursuant to statute -- is a regulation subject to Administrative Procedures Act. Manufacturer of delisted AIDS drug was not deprived of fundamental right and thus had no due process right to a trial like hearing on the delisting.
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