INDIVIOR INC. et al v. DR. REDDY'S LABORATORIES S.A. et al
Filing
142
AMENDED OPINION; etc. Signed by Judge Kevin McNulty on 07/13/2018. (sms)
UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEW JERSEY
INDflROR INC., INDIWOR UK
LIMITED, and AQUESTWE
THERAPEUTICS, INC.,
Civ. No. 17-7111 (KM) (CLW)
Civ. No. 18-1775 (1CM) (CLW)
Civ. No. 18-5288 (1CM) (CLW)
Plaintiffs,
(Consolidated)
V.
DR. REDDY’S LABORATORIES S.A.,
AND DR. REDDY’S LABORATORIES,
INC.,
OPINION
(Amended: see Order, ECF no. 134;
Redacted for Public Filing
Defendant.
KEVIN MCNULTY, U.S.D.J.:
In this patent infringement suit, the plaintiffs, Indivior Inc., Indivior UK
Limited, and Aquestive Therapeutics, Inc. (collectively, unless otherwise
specified, “Indivior”), seek a preliminary injunction against defendants, Dr.
Reddy’s Laboratories S.A. and Dr. Reddy’s Laboratories, Inc. (collectively,
unless otherwise specified, “DRL”). Indivior holds and practices a patent on
Suboxone film, a “rapidly dissolving film that adheres to the underside of a
patient’s tongue or the inside of a patient’s cheek.” The film contains and is a
means of administering buprenorphine and naloxone, drugs used in the
treatment of opioid addiction. DRL recently received approval from the Food
and Drug Administration (“FDA”) for an Abbreviated New Drug Application
(“ANDA”) for a generic version of Suboxone and plans to launch this generic “at
risk.” Indivior claims that this generic will infringe a continuation patent
(known as the ‘305 patent”) granted to Aquestive by the Patent Office in April
2018, and seeks to enjoin DRL’s launch of the generic. For the reasons
explained below, I will grant the preliminary injunction.
1
ESSENTIAL FINDINGS OF FACT
1. The ‘514 “parent” patent contained a “dried/drying” limitation and was
found not to claim a device that solely used °conventionaj” drying
methods, i.e., drying by convection from the top.
2. The ‘305 continuation patent now before the Court does not expressly or
impliedly contain the “dried/drying” language of the ‘514 patent.
3. The claims and issues in the prior action and in this action are not
identical.
4. The ‘305 patent claims the invention, and states embodiments thereof,
without respect to drying methods used to manufacture it.
5. The ‘305 patent provides an adequate written description to a person
skilled in the art of a device without respect to drying methods.
6. The record at present does not overcome the presumption of nonobviousness or validity.
7. The record adequately establishes infringement, particularly of Claim 26
of the ‘305 patent.
8. Entry of a generic would cause Indivior to lose market share and the
suboxone film’s advantageous formulaiy status, and would impair
research and development.
9. DRL knowingly invested “at risk” and has not shown that the balance of
harms/equities weighs in its favor. (See redacted portion of opinion,)
10.
Although the suboxone film is an efficacious means of
administering buprenorphine, it is not the only means, and the
disadvantages of having no generic alternative does not outweigh the
public benefit of maintaining Indivior’s rights as a patent holder while
this action is pending.
ESSENTIAL CONCLUSIONS OF LAW
1. Indivior has demonstrated a likelihood of success on the merits.
2. Indivior has demonstrated irreparable harm
3. The balance of the equities is at best neutral
4. The public interest does not weigh against entry of a preliminary
injunction.
The remainder of the discussion in this Opinion expands upon and
supports the foregoing findings of fact and conclusions of law.
2
FACTS1
The following facts were developed at a one-day hearing on June 28,
2018. Both sides declined to present live testimony. They presented their cases
by means of oral argument, supplemented by PowerPoint presentations citing
For ease of reference, I will cite to the following items as:
P1. Br.
Def.
Memorandum of Law in Support of Plaintiffs’ Motion
for a Temporary Restraining Order and Preliminary
Injunction (ECF no. 71)
=
Opp.
P1. Reply
DRL’s Opposition to Plaintiffs’ Motion for a
Preliminary Injunction and Temporary Restraining
Order (ECF no. 88)
=
Reply in Support of Plaintiffs’ Motion for a
Preliminary Injunction (ECF no. 96)
=
Simkin Decl.
