• By Kevin E. Noonan

    Burrilll, Steven In his latest report on the biotechnology sector ("Biotech 2011 – Life Sciences: Looking Back to See Ahead"), Steve Burrill (at right), CEO of Burrill & Co. continues the theme he has advanced for the past several years, with a twist.  As reported in various industry media outlets (including MedCity News and Fierce Biotech, Mr. Burrill believes that biotechnology is presaging a new era of healthcare (including personalized medicine, an emphasis on prevention and wellness, and the use of genomics to produce more accurate molecular diagnostics).  However, unlike his more pessimistic view in his Report two years ago, Mr. Burrill uses the disruptions in the financial markets and the economy to justify his claims that biotech executives are "writing their [own] new 'play book' in response."

    He predicts "a good year" for biotech in 2011, that the biotech sector will outperform the general markets in 2011 (using his Burrill Biotech Select Index in comparison with the Dow Jones Industrial Average).  Specific predictions include that the IPO opportunities will rebound, with more than 25 expected (despite "lackluster" performance of the 17 IPOs launched in 2010), and that investor confidence will increase during the second half of 2011.  On the other hand, the biotech industry market cap ($360 million) and overall financing ($15 billion) will stay the same.

    PhpThumb_generated_thumbnailjpeg He also predicts that collaborations between biotechnology companies and the pharmaceutical industry will increase, but that such collaborations will be greater outside the U.S. -– in the BRIC countries as well as countries like Chile and Malaysia.  However, he further predicts that the era of large upfront payments from big pharma is over, and that pharmaceutical companies will preferentially partner with relatively later-stage companies that "mitigate" the risk (as opposed to earlier-stage, more high-risk biotechnology companies), something Mr. Burrill terms "shared risk."  Specific predictions include that sanofi will acquire Genzyme, and that there will be several other "marque acquisitions of blue chip biotech companies."  But pharmaceutical companies will continue to suffer from restructuring and additional job cuts.  He also prophesizes that "green" biotechnology and "clean tech" will boom, particularly for non-food crops.

    On the government front, perhaps surprisingly he predicts that the FDA will establish rules for biosimilar drug approval in 2011 (which was not the case with the arguably less difficult process of promulgating rules for generic drug approval under the Hatch-Waxman Act, which took about seven years).  Less surprising is his prediction that the gene patenting issue will "heat up" and that there will be continued uncertainty over stem cell patents.  Paradoxically, he predicts that "regenerative medicine will be 'hot.'"

    Mr. Burrill's Report is available here.

  • By Donald Zuhn

    Fireworks Reflecting upon the events of the past twelve months, Patent Docs presents its fourth annual list of top biotech/pharma patent stories.  For 2010, we identified a dozen stories that we covered on Patent Docs last year that we believe had (or are likely to have) the greatest impact on biotech/pharma patent practitioners and applicants.  Yesterday, we counted down stories #12 to #9, and today we cover stories #8 to #5.  Later this week, we will present our top four stories of 2010.  As with our other lists (2009, 2008, and 2007), links to our coverage of these stories (as well as a few links to articles on related topics) have been provided in case you missed the articles the first time around or wish to go back and have another look.  As always, we love to hear from Patent Docs readers, so if you think we left something off the list or disagree with anything we included, please let us know.


    #8 — Change Comes to Europe Patent Practice

    For longtime patent practitioners, October 1, 2010 may have recalled June 7, 1995; the latter date marked the deadline for filing US applications that could secure a patent term of 17 years from grant under the Uruguay Round Agreements Act, and the former constituted the deadline for filing EP divisional applications in which a first communication or unity of invention objection had been issued more than two years prior to the October 1 deadline.  While the EPO announced this major rule change in 2009 (see "Changes Coming to Divisional Application Practice in Europe"), the impact of the rule was obviously felt in 2010.  Other important changes in Europe included the prohibition of Swiss-style claiming ("the use of compound X for the manufacture of a medicament for treating of disease Y"), and the modification of the requirements for supplying search results on priority applications.  Aside from the above rules changes, Europe also continued to move toward some type of unified patent system that would create a single EU patent.

    For information regarding this and other related topics, please see:

     • "Several EU Members Push for Unified Patent System," December 30, 2010
    • "EPO Prepares to Roll out New Prior Art Search Disclosure Rules," November 1, 2010
    • "Swiss-type Claims Are No Longer Acceptable at the EPO," March 3, 2010
    • "Europe Takes Step Closer to Single EU Patent and Patent Court," February 24, 2010


    #7 — Federal Circuit Finds Separate Written Description Requirement

    In March, the Federal Circuit sitting en banc in Ariad Pharmaceuticals, Inc. v. Eli Lilly & Co. determined that there is a separate written description requirement in 35 U.S.C. § 112, first paragraph.  The opinion of the en banc Court was written by Judge Lourie, who authored the Federal Circuit's landmark decision in Regents of the University of California v. Eli Lilly & Co.  While current Chief Judge Rader and Judge Linn each wrote dissenting-in-part opinions, then Chief Judge Michel and Judges Newman, Mayer, Bryson, Gajarsa, Dyk, Prost, and Moore joined Judge Lourie in finding a separate written description requirement.

    For information regarding this topic, please see:

    "Ariad Pharmaceuticals, Inc. v. Eli Lilly & Co. (Fed. Cir. 2010) (en banc)," March 22, 2010


    #6 — Federal Circuit Reviews Inequitable Conduct Case En Banc

    Having dispatched with written description in Ariad v. Lilly, the Federal Circuit turned its attention to the issue of inequitable conduct, deciding that the appeal in Therasense, Inc. v. Becton, Dickinson & Co. warranted en banc consideration.  The Court asked the parties to address ten questions involving the materiality and intent standards and materiality-intent-balancing framework for resolving inequitable conduct claims.  As with Ariad v. Lilly, Patent Docs provided extensive coverage of the briefs filed by the parties and various amici in Therasense (see links below).  Oral argument in the case took place on November 9, and practitioners now await the Court's decision.

