Fresenius Kabi USA, LLC v. Dr. Reddy's Laboratories, Ltd.

65 F. Supp. 3d 379, 2014 WL 4215307
CourtDistrict Court, D. Delaware
DecidedAugust 25, 2014
DocketCivil Action Nos. 13-925-RGA, 13-1015-RGA
StatusPublished

This text of 65 F. Supp. 3d 379 (Fresenius Kabi USA, LLC v. Dr. Reddy's Laboratories, Ltd.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fresenius Kabi USA, LLC v. Dr. Reddy's Laboratories, Ltd., 65 F. Supp. 3d 379, 2014 WL 4215307 (D. Del. 2014).

Opinion

TRIAL Opinion

ANDREWS, U.S. District Judge:

Plaintiff, Fresenius Kabi USA, LLC, brought this suit against Dr. Reddy’s Laboratories, Ltd., Dr. Reddy’s Laboratories, Inc. (collectively “Dr. Reddy”), Watson Laboratories, Inc., and Actavis, Inc. (collectively “Watson”), for infringement of four U.S. Patents: Nos. 5,714,520 (“the '520 patent”), 5,731,355 (“the '355 patent), 5,731,356 (“the '356 patent”) and 5,908,869 (“the '869 patent”) (collectively, “the patents in suit”). Fresenius sells a propofol injectable emulsion product, under the trade name Diprivan, and- listed the patents in suit in the Food and Drug Administration’s “Approved Drug Products with Therapeutic Equivalence Evaluations” (commonly referred to as the “Orange [381]*381Book”) as covering Diprivan. Defendants’ Abbreviated New Drug Applications (“AN-DAs”) seek approval to engage in the commercial manufacture, importation, use, or sale of a propofol injectable emulsion product before the expiration of the patents in suit.

Fresenius asserts that the Defendants’ generic products would infringe claims 1,16, 36, and 37 of each of the patents in suit. The patents in suit all concern pharmaceutical compositions containing propo-fol and edetate. All asserted claims contain “edetate” as a limitation. The Court has adopted the construction of “edetate,” set forth in Abraxis Bioseience, Inc. v. Mayne Pharma (USA), Inc., 467 F.3d 1370, 1378 (Fed.Cir.2006), as “EDTA and derivatives of EDTA, such as salts, but not including structural analogs.” Fresenius concedes that Defendants’ ANDA products do not literally infringe the “edetate” limitation. In order to expedite trial, the parties stipulated that the only issue for trial was whether Defendants infringe the “ede-tate” limitation under the doctrine of equivalents. (D.I. 21 in 13-925). The Court held a two day bench trial on June 2-3, 2014. As explained below, Fresenius did not prove infringement by a preponderance of the evidence.

I. INFRINGEMENT

Because prior propofol emulsion formulations were susceptible to microbial contamination and growth, the formulations required the addition of an antimicrobial. The specification1 makes clear that the critical part of the invention was the discovery that edetate is a broad-spectrum antimicrobial that can be added to propofol emulsions. '520 patent at Col. 4:22-37. The inventors studied at least ten known preservatives besides edetate. None of the others met the inventor’s requirements. '520 patent at Col. 4:22-37.

The inventors explained that there were numerous difficulties in finding a preservative that could be added to the propofol emulsion. Specifically, the inventors had to find a hydrophilic additive, because it was believed that the antimicrobial properties were exerted in the aqueous phase. '520 patent at Col. 3:55-60. The inventors believed that a lipo-philic preservative would not be effective because there would be insufficient amounts in the aqueous phase and too much in the lipid layer, leading to toxicity problems. '520 patent at Col. 3:60-67. During the inventors’ investigation they considered or tested phenylmercuric acetate, phenylmercuric nitrate, benzyl alcohol, ehlorobutanol, chlorocresol, phenol, sodium metabisulphite, sodium sulphite, sodium methyl hydroxybenzoate and sodium propyl hydroxybenzoate. '520 patent at Col. 4:22-28.