Declaration of Richard Simldn (ECF no. 70)
Patent ‘305
=
Patent ‘514
United States Patent No. 9,931,305, Exhibit B to
Declaration of Philip S. May (ECF no. 71)
=
United States Patent No. 8,693,514, Exhibit E to
Declaration of Philip S. May (ECF no. 71)
Hofmann Decl.
Expert Declaration of Ivan T. Hofmann (ECF no. 88)
=
PI/TRO Hrg. Tr.
=
Transcript of Motion for Preliminary Injunction
Hearing on June 28, 2018 (ECF no. 110)
Langer Decl.
Expert Declaration of Robert S. Langer, ScD (ECF no. 71)
Amiji Decl.
Expert Declaration of Mansoor Amiji, PhD (ECF no. 91)
=
Langer Supp.
Bennis Deci.
Supplemental Expert Declaration of Robert S. Langer
ScD (ECF no. 96)
Crossley Dccl.
Navarro DecI.
=
Declaration of Mark Crossley (ECF no. 71)
=
Declaration of Robert P. Navarro, Pharm.D. (ECF no. 72)
=
Rosenthal Deci.
Sonig Decl.
Declaration of Melissa A. Bennis (ECF no. 72)
=
=
Expert Declaration of Richard Rosenthal, M.D. (ECF no. 90)
Declaration of Alok Sonig (ECF no. 88)
3
to the filed affidavits and exhibits. Many of the underlying historical facts were
not in dispute.
Indivior, along with Aquestive, developed Suboxone film, a type of
buprenorphine-containing transmucosal product for opioid dependence
(“BTOD9 (Simkin
¶ 7.) It is essentially a rapidly dissolving film that adheres to
the underside of a patient’s tongue or the inside of a patient’s cheek and
combines two active pharmaceutical ingredients: (1) buprenorphine, a partial
opioid agonist that decreases a patient’s need for opioids, and (2) naloxone, an
opioid antagonist that deters abuse. (Id.) Suboxone competes with several other
drugs in the BTOD market, including tablets and buccal films. It maintains its
position in that market partly because its generic competitors are not AB
rated—that is, pharmacies cannot substitute generics at the point of sale when
a patient is prescribed Suboxone. (Id.
¶ 9.)
]ndivior initially participated in the tablet market, having received
approval from the FDA to market Suboxone in tablet form in 2002. (Hoffman
Decl.
¶ 45.) It had “orphan drug exclusivity” for the drug in tablet form until
October 2009. (Id.)
During this time, Indivior developed the film version of Suboxone with
Aquestive. On December, 10, 2013, the Patent Office issued Patent No.
8,603,514 (“‘514 Patent”) for “Uniform Films for Rapid Dissolve Dosage Form
Incorporating Taste-Making Compositions” to Aquestive.2 (‘514 Patent at
[451,
[54).) Once it received approval from the FDA, Indivior marketed the new drug
with the objective of switching patients over from tablets to film. (See id.
46—
53.) By the time of the launch of the first generic tablet version of Suboxone,
Indivior had successfully migrated 85% of patients on the drug to the film
version. (Id. ¶ 5343
At the time, Aquestive was known as MonoSol Rx, LLC. (P1. Br. at 2.)
That program to induce the switch to the film form of the drug landed Indivior
in legal difficulty. In 2012, the Federal Trade Commission (FTC) initiated an
investigation into the business practices of Invidior regarding Suboxone; the
investigation remains pending. (Hofmann Decl. ¶ 61) Invidior also faces a class action
antitrust lawsuit, as well as a lawsuit filed by more than 40 states, relating to the
2
4
DRL (as well as several other pharmaceutical companies, including
Watson Laboratories, Par Pharmaceudcai, Inc., Alvogen Pine Brook, Inc., Teva
Pharmaceutical, Inc., Sandoz Inc. and Mylan Technologies, Inc.), sought to
enter the film market as a generic competitor. They submitted ANDAS to the
FDA for generic versions of the Suboxone film. (Hoffman Deci. ¶ 14.) In 2015,
Indivior responded by filing actions against these companies under the Hatch
Waxman Act in the United States District Court for the District of Delaware.
(Id.) In August 2017, Judge Richard Andrews held that Indivior failed to meet
its burden of showing that DRL’s generic version infringed the claims of the
‘514 Patent for Suboxone film. See infra. Judge Andrews had earlier construed
the one of the claims in the ‘514 Patent to mean “dried without solely
employing conventional convection air drying from the top” and found that
there was not enough evidence to show that DRL’s procedures “amount[ed] to
an unconventional process” for drying. See infra.
