Cumberland Pharmaceuticals, Inc. v. Mylan Institutional LLC

137 F. Supp. 3d 1108, 2015 U.S. Dist. LEXIS 134495, 2015 WL 5768530
CourtDistrict Court, N.D. Illinois
DecidedOctober 2, 2015
DocketNo. 12 C 3846
StatusPublished
Cited by2 cases

This text of 137 F. Supp. 3d 1108 (Cumberland Pharmaceuticals, Inc. v. Mylan Institutional LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Cumberland Pharmaceuticals, Inc. v. Mylan Institutional LLC, 137 F. Supp. 3d 1108, 2015 U.S. Dist. LEXIS 134495, 2015 WL 5768530 (N.D. Ill. 2015).

Opinion

AMENDED MEMORANDUM OPINION AND ORDER

REBECCA R. PALLMEYER, United States District Judge

Plaintiff Cumberland Pharmaceuticals, Inc. (“Cumberland”) develops, manufac[1111]*1111tures, and sells pharmaceutical products, including Acetadote, an intravenous treatment for suspected acetaminophen overdoses. In 2012, Cumberland filed this action, charging Defendants Mylan Institutional, LLC and Mylan, Inc. (collectively, “Mylan”) with- infringing two patents related to Acetadote: United States patents No. 8,148,356 (the “’356 patent”) and No. 8,399,445 (the “’445 patent”). Cumberland alleges that Mylan infringed these patents by attempting to obtain FDA approval for a generic formulation of Acetadote in violation of 35 U.S.C. § 271(e)(2). Cumberland has since withdrawn its claims related to the ’356 patent, but maintains its infringement charge for the ’445 patent. (See Signed Stip. & Order of Part. Dismissal [282].) Mylan has admitted infringement of claims 1-14 of the ’445 patent (see Joint Stip. of Infringement [248]), but contends the patent is invalid on several bases, including derivation, anticipation, and obviousness. Each of these defenses rests, in substantial part, on Mylan’s theory that it was an employee of the Food and Drug Administration (“FDA”), rather than a Cumberland employee, who conceived of the patent’s subject matter.

The parties filed cross-motions for summary judgment [212] [216] on the issue of the ’445 patent’s validity, both of which the court denied in an oral ruling on September 12, 2014. (See March 23, 2015 Minute Entry [300].) The court then held a bench trial on September 29, 2014 through October 3, 2014, and on October 20 and 21, 2014. Having reviewed the evidence presented at that hearing and the parties’ briefs, the court concludes that Mylan has failed to establish the ’445 patent’s invalidity by clear and convincing evidence. My-Ian is therefore liable to Cumberland for infringement of the ’445 patent.

BACKGROUND

I. Acetylcysteine: General Overview

Acetaminophen overdose sends as many as 78,000 Americans to the emergency room each year. Jeff Gerth & T. Christian Miller, Use Only as Directed, ProPu-blica, Sept. 20, 2013, http://www. propublica.org/article/tylenol-mcneil-fda-use-only-as-directed (last visited Sept. 28, 2105). Overdoses are common, in part, because acetaminophen (best known under-the brand name Tylenol) is found in varying doses in hundreds of common cold remedies and combination pain relievers that patients consume, often together, without monitoring the total amounts of acetaminophen they are ingesting. Acetaminophen poisoning can cause acute liver failure, severe brain damage, and even death. Id.

Acetylcysteine is a well-recognized antidote to acetaminophen overdose. For several decades prior to the issuance of the patents-in-suit, acetylcysteine was marketed worldwide generically as well as under several trade names as an inhalable product and as both an injectable and an oral agent to treat acetaminophen overdose.1 (’445 patent, col. 1:26-38.) As the ’445 patent explains,' however, “[a]cetylcysteine is not a stable molecule and is oxidized and degraded when in solution and exposed to air.” (’445 patent, col. 1:39-40.) To resolve this stability issue, all acetylcysteine products prior to the issuance of the ’356 and ’445 patents products contained ede-tate disodium (“EDTA”). (See Jt. Stip. of Undisp. Facts [256-1], ¶ 52; Mylan Resp. to Cumberland’s FF [295], ¶ 37.)

