Momenta Pharmaceuticals, Inc. v. Bristol-Myers Squibb Company
Opinion
Momenta Pharmaceuticals, Inc. ("Momenta") appeals the decision of the Patent Trial and Appeal Board ("PTAB" or "Board") sustaining patentability of claims 1 through 15 (all the claims) of United States Patent No. 8,476,239 ("the '239 Patent") owned by Bristol-Myers Squibb Company ("BMS"). 1 The appeal is dismissed for absence of standing/jurisdiction and for mootness. 2
BACKGROUND
The '239 Patent, entitled "Stable Protein Formulations," describes and claims specific fluid formulations of the protein *766 molecule CTLA4Ig (cytotoxic T-lymphocyte associated protein 4 immunoglobulin), an immunosuppressive agent used in treatment of immune system disorders such as rheumatoid arthritis. The product has the common name "abatacept" and the BMS brand name Orencia ®.
Momenta in July 2015 petitioned the United States Patent & Trademark Office ("PTO") for Inter Partes Review of the '239 Patent, in accordance with the post-grant review provisions of the America Invents Act, codified at
Momenta filed an appeal to the Federal Circuit, as provided by
35 U.S.C. § 319 . Appeal
A party dissatisfied with the final written decision of the Patent Trial and Appeal Board under section 318(a) may appeal the decision pursuant to sections 141 [appeal to the Federal Circuit] through 144. Any party to the inter partes review shall have the right to be a party to the appeal.
BMS moved to dismiss the appeal, stating that Momenta does not have standing to invoke federal court jurisdiction, citing the constitutional requirements of Article III. BMS stated that Momenta's proposed product had failed its Phase 1 clinical trials and had been withdrawn.
Momenta responded that it had not abandoned its intent to produce a counterpart of the Orencia® product, that the '239 Patent is an obstacle to these activities, and that it is injured by the estoppel provision,
On October 1, 2018, Momenta filed a Letter under Fed. R. App. P. 28(j), enclosing a press release captioned "Momenta Pharmaceuticals Completes Strategic Review to Refocus its Operations and Drive Shareholder Value." (Dkt. 98). The press release announced "the completion of its strategic review aimed at reducing costs of biosimilar development," and that "[t]he Company has initiated discussions with its collaboration partner, Mylan, to exit its participation in the development of its other five biosimilar programs including M834, a proposed biosimilar to ORENCIA®, and intends to focus solely on the continued development of M710 [proposed biosimilar to EYLEA®]." Press release, at 1. Momenta's Letter stated that it "will promptly inform the Court of any outcome of its discussions with Mylan that might affect this Court's ongoing jurisdiction." Letter, at 1. BMS responded that this information confirms Momenta's lack of standing to appeal. (Dkt. 99).
Momenta did not further communicate to the court, and on October 23, 2018 we issued an Order to Show Cause why the appeal should not be dismissed as moot. (Dkt. 100). Momenta responded on November 2, 2018, stating that the appeal was not moot because:
As of today, the companies continue to be jointly responsible under that agreement for product development and for sharing the costs of that development, which are substantial. And because of BMS's patent and the Board's decision upholding it, Momenta and its partner Mylan still face the same fork in the road about the commercial formulation for their biosimilar product-they must *767 decide whether to proceed with the current formulation or switch to a more expensive and potentially less commercially viable option. That decision and the costs associated with it still turn on the outcome of this appeal.
Momenta Response to Order to Show Cause, at 2-3 (Dkt. 102). Momenta included a Declaration of its Chief Business Officer, Young Kwon, who declared that "[t]he parties have not yet reached an understanding about whether or when any termination notice will be delivered," Declaration, ¶5, and recited Momenta's economic interest in any Orencia® biosimilar that might be developed by Mylan, and Momenta's potential right to royalties from Mylan should this product be developed by Mylan. Id . at ¶6.
BMS responded that a third party's possible future development of this abandoned product does not provide constitutional standing to Momenta. BMS stated that Momenta's "possible future royalty ... is too speculative to support standing," BMS Response to Order to Show Cause, at 7, November 13, 2018 (Dkt. 104), and that "hypothetical future harm falls short of the 'certainly impending' injury-in-fact required by Article III." BMS Letter, at 1, October 3, 2018 (Dkt. 99) (quoting
Clapper v. Amnesty Int'l USA
,
On December 10, 2018 BMS filed another Letter under Rule 28(j), enclosing a Preliminary Prospectus Supplement and a Form 8-K that Momenta had filed with the Securities and Exchange Commission on December 6, 2018. These documents state:
We have elected to terminate our collaboration agreement with Mylan with respect to the development of ... M834, a proposed biosimilar to ORENCIA® .... On November 19, 2018, we delivered a formal notice of this partial termination to Mylan, as provided in the collaboration agreement.
Preliminary Prospectus Supplement at S-2; Form 8-K at 3. (Dkt. 105). BMS states that these documents confirm Momenta's lack of or loss of standing, and establish that the appeal is moot. Momenta has not responded, and has not withdrawn its appeal.