Indivior responded to that decision by returning to the Patent Office. On
April 3, 2018, the Patent Office issued Patent No. 9,931,305 (“‘305 Patent”) to
Aquestive. (Patent ‘305 at [45].) According to the ‘305 patent:
The present invention relates to rapid dissolve thin film drug
delivery compositions for the oral administration of active components.
The active components are provided as taste-masked or controlledrelease particles uniformly distributed throughout the film composition.
The composition may be formed by wet casting methods, where the film
is cast and controllably dried, or alternatively by an extrusion method.
(Id. at [57j (Abstract).)
This ‘305 continuation patent is a “child” of the ‘514 patent, the one that
was the subject of the previous Delaware litigation between DRL and Indivior.
marketing and sales of Suboxone. (Id. ¶ 62—63.) These allegations generally involve
deals with Aquestive to create the Suboxone film in order to extend Indivior’s market
exclusivity with the drug, Inthvior’s marketing of the film to physicians, payers, and
pharmacists as safer and superior to the tablet version, and the lowering of the price
for the film to incentivize sales. (See id. 9 64—65.) On top of that, the Department of
Justice has initiated a grand jury investigation relating to these practices, including
claims about pediatric safety and the overprescribing of Suboxone tablets and film. (Id.
¶ 66.) Several states have also initiated civil investigations against Indivior over the
marketing and promotion of Suboxone. (Id. ¶ 67.)
5
The two largely overlap, except as to the language of Claim 26 of the ‘305
Patent and Claim 62 of the ‘514 Patent. The two pertinent revisions are as
follows. First, the ‘514 Patent claims “(i) a cast film,” but the ‘305 Patent claims
“(i) a continuously cast film produced on a manufacturing line.” Second, the
‘514 Patent makes claims that “said flowable water-soluble or water swellable
film-forming matrix is capable of being dried without loss of substantial
uniformity in the stationing of said particulate active therein; and wherein the
uniformity subsequent to casting and drying of the matrix is measured by
substantially equally sized individual unit doses which do not vasy by more
than 10% of said at least on active.” The ‘305 patent contains the same
language, except that the italicized language became “continuously cast on the
manufacturing line” and “continuously cast film,” respectively.4
Below is a reproduction of a red-line of the language of Claims 26 and 62 of the
‘305 and ‘514 patents. (P1. Br, at 5—6.)
Limitation
I
2
3
4
5
6
Claim 26 of the ‘305 Patent (Ex. B)
A drug delivery composition
comprising:
(i) a continuously cast film produced
on a manufacturing line
comprising a flowable water-soluble or
water swellable film-forming matrix
comprising one or more substantially
water soluble or water swellable
polymers; and
at least one active;
comprising a flowable water-soluble
or water swellable film-forming
matrix comprising one or more
substantially water soluble or water
swellable polymers; and
a desired amount of at least one active;
wherein said matrix has a viscosity
sufficient to aid in substantially
maintaining non-self-aggregating
uniformity of the active in the matrix;
(ii) a particulate active substantially
uniformly stationed in the matrix; and
(iii) a taste-masking agent selected
from the group consisting of flavors,
sweeteners, flavor enhancers, and
combinations thereof to provide tastemasking of the active;
wherein said matrix has a viscosity
sufficient to aid in substantially
maintaining non-self-aggregating
uniformity of the active in the matrix;
(ii) a particulate active substantially
uniformly stationed in the matrix; and
(iii) a taste-masking agent selected
from the group consisting of flavors,
sweeteners, flavor enhancers, and
combinations thereof to provide tastemasking of the active;
6
Claim 62 of the ‘514 Patent (Ex. E)
A drug delivery composition
comprising:
(i) a cast film
In the District of Delaware, Plaintiffs and DRL had earlier litigated the
validity and potential infringement of the ‘514 Patent (as well as similar patents
held by plaintiffs) by DRL’s ANDA product. See Recklu Benckiser Phamz. Inc.
is.
TevaPharrn. USA Inc., (“Reckittr) Nos. 14-1451, 14-1573, 14-1574, 2016WL
3621632 (1). Del. June 29, 2016) (construing the claims of multiple terms of
several patents, including the ‘514 patent pursuant to Markman v. Westuiew
Instmments, Inc., 52 F.3d 967 (1996)); Reckitt Benckiser Phann. Inc. a Dr.
Reddy’s Labs. S.A.,rReckittlf) Nos. 14-1451, 14-1573, 14-1574, 2017WL
3837312 (D. Del. Aug. 31, 2017), appeal docketed, No. 18-1115 (Fed. Cir. Oct.