    For information regarding this and other related topics, please see:

    • "Abbott Files Reply Brief in Therasense Case," November 8, 2010
    • "Appellees File Reply Brief in Therasense v. Becton Dickinson," October 27, 2010
    • "Bayer Submits Brief in Therasense v. Becton Dickinson," October 20, 2010
    • "PhRMA Files Amicus Brief in Therasense Case," August 22, 2010
    • "PTO Files Amicus Brief in Therasense Case," August 19, 2010
    • "American Bar Association Files Amicus Brief in Therasense Case," August 17, 2010
    • "Therasense, Inc. v. Becton, Dickinson & Co. — Briefing Schedule Update," August 8, 2010
    • "BIO Files Amicus Brief in Therasense Case," August 8, 2010
    • "Pharma and Software Companies File Joint Amicus Brief in Therasense Case," August 3, 2010
    • "IPO Files Amicus Brief in Therasense Case," August 2, 2010
    • "Abbott Files Brief in Therasense Case," July 28, 2010
    • "CAFC Sets Date for Oral Argument En Banc in Inequitable Conduct Appeal," June 9, 2010
    • "Therasense, Inc. v. Becton, Dickinson & Co. — Briefing Schedule Update," May 16, 2010
    • "Therasense, Inc. v. Becton, Dickinson & Co. Briefing," May 13, 2010
    "Federal Circuit Grants En Banc Review in Therasense v. Becton Dickinson," April 28, 2010


    #5 — Federal Circuit Affirms District Court in Wyeth PTA Case

    Coming on the heels of the Federal Circuit's March 2009 decision in Tafas v. Doll, the Federal Circuit's decision ten months later in Wyeth v. Kappos was somewhat unexpected.  In contrast with Tafas, the Federal Circuit in Wyeth affirmed a determination by the District Court that the U.S. Patent and Trademark Office had misconstrued a portion of the Patent Act (35 U.S.C. § 154(b)(2)(A)), and as a result, had denied Wyeth a portion of the patent term to which it was entitled.  In response to the Federal Circuit's decision, the USPTO announced that it was changing the manner in which it calculates Patent Term Adjustment (PTA) to conform with the Federal Circuit's decision (i.e., applicants would no longer receive only the greater of an application's A-delay or B-delay, but rather would receive the sum of A-delay and B-delay less any overlapping A- and B-delay).  Less than two weeks after the Federal Circuit's decision, the USPTO and Department of Justice announced that they would not be seeking further review of the case.  The USPTO subsequently implemented an interim procedure by which patentees could request PTA recalculations while the Office revised its procedures to comply with Wyeth.  Unfortunately, the interim procedure only applied to patents issued after August 1, 2009 and before March 2, 2010 (when the Office expected to complete the software modification necessary to comply with the decision).  However, as Wyeth led the way with its challenge to the Office's original interpretation of § 154(b)(2)(A), Novartis has since challenged the Office's PTA calculations for ten patents that issued prior to the August 1, 2009 deadline specified in the Office's interim procedure.

    For information regarding this and other related topics, please see:

    • "Novartis Challenges USPTO's Interim Procedure for Requesting PTA Recalculations," July 12, 2010
    • "USPTO Continues to Modify System for Calculating PTA," May 25, 2010
    • "USPTO Announces Interim Procedure for Requesting PTA Recalculations," January 28, 2010
    • "USPTO and DOJ Will Not Seek Review of Wyeth v. Kappos," January 21, 2010
    • "USPTO Posts Notice Regarding Wyeth Decision," January 11, 2010
    • "The Federal Circuit's Wyeth v. Kappos Decision," January 10, 2010
    • "Wyeth v. Kappos (Fed. Cir. 2010)," January 7, 2010

  • By James DeGiulio

    Takeda Completes Settlements with 11 Generics, Finally Ending Actos Patent Dispute

    Takeda Takeda has completed settlements with all defendants in the patent litigation brought against several generic companies in response to their ANDAs for the diabetes drug Actos.  Takeda has filed a number of infringement suits in the Southern District of New York since 2003, accusing several generics drug makers of infringing its Actos patents, U.S. Patent Nos. 5,965,584; 6,329,404; 6,166,043; 6,172,090; 6,211,205; 6,271,243; and 6,305,640.

    Takeda has granted Mylan, Watson, and Ranbaxy licenses to enter the U.S. market with generic Actos on August 17, 2012, subject to regulatory approval, or earlier under certain circumstances.  These companies are first-filers of ANDAs with Paragraph IV certifications for Actos, and it is anticipated that the FDA will grant these companies 180-day marketing exclusivity.  The remainder of the generics have licenses to enter the U.S. market with generic Actos at various times after the entry of the first-filers, most after the 180-day period of exclusivity.


    Lupin Settles Lunesta Patent Litigation with Sunovion

    Lupin Lupin has become the latest generic company to reach a settlement with Sunovion (previously Sepracor) in the multi-defendant infringement suit brought over the sleep drug Lunesta.  In March 2009, Sunovion brought suit in the U.S. District Court for the District of New Jersey against several generic companies who intended to make generic versions of Lunesta.  Sunovion alleged that the generic maker's ANDAs infringed four patents covering the drug:  U.S. Patent Nos. 6,319,926; 6,444,673; 6,864,257; and 7,381,724 (see "Court Report," March 29, 2009).

