•     By Kevin Noonan

    Washington Post
    In several recent posts, I have taken the position that patents, particularly patents on genes and recombinant or transgenic non-human organisms, have been vital to America's preeminence in the biotechnology and pharmaceutical industries.  A recent Washington Post story by Joseph Fuller and Brock Reeve supports this view.

    The statistics are overwhelming.  According to Fuller and Reeve, American pharmaceutical companies account for 60 percent of global sales.  The percentage is even greater for biotechnology companies (75 percent of biotech sales).  It was not always thus, however:  less than 30 years ago, half of the top ten pharmaceutical companies in sales were European, and in the early 1980's European companies invented half of the world's new drugs.  Today, U.S. companies have two and a half times as many biotech drugs in development as do their European counreparts — a staggering 4500, according to this report.

    Fuller and Reeve set forth the following reasons for this sea change:

    • Bayh-Dole permitted universities to patent inventions made with government funds; and
    • Diamond v. Chakrabarty
    permitted genes and living organisms (the heart of the nascent biotech industry) to be patented.

    In contrast, Europe did not clarify the patentable status of living organisms until 1998, and the EU did not encourage state-funded universities to pursue patenting and commercialization.

    The U.S. backed up this permissive atmosphere for protecting biotech inventions with investment.  The Federal government spent more than $50 billion in funding life science research between 1985-1995, and the private sector invested about $6 billion in biotech start-up companies between 1987-1997.  Both public and private investment in biotech in the U.S. dwarfed European efforts in this sector.

    It would be foolish to think that the investment activities were not related to and dependent upon the fact that inventions were protected by patents.  Unmentioned in the article is the role of the Federal Circuit, which provided some measure of certainty to the investment community, giving patent protection both the uniformity and enforcement "teeth" that made patents meaningful.

    There continue to be purportedly ethical and certainly political opposition to "patenting life;" the factual and legal limitations of those arguments have been discussed elsewhere (see "In Support of Gene Patents" and "Anti-Patent ("Sullivan?") Malice by the New York Times").  Fuller and Reeve remind us that this false debate can have serious economic  consequences that we in America have so far avoided.  It would be a pity to snatch defeat from the jaws of victory at this late date.

  • Calendar
    February 27-28, 2007 – Patent Portfolio Management (American Conference Institute) – New York, NY

    March 25-29, 2007 – American Chemical Society National Meeting – Chicago, IL

    April 16-18, 2007 – Biotechnology: Patent Prosecution, Licensing, Litigation &
    Hatch-Waxman
    (Patent Resources Group) – Orlando, FL

  • Pfizer Earns One More Victory in Norvasc Litigation

        By Robert Dailey —

    Pfizer
    This week Pfizer won another courtroom battle against
    generic drug manufacturer Synthon in the companies' ongoing dispute over
    Pfizer's drug Norvasc.  The District
    Court held two Synthon patents, U.S. Patent Nos. 6,653,481 and 6,858,738
    unenforceable due to inequitable conduct.  Pfizer had already prevailed over Synthon in a jury trial that addressed
    noninfringement and invalidity.

    Synthon_Ruby
    The Synthon patents disclose methods and intermediates
    useful for synthesizing Norvasc.  Pfizer,
    however, has been using these methods and intermediates since the late 1980s,
    and disclosed them in printed publications in 1989 and 1996.  Synthon's earliest alleged invention occurred
    in late 1999.  But since the facts
    demonstrated that Synthon scientists had based their work off of Pfizer
    publications, the Court concluded that Synthon scientists committed
    inequitable conduct.

    Norvasc Package
    Despite the difficulty of proving inequitable conduct,
    Synthon's actions left little doubt in this instance.  First, the project supervisor possessed a
    binder labeled "Maps" whose first page was a Pfizer document
    describing the method and intermediates that Synthon would later claim in its
    patents.  Second, the supervisor had
    faxed a copy of the Pfizer document to one of the named inventors.  Third, the literature file for the Norvasc
    project contained a copy of this same Pfizer document.  Yet Synthon never disclosed this Pfizer
    document to the Patent Office during the prosecution of either patent.

    Synthon had also prepared two internal monographs that
    referred directly to the Pfizer document and described Pfizer's synthetic
    pathway.  Both monographs were prepared
    before Synthon's alleged date of conception, and one even listed one of the
    inventors as its author.  Meanwhile,
    another inventor had saved a document on his computer entitled "route
    according to Pfizer."