[1112]*1112EDTA is a chelating agent, that is, an “organic agent[] that bond[s] with and thereby sequester[s] free metal ions2 from solution.” (’445 patent,.col. 1:45-48.) EDTA has potential side effects, however. (See, e.g., ’445 patent at col. 2:16-22, 34-37) (EDTA known to have cause allergic reactions, or “a significant drop in serum calcium levels ... which may result in fatality, hypokalemia, hypomagnesemia, hypotension, and EDTA has also been shown to produce reproductive developmental toxicity in test animals.”).) An EDTA-free formulation was, thus, a potentially valuable, discovery. Cumberland successfully sought patents for acetylcysteine compositions free of chelating agents, specifically the ’356 patent and the ’445 patent. The ’356 patent, which issued on April 3, 2012, “relates to novel acetylcysteine compositions in solution, comprising acetylcy-steine and which are substantially free of metal chelating agents, such as EDTA.” (’356 patent, Abstract.) The ’445 patent issued on March .19, 2013 and claims the methods of administering the compositions covered by the’356 patent.

II. The’445 Patent

A. General Background

Claim 1 of the ’445 patent is illustrative of the nature of the invention:

1. A method of treating acetaminophen overdose, comprising: using a stable aqueous pharmaceutical composition comprising 200 mg/ml acetylcysteine or pharmaceutically acceptable salts thereof, wherein the composition is free of chelating agents, wherein said composition is in a suitable form for intravenous injection, wherein the pH of the composition is from 6 to 7.5, and wherein said composition is sealed -in an airtight container comprising a fill volume of said composition and a headspace volume occupied by a pharmaceutically inert gas; diluting the composition in an aqueous solution; and administering the diluted composition to a patient in need thereof.

(’445 patent at col. 9:15-30.) Following a claim construction hearing in August 2013, this court construed three disputed terms in the ’445 patent as follows:

• Free From A Chelating Agent and Free Of A Chelating Agent: “Lacking one or more chelating agents.”
• Acetylcysteine: “[T]he nonproprie-tary name for the N-acetyl derivative of. the naturally occurring amino acid, L-cysteine (also known as N-acetyl-L-cysteine and NAC) and impurities associated therewith.”
• Stable Aqueous Pharmaceutical Composition: “[A] composition that exhibits minimal change over time relative to when it is manufactured.”

Cumberland Pharm., Inc. v. Mylan Institutional LLC, No. 12-cv-3846, 2014 WL 787812 (N.D.Ill. Feb. 26, 2014).

B. Leo Pavliv and the ’445 Patent

Leo Pavliv, a senior vice president of operations at Cumberland, is the sole named inventor on the ’445 patent. (See ’445 patent; Jt. Stip. of Undisp. Facts ¶ 64.) Pavliv admits that he did not invent anything related to the original, EDTA-containing Acetadote product. (Cross Exam, of Pavliv at 1105:16-25.) Instead, his invention consists of modifying the original Acetadote formulation such that it [1113]*1113is “free of chelating agents,” as the ’445 patent teaches. (’445 patent at col. 9:19-20.) Mylan disagrees that Pavliv invented anything, and also that to the extent the ’445 patent is valid, the real inventor is the FDA through one or more of its employees, not Pavliv. The parties cite to the same record evidence as establishing their position, which the court will review below in some detail.

1. EDTA-Containing Acetadote Application

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137 F. Supp. 3d 1108, 2015 U.S. Dist. LEXIS 134495, 2015 WL 5768530, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cumberland-pharmaceuticals-inc-v-mylan-institutional-llc-ilnd-2015.