Genzyme Corp. v. Shire Human Genetic Therapies, Inc.

906 F. Supp. 2d 9, 2012 WL 5974049, 2012 U.S. Dist. LEXIS 169524
CourtDistrict Court, D. Massachusetts
DecidedNovember 29, 2012
DocketCivil Action No. 12-11386-RGS
StatusPublished
Cited by8 cases

This text of 906 F. Supp. 2d 9 (Genzyme Corp. v. Shire Human Genetic Therapies, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Genzyme Corp. v. Shire Human Genetic Therapies, Inc., 906 F. Supp. 2d 9, 2012 WL 5974049, 2012 U.S. Dist. LEXIS 169524 (D. Mass. 2012).

Opinion

MEMORANDUM AND ORDER ON DEFENDANTS’ MOTIONS TO DISMISS

STEARNS, District Judge.

Plaintiff Genzyme Corp. alleges in a Verified Complaint (VC) that defendants Shire Human Genetic Therapies, Inc. (Shire HGT), and Shire pic, violated the Lanham Act, 15 U.S.C. § 1125 et seq., by publishing and distributing a press release falsely advertising the superior qualities of Shire’s Gaucher disease treatment drug VPRIV over those of Genzyme’s competing brand, Cerezyme. Shire HGT moves to dismiss the Complaint pursuant to Fed. R.Civ.P. 12(b)(6) for failure to state a claim for which relief may be granted. Shire pic moves to dismiss for lack of personal jurisdiction pursuant to Fed.R.Civ.P. 12(b)(2). The issues being fully briefed, the motion of Shire HGT will be denied, while the motion of Shire pic will be allowed.

BACKGROUND

Gaucher disease is a rare genetic disorder caused by a deficiency of glucocerebrosidase, an' enzyme that breaks down fatty substances (lipids) that accumulate in body tissues. VC ¶ 10. Without the enzyme, the buildup of harmful amounts of lipids prevents cells and organs from functioning properly. Id. Symptoms of Gaucher disease include enlargement of the liver and spleen and reduced bone mineral density, bone thinning, and weakened bones that are easily fractured. Id. ¶¶ 10-12. Approximately 10,000 people worldwide, including 3,200 people in the United States, suffer from Gaucher disease. Id. ¶ 13. It is particularly prevalent among Ashkenazi Jews.

Genzyme, a subsidiary of Sanofi SA, is a Massachusetts biotechnology company that focuses on treatments for rare genetic disorders, including Gaucher disease. Id. ¶ 6. In 1994, Genzyme received Food and Drug Administration (FDA) approval to manufacture and sell a drug called Cerezyme (imiglucerase for injection), a long-term enzyme replacement therapy for patients with Type 1, the most common of the three types of Gaucher disease. Id. ¶¶ 11 & 14. Cerezyme acts like a naturally occurring enzyme and targets cells in which a buildup of lipids occurs. Id. ¶ 14. Over the years, Cerezyme has been used by approximately 6,000 Gaucher disease patients. Id.

[13]*13Shire HGT is a specialty biopharmaceutical company that is incorporated in Delaware and headquartered in Massachusetts. Id. ¶ 7. Shire pic, a holding company and an indirect parent company of Shire HGT, is incorporated under the laws of the Bailiwick of Jersey and is a tax resident of Ireland. Stewart Decl. ¶¶ 3-4 & 7.1 Shire HGT manufactures and sells a long-term enzyme replacement therapy for Gaucher disease, called VPRIV (velaglucerase alfa for injection). VC ¶ 7. VPRIV received FDA approval in 2010. Id. ¶ 15. Cerezyme and VPRIV are the major players in the Gaucher disease enzyme replacement therapy market. Id. ¶ 16.

