HORIZON PHARMA, INC. et al v. DR. REDDY'S LABORATORIES INC. et al

Filing 153

OPINION AND ORDER: The Court concludes that the automatic stay does not apply to any of the presently pending affirmative defenses therefore, this Court sees no reason to stay these consolidated actions in their entirety, etc. Signed by Judge Stanley R. Chesler on 10/1/18. (cm, )

NOT FOR PUBLICATION
UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
_______________________________________
:
HORIZON PHARMA, INC., HORIZON
:
Civil Action No. 15-3324 (SRC)
PHARMA USA, INC., and POZEN INC.,
:
:
OPINION & ORDER
Plaintiffs,
:
:
v.
:
(consolidated for discovery
:
purposes with Civil Action
DR. REDDY’S LABORATORIES, INC.
:
Nos. 16-4918, 16-9035,
and DR. REDDY’S LABORATORIES,
:
15-3327, 16-4921, 15-3326,
:
17-11635, and 16-4920)
Defendants.
:
_______________________________________:
:
HORIZON PHARMA, INC., HORIZON
:
PHARMA USA, INC., and POZEN INC.,
:
:
Plaintiffs,
:
:
v.
:
:
MYLAN PHARMACEUTICALS INC.,
:
MYLAN LABORATORIES LIMITED, and
:
MYLAN, INC.,
:
:
Defendants.
:
_______________________________________:
:
HORIZON PHARMA, INC., HORIZON
:
PHARMA USA, INC., and POZEN INC.,
:
:
Plaintiffs,
:
:
v.
:
:
LUPIN LTD. and LUPIN
:
PHARMACEUTICALS INC.,
:
:
Defendants.
:
_______________________________________:

CHESLER, U.S.D.J.
This matter comes before this Court following the filing of a suggestion of bankruptcy by
Plaintiff Pozen Inc. (“Pozen”). The parties, through letter briefs filed and a conference call held
on September 6, 2018, sought clarification of the impact of the bankruptcy filing on these
consolidated cases. For the reasons that follow, this Court holds that the automatic stay imposed
by 11 U.S.C. § 362 applies only to true counterclaims against Pozen; no other aspect of these
consolidated cases shall be stayed.
During the conference call, Pozen raised the question of whether the automatic stay
applies to affirmative defenses against its claims in these consolidated cases. This Court offered
Pozen the opportunity to submit authority that supports such a stay. The cases submitted by
Pozen do not support the imposition of the stay on any of the presently pending affirmative
defenses. None of the presently pending affirmative defenses has the character of counterclaims
seeking affirmative relief against Pozen. The Court concludes that the automatic stay does not
apply to any of the presently pending affirmative defenses.
Consequently, this Court sees no reason to stay these consolidated actions in their
entirety. The claims asserted in these consolidated cases have been brought pursuant to the
Hatch-Waxman Act. Staying the cases in their entirety might have a prejudicial effect on
Defendants in terms of their potential ability to enter the marketplace should Plaintiffs’ patents
be determined to be unenforceable or not infringed.

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The parties are directed to immediately contact Magistrate Judge Waldor to schedule
further proceedings in this matter.
SO ORDERED.
s/ Stanley R. Chesler
STANLEY R. CHESLER, U.S.D.J.
Dated: October 1, 2018

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