    Yet throughout the prosecution of its patents, Synthon
    referred to its claimed intermediate as a "new" compound.  Synthon even submitted a Rule 131 affidavit
    by one of the "inventors" to swear behind the dates of two pieces of
    prior art.  Furthermore, Synthon
    mischaracterized the nature of the Pfizer method when the Examiner asserted
    Pfizer composition patent as prior art.

    It seems that the scientists and project managers kept
    Synthon's in-house patent counsel in the dark on the whole matter.  And at trial, these scientists and managers
    could not recall having any knowledge of the Pfizer method.

    To prove inequitable conduct, the defendant must prove
    that the plaintiff withheld material documents or information from the PTO and
    did so with deceptive intent.  First, the
    District Court held that the withheld Pfizer publication and Synthon's false
    statements to the PTO were material.  The
    withheld document would have anticipated claims in both patents, and the false
    statements were used to overcome prior art.  Next, the Court held that the facts demonstrated that the Synthon
    inventors had intended to deceive the PTO.  The Court acknowledged that a defendant cannot prove deceptive intent
    simply by showing an absence of good faith on the part of the inventors.  Yet a plaintiff cannot avoid inequitable
    conduct simply by asserting forgetfulness in the face of facts that tend to
    show bad faith.

    Pfizer officials have announced that they will week
    attorney's fees against Synthon for its conduct in this litigation.

    In a related case, Pfizer recently defeated Synthon's
    efforts to launch a generic version of NorvascSee Pfizer, Inc. v. Synthon Holdings BV, No. 1:05CV39 (M.D.N.C. 2006).

    Synthon IP, Inc. v. Pfizer Inc., No. 1:05cv1267 (E.D. Va. 2007).

    Additional information regarding this case can be found at the Orange Book Blog.

    Robert Dailey, Ph.D., is a physical chemist and a third-year law
    student at the University of North Carolina at Chapel Hill.  Dr. Dailey
    was a member of MBHB's 2006 class of summer associates.

  •     By Christopher P. Singer

    AstraZeneca_small
    In two separate collaboration agreements announced on
    January 31, 2007, AstraZeneca has partnered with Argenta Discovery in an
    effort to identify and develop improved bronchodilators, and with Palatin
    Technologies to develop small molecule obesity drugs.

    Argenta_logo
    Argenta's press release states that the deal
    includes a $21 million payment from AstraZeneca to Argenta, with the potential
    for additional milestone payments that could approach $500 million, in addition
    to possible royalty payments.  This
    alliance is aimed at identifying long acting muscarinic (M3) antagonists and
    dual acting muscarinic antagonist-beta2 agonist (MABA) candidate drugs, with the
    end goal of treatments for chronic obstructive pulmonary disease (COPD).

    Palatin180_1
    According to AstraZeneca's press release regarding the collaboration
    with Palatin Technologies, Palatin will receive a payment of $10 million with a
    potential total payment of $300 million depending upon achievement of certain
    milestones and sales targets.  The
    collaboration will focus on identifying a lead compound from Palatin's
    highly-developed melanocortin receptor obesity research program.  While both companies are expected to
    contribute to the scientific aspects of the program, AstraZeneca is assuming
    the costs associated with product discovery, development, and commercialization.  AstraZeneca says that this collaboration
    underscores its commitment to developing treatments for obesity and diabetes.

  •     By Jason Derry —

    Thailand Map
    The Thailand government recently announced that it has issued two more
    compulsory licenses for generic versions of patented drugs.  One of the drugs is Plavix, a heart disease
    drug made by Bristol-Myers Squibb and Sanofi-Aventis.  The other drug is Kaletra, an HIV/AIDS drug
    made by Abbott Laboratories.  The
    licenses follow the compulsory license issued late last year for the AIDS drug
    Efavirenz, which is made by Merck (as reported here on December 6 and December 18).  As
    before, it appears that the Thailand government issued these new licenses
    without talking with the companies about providing the necessary medicines at a
    more reasonable cost.  News of the recent
    licenses prompted a quick response
    from the pharmaceutical industry.  The
    industry fears that other countries will follow Thailand's example and begin
    issuing compulsory licenses rather than contacting companies to discuss ways to
    lower the costs associated with patented drugs.

    Jason Derry, Ph.D., who graduated with honors from DePaul University
    College of Law, is a molecular biologist and founding author of Patent Docs.

