Impax Laboratories Inc. v. Lannett Holdings Inc.
Opinion
*1375
Lannett Holdings Inc. and Lannett Co. Inc. (together, "Lannett") appeal from the decision of the United States District Court for the District of Delaware concluding, after a bench trial, that claims 4, 11, 12, and 14 of U.S. Patent 6,750,237 ("the '237 patent") and claims 6 and 14-16 of U.S. Patent 7,220,767 ("the '767 patent") were not shown to be invalid,
see
Impax Labs., Inc. v. Lannett Holdings Inc.
,
BACKGROUND
Triptans are selective serotonin receptor agonists, developed in the early 1980s. The first triptan to be marketed was sumatriptan under the name Imitrex ®, which first became available in the U.S. in an injection form in 1993. In 1995, sumatriptan became available in an oral tablet form and later, in 1997, in an intranasal form as Imitrex ® (sumatriptan ) Nasal Spray ("NS"). Zolmitriptan is another triptan, which first became available in the U.S. in an oral tablet form in 1999 under the name Zomig ®. At that time, there were several other triptans that were either on the market or under development.
AstraZeneca owns and Impax is the exclusive licensee of the '237 and '767 patents, 1 which relate to formulations of zolmitriptan for intranasal administration. The claims at issue in this appeal are directed to pharmaceutical formulations, intranasal administration devices, or aqueous solutions, of zolmitriptan. '237 patent col. 5 l. 4-col. 6 l. 22; '767 patent col. 5 l. 8-col. 6 l. 25.
Claim 4 of the '237 patent depends from claim 2, which in turn, depends from claim 1. Claims 1, 2, and 4 of the '237 patent read as follows:
1. A pharmaceutical formulation suitable for intranasal administration which comprises zolmitriptan and a pharmaceutically acceptable carrier wherein the pH of the formulation is in the range 4.5 to 5.5.
2. A pharmaceutical formulation according to claim 1 wherein the pH of the formulation is 5.
4. A pharmaceutical formulation according to claim 2 wherein the formulation is buffered.
'237 patent col. 5 ll. 4-9, 12-13.
Similarly, claims 6 and 15 of the '767 patent read:
6. A pharmaceutical formulation suitable for intranasal administration which comprises zolmitriptan and a pharmaceutically acceptable carrier wherein the pH of the formulation is in the range 3.5 to 5.5, wherein the formulation is buffered by a mixture of citric acid and disodium phosphate.
15. An aqueous solution of zolmitriptan in a buffer at a pH of less than 6.0.
'767 patent col. 5 ll. 23-27, col. 6 ll. 21-22.
Other formulation claims of the '237 and '767 patents at issue include similar limitations with regard to pH ranges and buffering, and some formulation claims include additional limitations relating to sterility.
*1376 '237 patent col. 5 l. 4-col. 6 l. 22; '767 patent col. 5 l. 8-col. 6 l. 25. These additional limitations are not at issue on appeal.
AstraZeneca owns the New Drug Application ("NDA") for Zomig ® (zolmitriptan ) Nasal Spray, 2.5 mg/spray and 5 mg/spray, approved by the U.S. Food and Drug Administration ("FDA") for treatment of migraine. The '237 and '767 patents are listed in connection with Zomig ® Nasal Spray in the FDA's Approved Drug Products with Therapeutic Equivalence Evaluations , commonly known as the "Orange Book."
In 2012, AstraZeneca and Impax entered into an agreement for distribution, license, development, and supply of the Zomig ® products. The agreement granted to Impax an exclusive license to AstraZeneca's patents covering the Zomig ® products, including the '237 and '767 patents, in return for the payment of $130 million and additional payments at varying royalty rates, including 40% on the nasal spray.
Opinion
,
In June 2014, Lannett notified AstraZeneca that it had filed an Abbreviated New Drug Application ("ANDA"), seeking approval for a generic version of Zomig ® Nasal Spray, making a certification according to
In July 2014, Appellees filed suit against Lannett in the District of Delaware for infringement of the '237 and '767 patents pursuant to
In September 2016, a four-day bench trial was held on the issues of infringement and validity. Following the bench trial, the parties stipulated that Lannett's product described in its ANDA with a target pH of 5, if approved by the FDA, will infringe the '237 and '767 patents. Impax Labs. Inc. v. Lannett Holdings Inc. , No. 1:14-cv-00984-RGA (D. Del. Sept. 29, 2016), ECF No. 137.
In March 2017, the district court issued its decision on validity, holding that Lannett failed to prove by clear and convincing evidence that the asserted claims were invalid.