The inventors’ discovery that edetate could be added to propofol as an antimicrobial resulted in the issuance of the patents in suit. The following claims of the '520 patent are representative:

1. A sterile pharmaceutical composition for parenteral administration which comprises an oil-in-water emulsion in which propofol dissolved in a water-immiscible solvent, is emulsified with water and stabilized by means of a surfactant, and which further comprises an amount of edetate sufficient to prevent a no more than 10-fold increase in growth of each of Staphylococcus aureus ATCC 6438, Escherichia coli ATCC 8739, Pseudomonas aeruginosa ATCC 9027 and Candida albicans ATCC 10231 for at least 24 hours as measured by a test wherein a washed suspension of each said organism is added to a separate [382]*382aliquot of said composition at approximately 50 colony forming units per ml. at a temperature in the range 20°-25° C, whereafter said aliquots are incubated at 20°-25° C. and are tested for viable counts of said organism after 24 hours, said amount of edetate being no more than 0.1% by weight of said composition. 16. A sterile pharmaceutical composition for parenteral administration which comprises an oil-in-water emulsion in which propofol dissolved in a water-immiscible solvent, is emulsified with water and stabilized by means of a surfactant, and which further comprises an amount of edetate wherein the amount of ede-tate is a molar concentration in the range 3x10‘5 to 9xl0"4.

'520 patent claims 1 and 16.

Defendants’ ANDA products are oil-in-water emulsions. PTX-013; PTX-021; Tr. at 241:9-242:7. Propofol is dissolved in soybean oil along with egg phospholipids, which is then mixed with an aqueous solution. Tr. at 270:20-28, 280:11-24; PTX-013; PTX-021. After homogenization, the egg phospholipids act as emulsifiers, allowing the oil phase to be evenly distributed in tiny droplets throughout the continuous aqueous phase. Tr. at 247:21-249:7, 252:22-253:10, 259:20-260:4. Excess phos-pholipids combine to form spherical bilayer phospholipid structures, or liposomes. Tr. at 257:21-258:18.

Defendants certified that the only differences between Diprivan and Defendants’ ANDA products are the antimicrobial agents. PTX-013; PTX-021. Dr. Red-dy’s formulation employs benzyl alcohol as the antimicrobial agent (PTX-013), while Watson employs sodium benzoate as the antimicrobial agent. (PTX-021). Freseni-us concedes that there is no literal inr fringement, but claims that Defendants’ ANDA products infringe under the doctrine of equivalents.

Fresenius does not allege that benzyl alcohol or sodium benzoate are equivalents of edetate.2 Instead, Fresenius argues that benzyl alcohol and sodium benzoate do not actually work as preservatives, and that it is dipropofol that is the true preservative in the formulations. The ANDAs do not identify dipropofol as a preservative, but as a possible degradation product of propofol, present at less than 0.005 mg/ ml. Tr.' at 531:7-19, 424:14-21, 425:3-8; DTX-236 at 4; DTX-026 at 20. Defendants’ ANDA products have been tested for the presence of dipropofol, but none was detected within the accuracy of the test. DDX-91 at DRLPROP 00273; Tr. at 425:9-13, 531:23-532:5; DTX-247 at 1-3. In other words, while the testing did not show the presence of any dipropofol, it also did not prove that there was no dipro-pofol at all.

A. Legal Standard

The application of a patent claim to an accused product is a fact-specific inquiry. See Kustom Signals, Inc. v. Applied, Concepts, Inc., 264 F.3d 1326, 1332 (Fed.Cir.2001). Literal infringement is present only when each and every element set forth in the patent claims is found in the accused product. See Southwall Techs., Inc. v. Cardinal IG Co.,

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Bluebook (online)
65 F. Supp. 3d 379, 2014 WL 4215307, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fresenius-kabi-usa-llc-v-dr-reddys-laboratories-ltd-ded-2014.