Celgene Corporation v. Mylan Pharmaceuticals Inc.

17 F.4th 1111
CourtCourt of Appeals for the Federal Circuit
DecidedNovember 5, 2021
Docket21-1154
StatusPublished
Cited by31 cases

This text of 17 F.4th 1111 (Celgene Corporation v. Mylan Pharmaceuticals 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
Celgene Corporation v. Mylan Pharmaceuticals Inc., 17 F.4th 1111 (Fed. Cir. 2021).

Opinion

Case: 21-1154 Document: 50 Page: 1 Filed: 11/05/2021

United States Court of Appeals for the Federal Circuit ______________________

CELGENE CORPORATION, Plaintiff-Appellant

v.

MYLAN PHARMACEUTICALS INC., MYLAN INC., MYLAN N.V., Defendants-Appellees ______________________

2021-1154 ______________________

Appeal from the United States District Court for the District of New Jersey in No. 2:19-cv-05802-ES-MAH, Judge Esther Salas. ______________________

Decided: November 5, 2021 ______________________

ELLYDE R. THOMPSON, Quinn Emanuel Urquhart & Sullivan, LLP, New York, NY, argued for plaintiff-appel- lant. Also represented by FRANCIS DOMINIC CERRITO, FRANK CHARLES CALVOSA, ERIC C. STOPS; MATTHEW J. HERTKO, Jones Day, Chicago, IL; JENNIFER L. SWIZE, Washington, DC.

TUNG ON KONG, Wilson, Sonsini, Goodrich & Rosati, PC, San Francisco, CA, argued for defendants-appellees. Also represented by KRISTINA M. HANSON; STEFFEN Case: 21-1154 Document: 50 Page: 2 Filed: 11/05/2021

NATHANAEL JOHNSON, GEORGE E. POWELL, III, Washing- ton, DC; ELHAM FIROUZI San Diego, CA. ______________________

Before PROST, CHEN, and HUGHES, Circuit Judges. PROST, Circuit Judge. This is a case about venue and pleading under the Hatch-Waxman Act. Celgene Corporation (“Celgene”) markets pomalido- mide as a multiple-myeloma drug under the brand name Pomalyst. It has patents related to that drug, but many drug companies viewed the validity or applicability of those patents with skepticism and sought to bring generic poma- lidomide to market. They applied to the FDA to do so; Celgene sued. This appeal concerns Celgene’s suit sur- rounding the abbreviated new drug application (“ANDA”) submitted by Mylan Pharmaceuticals Inc. (“MPI”). Celgene filed that suit in New Jersey. Celgene is head- quartered there, but none of the defendants are. Rather, MPI is based in West Virginia, Mylan Inc. in Pennsylvania, and Mylan N.V. in Pennsylvania and the Netherlands. The district court ultimately dismissed this case for improper venue (as to MPI and Mylan Inc.) and for failure to state a claim (as to Mylan N.V.). Celgene appeals. For the reasons below, we agree with the district court that venue was improper in New Jersey for the domestic- corporation defendants, MPI and Mylan Inc. That is, Celgene did not show that those defendants committed acts of infringement in New Jersey and have a regular and es- tablished place of business there. We also agree that, as to the foreign-corporation defendant, Mylan N.V., Celgene’s pleadings failed to state a claim upon which relief could be granted. We therefore affirm. Case: 21-1154 Document: 50 Page: 3 Filed: 11/05/2021

