FRESENIUS KABI USA, LLC v. PAR STERILE PRODUCTS, LLC

CourtDistrict Court, D. New Jersey
DecidedFebruary 25, 2020
Docket2:16-cv-04544
StatusUnknown

This text of FRESENIUS KABI USA, LLC v. PAR STERILE PRODUCTS, LLC (FRESENIUS KABI USA, LLC v. PAR STERILE PRODUCTS, LLC) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey 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. PAR STERILE PRODUCTS, LLC, (D.N.J. 2020).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

FRESENIUS KABI USA, LLC, Case No: 16-4544 (SDW) (LDW)

Plaintiff,

v. OPINION

PAR STERILE PRODUCTS, LLC, and PAR PHARMACEUTICAL COMPANIES, INC., February 25, 2020 Defendants.

WIGENTON, District Judge. Before the Court is Plaintiff Fresenius Kabi USA, LLC’s (“Fresenius” or “Plaintiff”) and Defendants Par Sterile Products, LLC and Par Pharmaceutical Companies, Inc.’s (collectively, “Par” or “Defendants”) Motions for Summary Judgment, brought pursuant to Federal Rule of Civil Procedure 56. Jurisdiction is proper pursuant to 28 U.S.C. § 1331. Venue is proper pursuant to 28 U.S.C. § 1391. For the reasons stated below, Plaintiff’s motion is DENIED, and Defendants’ motion is GRANTED. I. BACKGROUND AND PROCEDURAL HISTORY1 Vasopressin Injection (“Vasopressin”) is a life-saving drug used to raise blood pressure in patients. (D.E. 163 ¶ 31.) Although Vasopressin originally did not require regulatory approval, in 2011, the Food and Drug Administration (“FDA”) required Vasopressin manufacturers to seek

1 Citations to “D.E. 154-1” refer to Par’s Statement of Material Facts Not in Dispute and the citations contained therein. Citations to “D.E. 163” refer to Fresenius’ Statement of Material Facts Not in Dispute and the citations contained therein. Citations to “D.E. 179” refer to Fresenius’ Response to Par’s Statement of Material Facts Not in Dispute and Supplemental Statement of Material Facts and the citations contained therein. Citations to “D.E. 185-1” refer to Par’s Responsive and Supplemental Statement of Material Facts and the citations contained therein. This Court assumes the parties’ familiarity with the facts and will only address those facts relevant to this Opinion. approval by filing New Drug Applications (“NDA”). (Id. ¶¶ 36-39.) Once the first NDA is approved, new manufacturers may file Abbreviated New Drug Applications (“ANDA”) to get approval for a “generic” version of that drug. (D.E. 154-1 ¶ 21.) ANDAs and NDAs require information about the drug’s active pharmaceutical ingredient (“API”), which is usually included by reference to the API supplier’s Drug Master File (“DMF”). (Id. ¶¶ 24-27.)2 The

NDA/ANDA filer may only reference a DMF if the API supplier gives it a letter of authorization (“LOA”). (Id. ¶¶ 30-31.) As part of the approval process, filers must also manufacture and collect six months of data on “stability batches” using API from the supplier providing the LOA. (D.E. 163 ¶¶ 68-69.) Around 2011, Fresenius and Par were among the U.S. manufacturers of Vasopressin, and both began preparing Vasopressin NDAs. (Id. ¶¶ 75, 80.) Par filed its NDA in 2012, received FDA approval first, in April 2014, and launched its Vasopressin product, “Vasostrict,” in November 2014. (D.E. 154-1 ¶¶ 57, 63-64, 81.) Once Vasostrict was approved, the FDA directed Fresenius to stop selling unapproved Vasopressin. (Id. ¶¶ 142-145.) Fresenius then

shifted its focus from filing a Vasopressin NDA to filing an ANDA, and in early 2015, began working with BCN Peptides (“BCN”), an API supplier. (D.E. 163 ¶¶ 192-98.) In April 2015, BCN fulfilled an order of API for Fresenius’ ANDA stability batches and Fresenius began testing these batches on October 16, 2015. (Id. ¶¶ 164, 202.) Fresenius planned on filing this ANDA by July 30, 2016 and projected to launch its product by July 2018. (Id. ¶¶ 160-61.) Between 2014 and 2016, Par was negotiating potentially exclusive supply contracts with the only three API suppliers with DMFs at the time—BCN, Bachem Holdings AG (“Bachem”) and PolyPeptide Group (“PolyPeptide”). (See, e.g., D.E. 154-1 ¶¶ 88, 101, 120.) Most relevant