    Sunovion Under the agreement, Sunovion will grant Lupin a license to market generic eszopiclone either on Nov. 30, 2013, which is two and a half months prior to the expiry of the '673 patent, or on May 30, 2014, depending on whether Sunovion obtains pediatric exclusivity for Lunesta.  Additional terms of the settlement were not disclosed.


    AstraZeneca Denied Asserting Method Patents in Crestor Litigation

    AstraZeneca_small The generic companies seeking to market a generic version of the drug Crestor enjoyed a positive ruling after AstraZeneca was prevented from asserting two method patents to block generic versions of its blockbuster drug.  In April, AstraZeneca brought suit against ten generics in the U.S. District Court for the District of Delaware, accusing them of infringing U.S. Patent Nos. 6,858,618 and 7,030,152 by submission of their ANDAs (see "Court Report," May 2, 2010).  These patents cover various methods of using Crestor to treat certain types of hypercholesterolemia and patients with elevated levels of C-reactive protein.  Earlier this year, Judge Farnan ruled that AstraZeneca's U.S. Patent No. RE37,314, covering Crestor's chemical compound, was valid, and that the generic companies' ANDA filings constituted infringement (see "Biotech/Pharma Docket," July 1, 2010).

    On December 15, Judge Robert B. Kugler issued the ruling that AstraZeneca cannot rely on the two method patents because the generic-drug companies sought to market their versions of the drug for uses not covered by those patents.  However, the generics are still precluded from producing generic Crestor due to infringement of the '314 patent.  If Judge Farnan's ruling of validity and infringement stands, the generics would not be able to manufacture generic Crestor until that patent expires in 2016.  They have appealed the decision to the U.S. Court of Appeals for the Federal Circuit.

  • By Donald Zuhn

    Fireworks Reflecting upon the events of the past twelve months, Patent Docs presents its fourth annual list of top biotech/pharma patent stories.  For 2010, we identified a dozen stories that were covered on Patent Docs last year that we believe had (or are likely to have) the greatest impact on biotech/pharma patent practitioners and applicants.  Today, we count down stories #12 to #9.  Later this week, we will present stories #8 to #5, and then conclude the series by presenting our top four stories of 2010.  As with our other lists (2009, 2008, and 2007), links to our coverage of these stories (as well as a few links to articles on related topics) have been provided in case you missed the articles the first time around or wish to go back and have another look.  As always, we love to hear from Patent Docs readers, so if you think we left something off the list or disagree with anything we included, please let us know.


    #12 — Patent Reform Movement Stalls (Again)

    For a brief moment, it looked like Senate Judiciary Committee Chairman Patrick Leahy (D-VT) was finally going to move a patent reform bill to the Senate floor for a vote.  In February, Chairman Leahy announced during an Executive Business Meeting that the Committee had reached a "tentative agreement in principle" regarding patent reform legislation.  He also mentioned that he had been meeting with members of the House majority and minority leadership to discuss the Senate bill in an effort to prevent the legislation from becoming a "partisan issue."  Only days later, however, House leaders on both sides of the aisle issued a short statement (on the Republicans' separate House Committee on the Judiciary website) saying that Chairman Leahy's patent reform efforts "have thus far proceeded without adequate input from House members."  While Congressional watchers may not have known it at the time, the House leadership's statement essentially signaled an end to the passage of comprehensive patent reform legislation in 2010.

    Instead of passing a comprehensive patent reform package, several members of the House turned to stand-alone bills designed to address individual problems with the patent system.  For example, Rep. Darrell Issa (R-CA) introduced a bill in the House (H.R. 4954) in late March that would put an end to qui tam (or whistleblower) suits for false patent marking.  An alternative false patent marking bill (H.R. 6352) was introduced by Rep. Robert Latta (R-OH) in September.  In May, the House nearly brought a bill to the floor for a vote that would provide the U.S. Patent and Trademark Office with fee-setting authority.  Finally, the House sent H.R. 628, which would establish a pilot program in certain U.S. district courts to encourage enhancement of expertise in patent cases among district judges, to the President for his signature in late December.

    For information regarding this and other related topics, please see:

    • "Legislation to Enhance Patent Case Expertise Among District Judges Awaits President's Signature," December 29, 2010
    • "New False Marking Bill Introduced in the House," October 14, 2010
    • "IPO Announces Support for Patent Reform Act of 2010," September 20, 2010
    • "Senators Seek Vote on Patent Reform Bill," September 15, 2010
    • "Journal Examines Effects of Patent Reform on Medical Innovation," July 14, 2010
    • "The Phoenix That Is S. 515," July 13, 2010
    • "New USPTO Fee-Setting Bill Introduced in House," May 18, 2010
    • "House to Vote on Bill That Would Give USPTO Fee-Setting Authority," May 17, 2010
    • "Patent Reform News Briefs," May 11, 2010
    • "USPTO Administrator Arti Rai Responds to Patent Docs Post on PTO White Paper," April 26, 2010
    • "USPTO White Paper Supports Patent Reform Proposals," April 22, 2010
    • "False Patent Marking Bill Introduced in the House," March 29, 2010
    • "PUBPAT Expresses 'Deep Concern' over Senate False Marking Provision," March 25, 2010
    • "Senator Landrieu Introduces Legislation Requiring Study on Effects of First-to-File Provision," March 11, 2010
    • "Senate Leadership Unveils Details of Patent Reform Agreement," March 8, 2010
    • "Qui Tam Actions in Senate Sights," March 4, 2010
    • "House Leadership Says It Lacked 'Adequate Input' on Senate Patent Reform Bill," March 2, 2010
    • "Chairman Leahy Announces 'Tentative Agreement in Principle' on Patent Reform Bill," February 25, 2010
    • "AIPR Reiterates Opposition to Patent Reform Legislation," January 14, 2010