CELGENE CORPORATION v. MYLAN PHARMACEUTICALS INC. 3

I A In 1984, Congress enacted the Hatch-Waxman Act, a complex statutory framework that tries to balance generic and brand interests within the pharmaceutical industry. See Drug Price Competition and Patent Term Restoration Act of 1984, Pub. L. No. 98-417, 98 Stat. 1585. One aim of Hatch-Waxman was to “speed the introduction of low-cost generic drugs to the market.” Caraco Pharm. Labs., Ltd. v. Novo Nordisk A/S, 566 U.S. 399, 405 (2012); see also Eli Lilly & Co. v. Medtronic, Inc., 496 U.S. 661, 676 (1990). To market a new drug, a sponsor submits to the FDA a new drug application (“NDA”). See Caraco, 566 U.S. at 404. An NDA must contain the drug’s proposed labeling and directions for use but also must contain extensive in- formation on clinical trials showing that the drug is safe and effective for its labeled use. See id. Brand-drug spon- sors are also required to inform the FDA of all its patents covering the drug or its labeled methods of use. See 21 U.S.C. § 355(b)(1), (c)(2). These patents are publicly listed in what is known as the Orange Book. Caraco, 566 U.S. at 405–06. To speed the introduction of low-cost generics, Hatch- Waxman includes the option for generic-drug sponsors to submit an abbreviated new drug application, or ANDA. With an ANDA, a generic-drug sponsor need not repeat a brand drug’s safety-and-efficacy trials at great (and scien- tifically redundant) expense. Instead, a generic-drug spon- sor must show that its product is bioequivalent to the reference brand drug. See id. If so, the sponsor can market that generic drug with a label matching that of brand drug. See id. at 415, 425. A generic-drug sponsor may not market a drug in a way that infringes a brand-drug sponsor’s patents. See id. at 405–06; FTC v. Actavis, Inc., 570 U.S. 136, 143 (2013). Case: 21-1154 Document: 50 Page: 4 Filed: 11/05/2021

The generic must therefore “assure the FDA” that market- ing the generic “will not infringe.” Actavis, 570 U.S. at 143. It does so through certifications to the FDA. An ANDA applicant might choose to avoid infringe- ment by waiting out a patent’s term. If so, the applicant includes with its ANDA a so-called paragraph III certifica- tion for that patent. See 21 U.S.C. § 355(j)(2)(A)(vii)(III). It might also omit a patented method of use from its drug label and therefore not seek approval in a way that impli- cates the patent. See 21 U.S.C. § 355(j)(2)(A)(viii); Caraco, 566 U.S. at 406–07, 425; United Food & Com. Workers Lo- cal 1776 & Participating Emps. Health & Welfare Fund v. Takeda Pharm. Co., 11 F.4th 118, 124–27 (2d Cir. 2021). But an applicant might also think that a patent is invalid, unenforceable, or not infringed, notwithstanding its ANDA encompassing the same methods of use as the brand drug’s NDA. If so, the applicant can ask for full approval (without omitting any methods of use from its drug label) during the patent’s term and include with its ANDA a paragraph IV certification. See 21 U.S.C. § 355(j)(2)(A)(vii)(IV). Submitting an ANDA that seeks approval to market a drug while that drug is on-patent (e.g., an ANDA contain- ing a paragraph IV certification) is patent infringement. 35 U.S.C. § 271(e)(2); see also Valeant Pharms. N. Am. LLC v. Mylan Pharms. Inc., 978 F.3d 1374, 1381–82 (Fed. Cir. 2020). 1 If a generic goes the paragraph IV route, the brand can sue under a set of rules particular to this kind of in- fringement. The way this works is that the generic must

1 That is not to say that a generic’s failure to comply with some procedural rule surrounding the paragraph IV certification renders an ANDA noninfringing. The statu- tory infringement question is whether the “purpose” of the submitted ANDA “is to obtain approval” to market the drug “before the expiration of [the relevant] patent.” 35 U.S.C. § 271(e)(2). Case: 21-1154 Document: 50 Page: 5 Filed: 11/05/2021

CELGENE CORPORATION v. MYLAN PHARMACEUTICALS INC. 5

provide a so-called paragraph IV notice to the patentee brand-drug sponsor after it submits its ANDA and the FDA confirms receipt of the submission. See 21 U.S.C. § 355(j)(2)(B); see also id. § 355(j)(2)(B)(ii)(I). That notice must include “a detailed statement of the factual and legal basis of the opinion of the applicant that the patent is in- valid or will not be infringed.” 21 U.S.C. §

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