INDIVIOR INC. v. DR. REDDY'S LABORATORIES S.A.

CourtDistrict Court, D. New Jersey
DecidedNovember 5, 2019
Docket2:17-cv-07111
StatusUnknown

This text of INDIVIOR INC. v. DR. REDDY'S LABORATORIES S.A. (INDIVIOR INC. v. DR. REDDY'S LABORATORIES S.A.) 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
INDIVIOR INC. v. DR. REDDY'S LABORATORIES S.A., (D.N.J. 2019).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

INDIVIOR INC., INDIVIOR UK . LIMITED, and AQUESTIVE Civ. No. 17-7111 (KM) (CLW) THERAPEUTICS, INC., Civ. No. 18-1775 (KM) (CLW) Plaintiffs, Civ. No. 18-5288 (KM) (CLW)

v. DR. REDDY’S LABORATORIES 5.A., AND DR. REDDY’S LABORATORIES, INC., Defendants. INDIVIOR INC., INDIVIOR UK . LIMITED, and AQUESTIVE Civ. No. 17-7106 (KM) (CLW) THERAPEUTICS, INC., Civ. No. 18-8285 (KM) (CLW}) Plaintiffs, Vv. OPINION ALVOGEN PINE BROOK, INC., AND ALVOGEN PINE BROOK LLC, Defendants.

KEVIN MCNULTY, U.S.D.J.: This opinion contains the Court’s construction of key patent terms following a Markman hearing. (Dkt. No. 7106 at DE 211; Dkt. No. 7111 at DE 290) The final section constitutes the Court’s opinion on the motion by Alvogen Pine Brook, Inc. and Alvogen Pine Brook LLC (collectively, unless otherwise specified, “Alvogen”) to recover on bonds posted in connection with my grant of a temporary restraining order in the 17-cv-7106 consolidated action. (See DE 148).

These consolidated patent infringement cases are brought by Indivior Inc., Indivior UK Limited, and Aquestive Therapeutics, Inc. (collectively, unless otherwise specified, “Indivior”), against Dr. Reddy’s Laboratories S.A. and Dr. Reddy’s Laboratories, Inc. (collectively, unless otherwise specified, “DRL”) and Alvogen. The patents-in-suit are Patent Nos. 9,931,305 (“the 305 Patent”), issued to Aquestive on April 3, 2018, and 9,687,454 (“the ’454 Patent”), issued to Indivior on June 27, 2017. Indivior’s Suboxone film is also covered by Patent No. 8,603,514 (“the 514 Patent”). The 514 Patent shares the same specification with the ’305 Patent. As a result, the 305 Patent was filed with a terminal disclaimer to synchronize its expiration with that of the 514 Patent. This □□□ Patent is not directly at issue here, but was at issue in a related litigation involving these same parties filed in the United States District Court for the District of Delaware (“the Delaware Litigation”). Collectively, these patents describe formulations of Suboxone film, a “rapidly dissolving film that adheres to the underside of a patient’s tongue” or cheek. Indivior’s Suboxone film is used to treat opioid dependency; it works to decrease a patient’s need for opioids while also deterring abuse. Its two active ingredients are buprenorphine and naloxone. The films are created by mixing a pharmaceutically active ingredient with a polymer in a solvent, casting the mixture onto a planar carrier surface to form a wet film, and then controllably drying the film to produce a solid thin sheet that can be cut into individual dosages. I. Procedural History! I first briefly review the relevant opinions issued both in this action and in the related Delaware Litigation.

1 Citations to the record will be abbreviated as follows. Citations to page numbers refer to the page numbers assigned through the Electronic Court Filing system, unless otherwise indicated: “DE” = Docket entry number in this case.

In broad strokes, Indivior previously moved in this action to enjoin DRL from bringing its generic Suboxone film to market. In a prior decision, I granted the motion. (Dkt. No. 7111 at DE 121). DRL subsequently appealed to the Federal Circuit, which reversed and remanded. Indivior Inc. v. Dr. Reddy’s Labs., S.A., 752 F. App’x 1024 (Fed. Cir. 2018) (“Indivior P). The parties also appealed a number of decisions in the related Delaware Litigation. After the parties filed their Markman briefs here, the Federal Circuit issued its opinion concerning the Delaware Litigation appeal. Indivior Inc. v. Dr. Reddy’s Labs., S.A., 930 F.3d 1325, 1339 (Fed. Cir. 2019) (“Indivior 1’).