Opinion
,
The district court then determined that Lannett failed to prove that claim 4 of the '237 patent and claim 15 of the '767 patent were anticipated by Marquess or Chauveau, as neither of the references disclosed all the limitations of the claims.
The district court also considered evidence of objective indicia of nonobviousness.
Lannett timely appealed. We have jurisdiction pursuant to
DISCUSSION
As an initial matter, we note that Lannett no longer argues anticipation as a defense and does not challenge the district court's claim constructions on appeal. Also, Lannett's invalidity arguments relying on International Publication No. WO 98/02186 ("Penkler") and European Publication No. EP 0636623 ("Robertson"), which were not raised or developed either before the district court or on appeal in its opening brief, are waived.
SmithKline Beecham Corp. v. Apotex Corp.
,
We proceed to the obviousness issue, the sole issue on appeal, based on the prior art references and arguments properly before us. On appeal from a bench trial, we review a district court's conclusions of law
de novo
and its findings of fact for clear error.
Golden Blount, Inc. v. Robert H. Peterson Co.
,
A party challenging the validity of a patent must establish invalidity by clear and convincing evidence.
See
Microsoft Corp. v. i4i Ltd. P'ship
,
Obviousness is a question of law based on underlying factual findings relating to "the scope and content of the prior art," "differences between the prior art and the claims at issue," "the level of ordinary skill in the pertinent art," and "secondary considerations," such as "commercial success, long felt but unsolved needs, [and] failure of others."
Apple Inc. v. Samsung Elecs. Co.
,
On appeal, Lannett contends that the district court erred in concluding that the claims at issue would not have been obvious, based on an erroneous finding that the prior art taught away from nasal formulations of zolmitriptan. According to Lannett, the court improperly disregarded express teachings in the prior art. Lannett also argues that the court erred in finding that the 2012 agreement, which encompassed the entire Zomig ® franchise, including matters unrelated to the patents at issue, supported its conclusion of nonobviousness. Lannett alleges that it made a strong showing of obviousness, and therefore, even accepting the district court's findings of teaching away and objective indicia of nonobviousness, the court still erred in its ultimate conclusion of obviousness.
Appellees respond that the district court did not err because it correctly found that a skilled artisan would not have been motivated to make nasal formulations of zolmitriptan or had a reasonable expectation of success in doing so. Appellees contend that the court's finding of teaching away was not clearly erroneous, and, at any rate, Lannett failed to prove obviousness by clear and convincing evidence. According to Appellees, the court's factual findings, including those relating to secondary considerations, were supported by record evidence and based on credibility determinations concerning the parties' experts, and such evidence should not be reweighed on appeal.
We find no reversible error in the district court's decision that Lannett failed to *1379 prove invalidity of the asserted claims by clear and convincing evidence. The court's decision was supported by its underlying factual findings, which we do not find clearly erroneous. Because the question of the level of ordinary skill in the art is undisputed, we proceed to the remaining parts of the obviousness analysis.
I
A
Lannett contends that the prior art expressly discloses nasal formulations of zolmitriptan, and it faults the district court for failing to consider the prior art "as a whole." Appellant's Br. 31. Lannett argues that prior art references, in particular, Chauveau, 4 expressly disclosed using zolmitriptan in a nasal spray. Lannett urges that the court's discounting of Chauveau's express mention of zolmitriptan in connection with nasal formulations constituted clear error. We disagree.
Chauveau is generally directed to formulating an active ingredient using capryl caproyl macrogol glycerides (a version of which is marketed under the name Labrasol®) for oromucosal administration of the active ingredient. Chauveau col. 2 ll. 5-16, col. 3 ll. 18-21. As the district court noted, Chauveau discusses that its teachings can be applied to formulations for buccal, nasal, or pharyngeal administration, among which the nasal route is preferred.
Lannett is correct that in an obviousness analysis, prior art should be viewed as a whole.
Takeda Chem. Indus., Ltd. v. Alphapharm Pty., Ltd.
,
Lannett nevertheless argues that the district court erred in finding that the effectiveness of zolmitriptan "relied on" its active metabolite, Appellant's Br. 41-45, and puts forth arguments to discount the significance of zolmitriptan's active metabolite. In particular, Lannett argues that triptans are specifically designed to act as serotonin receptor agonists, which, by itself, would rebut the contention that zolmitriptan was understood to be ineffective without the contribution of its metabolite. We disagree, particularly because Lannett's contentions are without any evidentiary support beyond its attorney arguments concerning factual issues.
Ferring B.V. v. Watson Labs., Inc.-Fla.