    #11 — Pay-for-Delay/Reverse Payment Opponents Try to Prohibit Practice

    The year began with seven consumer groups sending a letter to Speaker of the House Nancy Pelosi (D-CA) and Senate Majority Leader Harry Reid (D-NV), urging the House and Senate to include provisions in their health care reform bills that would prohibit exclusion payments (i.e., pay-for-delay settlements or reverse payments) in pharmaceutical patent settlements.  One month later, in February, the Federal Trade Commission (FTC) released a report about "pay-for-delay" arrangements, in which the FTC's position on the issue was made clear in the title of its report:  "Pay-for-Delay: How Drug Company Pay-Offs Cost Consumers Billions."  However, in a four-part series on "Reverse Payments in Generic Drug Settlements," Patent Docs looked at the decisions by several Courts of Appeals (the Federal Circuit, 11th Circuit, and Second Circuit), which suggest that the FTC may be wrong in pushing for the elimination of pay-for-delay settlements as per se violations of Section 1 of the Sherman Antitrust Act.

    On Capitol Hill, the Senate Appropriations Committee passed an appropriations bill (S. 3677) in August that contained a pay-for delay provision that would allow the FTC to "initiate a proceeding . . . against the parties to any agreement resolving or settling, on a final or interim basis, a patent infringement claim, in connection with the sale of a drug product," wherein the agreement has "anticompetitive effects."  Only one week earlier, the Senate had voted for a supplemental appropriations bill after stripping the bill of just such a provision.  In July, the House had also squeezed a pay-for-delay provision into its own appropriations legislation (H.R. 4899).  However, the Senate bill did not pass and the House bill passed and was signed into law but without the pay-for-delay provision.

    For information regarding this and other related topics, please see:

    • "FTC Continues Attempts to Block Reverse Payments," November 23, 2010
    • "Second Circuit Denies En Banc Reconsideration in Cipro® Case," September 8, 2010
    • "Pay-For-Delay Provision Added to Senate Appropriations Bill," August 5, 2010
    • "Senate Removes Pay-For-Delay Provision from Appropriations Bill," July 29, 2010
    • "House Slips Pay-For-Delay Provision into Appropriations Bill," July 7, 2010
    • "House Passes Health Care Reform Bill — Biosimilar Regulatory Pathway Makes Cut, Pay-for-Delay Ban Does Not," March 22, 2010
    • "Reverse Payments in Generic Drug Settlements – Part IV," March 2, 2010
    • "Reverse Payments in Generic Drug Settlements – Part III," February 25, 2010
    • "President's Health Care Plan Includes Pay-for-Delay Ban and Biosimilar Regulatory Pathway," February 24, 2010
    • "Reverse Payments in Generic Drug Settlements – Part II," February 23, 2010
    • "Reverse Payments in Generic Drug Settlements," February 22, 2010
    • "FTC Disapproves of 'Pay-for-Delay' Drug Deals,'" February 15, 2010
    • "Consumer Groups Ask Congress to Add Pay-for-Delay Provision to Health Care Bill," January 13, 2010


    #10 — USPTO Supplements Obviousness Examination Guidelines

    In September, the U.S. Patent and Trademark Office issued an update to its obviousness guidelines, publishing a Federal Register notice that highlights case law developments on obviousness since the Supreme Court's 2007 decision in KSR Int'l Co. v. Teleflex Inc.  The update supplements the Office's 2007 guidelines, in which the Office identified seven rationales gleaned from the KSR decision.  The Office's focus on decisional law in the update is reminiscent of the implementation of the 2007 obviousness examination guidelines by Technology Center 1600 almost three years ago.  Bruce Kisliuk — at the time a TC 1600 Director — noted that examiners in the Group were being given "high-level" obviousness training in which they were taught to analyze the issue of obviousness using eleven key cases as tools (see "USPTO's Bruce Kisliuk Addresses ACI Conference").  The Office's recent notice lists two-dozen Federal Circuit cases that "have been selected for their instructional value on the issue of obviousness."  Whether it amounts to a point of pride or a source of frustration (or both), half of the two-dozen cases discussed in the update are biotech/pharma cases.

    For information regarding this topic, please see:

    • "USPTO Updates Obviousness Examination Guidelines," September 8, 2010


    #9 — Biotech/Pharma Industry Recovers (Slowly) from Great Recession

    In 2009, the country suffered through its worst recession since the Great Depression, and in 2010, the biotech/pharma industry (like many other industries) suffered through a very slow recovery from the effects of the recession.  During this slow recovery, the economic news has been mixed.  With regard to venture funding, an improvement in the final quarter of 2009 was followed by a drop in the first quarter of 2010 and then another drop in the third quarter.  While an Ernst & Young report indicated that the biotech industry had finally become profitable, a BIO report showed that the number of publicly traded biotech companies dropped from 394 in the fourth quarter of 2007 to only 294 by the second quarter of 2010 — a loss of 25% of the sector's publicly traded companies.  Ultimately, the suggestion by Deloitte Touche Tohmatsu (DTT) that the global recession had permanently reshaped the life sciences industry may provide the most accurate picture.  DTT's assessment was backed by a survey in which respondents noted that companies making it past the five-year mark post-recession, would do so by focusing on innovation.  (Unfortunately, 43% of respondents to the DTT survey indicated that their companies had reduced R&D spending and were focusing instead on products providing immediate returns, and almost a third of the respondents (32%) believed that R&D spending would continue to drop in the future.)  If the recession and its slow recovery can be eliminated from next year's Top Stories list altogether, 2011 will be a very good year.