2 DMFs are technical documents filed with the FDA. (D.E. 154-1 ¶ 27.) For the purposes of this Opinion, “API” will refer specifically to Vasopressin API, unless otherwise noted. here are Par’s negotiations with BCN. Around January 2015, Par approached BCN about an agreement in which BCN would exclusively supply API for Par. (D.E. 163 ¶¶ 217-240.)3 BCN ultimately agreed, executing an exclusivity agreement on March 1, 2016 in which Par agreed to pay $10 million per year and indemnify BCN for future legal costs arising out of the agreement. (Id. ¶¶ 263-68.) Due to this agreement, BCN could not provide Fresenius a LOA and Fresenius

was unable to use its BCN-API based stability batches for its ANDA. (Id. ¶¶ 471-72.)4 Fresenius maintains that, but for Par’s conduct, it would have been able to file this ANDA (“But For ANDA”) in July 2016 as planned. Fresenius was aware that BCN was negotiating exclusivity as early as July 2015, and had discussed, but did not bid for, a semi-exclusive contract with BCN. (See id. ¶¶ 241-43; D.E. 154-1 ¶ 242.) On December 11, 2015, Dr. Marc-Alexander Mahl (“Dr. Mahl”), a Fresenius executive, reported that BCN said that Fresenius “could get Par out of [the BCN] deal, in case [it] would be willing to submit short-term a convincing, competitive offer,” however, Fresenius declined to bid (“December Meeting”). (D.E. 170-14; D.E. 154-1 ¶¶ 232-33, 235-36, 242.)

On June 28, 2016, Par obtained its first patent for Vasostrict, and obtained several more the following year. (D.E. 163 ¶ 439; D.E. 154-1 ¶¶ 398-403.) Around October 2017, Fresenius selected Bachem as its new API supplier and filed its Vasopressin ANDA in July 2019. (D.E. 154-1 ¶¶ 357-64; D.E. 232 at 51:14-15.)5 Fresenius sued Par on July 27, 2016. (D.E. 1.) This Court denied Par’s motion to dismiss on February 10, 2017. (D.E. 41.) Both parties moved for summary judgment on July

3 BCN was Par’s API supplier at the time Par’s NDA was approved. (D.E. 154-1 ¶¶ 58, 63, 65.) 4 Par also negotiated with Bachem and PolyPeptide. Par did not reach written exclusivity agreements with either, but purchased API from both, and both declined to supply other potential Vasopressin manufacturers during this timeframe. (See, e.g., D.E 163 ¶¶ 272-74, 306, 321-41, 359-360, 370-78; D.E. 154-1 ¶¶ 101-07, 120-27.) 5 On March 23, 2018, Eagle Pharmaceuticals was the first to file an ANDA. (D.E. 154-1 ¶¶ 376-77.) Additionally, Fresenius’ 2019 ANDA ultimately differed from what it asserts its But For ANDA would have been. (Id. ¶ 449.) 12, 2019 (D.E. 149, 153), and all briefs were timely filed. (D.E. 180, 185, 195, 199.) Oral argument was held on December 18, 2019. (D.E. 232.) II. LEGAL STANDARD Summary judgment is appropriate “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.” Fed. R. Civ. P.

56(a). The “mere existence of some alleged factual dispute between the parties will not defeat an otherwise properly supported motion for summary judgment; the requirement is that there be no genuine issue of material fact.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247–48 (1986) (emphasis in original). A fact is only “material” for purposes of a summary judgment motion if a dispute over that fact “might affect the outcome of the suit under the governing law.” Id. at 248. A dispute about a material fact is “genuine” if “the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Id. The dispute is not genuine if it merely involves “some metaphysical doubt as to the material facts.” Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586 (1986).

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FRESENIUS KABI USA, LLC v. PAR STERILE PRODUCTS, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fresenius-kabi-usa-llc-v-par-sterile-products-llc-njd-2020.