,
Contrary to Lannett's contentions, the district court found that zolmitriptan's more potent, active metabolite was actually thought to be significant for its efficacy by a person of skill in the art at the time. Specifically, the court credited Appellees' evidence of expert testimony and studies and found that a skilled artisan would have expected delayed or lower therapeutic effectiveness from zolmitriptan if administered nasally because it would have been "absolutely counterintuitive to make a nasal spray when you have an active metabolite which is more potent ... than the drug itself."
Opinion
,
In view of the totality of the record evidence of the state of the prior art, we cannot find that the district court clearly erred in its findings. Far from disregarding the prior art's discussion of zolmitriptan, the court specifically considered and acknowledged that zolmitriptan was mentioned in connection with nasal formulations and sprays. However, the court also properly considered additional record evidence to make findings on the state of the prior art as a whole.
Both parties put forth evidence of various factors a person of ordinary skill in the art would have considered. Ultimately, the district court found that a skilled artisan would not have been motivated to make a zolmitriptan nasal spray with a reasonable expectation of success.
Opinion
,
Based on the record before us, we do not find that the court clearly erred in concluding that at the time, zolmitriptan's known significant reliance on its active metabolite would have, on balance, dissuaded a person of skill in the art from making nasal formulations of zolmitriptan.
See, e.g.
,
Winner Int'l Royalty Corp. v. Wang
,
B
The district court also considered evidence of secondary considerations, including the 2012 license agreement between Impax and AstraZeneca covering the Zomig ® products for which Impax paid $130 million. The court found that this 2012 agreement favored Appellees as it found a nexus between the agreement and the '237 and '767 patents. However, it found that Appellees' other evidence of secondary considerations was inconclusive.
Lannett argues that the district court's analysis is unsupported by any evidence, as the court, without any support, did its own nexus analysis. We disagree. The court found that the patents covering the oral formulations of zolmitriptan expired in only a little more than one year after the effective date of the 2012 agreement, but the patents covering the nasal formulations of zolmitriptan,
i.e.
, the '237 and '767 patents, were not set to expire until 2021.
Opinion
,
II
We finally consider whether the district court reached a legally erroneous conclusion of nonobviousness. The court called this case indeed a "close one."
Opinion
,
Contrary to Lannett's suggestion, it has not shown a "strong" case of obviousness and has not proven obviousness by clear and convincing evidence.
Procter & Gamble
,
Ultimately, we agree that this case was close. But, we defer to the district court in its fact findings, including what Chauveau discloses and the state of the prior art as a whole. And we are especially persuaded by the testimony of Appellees' expert, Dr. Rapoport, on which the district court relied, who opined that it would have been "absolutely counterintuitive" to make an intranasal formulation of zolmitriptan, given that its activity primarily came from its metabolite, and the agreement between AstraZeneca and Impax covering the intranasal product and its patents for which the latter paid $130 million. We therefore conclude that the district court did not commit reversible error in its nonobviousness conclusion.
The district court did not clearly err in its underlying factual findings, and we agree with the district court that Lannett failed to prove by clear and convincing evidence that the claims of the '237 and '767 patents are invalid. We have considered all the other arguments raised in the briefs, but have not been persuaded that the district court erred in its conclusions.
CONCLUSION
For the foregoing reasons, we affirm the judgment of the district court.
AFFIRMED
At the district court, Lannett alleged lack of standing and ownership issues regarding the '237 and '767 patents among different AstraZeneca entities and their effect on the licensing agreement between Impax and AstraZeneca.
Opinion
,
As counterparts of each other, the two Chauveau references' disclosures are substantially identical. In this opinion, references to Chauveau will be based on the U.S. patent unless otherwise noted.
In its opening brief, Lannett appears to suggest that the district court's nonobviousness conclusion with respect to claim 15 was in error because claim 15 merely requires an "aqueous solution." Appellant's Br. 25-26. However, beyond this oblique reference in its opening brief, Lannett does not separately argue invalidity of claim 15 until its reply brief.
Lannett alludes to Tepper & Rapoport as supporting the similar proposition that the prior art taught nasal formulations of zolmitriptan, without making any particular invalidity argument based on Tepper & Rapoport. Appellant's Br. 17-18. Thus, we find any invalidity argument relying on Tepper & Rapoport waived,
SmithKline Beecham
,
Reference
- Full Case Name
- IMPAX LABORATORIES INC., AstraZeneca AB, AstraZeneca UK Limited, Plaintiffs-Appellees v. LANNETT HOLDINGS INC., Lannett Company Inc., Defendants-Appellants
- Cited By
- 18 cases
- Status
- Published