  •     By Mark Chael

    Genzyme
    An intellectual property lawsuit is slated to begin on
    March 12, 2007, pitting Genzyme Corp. against three
    executives at a Canadian firm, Cytochroma, which
    is developing therapies for vitamin D
    deficiency and chronic kidney disease
    (CKD).  Genzyme alleges that the
    executives misappropriated trade secrets and other intellectual property prior
    to joining Cytochroma.

    Cytochroma
    In early 2005, Genzyme acquired Bone Care International,
    a spinoff from the University of Wisconsin, for a reported $600 million.  There are 38 U.S. patents and about 22 pending U.S. patent applications that list Bone Care as the assignee.  Later, in September, 2005, a company called Proventiv Therapeutics was
    founded by former employees of Bone Care.  Thereafter, in 2006, Cytochroma acquired Proventiv.  Cytochroma recently completed a round of
    venture financing to start human clinical trials on drug compounds for treating
    vitamin D deficiency in patients with kidney disease.

    Genzyme's lawsuit, filed in the U.S. District Court for
    the Western District of Wisconsin (06-C-0428-S), alleges that the three
    Cytochroma executives, who were former Bone Care and Proventiv employees, used
    Bone Care trade secrets while they were working at Proventiv to develop CKD
    treatments that were later acquired by Cytochroma.  The executives contend that the compounds
    they were working on at Proventiv were in the public domain.

  •     By Christopher P. Singer

    USPTO Seal
    In a January 30, 2007 notice, the U.S. Patent and Trademark Office announced revised procedures relating to what patent applicants and
    practitioners must do in response to the dreaded Notice of Omitted Items.  This Notice is what every practitioner fears,
    as it reflects a determination by the Office of Initial Patent Examination (OIPE)
    that the application has a defect that, potentially, cannot be corrected.

    Under the new procedure the Office allows for three types
    of responses: (1) petition for filing date of deposit under 37 C.F.R. § 1.53(e)
    (i.e., that the alleged missing item was in fact deposited); (2) petition for a
    later filing date (i.e., petition under 37 C.F.R. § 1.182, supplemental
    oath/declaration referring to omitted item); and (3) accept the application as
    deposited by filing an appropriate amendment.  Appropriate amendments include substitute specifications that renumber
    pages, drawings, claims, and/or remove references to the omitted matter (see
    additional examples and explanations here).  Such amendments should comply with 37 C.F.R. §§
    1.121 and 1.125.  An indexed PDF version
    of 37 C.F.R. can be downloaded here (however, it
    is large and may take time depending on your network connection).

    The change in procedure is only reflected in the third
    course of action.  Formerly, applicants
    and practitioners did not have to file any response in order to accept the
    application as filed.  If the Office
    received neither petition under options (1) or (2), the applicant was deemed to
    have constructively elected the third option.  However, because there existed no required time for response, the Office
    would receive amended applications after examination and/or publication which
    hindered prosecution.  Now there must be
    an active election of one of the three options by filing a response with the
    Office.

    The Notice of Omitted Items now has a due date for
    response, which is extendable under 37 C.F.R. § 1.136.  Therefore, in order to toll the date a
    response must be filed with the Office within the extended period for
    response.  As an added bonus, and to
    exacerbate further the gnashing of teeth, the Office considers the Notice of
    Omitted items a notice or action under 35 U.S.C. § 154(b)(2)(C)(ii) or 37
    C.F.R. § 1.704(b).  Therefore, extensions
    of time taken for the reply to the Notice will reduce patent term adjustment
    under 35 U.S.C. § 154(b)(2)(C)(ii) or 37 C.F.R. § 1.704(b).

  •     By Christopher P. Singer

    Evogenix
    In a January 24, 2007 press release,
    EvoGenix Ltd announced that U.S. Patent No. 7,166,697,
    titled "V-like domain binding molecules" has been granted by the U.S.
    Patent Office.  According to EvoGenix,
    the patent covers a protein technology termed "Evibodies®," which
    are similar to antibodies and are useful in treatments and diagnostics, but are
    about one tenth the size of an antibody.  EvoGenix envisions that Evibodies® technology can be developed and
    applied to the current antibody drug market, particularly for diagnostic
    imaging and because the technology allows for more economical manufacture of
    protein active agents.  The '697 patent claims priority to an international
    patent application (published as WO 99/45110),
    filed March 5, 1999.  In brief, the claims of the
    '697 patent relate to a non-antibody ligand V-like domain (VLD) comprising
    modifications to at least one CDR (complementary determining region) loop
    structure and compositions thereof.  Representative independent Claim 1 recites:

