Bristol-Myers Squibb Company and E.R. Squibb & Sons, Inc. v. Royce Laboratories, Inc.

69 F.3d 1130, 1995 WL 640122
CourtCourt of Appeals for the Federal Circuit
DecidedDecember 8, 1995
Docket95-1502
StatusPublished
Cited by56 cases

This text of 69 F.3d 1130 (Bristol-Myers Squibb Company and E.R. Squibb & Sons, Inc. v. Royce Laboratories, Inc.) 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
Bristol-Myers Squibb Company and E.R. Squibb & Sons, Inc. v. Royce Laboratories, Inc., 69 F.3d 1130, 1995 WL 640122 (Fed. Cir. 1995).

Opinion

*1131 SCHALL, Circuit Judge.

Bristol-Myers Squibb Company and E.R. Squibb & Sons, Inc. (collectively, “Bristol”) own United States Patent No. 4,105,776 (the “’776 patent”), which claims the drug capto-pril. In this action, Bristol appeals from the August 24, 1995 order of the United States District Court for the Southern District of Florida in Bristol-Myers Squibb Co. v. Royce Labs, Inc., No. 95-1682-CIV-DAVIS, 1995 WL 568395. In its order, the court granted the motion of Royce Laboratories, Inc. (“Royce”) pursuant to Fed.R.Civ.P. 12(b)(6) to dismiss, for failure to state a claim upon which relief could be granted, Bristol’s suit charging Royce with infringement of the ’776 patent. The court also granted Royce’s motion to set aside the statutory bar against the Food and Drug Administration (“FDA”) approving Royce’s abbreviated new drug application (“ANDA”) for a generic version of eaptopril. We reverse and remand.

BACKGROUND

I.

Two laws are at issue in this case: The Drug Price Competition and Patent Term Restoration Act, Pub.L. No. 98-417, 98 Stat. 1585 (1984) (codified as amended at 21 U.S.C. § 355 (1994) and 35 U.S.C.A. § 271(d)-(h) (West Supp.1995)) (the “Hatch-Waxman Act”); and the Uruguay Round Agreements Act, Pub.L. No. 103-465, 108 Stat. 4809 (1994) (codified as amended at 35 U.S.C.A. § 154 (West Supp.1995)) (the “URAA”). We begin with the statutory scheme.

A. The Hatch-Waxman Act

The Hatch-Waxman Act amended the Federal Food, Drug, and Cosmetic Act, Pub.L. No. 52-675, 52 Stat. 1040 (1938), (codified as amended at 21 U.S.C. §§ 301 et seq. (1994)) (the “FDCA”), as well as the patent laws, in several important respects. Under the FDCA, the FDA is responsible for determining whether a generic drug product should be approved for sale to the public. 21 U.S.C. § 355(a). Pursuant to the Hatch-Waxman Act, a pharmaceutical manufacturer seeking expedited FDA approval to market a generic version of a patented drug may submit an ANDA. 21 U.S.C. § 355(j). An applicant submitting an ANDA must certify one of four things: (1) that the drug for which the ANDA is submitted has not been patented (a “paragraph I” certification); (2) that any patent on such drug has expired (a “paragraph II” certification); (3) the date on which the patent on such drug will expire, if it has not yet expired (a “paragraph III” certification); or (4) that the patent on such drug “is invalid or that it will not be infringed by the manufacture, use, or sale of the new drug” for which the ANDA is submitted (a “paragraph IV” certification). 21 U.S.C. § 355(j)(2)(A)(vii)(I)-(IV). When an applicant submits an ANDA that contains a paragraph IV certification, it must give the owner of the relevant patent notice of the certification. 21 U.S.C. § 355(j)(2)(B).

The Hatch-Waxman Act provides generally that “[i]t shall not be an act of infringement to make, use, or sell a patented invention ... solely for uses reasonably related to the development and submission of information under a Federal law which regulates the manufacture, use, or sale of drugs.” 35 U.S.C.A. § 271(e)(1). Inclusion of a paragraph IV certification in an ANDA, however, is deemed an act of infringement. The statute, referring to an ANDA containing a paragraph IV certification, states: “It shall be an act of infringement” to submit an application under 21 U.S.C. § 355(j) “for a drug claimed in a patent ... if the purpose of such submission is to obtain approval ... to engage in the commercial manufacture, use, or sale of [the] drug ... before the expiration of [the] patent.” 35 U.S.C.A. § 271(e)(2)(A).