    For information regarding this and other related topics, please see:

    • "NVCA Reports 31% Drop in Venture Funding for Third Quarter," October 17, 2010
    • "One Quarter of Public Biotech Companies Shut Doors Since 4Q 2007," October 11, 2010
    • "University Start-ups and Licensing Activity Held Steady During Recession," October 7, 2010
    • "WIPO Report Shows Signs of Recovery Following Economic Crisis," September 28, 2010
    • "NVCA Reports 34% Increase in Venture Funding for Second Quarter," July 22, 2010
    • "Marks & Clerk Survey Predicts Rise in Consolidation as Biotech/Pharma Industry Nears Patent Cliff," May 25, 2010
    • "Docs at BIO: Steve Burrill's State of the Biotechnology Industry Report 2010," May 12, 2010
    • "Deloitte White Paper Points to Recession as Turning Point for Life Sciences Industry; Indicates That Survival Will Depend on Innovation," May 5, 2010
    • "Ernst & Young Report: Biotech Industry Reaches Profitability for the First Time," April 29, 2010
    • "NVCA Report Shows First Quarter Drop in Venture Funding," April 20, 2010
    • "VentureDeal Report Shows 65% Increase in Fourth Quarter Biotech Venture Funding," March 16, 2010
    • "AUTM Survey Shows Drop in Issued Patents," March 9, 2010
    • "NVCA Report Shows Slight Drop in 4Q Venture Funding and Sharp Decline for 2009," January 24, 2010
    • "Partnerships Between Startup Firms and Big Pharma Fueled 85% Increase in Biotech Funding in 2009," January 13, 2010

  • By Sherri Oslick

    Gavel About Court Report:  Each week we will report briefly on recently filed biotech and pharma cases.

    Main Hastings LLC v. Pfizer, Inc.
    2:10-cv-00599; filed December 29, 2010 in the Eastern District of Texas

    False marking based on Pfizer's marking of thirteen different products from its Animal Health Division with various patents (twenty in total) that have expired.  View the complaint here.


    IDEXX Laboratories Inc. v. Abbott Laboratories Inc.

    1:10-cv-01140; filed December 28, 2010 in the District Court of Delaware

    Infringement of U.S. Patent No. 5,627,026 ("Detection of Both an Antibody and an Antigen in a Single Sample Aliquot," issued May 6, 1997) based on Abbott's manufacture and sale of its Architect HIV Ag/Ab Combo assay.  View the complaint here.


    Life Technologies Corp. v. Biosearch Technologies Inc
    .
    3:10-cv-02665; filed December 27, 2010 in the Southern District of California

    Infringement of U.S. Patent No. 7,160,997 ("Methods of Using FET Labeled Oligonucleotides That Include a 3' à 5' Exonuclease Resistant Quencher Domain and Compositions for Practicing the Same," issued on January 9, 2007) based on Biosearch's manufacture and sale of its BHQplus fluorescent-labeled probes for DNA analysis.  View the complaint here.


    Pfizer Inc. et al. v. Dr. Reddy's Laboratories Ltd. et al.

    1:10-cv-01135; filed December 27, 2010 in the District Court of Delaware

    • Plaintiffs:  Pfizer Inc.; Pfizer Ireland Pharmaceuticals; Warner-Lambert Co.; Warner-Lambert Company LLC
    • Defendants:  Dr. Reddy's Laboratories Ltd.; Dr. Reddy's Laboratories Inc.

    Infringement of U.S. Patent No. 5,969,156 ("Crystalline [R- (R*,R*)]-2-(4-Dfluorophenyl)-β,δ-dihydroxy-5-(1-methylethyl)- 3-phenyl-4-[(phenylamino)carbonyl]-1H-pyrrole-1-heptanoic acid hemi calcium salt (atorvastatin)," issued October 19, 1999) based on Dr. Reddy's filing of an ANDA to manufacture a generic version of Pfizer's Lipitor® (atorvastatin calcium, used to treat high cholesterol and heart disease).  View the complaint here.

  • Calendar

    January 5, 2011 – Patent Infringement Claims, Opinions of Counsel and Attorney-Client Privilege (Technology Transfer Tactics and Strafford) – 1:00 – 2:30 PM (EST)

    January 12, 2011 – New USPTO Guidelines and the Obviousness Standard for Patents (Strafford) – 1:00 – 2:30 PM (EST)

    January 25, 2011 – Understanding Obviousness in a Post-KSR World:  Practical Applications for Compliance with the Recent USPTO Guidelines (Technology Transfer Tactics) – 1:00 – 2:30 PM (EST)

    January 26-27, 2011 – The Life Sciences Lawyer's Guide to Patent Term Adjustment and Patent Term Extensions*** (American Conference Institute) – New York, NY

    February 16-17, 2011 – Life Sciences Collaborative Agreements and Acquisitions*** (American Conference Institute) – New York, NY

    ***Patent Docs is a media partner of this conference or CLE

  • By James DeGiulio

    European Union (EU) Flag Earlier this year, we reported that the European Union was on the verge of adopting a new patent system that would create a unified patent and patent court (see "Europe Takes Step Closer to Single EU Patent and Patent Court").  However, the 30-year push to unify the European Union patent system will continue, as ministers from the EU's 27 member states could not reach the unanimous approval needed to enact the system at a November meeting in Brussels.  Frustrated with the repeated failure to pass the new system, the 23 EU members that support the European common patent are trying to push the reform through despite the lack of a unanimous vote.

    On December 10, eleven of the EU countries signed letters formally requesting that the European Commission draft a proposal based on the most recent compromise, and another twelve countries suggested moving forward with "enhanced cooperation," a rarely used provision of the Lisbon Treaty.  This provision would allow some member states to move forward immediately with the new unified patent system, leaving the possibility of others to join at a later stage.  The move will put pressure on holdouts Italy and Spain, and may tip the scales for undecided countries such as Czech Republic and Cyprus.  This is only the second time that member states have used enhanced cooperation to sidestep blocking members.