    1.  A modified
    monomeric non-antibody ligand V-like domain (VLD) comprising within the VLD at
    least one CDR loop structure or part thereof that is modified or replaced such
    that (i) the size of the CDR loop structure or part thereof is increased by at
    least one amino acid residue when compared with the corresponding CDR loop
    structure or part thereof in an unmodified VLD; and/or (ii) the modification or
    replacement results in formation of a disulphide bond within or between one or
    more of the CDR loop structures, wherein the CDR loop structure is a surface
    polypeptide loop structure corresponding to a complementarity determining
    region of an antibody V-domain, and wherein the non-antibody ligand is selected
    from the group consisting of CTLA-4, CD28 and ICOS.

    More information regarding this technology as well as
    EvoGenix Ltd. related technologies can be found here.

  •     By Christopher P. Singer

    EFS-Web
    The U.S. Patent and Trademark Office today (January 30, 2007) presented a webinar that detailed certain issues relating to document indexing and descriptions of filings submitted with the USPTO via EFS-Web.  The seminar provided helpful explanations and tips regarding how to describe submissions properly so that they are more quickly processed and available on private PAIR.  The USPTO provides summary documents, tutorials, and training for EFS Web, document indexing tips, as well as document indexing tips and helpful informational links here.  In particular, document descriptions can be found here.

    USPTO Seal
    In addition, the Priority Document Exchange (PDX) program between the U.S. and European Patent Offices is now in full swing.  The Japanese Patent Office is expected to integrate into this program sometime this coming summer.  Applicants wishing to request that the USPTO either provide or request a priority document to or from the EPO are advised to use forms provided by the Office.  Applicants should use form PTO/SB38 for documents coming from the EPO to the USPTO, and form PTO/SB39 for documents going to the EPO from the USPTO.

    For additional information regarding the PDX program, please see our previous reports (January 18 and January 19).

  • Innogenetics Appeals Its Win over Abbott

        By Robert Dailey —

    Innogenetics
    In two earlier posts (January 8 and January 12), we reported on
    Innogenetics' $7 million victory after a jury found that Abbott had infringed Innogenetics' patent covering methods for HCV genotyping.  The jury also found that Abbott's conduct had been willful.  However, in a post-verdict
    ruling, the District Court held that Abbott's conduct had not been willful as a
    matter of law.  Innogenetics is now appealing
    that portion of the judge's ruling.

    On first glance, this appeal may seem to be a long shot.  At trial, Innogenetics proffered no evidence
    of actual copying, instead showing only that
    it would have been possible for Abbott to copy.  Moreover, Abbott obtained multiple opinions as to the invalidity of the
    Innogenetics patent.

    Abbott A
    Thus, the appeal appears to rest on the assertion that
    Abbott proceeded in bad faith after learning of the Innogenetics patent.  This argument has some merit.  At trial, Abbott relied heavily on a
    non-infringement argument, even though it had only sought legal opinions on
    an anticipation defense.  Abbott's
    failure to gather opinions on non-infringement may indicate that its
    solicitation of the opinion was merely a ceremonial act carried out to avoid
    treble damages.  Judge Crabb, however,
    rejected this as a "red herring" since "one cannot infringe an
    invalid patent."  Abbott had made
    full disclosure to outside counsel and had made an anticipation argument at
    trial that tracked with outside counsel's opinion.  According to the Court, that is sufficient to
    avoid a charge of willfulness.  In other
    words, a defendant need not bankrupt itself seeking opinions on every potential
    legal defense.

    The District Court may have overstated the rule on
    willfulness a bit, but it seems unlikely that the Federal Circuit will deem
    this reversible error.  In that event,
    Innogenetics may simply be trying to beat Abbott to the punch on filing an
    appeal.  Abbott lost the case, after all.  We'll have to wait and see how Abbott
    responds to this aggressive strategy.

    Innogenetics, N.V. v. Abbott Labs., No. 05-C-0575-C (W.D.
    Wis.)

    Click here
    for Judge Crabb's opinion rejecting the jury's
    willfulness finding.

    Click here for the Reuters news report.

    Robert Dailey, Ph.D., is a physical chemist and a third-year law
    student at the University of North Carolina at Chapel Hill.  Dr. Dailey
    was a member of MBHB's 2006 class of summer associates.