“Dkt. No. 7106” = Civil Action No. 2:17-cv-7106-KM-CLW. “Dkt. No. 7111” = Civil Action No. 2:17-cv-7111-KM-CLW. “Dkt. No. 5285” = Civil Action No. 2:18-cv-5285-KM-CLW. “DEt. No. 5288” = Civil Action No. 2:18-cv-5288-KM-CLW. “Pl. Opening” = Plaintiff's Opening Markman Brief (Dkt. No. 7106 at DE 135; Dkt. No. 7111 at DE 250). “Pl. Ex.” = Plaintiffs Exhibits (Dkt. No. 7106 at DE 135-1; Dkt. No. 7111 at DE 250-1), attached to the Declaration of Philip 5S. May (fd.). “Pi. Response” = Plaintiff's Responsive Markman Brief (Dkt. No. 7106 at DE 146; Dkt. No. 7111 at DE 259). “Def. Opening” = Defendants’ Opening Markman Brief (Dkt. No. 7106 at DE 136; Dkt. No. 7111 at 249). “Def. Ex.” = Defendants’ Exhibits (Dkt. No. 7106 at DE 137 to 137-4; Dkt. No. 7111 at 249-1 to 249-5). “Def. Response” = Defendants’ Responsive Markman Brief (Dkt. No. 7106 at DE 144; Dkt. No. 7111 at 256). “Fassihi Declaration” = Declaration of Reza Fassihi, Ph.D. (Dkt. No. 7106 at DE 136-1; Dkt. No. 7111 at 249-6). “Fuller Declaration” = Declaration of Gerald G. Fuller, Ph.D. (Dkt. No. 7106 at DE 135-2; Dkt. No. 7111 at 250-2). “9305 Patent” = United States Patent No. 9,931,305, Pl. Ex. A (Dkt. No. 7106 at DE 135-1; Dkt. No. 7111 at DE 250-1). “454 Patent” = United States Patent No. 9,687,454, Pl. Ex. B (Dkt. No. 7106 at DE 135-1; Dkt. No. 7111 at DE 250-1). “514 Patent” = United States Patent No. 8,603,514, Pl. Ex. C (Dkt. No. 7106 at DE 135-1; Dkt. No. 7111 at DE 250-1).

A. The ’514 Patent Indivior initially entered the Suboxone market by introducing a tablet in 2002. It then began developing a film version with Aquestive. The patent for that film, the 514 Patent, was issued on December 10, 2013.2 (514 Patent at [45], [54].). DRL and others, including Alvogen, sought to enter the film market as generic competitors and filed ANDAs with the FDA for generic versions of the Suboxone film. Indivior responded by filing suit against a number of parties, including DRL and Alvogen, in the Delaware Litigation. Ultimately, the Delaware district court held that Indivior had failed to meet its burden of showing that DRL’s and Alvogen’s generic versions infringed the claims of the Patent for Suboxone film. Reckitt Benckiser Pharm. Inc. v. Dr. Reddy’s Labs. S.A., Nos. 14-1451, 14-1573, 14-1574, 2017 WL 3837312 (D. Del. Aug. 31, 2017); Reckitt Benckiser Pharm. Inc. v. Dr. Reddy’s Labs. S.A., No, CV 14- 1451-RGA, 2017 WL 3782782 {D. Del. Aug. 31, 2017); Indivior Inc. v. Mylan Techs. Inc., 298 F. Supp. 3d 775 (D. Del. 2018). With respect to DRL, District Judge Andrews had earlier construed one of the claims in the 514 Patent to mean “dried without solely employing conventional convection air drying from the top” and found that there was not enough evidence to show that DRL’s procedures “amount{ed] to an unconventional process” for drying. See Reckitt Benckiser Pharm. Inc. v. Teva Pharm. USA Inc., Nos. 14-1451, 14-1573, 14-1574, 2016 WL 3621632, at *10- *11 (D. Del. June 29, 2016). He found that Indivior had disclaimed “conventional convection air drying from the top,” both through express statements and repeated disavowal in the 514 Patent specification. Id. at *8, *11 (noting that the 514 Patent contained identical language from process patents that were construed earlier in the opinion and applying that same reasoning to the claims in the 514 Patent). After reviewing the evidence

2 At the time, Aquestive was known as MonoSol Rx, LLC. (See, e.g., Dkt. No. 5285 at DE 1).

presented at trial, Judge Andrews concluded that Indivior did not prove that DRL’s process of drying was unconventional, and hence infringing. Judge Andrews later made similar findings with respect to Alvogen. See Mylan Techs. Inc., 298 F. Supp. 3d at 785. (“Plaintiffs’ comparison between Alvogen’s exhibit batch and commercial processes fails to demonstrate that Alvogen’s commercial process does not ‘solely’ employ drying from the top. It does not change my conclusion that Plaintiffs have not demonstrated ‘substantial’ bottom drying.”).

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