    The question of which languages to use in a unified EU patent has long been a roadblock to reaching unanimous agreement among member states.  In July, the European Commission submitted a proposed translation scheme to the council using English, French, and German, leading to holdouts from Spain and Italy due to the exclusion of their native tongues.  Italy wants an English-only patent system and Spain says the plan discriminates against Spanish companies.

  • By Donald Zuhn

    House of Representatives Seal On Tuesday, the House of Representatives sent H.R. 628, which would establish a pilot program in certain U.S. district courts to encourage enhancement of expertise in patent cases among district judges, to the President for his signature.  The House had agreed to a Senate amendment to the bill on December 17, four days after the amended bill had been passed by the Senate.  The bill, which was introduced in January 2009 by Rep. Darrell Issa (R-CA), would permit the chief judge in certain district courts to designate district judges within the district who have made a request pursuant to the legislation to hear cases having one or more patent or plant variety protection issues to hear such cases.  If the President signs the bill, the Director of the Administrative Office of the U.S. Courts will have six months within which to designate not less than six district courts in at least three different judicial circuits where the pilot program will be carried out.  The designated district courts will be selected from amongst the fifteen district courts handling the largest number of patent or plant variety protection cases, and which have (or certify to the Director that they will) adopt local rules for such cases.  In addition, the bill specifies that three of the candidate districts will have at least ten district judges, at least three of which have made a request to hear cases having one or more patent or plant variety protection issues, and three of the candidate districts will have less than ten district judges, at least two of which have made the request.  The pilot program would run for ten years after the designation of participating district courts.

    In assessing the success of the pilot program, Congress will examine patent and plant variety protection cases heard by designated and non-designated judges and compare the rate of reversal by the Federal Circuit on the issues of claim construction and substantive patent law, as well as the period of time between the filing date of such cases and entry of summary judgment.

    In addition to introducing H.R. 628, Rep. Issa also introduced a false patent marking bill (H.R. 4954) back in March (see "False Patent Marking Bill Introduced in the House").

  • By Kevin E. Noonan

    Federal Circuit Seal In its recent decision in Prometheus Laboratories, Inc. v. Mayo Collaborative Services, the Federal Circuit cited and distinguished its earlier decision in In re Grams, 888 F.2d 835 (Fed. Cir. 1989).  A review of the Grams case proves informative, both in understanding the Federal Circuit's reasoning and in better outlining the contours of what form of method claim may be patent-eligible under Supreme Court precedent.

    The claim at issue in Grams recited a method for identifying an "abnormality" in a "complex system":

    1.  A method of diagnosing an abnormal condition in an individual, the individual being characterized by a plurality of correlated parameters of a set of such parameters that is representative of the individual's condition, the parameters comprising data resulting from a plurality of clinical laboratory tests which measure the levels of chemical and biological constituents of the individual [sic] and each parameter having a reference range of values, the method comprising [a] performing said plurality of clinical laboratory tests on the individual to measure the values of the set of parameters; [b] producing from the set of measured parameter values and the reference ranges of values a first quantity representative of the condition of the individual; [c] comparing the first quantity to a first predetermined value to determine whether the individual's condition is abnormal; [d] upon determining from said comparing that the individual's condition is abnormal, successively testing a plurality of different combinations of the constituents of the individual by eliminating parameters from the set to form subsets corresponding to said combinations, producing for each subset a second quantity, and comparing said second quantity with a second predetermined value to detect a non-significant deviation from a normal condition; and [e] identifying as a result of said testing a complementary subset of parameters corresponding to a combination of constituents responsible for the abnormal condition, said complementary subset comprising the parameters eliminated from the set so as to produce a subset having said non-significant deviation from a normal condition.

    (emphasis added in opinion).  "As disclosed in the specification," the opinion stated, "the invention is applicable to any complex system, whether it be electrical, mechanical, chemical, biological, or combinations thereof."

    The Board of Patent Appeals and Interferences held these claims to be directed to non-statutory subject matter, and the Federal Circuit affirmed in an opinion by Judge Archer, joined by Judges Michel and Cowen.  The Court's decision was rooted in perceived preclusion of algorithm claims by Gottschalk v. Benson, 409 U.S. 63 (1972), and Parker v. Flook, 437 U.S. 584 (1978), which limited the scope of patent-eligibility.  However, the panel also took notice of Supreme Court precedent from Diamond v. Chakrabarty, 447 U.S. 303 (1980), and Diamond v. Diehr, 450 U.S. 175 (1981), where there was recited an expansive reading of the statute with regard to patent-eligibility.  The opinion noted a shift in the Supreme Court's thinking, wherein in Chakrabarty, the Supreme Court expressly rejected the argument that "patentability in a new area, 'micro-organisms[,] cannot qualify as patentable subject matter until Congress expressly authorizes such protection.'"  Chakrabarty at 314-15; to this panel, this sentiment seemed to "effect a change from Flook's admonition that 'we must proceed cautiously when we are asked to extend patent rights into areas wholly unforeseen by Congress.'"  Flook at 596.  But the Federal Circuit noted that neither the Chakrabarty nor the Diehr Court had overruled or disapproved Benson, which thus remained the law.  It is important to note that, as the Prometheus Court opined to the effect that the mere recitation of a mental step did not preclude patent eligibility, "the mere presence of an algorithm in a claim is not enough [for the Grams Court] to preclude patent-eligibilit" (citing In re Sarkar, 588 F.2d 1130 (C.C.P.A. 1978), and In re Walter, 618 F.2d 758 (C.C.P.A. 1980))."

