Astrazeneca AB v. Apotex Corp.

536 F.3d 1361, 87 U.S.P.Q. 2d (BNA) 1865, 2008 U.S. App. LEXIS 17691
CourtCourt of Appeals for the Federal Circuit
DecidedAugust 20, 2008
DocketNos. 2007-1414, 2007-1416, 2007-1458, 2007-1459
StatusPublished
Cited by2 cases

This text of 536 F.3d 1361 (Astrazeneca AB v. Apotex Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Astrazeneca AB v. Apotex Corp., 536 F.3d 1361, 87 U.S.P.Q. 2d (BNA) 1865, 2008 U.S. App. LEXIS 17691 (Fed. Cir. 2008).

Opinion

BRYSON, Circuit Judge.

Apotex Corp., Apotex, Inc., and Torp-harm, Inc., (collectively, “Apotex”) and Im-pax Laboratories, Inc., appeal judgments entered against them by the United States District Court for the Southern District of New York. Apotex and Impax were defendants in a multidistrict litigation initiated by plaintiffs Astrazeneca AB, Aktiebolaget Hassle, KBI-E, Inc., KBI, Inc., and As-trazeneca LP (collectively, “Astra”) against a number of generic drug manufacturers for infringement of Astra’s patents covering formulations of omeprazole, the active ingredient in Prilosec, a drug designed to treat acid-related gastrointestinal disorders. The district court divided the defendants into two separate “waves” for purposes of trial. For each wave, the district court held a consolidated bench trial.

We decided appeals from the “first wave” litigation in In re Omeprazole Pat[1365]*1365ent Litigation, 84 Fed.Appx. 76 (Fed.Cir.2003), and In re Omeprazole Patent Litigation, 483 F.3d 1364 (Fed.Cir.2007). The present appeals arise from the “second wave” litigation. In the second wave cases, the district court entered judgment of noninfringement with respect to Mylan Laboratories, Inc., and judgments of infringement against Apotex and Impax. Astra appealed the judgment of nonin-fringement in the Mylan case, and we recently affirmed that judgment in In re Omeprazole Patent Litigation, 2008 WL 2369864 (Fed.Cir. June 10, 2008). In this consolidated appeal, Apotex and Impax challenge the district court’s judgments of infringement against each of them. Because we find no error in the district court’s decision, we affirm.

I

The patents involved in this appeal are U.S. Patent No. 4,786,505 (“the '505 patent”) and U.S. Patent No. 4,853,230 (“the '230 patent”). The two patents relate to pharmaceutical preparations containing omeprazole, the active ingredient in Prilo-sec. Omeprazole is a potent inhibitor of gastric acid secretion, but it is susceptible to degradation in acid-reacting and neutral media. Its stability is also affected by moisture and organic solvents. To protect omeprazole from gastric acid in the stomach, a pharmaceutical dosage can include an enteric coating that covers the drug core. Enteric coatings, however, contain acidic compounds, which can cause the omeprazole in the drug core to decompose while the dosage is in storage, resulting in discoloration and decreasing omeprazole content in the dosage over time. To increase the storage stability of a pharmaceutical dosage, alkaline reacting compounds (“ARCs”) may be added to the drug core. The addition of an ARC, however, can compromise the enteric coating. A conventional enteric coating allows for some diffusion of water from gastric juices into the drug core, but water entering the drug core will dissolve the ARCs, which can in turn cause the enteric coating to dissolve. '505 patent, col. 1, line 33, to col. 2, line 4.

The inventors of the '505 and '230 patents solved that problem by adding an inert subcoating that rapidly disintegrates in water. The subcoating increases storage stability and provides sufficient gastric acid resistance to prevent omeprazole from degrading in the stomach. Once the dosage reaches the small intestine, the solubility of the subcoating allows for rapid release of the omeprazole in the drug core. '505 patent, col. 5,11.19-68.

The '505 patent covers a pharmaceutical preparation containing omeprazole. Claim 1 recites:

An oral pharmaceutical preparation comprising
(a) a core region comprising an effective amount of a material selected from the group consisting of omeprazole plus an alkaline reacting compound, an alkaline omeprazole salt plus an alkaline reacting compound and an alkaline omeprazole salt alone;
(b) an inert subcoating which is soluble or rapidly disintegrating in water disposed on said core region, said subcoat-ing comprising one or more layers of materials selected from among tablet ex-cipients and polymeric film-forming compounds; and
(c) an outer layer disposed on said sub-coating comprising an enteric coating.

The '230 patent more broadly covers a preparation containing an “acid-labile pharmaceutically active substance.” Claim 1 of the '230 patent recites:

A pharmaceutical preparation comprising:
(a) an alkaline reacting core comprising an acid-labile pharmaceutically active [1366]*1366substance and an alkaline reacting compound different from said active substance, an alkaline salt of an acid labile pharmaceutically active substance, or an alkaline salt of an acid labile pharmaceu-tically active substance and an alkaline reacting compound different from said active substance;
(b) an inert subcoating which rapidly dissolves or disintegrates in water disposed on said core region, said subcoat-ing comprising one or more layers comprising materials selected from the group consisting of tablet excipients, film-forming compounds and alkaline compounds; and
(c) an enteric coating layer surrounding said subcoating layer, wherein the sub-coating layer isolates the alkaline reacting core from the enteric coating layer such that the stability of the preparation is enhanced.

II

On December 31, 1999, Impax sought approval from the Food and Drug Administration (“FDA”) to sell 10- and 20-mg generic versions of Prilosec. In response, Astra filed suit for infringement of the '505 and '230 patents under 35 U.S.C. § 271(e)(2)(A). Astra filed a second action against Impax after Impax amended its application to include a 40-mg product. In September 2004, the FDA granted Impax final approval to market its 10- and 20-mg omeprazole products. Impax began marketing its approved products, which prompted Astra to amend its complaint to include claims for damages under 35 U.S.C. § 271(a)-(c). Impax filed an answer to Astra’s second amended complaint in which it asserted counterclaims for fraud and sham litigation, for a declaration of unenforceability as to the two patents, and for declarations of noninfringement and invalidity as to all the claims of both patents. Impax demanded a jury trial for all of its counterclaims and for Astra’s claims of infringement.

At that time, Astra’s claims for damages and willful infringement had been severed and stayed pending the resolution of the liability issues in the case. Astra and Im-pax had also agreed in 2003 to sever and stay Impax’s antitrust counterclaims. At a hearing on December 1, 2005, Astra asked the court to sever its claims of infringement under section 271(a)-(c) from its claims under section 271(e), for which it did not seek damages, so that the district court could consolidate its claims against Impax under section 271(e) in a bench trial with the other defendants. The district court requested briefing on whether Im-pax was entitled to a jury trial. In response, Astra stipulated that it would agree to dismiss its demand for damages against Impax with prejudice if the district court heard its claims against Impax in the consolidated bench trial.

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In Re Omeprazole Patent Litigation
536 F.3d 1361 (Federal Circuit, 2008)

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Bluebook (online)
536 F.3d 1361, 87 U.S.P.Q. 2d (BNA) 1865, 2008 U.S. App. LEXIS 17691, Counsel Stack Legal Research, https://law.counselstack.com/opinion/astrazeneca-ab-v-apotex-corp-cafc-2008.