If an ANDA contains a paragraph I or a paragraph II certification, and all applicable scientific and regulatory requirements have been met, FDA approval of the ANDA is effective immediately. 21 U.S.C. § 355(j)(4)(A), (B)(i). If the ANDA contains a paragraph III certification, and all applicable scientific and regulatory requirements have been met, approval is effective on the patent expiration date stated in the certification. 21 U.S.C. § 355(j)(4)(A), (B)(n).

If the ANDA contains a paragraph TV certification, and all applicable scientific and regulatory requirements have been met, ap *1132 proval of the ANDA “shall be made effective immediately” unless the patent owner brings an action for infringement under 35 U.S.C.A. § 271(e)(2)(A) within forty-five days of receiving the notice required by 21 U.S.C. § 355(j)(2)(B). 21 U.S.C. § 355(j)(4)(B)(iii). The Hateh-Waxman Act further provides that, when a patent owner brings a section 271(e)(2)(A) infringement action, the FDA must suspend approval of the ANDA. Id. The suspension continues — and the FDA cannot approve the ANDA — until the earliest of three dates: (i) if the court decides that the patent is invalid or not infringed, the date of the court’s decision; (ii) if the court decides that the patent has been infringed, the date that the patent expires; or (iii) subject to modification by the court, the date that is thirty months from the patent owner’s receipt of notice of the filing of the paragraph IV certification. 21 U.S.C. § 355(j)(4)(B)(iii)(I) — (III); 35 U.S.C.A. 271(e)(4)(A).

Thus, the Hateh-Waxman Act strikes a balance between the interests of a party seeking approval of an ANDA and the owner of a drug patent. On the one hand, the manufacture, use, or sale of a patented drug is not an act of infringement, to the extent it is necessary for the preparation and submission of an ANDA. On the other hand, once it is clear that a party seeking approval of an ANDA wants to market a patented drug prior to the expiration of the patent, the patent owner can seek to prevent approval of the ANDA by bringing a patent infringement suit. While it is pending, such a suit can have the effect of barring ANDA approval for two and a half years.

B. The URAA

President Clinton signed the URAA on December 8, 1994, implementing the participation of the United States in the General Agreement on Tariffs and Trade. Section 532(c) of the URAA is the provision of the act that is applicable to this case.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Mylan, Inc. & Subsidiaries
U.S. Tax Court, 2021
Pfizer. Inc. v. Mylan Inc.
201 F. Supp. 3d 483 (D. Delaware, 2016)
Acorda Therapeutics Inc. v. Mylan Pharmaceuticals Inc.
817 F.3d 755 (Federal Circuit, 2016)
Ferring B v. v. Watson Laboratories, Inc.
764 F.3d 1401 (Federal Circuit, 2014)
Takeda Pharmaceutical Co. v. Mylan Inc.
62 F. Supp. 3d 1115 (N.D. California, 2014)
Dey, L.P. v. Teva Parenteral Medicines, Inc.
6 F. Supp. 3d 651 (N.D. West Virginia, 2014)
ALLERGAN, INC. v. Sandoz, Inc.
818 F. Supp. 2d 974 (E.D. Texas, 2011)
Alcon Research, Ltd. v. Apotex Inc.
790 F. Supp. 2d 868 (S.D. Indiana, 2011)
Wyeth v. Sandoz, Inc.
703 F. Supp. 2d 508 (E.D. North Carolina, 2010)
Canadian Lumber Trade Alliance v. United States
517 F.3d 1319 (Federal Circuit, 2008)
Wyeth v. Lupin Ltd.
505 F. Supp. 2d 303 (D. Maryland, 2007)
California Industrial Products, Inc. v. United States
436 F.3d 1341 (Federal Circuit, 2006)

Cite This Page — Counsel Stack

Bluebook (online)
69 F.3d 1130, 1995 WL 640122, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bristol-myers-squibb-company-and-er-squibb-sons-inc-v-royce-cafc-1995.