27, 2017) (addressing the allegations of infringement and invalidity with
respect to the ‘514 Patent after a four-day bench thai).
In Reckitt H, Judge Richard Andrews, after a four-day bench trial, found
that the defendants had failed to demonstrate by clear and convincing evidence
that the asserted claims in the ‘514 patents were invalid as obvious. He also
found, however, that Indivior failed to meet its burden to show that DRL’s
product infringed certain claims of the ‘514 patent. 2017 WL 3837312, at *20,
In an earlier opinion, Judge Andrews had construed the claim in the ‘514
patent, “dried,” to mean “dried without solely employing conventional
wherein the particulate active has a
particle size of 200 microns or less
and
said flowable water-soluble or water
said flowable water-soluble or water
swellable film-forming matrix is
swellable film-forming matrix is
capable of being dried without loss of
capable of being continuously cast on
the na,zesfactuthzg line without loss of substantial uniformity in the stationing
substantial uniformity in the stationing of said particulate active therein; and
of said particulate active therein; and
wherein the uniformity subsequent to
wherein said uniformity of the
casting and drying ofthe ,natrLt is
continuously cast fit,,: is measured by
measured by substantially equally
sized individual
substantially equally
sized individual unit doses which do
unit doses cut from the continuously
not vary by more than 10% of said
cast film which do not vary by more
desired amouni of said at least one
than 10% of a desired amount of said at active.
least_one_active.
wherein the particulate active has a
particle size of 200 microns or less and
—
‘
8
7
convection air drying from the top.”5 Reckitt I, 2016 WL 3621632, at *10_*1 1.
He found that Indivior had disclaimed “conventional convection air drying from
the top,” both through express statements and repeated disavowal in the ‘514
Patent specifications. Id. at *8, *11 (noting that the ‘514 patent contained
identical language from process patents that were construed earlier in the
opinion and applying that same reasoning to the claims in the ‘514 patent).
After reviewing the evidence presented at trial, Judge Andrews concluded that
Indivior did not prove that DRL’s process of drying was unconventional, and
hence infringing. He was not persuaded “that evidence of a controlled process
that [did] not result in rippling and that achievejd] drug content uniformity
automatically amount[ed) to an unconventional process.” Reckitt II, 2017 WL
3837312, at 6. Indivior initially appealed those decisions by Judge Andrews
but later dismissed the appeal. Indiuior Inc. u. Watson Laboratories Inc., 2018
WL 3139436 (Fed. Cir. June 8, 2018).
Instead, Indivior obtained the continuation ‘305 patent, in which it
sought to claim around the “drying” problem. The “dried/drying language” was
dropped from the continuation patent, which was intended to have a broader
scope in that it would no longer disclaim “conventional” drying methods.
Indivior then brought this action against DRL here in the District of New
Jersey, this time claiming infringement of the new ‘305 patent. (See ECF no, I
(“Complaint for Patent Infringement9.) Upon learning of DRL’s plans to launch
the ANDA product “at risk,” Tndivior moved for temporary restraints and a
preliminary injunction to prevent DRL from launching its generic product. (ECF
no. 70.) (This application was made on an emergent basis, because the 30month stay granted by Hatch-Waxman had already been exhausted.)
I granted a temporary restraining order enjoining DRL from launching in
order to preserve the status quo during the resolution of this motion. (ECF no.
That decision was focused on arguments made by Teva Pharmaceuticals USA,
Inc., DRL’s predecessor in interest.
5
S
78.) On June 28, 2018, 1 conducted a hearing on the preliminary injunction
application.6
II.
Discussion
a. Standard of Review
A preliminary injunction has been called “a drastic and extraordinary
remedy.” Bayer CropScience AG v. Dow AgroSciences LLC, 851 F.3d 1302, 1308
(Fed. Cir. 2017) (quoting Nat’l Steel Car, Ltd. u. Canadian Pacific Railway, 357
F.3d 1319, 1324—25 (Fed. Cir. 2004)) “A plaintiff seeking a preliminary
injunction must establish (1) that he is likely to succeed on the merits, (2) that
he is likely to suffer irreparable harm in the absence of preliminary relief, (3)
that the balance of equities tips in his favor, and (4) that an injunction is in the
public interest.” Winter u. Natural Res. Def Council, Inc., 55 U.S. 7, 20 (2008)
(numbering added); accord Am. Express Thavel Related Sen’s. v. Sidamon
Edst off, 669 F.3d 359, 366 (3d Cir. 2012); I
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