DISCUSSION
"No principle is more fundamental to the judiciary's proper role in our system of government than the constitutional limitation of federal-court jurisdiction to actual cases or controversies."
DaimlerChrysler Corp. v. Cuno
,
Precedent has distinguished the standards for statutorily authorized appeals of decisions of administrative agencies, compared with the jurisdictional standards for bringing a declaratory action directly in federal court. The Court stated in
Lujan v. Defenders of Wildlife
,
The person who has been accorded a procedural right to protect his concrete interests can assert that right without meeting all the normal standards for redressability and immediacy.
The Court in
Summers v. Earth Island Institute
,
It is established that the " 'case' and 'controversy' restrictions for standing do not apply to matters before administrative agencies and boards, such as the PTO,"
Ritchie v. Simpson
,
Although the statutory grant of judicial review may "relax" the Article III criteria, judicial review of agency action remains subject to the constitutional foundation of injury-in-fact, lest the court occupy only an advisory role.
Consumer Watchdog v. Wis. Alumni Research Found.
,
Although Momenta had initially stressed that it had spent millions of dollars in its development of an Orencia® biosimilar, now upon Momenta's termination of all potentially infringing activity, Momenta has not shown "an invasion of a legally protected interest" that is "actual or imminent, not conjectural or hypothetical."
See
Lujan
,
Momenta argues that since the purpose of the America Invents Act is to provide an alternative to district court litigation, appeal should be available from the PTAB as it would be available from a district
*769
court decision. Momenta states that the estoppel provision provides injury-in-fact, and that this suffices to support constitutional standing. However, estoppel of Momenta is irrelevant now that Momenta has "exited" its development of the Orencia® product. Estoppel cannot constitute an injury-in-fact when Momenta "is not engaged in any activity that would give rise to a possible infringement suit."
Consumer Watchdog
,
Momenta's argument that it might at some future time receive a royalty from Mylan, if Mylan should produce an Orencia® biosimilar, has no support in precedent.
See
Clapper
,
The Federal Circuit has applied these principles to varied facts in several America Invents Act appeals from PTAB decisions. In
Consumer Watchdog
the court held that a general public interest without a particularized or personal interest and injury does not provide standing to appeal a decision of the PTAB.
In
RPX Corp. v. ChanBond
LLC
, No. 17-2346, ECF 39 (Fed. Cir. Jan. 17, 2018), the court held there was not standing to appeal because it was "undisputed that RPX is not engaged in any potentially infringing activity regarding the '822 patent."
Id
. at *5. In
JTEKT Corp. v. GKN Automotive Ltd.
, the court opined that there may be circumstances in which a PTAB petitioner "has no product on the market at the present time" yet "does not preclude Article III standing," provided that the petitioner has "concrete plans for future activity that creates a substantial risk of future infringement."
In
E.I. DuPont de Nemours & Co. v. Synvina C.V.
,
*770 However, Momenta has now made clear that no concrete plans are afoot.
Momenta also argues that since it was engaged in infringing activity when these proceedings began, it has not lost its standing to complete the review. However, even though Momenta may have been working in pursuit of potentially infringing activity, it is established that jurisdiction must exist throughout the judicial review, and an intervening abandonment of the controversy produces loss of jurisdiction.
See
Arizonans for Official English v. Arizona
,
Standing and mootness may not be coextensive in all cases.
See
Friends of the Earth
,
Here the cessation of potential infringement means that Momenta no longer has the potential for injury, thereby mooting the inquiry.
"The rules of standing, whether as aspects of the Art. III case-or-controversy requirement or as reflections of prudential considerations defining and limiting the role of the courts, are threshold determinants of the propriety of judicial intervention."
Warth
, 422 U.S. at 517-18,
CONCLUSION
Momenta does not have standing to invoke federal appellant jurisdiction, and the appeal is mooted by Momenta's discontinuance of any potentially infringing activity.
APPEAL DISMISSED
Momenta Pharm., Inc. v. Bristol-Myers Squibb Co.
,
Momenta's unopposed Motion to amend Protective Order (Dkt. 101), filed Nov. 2, 2018, is granted. BMS's unopposed Motion to Supplement the Record on Standing (Dkt. 90-1), filed Nov. 11, 2017, is granted.
The legislative record on enactment of the America Invents Act, e.g., H.R. Rep. No. 112-98, pt. 1 (2011) at 45-47, suggests that judicial review was explicitly provided in inter partes reexamination and then in inter partes review because the limitation on the right to appeal from ex parte reexamination had "proved to make it a less viable alternative ... than Congress intended." Id. at 45. However, the legislative record does not suggest a congressional intent to adjust the application of Article III to PTAB appeals.
Reference
- Full Case Name
- MOMENTA PHARMACEUTICALS, INC., Appellant v. BRISTOL-MYERS SQUIBB COMPANY, Appellee
- Cited By
- 11 cases
- Status
- Published