On June 28, 2012, Shire HGT issued a press release entitled “Shire’s VPRIV (velaglucerase alfa for injection) Shows Significant Improvement in Gaucher-Related Bone Disease.” VC ¶ 17 & Ex. A. The subheadline of the press release stated that “[i]n a head-to-head trial between VPRIV and Cerezyme (imiglucerase), only patients treated with VPRIV experienced statistically significant improvement in lumbar spine bone mineral density at 9 months.” VC-Ex. A. The press release trumpeted “new data that show VPRIV (velaglucerase alfa for injection), the company’s enzyme replacement therapy for [T]ype 1 Gaucher disease, significantly improved selected markers of Gaueher-related bone disease in patients.”2 Id. In particular,

[rjesults from a head-to-head Phase III study (HGT-GCB-039) of VPRIV and Cerezyme, and follow-on extension trial (HGT-GCB-044) of VPRIV, demonstrate a statistically significant improvement in lumbar spine (LS) BMD [ (bone mass density) ] in Gaucher patients starting at nine months of treatment with VPRIV (P<0.05). Patients participating in the study were administered 60 U/kg every other week of either VPRIV or Cerezyme for nine months as part of the HGT-GCB-039 study. All patients, including those who received Cerezyme, subsequently received 60 U/kg every other week of VPRIV for an additional 15 months in the extension trial (HGT-GCB-044).
Clinically and statistically significant improvement from baseline in mean LS Z-score was seen at nine months of treatment with VPRIV, but not in the cohort of patients treated with Cerezyme. BMD, evaluated as an exploratory endpoint in the Phase III and extension studies, was measured by dual-energy x-ray absorptiometry (DEXA scan). Median LS Z-scores at baseline were -1.46 (-3.50, 0.98) in patients treated with VPRIV, and -0.86 (-2.17, 2.02) in patients treated with Cerezyme. Mean changes from baseline in LS Z-scores at nine months were 0.33 (0.10, 0.55) and 0.06 (-0.22, 0.34), respectively. Following an additional 15 months of treatment, mean change in LS Z-scores improved to 0.64 (0.22, 1.06) for patients initially treated with VPRIV and improved to 0.54 (0.21, 0.87) for patients who switched to VPRIV from Cerezyme at nine months.

Id.

Shire HGT posted the press release in an investor news section on Shire pic’s webpage. VC ¶ 17, Cotrone Decl. ¶ 3. Shire HGT distributed the press release to [14]*14PR Newswire for dissemination to interested media outlets. VC ¶ 19. See also Cotrone Decl. ¶ 3. Shire HGT also had its public relations agency distribute the press release to patient organizations serving the Gaucher community, including the National Gaucher Foundation. VC ¶ 20. See also Cotrone Decl. ¶ 3. Several news articles picked up on the press release and reported the clinical findings touted by Shire HGT. VC ¶¶ 36-37.

On July 9, 2012, Genzyme wrote to Shire HGT outlining what it believed were methodological weaknesses in the data analysis reported in the press release. Genzyme demanded that Shire HGT retract the press release and the comparative claims promoting VPRIV as superior to Cerezyme. Id. ¶ 38-39. On July 23, 2012, Shire HGT informed Genzyme that it would not comply. Id. ¶ 41. Genzyme responded by filing this lawsuit on July 30, 2012. In its Verified Complaint, Genzyme alleges that the Shire HGT press release violated the false advertising prohibition of the Lanham Act. In limning the elements of the prohibition, Genzyme alleged that the press release was “directed at least to patients suffering from Type 1 Gaucher disease who require enzyme replacement therapy and to healthcare professionals who may treat Type 1 Gaucher patients,” id. ¶ 45; that it “contain[ed] false and misleading claims about the nature of the clinical trials and retrospective analysis conducted on BMD [ (bone mass density) ] data ... [and] false and misleading claims about the comparative capabilities of VPRIV and Cerezyme for improving BMD in Type 1 Gaucher patients,” id. ¶ 29, see also id. ¶¶ 28-34; and that it “likely [has] materially influenced and likely will materially influence purchasing decisions in part because ... customers ... are led to believe incorrectly that the analysis described in the Shire Press Release demonstrated that VPRIV improves BMD better than Cerezyme....” Id. ¶ 47.

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906 F. Supp. 2d 9, 2012 WL 5974049, 2012 U.S. Dist. LEXIS 169524, Counsel Stack Legal Research, https://law.counselstack.com/opinion/genzyme-corp-v-shire-human-genetic-therapies-inc-mad-2012.