    As quoted in the Prometheus opinion, the Grams Court asserted that "[i]n all instances, this critical question must be answered: 'What did applicants invent?,'" citing In re Abele, 684 F.2d 902, 907 (C.C.P.A. 1982).  The Grams Court's answer to this question, again cited by the Prometheus opinion, is that "[e]ach invention must be evaluated as claimed: yet semantogenic considerations preclude a determination based solely on words appearing in the claims.  In the final analysis under § 101, the claimed invention, as a whole, must be evaluated for what it is."  Not cited in the Prometheus opinion was the completion of the Grams Court analysis, that "[h]ence, the analysis [regarding patent eligibility] requires careful interpretation of each claim in light of its supporting disclosure."  And it is this last step that may hold the key distinction between patent-eligibility for the Prometheus claims and patent-ineligibility for the Grams claims.

    For Grams' claims, the Federal Circuit found that the clinical testing steps were "mere data-gathering" and thus did not convert a patent-ineligible algorithm claim to a patent-eligible method claim.  The rationale for excluding data-gathering steps from conferring patent eligibility was cited from In re Sarker:

    No mathematical equation can be used, as a practical matter, without establishing and substituting values for the variables expressed therein.  Substitution of values dictated by the formula has thus been viewed as a form of mathematical step.  If the steps of gathering and substituting values were alone sufficient, every mathematical equation, formula, or algorithm having any practical use would be per se subject to patenting as a "process" under § 101.  Consideration of whether the substitution of specific values is enough to convert the disembodied ideas present in the formula into an embodiment of those ideas, or into an application of the formula, is foreclosed by the current state of the law.

    Also part of the Court's determination that Grams' claims were patent-ineligible stemmed from the limited disclosure in the specification coupled with the broad scope of the claims.  "As disclosed in the specification, the invention is applicable to any complex system, whether it be electrical, mechanical, chemical, biological, or combinations thereof," as characterized by the Court (emphasis added).  In contrast to the broad and expansive scope of applicability of the claimed methods, the Court characterized the specification as "not bulg[ing] with disclosure on those [clinical] tests."  Rather, the specification "focuse[d] on the algorithm itself, although it briefly refer[red] to, without describing, the clinical tests that provide data."  The Court illustrated this differential in disclosure of the clinical tests and disclosure of the algorithm by citing the specification in this regard specifically:  "The [computer] program was written to analyze the results of up to eighteen clinical laboratory tests produced by a standard chemical analyzer that measures the levels of the chemical biological components listed."

    Supreme Court Seal Thus, at least part of the rationale for the Grams Court to determine that the claims were not patent-eligible had to do with the differences between how the invention was described and how it was claimed.  This distinction is reminiscent in the Supreme Court's reasoning in Funk Brothers Seed Co. v. Kalo Inoculant Co., 333 U.S. 127 (1948), as explained in Justice Frankfurter's concurring opinion:  at least a part of the patent-eligibility deficiencies in those claims were that they were not limited to the specific combinations of strains to be mixed, but encompassed all mixtures (and thus attempted to claim a natural phenomenon):

    Insofar as the court below concluded that the packaging of a particular mixture of compatible strains is an invention and as such patentable, I agree, provided not only that a new and useful property results from their combination, but also that the particular strains are identifiable and adequately identified.  I do not find that Bond's combination of strains satisfies these requirements.  The strains by which Bond secured compatibility are not identified and are identifiable only by their compatibility.  . . .  [The patentee] appears to claim that since he was the originator of the idea that there might be mutually compatible strains and had practically demonstrated that some such strains exist, everyone else is forbidden to use a combination of strains whether they are or are not identical with the combinations that Bond selected and packaged together.  It was this claim that, as I understand it, the District Court found not to be patentable, but which, if valid, had been infringed.  . . .  The consequences of such a conclusion call for its rejection.  Its acceptance would require, for instance in the field of alloys, that if one discovered a particular mixture of metals, which when alloyed had some particular desirable properties, he could patent not merely this particular mixture but the idea of alloying metals for this purpose, and thus exclude everyone else from contriving some other combination of metals which, when alloyed, had the same desirable properties.  In patenting an alloy, I assume that both the qualities of the product and its specific composition would need to be specified.  The strains that Bond put together in the product which he patented can be specified only by the properties of the mixture.

    Id. at 133-34.  Just as in the Funk Brothers claims, here the Grams claims were overbroad in comparison with their disclosure (as well as that disclosure being directed almost solely towards the algorithm rather than the steps reciting the methods for performing the clinical assays).

    The Grams Court also did not reach the lengths to which some may wish to assert its holding, specifically disclaiming any broad legal or philosophical position on patent eligibility:

    Whether section 101 precludes patentability in every case where the physical step of obtaining data for the algorithm is the only other significant element in mathematical algorithm-containing claims is a question we need not answer.  Analysis in that area depends on the claims as a whole and the circumstances of each case.  Rather, we address only the claims and other circumstances involved here.

    This is consistent with the opinion's earlier assertion that, in deciding patent eligibility, "the analysis requires careful interpretation of each claim in light of its supporting disclosure."  The precedential value of In re Grams, in view of the Federal Circuit's Prometheus decision, is to provide an example of how a method claim, particularly a diagnostic method claim, can be patent-ineligible (at least insofar as the claim is directed primarily to steps constituting an algorithm).  In this its value per se may be limited; however, it serves as one piece in the mosaic the Federal Circuit is constructing consistent with the Supreme Court's direction that the appellate court develop this area of the law based on its "special expertise."  Whether the Supreme Court ultimately approves the contours of patent eligibility that the Federal Circuit produces cannot be predicted; however, the way the Federal Circuit is approaching this task is much more in line with the case-by-case, "totality of the circumstances" approach favored by the High Court, and does not resemble the bright line rules that have caused the Supreme Court to spend the last decade overturning the patent law edifice that it took the Federal Circuit a generation to erect.

