BAUSCH HEALTH IRELAND LIMITED v. PADAGIS ISRAEL PHARMACEUTICALS LTD

District Court, D. New Jersey·Decided September 21, 2022·No. 2:20-cv-05426·Unknown

Opinion

NOT FOR PUBLICATION

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY _______________________________________ : BAUSCH HEALTH : Civil Action No. 20-5426 (SRC) IRELAND LIMITED, et al., : (CONSOLIDATED) : : OPINION & ORDER Plaintiffs, : : v. : : PADAGIS ISRAEL : PHARMACEUTICALS LTD et al., : : Defendants. : _______________________________________:

CHESLER, U.S.D.J. This matter comes before the Court on the motions in limine filed both by Plaintiffs Bausch Health Ireland Limited, Bausch Health Americas Inc., and Bausch Health US, LLC (collectively, “Bausch”) and by Defendants Padagis Israel Pharmaceuticals LTD and Padagis US LLC (collectively, “Padagis.”) Plaintiffs have filed four motions in limine and Defendants have filed two. For the reasons that follow, Plaintiffs’ first and third motions will be granted, Plaintiffs’ second motion will be denied, Plaintiffs’ fourth motion will be granted in part and denied in part, and Defendants’ motions will be denied. This case concern patents related to the pharmaceutical products Duobrii® and Bryhali®. Padagis is a pharmaceutical company which has filed ANDA Nos. 214285 and 214626 to produce generic versions of those pharmaceutical products. Bausch owns U.S. Patent Nos. 10,251,895 (“the ’895 patent”), 10,426,787 (“the ’787 patent,” and together with the ’895 patent, the “Combination Patents”), 8,809,307 (“the ’307 patent”) and 10,478,502 (“the ’502 patent”). The specification of the Combination Patents refers to a clinical study (“the 201 Study”) of a formulation identified as IDP-118, which has the same formulation as Bausch’s Duobrii® product. The Final Pretrial Order contains this stipulation of fact: 26. On January 22, 2014, Bausch registered the 201 Study, a Phase II clinical trial involving IDP-118, to ClinicalTrials.Gov as Study No. NCT02045277.

I. Plaintiffs’ first motion in limine Plaintiffs’ first in limine motion seeks to preclude Defendants from arguing at trial that statistical significance is required to satisfy the synergy limitations of the ‘895 and ‘787 patents. Plaintiffs argue, in short, that this Court construed the synergy limitations during claim construction, that Defendants could have asserted statistical significance claim limitations at that point but did not assert constructions which did so, and that arguments at trial which view the synergy limitations as requiring statistical significance are inconsistent with this Court’s Markman constructions. Padagis summarizes its arguments in opposition as follows: the evidence Bausch seeks to exclude does not relate to the construction or the meaning of the claim terms in the Patents-in-Suit. Instead, it relates to the highly factual issue of whether Bausch can present sufficient evidence to demonstrate that Padagis’s accused product actually practices the claims as construed. Thus, there is no conflict or inconsistency between Padagis’s evidence and any of the claim constructions in this case. . . . In both its infringement and written description analyses, this Court must determine whether the data disclosed in the Combination Patents shows that IDP- 118 is actually capable of providing synergistic efficacy and a synergistic reduction in an adverse event. To make that determination, the Court must account for the natural variability in the data and the likelihood that a calculation of synergy reflects a true effect of IDP-118 and not just random chance or variance observed in the clinical study. . . Assessing whether a calculation of synergy reflects an actual effect of IDP-118 is the purpose of Padagis’s evidence on statistical analysis and statistical significance. . . . Claim construction is only the first step of the patent infringement analysis, however, and the second step, a factual inquiry, requires comparing the allegedly

2 infringing product with the construed claims. Padagis’s evidence of statistical analysis and statistical significance is relevant to this second step. Statistical significance does not speak to how a POSA would understand or define synergy, and therefore, it was not an issue during claim construction. Instead, statistical significance addresses a different question: does a limited sample of observed data establish that a drug actually produces the level of efficacy (or adverse events) that is required to meet the definition of synergy?

(Defs.’ Opp. Br. at 1, 6-7, 8; emphasis added.) The question in boldface reflects the essence of Defendants’ understanding of what they believe to be a fundamental issue in the infringement inquiry.1 The problem for Defendants is that it relies on the proposition that a data analysis showing statistical significance is required to “establish that a drug actually produces [an effect.]” This Court first inquires: where did Defendants get this “actually” requirement? It seems that the effect of the “actually” requirement is to revise the construction of the claim language: agreeing with the “actually” requirement would have the effect of inserting new claim limitations.2 The relevant claims state: “the composition . . . is capable of providing synergistic efficacy and synergistic reduction . . .” (Claim 1 of the ‘787 patent; claim 1 of the ‘895 patent.) The language of the relevant claims requires that the compositions be “capable of providing” the synergistic effects. The plain language does not expressly require that the composition “actually produces” the synergistic effects, nor did this Court construe the language to have that meaning. Defendants use the words, “establish” and “actually produces,” to suggest a new requirement that “actually produces” must be “establish[ed]” by a data analysis which demonstrates statistical

1 Similarly, Defendants formulate the central question as whether there is “sufficient evidence showing that the drug actually meets” the synergy limitations. (Defs.’ Opp. Br. at 14.) 2 One might also view the “actually” requirement as an attempt to heighten the standard of proof applied to the infringement analysis, demanding more than a preponderance of the evidence.

3 significance.3 As to the synergy limitations, the patentee bears the burden of proof, by a preponderance of the evidence, that the accused infringer will likely market a product that is “capable of providing” the synergistic effects, as this Court has construed them. See Glaxo Inc. v. Novopharm Ltd., 110 F.3d 1562, 1570 (Fed. Cir. 1997) (“The relevant inquiry is whether the patentee has proven by a preponderance of the evidence that the alleged infringer will likely

market an infringing product.”) To support their position, Defendants appear to rely considerably on the opinions of their expert, Dr. Betensky. For example: “Dr. Betensky uses her analysis of statistical significance to . . . measure the reliability of any conclusions that can be drawn from the data in the Combination Patents.” (Defs. Opp. Br. at 15.) Defendants have not persuaded this Court that their expert’s opinions about how she might measure the reliability of conclusions about the data in the patent are even relevant to the infringement inquiry this Court must conduct, much less that Dr. Betensky should determine the structure for this Court’s infringement inquiry. Defendants further argue that their proposed “actually produces” test “goes to the

sufficiency and weight of evidence when comparing the construed claims to Padagis’s accused product in the second step of the infringement analysis.” (Defs.’ Opp. Br. at 8.) Again,

3 Similarly, Padagis contends that this Court must conduct “the factual analysis of whether a set of data can reliably support a conclusion that a particular product provides synergy.” (Defs.’ Opp. Br.

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BAUSCH HEALTH IRELAND LIMITED v. PADAGIS ISRAEL PHARMACEUTICALS LTD, (D.N.J. 2022).

BAUSCH HEALTH IRELAND LIMITED v. PADAGIS ISRAEL PHARMACEUTICALS LTD (BAUSCH HEALTH IRELAND LIMITED v. PADAGIS ISRAEL PHARMACEUTICALS LTD) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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