CareDx, Inc. v. Natera, Inc.

District Court, D. Delaware·Decided September 28, 2021·No. 1:19-cv-00567·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE CAREDX, INC. and THE BOARD OF TRUSTEES OF THE LELAND STANFORD JUNIOR UNIVERSITY, Plaintiffs, Civil Action No. 19-0567-CFC-CJB CONSOLIDATED V. NATERA, INC., Defendant.

CAREDX, INC. and THE BOARD OF TRUSTEES OF THE LELAND STANFORD JUNIOR UNIVERSITY,

Plaintiffs, Civil Action No. 19-1804-CFC-CJB

V. EUROFINS VIRACOR, INC., Defendant.

Brian Farnan, Michael Farnan, FARNAN LLP, Wilmington, Delaware; Derek Walter, Edward Reines, WEIL, GOTSHAL & MANGES LLP, Redwood Shores, California; Stephen Bosco, WEIL, GOTSHAL & MANGES LLP, Washington, District of Columbia Counsel for Plaintiffs

Jack Blumenfeld, Anthony Raucci, Derek Fahnestock, MORRIS, NICHOLS, ARSHT & TUNNELL LLP, Wilmington, Delaware; Kevin Johnson, QUINN EMANUEL URQUHART & SULLIVAN, LLP, Redwood Shores, California; Andrew Holmes, Carl Anderson, Felipe Corredor, QUINN EMANUEL URQUHART & SULLIVAN, LLP, San Francisco, California; Sandra Haberny, QUINN EMANUEL URQUHART & SULLIVAN, LLP, Los Angeles, California Counsel for Defendant Natera, Inc. John Shaw, Karen Keller, David Fry, Nathan Hoeschen, SHAW KELLER LLP, Wilmington, Delaware; J. Anthony Downs, GOODWIN PROCTER LLP, Boston, Massachusetts; Darryl Woo, GOODWIN PROCTER LLP, San Francisco, California; Beth Ashbridge, GOODWIN PROCTER LLP, New York, New York; Myomi Coad, GOODWIN PROCTER LLP, Washington, District of Columbia

Counsel for Defendant Eurofins Viracor, Inc.

MEMORANDUM OPINION

September 28, 2021 Wilmington, Delaware

ii

Le F, CORROLLY CHIEF JUDGE Plaintiffs CareDx, Inc. and the Board of Trustees of the Leland Stanford Junior University (collectively, CareDx) have sued Defendants Natera, Inc. (C.A. No. 19-0567) and Eurofins Viracor, Inc. (C.A. No. 19-1804) for patent infringement. On December 1, 2020, I denied Natera’s and Eurofins’s motions for

summary judgment of invalidity of the asserted patents under 35 U.S.C. § 101. C.A. No. 19-0567, D.I. 115; C.A. No. 19-1804, D.I. 76. I subsequently decided, after identifying material facts that may not be genuinely in dispute, to reconsider

summary judgment of invalidity of the asserted patents on my own pursuant to Federal Rule of Civil Procedure 56(f)(3) and the Court’s inherent authority.’ I held

an evidentiary hearing and permitted the parties to submit briefing after the

' Pursuant to Federal Rule of Civil Procedure 56(f)(3), “[a]fter giving notice and a reasonable time to respond, the court may consider summary judgment on its own after identifying for the parties the material facts that may not be genuinely in dispute.” Under Third Circuit law, which governs the procedures by which this case is handled, a district court may revisit a prior decision sua sponte so long as it has not entered a final judgment depriving it of jurisdiction to reconsider the issue. DeFranco v. Wolfe, 387 F. App’x 147, 155 (3d Cir. 2010); see also Escanio v. United Parcel Serv., 538 F. App’x 195, 199 (3d Cir. 2013) (judge may revisit earlier interlocutory denial of summary judgment). “In order to revisit a prior decision, the Court must explain on the record the reasoning behind its decision to reconsider the prior ruling, and it must take appropriate steps so that the parties are not prejudiced by reliance on the prior ruling.” DeFranco, 387 F. App’x at 156.

hearing. I have now determined, for the reasons set forth below, that there are no genuine disputes of material fact and that summary judgments in Defendants’ favor

are warranted because the asserted patents claim patent-ineligible subject matter and are therefore invalid under § 101. See Fed. R. Civ. P. 56(a) (“The court shall grant summary judgment if the movant shows that there is no genuine dispute as to

any material fact and the movant is entitled to judgment as a matter of law.”). I. THE ASSERTED PATENTS CareDx has asserted three patents: U.S. Patent Numbers 8,703,652 (the #652 patent) (asserted against Natera and Eurofins); 9,845,497 (the #497 patent) (asserted against Natera); and 10,329,607 (the #607 patent) (asserted against Natera). As described by CareDx in the operative Amended Complaint against Natera, all three patents disclose “method[s] for determining organ transplant rejection” that “allow[ ] doctors to assess rejection through blood tests and without invasive biopsies.” C.A. No. 19-0567, D.I. 74 § 1.2 An important determinant of the success or failure of an organ transplant is whether, and the extent to which, the recipient’s body “rejects” the organ and attacks it with the body’s immune system. Early detection of rejection is crucial to a transplant operation’s success and the recipient’s survival.

2 Unless otherwise noted, all docket citations that follow will be to C.A. No. 19- 0567.

The methods disclosed in the patents, to use CareDx’s words, “detect [ ] particular concentrations of donor-specific, cell-free DNA in the bodies of donor recipients ....” D.[. 15 at 3. The linkage between concentrations of the organ donor’s cell-free DNA (cf{DNA) found in the recipient’s blood after the organ transplant and the likelihood that the recipient will reject the newly transplanted organ was “long-known” before 2009, when the applications for the asserted patents were filed with the United States Patent and Trademark Office (PTO). D.I. 176 at 2. According to CareDx, attempts to detect the concentration of donor- specific cf(DNA as of 2009 were “deficient,” and the methods claimed by the asserted patents “improved on these deficiencies [sic] through the use of innovative, highly precise assays capable of detecting tiny increases in donor- specific DNA, thereby allowing doctors to recognize the onset of organ rejection before the damage becomes irreversible.” D.I. 15 at 2. The three asserted patents share a single written description and are all titled “Non-invasive Diagnosis of Graft Rejection in Organ Transplant Patients.” Each patent has a priority date in November 2009. The shared written description states that the claimed “invention describes sensitive and non-invasive methods . . . for diagnosing or predicting transplant status or outcome (e.g. transplant rejection).”

#657 patent at 3:52~55.3 A detection method is said to be “sensitive” in two respects. Sensitivity can refer to the smallest absolute amount of change that can be detected by a method, Tr. of May 17, 2021 Hr’g at 96:25-97:14; or it can refer to the method’s ability to correctly identify a patient with a particular disease, id. at 111:9-22. CareDx alleged in its operative complaints that claim 1 of each asserted patent is “representative.” See D.I. 74 Ff 20, 23, 26; C.A. No. 19-1804, DI. 1 4 17. Defendants assert, and CareDx does not dispute, that claim 1 in each patent is sufficiently similar to the respective patent’s other claims to be deemed a representative claim for determining whether the patent claims patent-eligible subject matter.

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