In Re OxyContin Antitrust Litigation

530 F. Supp. 2d 554, 85 U.S.P.Q. 2d (BNA) 1718, 2008 U.S. Dist. LEXIS 792, 2008 WL 110905
CourtDistrict Court, S.D. New York
DecidedJanuary 7, 2008
Docket04 md. 1603(SHS). Nos. 06 Civ. 13095(SHS), 07 Civ. 03972(SHS), 07 Civ. 03973(SHS), 07 Civ. 04810(BHS)
StatusPublished
Cited by2 cases

This text of 530 F. Supp. 2d 554 (In Re OxyContin Antitrust Litigation) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re OxyContin Antitrust Litigation, 530 F. Supp. 2d 554, 85 U.S.P.Q. 2d (BNA) 1718, 2008 U.S. Dist. LEXIS 792, 2008 WL 110905 (S.D.N.Y. 2008).

Opinion

*558 OPINION AND ORDER

SIDNEY H. STEIN, District Judge.

Plaintiffs Purdue Pharma, L.P!, the P.F. Laboratories, Inc., and Purdue Pharmaceuticals, L.P. (collectively, “Purdue”) bring this litigation pursuant to 35 U.S.C. § 271(e)(2) against defendant pharmaceutical companies Mallinckrodt, Inc., KV Pharmaceutical Co., and Actavis Totowa L.L.C. for allegedly infringing Purdue’s patents protecting a controlled-release oxycodone pain reliever sold under the brand name OxyContin. Due to the procedural posture of this litigation, the Court directed the parties to brief the issue of whether Purdue’s conduct before the Patent and Trademark Office (“PTO”) warrants the invalidation of the patents-in-suit. Having reviewed the briefs submitted by the parties and considered the arguments made during the December 20, 2007 hearing, the Court now concludes that Purdue did not commit inequitable conduct before the PTO in the prosecution of its OxyContin patents.

I. FACTUAL AND PROCEDURAL BACKGROUND

The Court presumes familiarity with the background of this litigation as detailed in its earlier decision, Purdue Pharma L.P. v. Endo Pharms., Inc., No. 00 Civ. 8029, 01 Civ. 2109, 01 Civ. 8177, 2004 WL 26523, 2004 U.S. Dist. LEXIS 10 (S.D.N.Y. Jan. 5, 2004) {‘Endo I”), and that of the U.S. Court of Appeals for the Federal Circuit, *559 Purdue Pharma L.P. v. Endo Pharms., Inc., 438 F.3d 1123 (Fed.Cir.2006) {“Endo IIP’). The following summarizes the relevant facts and procedural events described in those decisions, as well as the more recent developments in this litigation.

Beginning in 1999, Purdue filed patent infringement actions against four generic drug companies — Endo Pharmaceuticals, Inc.; Boehringer Ingelheim GmbH; Teva Pharmaceuticals, Inc.; and Impax Laboratories, Inc. — for marketing or attempting to market products that allegedly infringed Purdue’s OxyContin patents. 1 The actions against one of those generic drug manufacturers — Endo—proceeded to trial, and on January 5, 2004, this Court issued an Opinion and Order holding that Endo had infringed Purdue’s OxyContin patents, but also finding that those patents were invalid due to Purdue’s inequitable conduct in prosecuting them before the PTO. See Endo I, 2004 WL 26523, 2004 U.S. Dist. LEXIS 10.

The Court then enjoined Purdue from further enforcement of its OxyContin patents and subsequently granted summary judgment in favor of defendants Boehringer, Teva, and Impax in the other pending OxyContin patent infringement suits (the “related cases”) based on the collateral estoppel effect of the decision in Endo I, which was subsequently affirmed by the Federal Circuit in an opinion issued on June 7, 2005. See Purdue Pharma L.P. v. Endo Pharms. Inc., 410 F.3d 690 (Fed.Cir.2005) {“Endo II”).

Nearly eight months later — on February 1, 2006 — the Federal Circuit withdrew its affirmance of Endo I and issued Endo III, which vacated this Court’s finding of patent invalidity and remanded that issue to this Court for further proceedings. In light of the Federal Circuit’s revised ruling, this Court then vacated both its injunction barring Purdue from enforcing the OxyContin patents and the summary judgment orders in the related cases.

The parties then proceeded to settle the pending infringement actions. In October 2006, Purdue settled its suit against Endo and Teva. Purdue then reached a settlement agreement with Impax in May 2007, and finally, Purdue settled with Boehringer in August 2007.

Meanwhile, other pharmaceutical manufacturers attempted to enter the generic OxyContin market. Specifically, in 2005, Mallinckrodt filed an Abbreviated New Drug Application (“ANDA”), seeking Food and Drug Administration (“FDA”) approval to manufacture and sell generic versions of OxyContin. 2 KV and Actavis likewise filed ANDAs for various formulations of generic OxyContin. In response, Purdue brought suit against Mallinckrodt, KV, and Actavis in four separate actions pursuant to the procedures set forth in the Hatch-Waxman Act, which authorizes patent-holders to bring constructive infringement *560 actions against ANDA applicants. See 35 U.S.C. § 271(e)(2).

In light of the unique procedural history of this litigation, the Court determined that judicial economy would be best served by first resolving the issue left open by Endo III — namely, whether Purdue’s conduct before the PTO warrants invalidating its OxyContin patents. See Nilssen v. Osram Sylvania, Inc., 504 F.3d 1223, 1230 (Fed.Cir.2007) (“Trial judges are entitled to arrange the priority of issues in a manner that they consider efficient.”). Having reviewed the parties’ briefs and considered their arguments, the Court now turns to that question.

II. STANDARD

A patent may be ruled unenforceable if the applicant engaged in inequitable conduct during the prosecution of the patent application. Patent applicants are required to “prosecute patents in the PTO with candor and good faith, including a duty to disclose information known to the applicants to be material to patentability.” Endo III, 438 F.3d at 1128 (citing 37 C.F.R. § 1.56(a)). A breach of a patent applicant’s duty of candor “may constitute inequitable conduct, which can arise from an affirmative misrepresentation of a material fact, failure to disclose material information, or submission of false material information, coupled with an intent to deceive or mislead the PTO.” Endo III, 438 F.3d at 1128 (citing Molins PLC v. Textron, Inc., 48 F.3d 1172, 1178 (Fed.Cir.1995)).

Thus, inequitable conduct comprises two elements: materiality and intent to deceive. Pursuant to the relevant regulations, information is material to patentability when:

it is not cumulative to information already of record or being made of record in the application, and (1) It establishes, by itself or in combination with other information, a prima facie case of unpa-tentability of a claim; or (2) It refutes, or is inconsistent with, a position the applicant takes in: (i) Opposing an argument of unpatentability relied on by the Office, or (ii) Asserting an argument of patentability.

37 C.F.R. § 1.56(b).

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530 F. Supp. 2d 554, 85 U.S.P.Q. 2d (BNA) 1718, 2008 U.S. Dist. LEXIS 792, 2008 WL 110905, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-oxycontin-antitrust-litigation-nysd-2008.