  • By Sherri Oslick

    Gavel About Court Report:  Each week we will report briefly on recently filed biotech and pharma cases.

    Salk Institute for Biological Studies v. Ferring Pharmaceuticals, Inc et al.
    3:10-cv-02649; filed December 22, 2010 in the Southern District of California

    • Plaintiff:  Salk Institute for Biological Studies
    • Defendants:  Ferring Pharmaceuticals, Inc; Ferring Research Institute, Inc; Ferring International Center S.A.; Ferring B.V.; Ferring A.B.; Frederick Paulsen, Jr; DOES 1 through 10

    Correction of inventorship of U.S. Patent Nos. 5,925,730 ("GnRH Antagonists," issued July 20, 1999) and 6,214,798 ("GnRH Antagonists Being Modified at Positions 5 and 6," issued April 10, 2001) to name Dr. Jean Rivier as sole inventor, and a declaration adjudging that The Salk Institute is the proper assignee of Dr. Rivier's interest in the '730 and '798 Patents.  View the complaint here.


    Warner Chilcott Co. LLC et al. v. Apotex Inc. et al.

    1:10-cv-01111; filed December 17, 2010 in the District Court of Delaware

    • Plaintiffs:  Warner Chilcott Co. LLC; Hoffmann-La Roche Inc.
    • Defendants:  Apotex Inc.; Apotex Corp.

    Infringement of U.S. Patent No. 7,718,634 ("Method of Treatment Using Bisphosphonic Acid," issued May 18, 2010), licensed to Warner Chilcott, following a Paragraph IV certification as part of Apotex's filing of an ANDA to manufacture a generic version of Warner Chilcott's Once-a-Month Actonel® (risedronate sodium, used to treat and prevent postmenopausal osteoporosis).  View the complaint here.


    Galderma Laboratories Inc. et al. v. Lupin Ltd. et al.

    1:10-cv-01112; filed December 17, 2010 in the District Court of Delaware

    • Plaintiffs:  Galderma Laboratories Inc.; Galderma Laboratories L.P.; Supernus Pharmaceuticals Inc.
    • Defendants:  Lupin Ltd.; Lupin Pharmaceuticals Inc.

    Infringement of U.S. Patent No. 7,749,532 ("Once Daily Formulation of Tetracyclines," issued July 6, 2010), licensed to Galderma, following a Paragraph IV certification as part of Lupin's filing of an ANDA to manufacture a generic version of Galderma's Oracea® (doxycyline delayed release capsules, used to treat inflammatory lesions of rosacea).  View the complaint here.


    Alza Corp. v. Mylan Pharmaceuticals Inc. et al.

    2:10-cv-06572; filed December 17, 2010 in the District Court of Delaware

    • Plaintiff:  Alza Corp.
    • Defendants:  Mylan Pharmaceuticals Inc.; Mylan Inc.

    Infringement of U.S. Patent No. 5,591,454 ("Method For Lowering Blood Glucose," issued January 7, 1997), licensed to Pfizer, following a Paragraph IV certification as part of Mylan's filing of an ANDA to manufacture a generic version of Pfizer's Glucotrol XL® (glipizide extended release tablets, used to improve glycemic control in adults with type 2 diabetes mellitus).  View the complaint here.


    Fred Hutchinson Cancer Research Center et al. v. MMI Genomics, Inc.

    2:10-cv-00615; filed December 17, 2010 in the Eastern District of Virginia

    • Plaintiffs:  Fred Hutchinson Cancer Research Center; Argus Genetics, LLC; Mars, Inc.
    • Defendant:  MMI Genomics, Inc.

    Fred Hutchinson Cancer Research Center et al. v. Biopet Vet Lab, Inc.
    2:10-cv-00616; filed December 17, 2010 in the Eastern District of Virginia

    • Plaintiffs:  Fred Hutchinson Cancer Research Center; Argus Genetics, LLC; Mars, Inc.
    • Defendant:  Biopet Vet Lab, Inc.

    The complaints in these cases are substantially identical.  Infringement of U.S. Patent No. 7,729,863 ("Methods and Materials for Canine Breed Identification," issued June 1, 2010) based on defendants' use, sale, and offers to sell its dog breed identification services (MMI's Canine Heritage XL Breed test product and Biopet's DNA Breed Identification Kit).  View the MMI complaint here.


    Impax Laboratories, Inc. v. Pfizer Inc. et al.

    2:10-cv-06554; filed December 16, 2010 in the District Court of New Jersey

    • Plaintiff:  Impax Laboratories, Inc.
    • Defendants:  Pfizer Inc.; Pharmacia & Upjohn Company LLC; Pfizer Health AB

    Declaratory judgment of non-infringement of U.S. Patent No. 6,911,217 ("Controlled Release Bead, A Method of Producing the Same and Multiple Unit Formulation Comprising It," issued June 28, 2005) following a Paragraph IV certification as part of Impax's filing of an ANDA to manufacture a generic version of Pfizer's Detrol LA® (extended release tolterodine tartrate, used to treat overactive bladder).  View the complaint here.


    Hoffman-La Roche, Inc. v. Mutual Pharmaceutical Company, Inc.

    2:10-cv-06504; filed December 15, 2010 in the District Court of New Jersey

    Infringement of U.S. Patent No. 7,718,634 ("Method of Treatment Using Bisphosphonic Acid," issued May 18, 2010) following a Paragraph IV certification as part of Mutual's filing of an ANDA to manufacture a generic version of Roche's Boniva® (ibandronate sodium, used to treat post-menopausal osteoporosis).  View the complaint here.