King Pharmaceuticals, Inc. v. Teva Pharmaceuticals USA, Inc.

409 F. Supp. 2d 609, 78 U.S.P.Q. 2d (BNA) 1237, 2006 U.S. Dist. LEXIS 1674, 2006 WL 146619
CourtDistrict Court, D. New Jersey
DecidedJanuary 20, 2006
DocketCivil Action 05-3855 (JAP)
StatusPublished
Cited by2 cases

This text of 409 F. Supp. 2d 609 (King Pharmaceuticals, Inc. v. Teva Pharmaceuticals USA, Inc.) 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.

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King Pharmaceuticals, Inc. v. Teva Pharmaceuticals USA, Inc., 409 F. Supp. 2d 609, 78 U.S.P.Q. 2d (BNA) 1237, 2006 U.S. Dist. LEXIS 1674, 2006 WL 146619 (D.N.J. 2006).

Opinion

OPINION

PISANO, District Judge.

I. INTRODUCTION

Plaintiffs King Pharmaceuticals, Inc. (“King Pharma”) and King Pharmaceuticals Research and Development, Inc. (“King R & D”) (together, “King”), as well as involuntary Plaintiff Wyeth, 1 brought this action for patent infringement against Defendant Teva Pharmaceuticals USA, Inc. (“Teva”). King alleges that Teva has infringed one or more claims of United States Patent No. 4,626,538 (“the '538 Patent”), owned by Wyeth, under which King R & D has exclusive license and King Pharma exclusive sub-license to sell zaleplon drug products in the United States. This Court has jurisdiction under 28 U.S.C. §§ 1331 and 1338(a). Teva has moved to dismiss the Complaint, arguing that the 538 Patent expired on June 23, 2003 as a matter of law and that, because no valid and enforceable patent is being asserted, the Complaint fails to state a claim for relief. For the reasons expressed below, the Court denies Teva’s motion to dismiss.

II. BACKGROUND

This is a patent infringement action commenced by King against Teva under the '538 Patent. 2 Wyeth is the owner of the '538 Patent. (Compl.¶ 13). King R & D has an exclusive license, inter alia, to sell, by prescription, zaleplon drug products in the United States under the '538 Patent. (Compl.¶ 14). King Pharma has an exclusive sub-license to sell such products. King Pharma sells in the United States, by prescription, drug products containing zaleplon under the trademark Sonata®, which is used to treat insomnia. (Compl. ¶ 14; King’s Br. at 3). An FDA publication entitled “Approved Drug Products with Therapeutic Equivalence Evaluation” (the “Orange Book”) 3 lists the '538 Patent as being applicable to King’s Sonata® drug products. (Compl.¶ 16).

From the Complaint and the motion papers, the Court understands the history of the '538 Patent to be as follows. The '538 Patent was issued on December 2, 1986. (Compl. ¶ 9; Compl. Ex. A). The 538 Patent is subject to a terminal disclaimer. *611 (Compl.Ex.A). The application for what ultimately became the '538 Patent was initially rejected on the ground that it claimed the same invention that was claimed in an earlier patent, U.S. Patent No. 4,521,422 (“the '422 Patent”), and the '538 Patent was granted only after the applicant filed a terminal disclaimer under 35 U.S.C. § 253. 4 (Teva Br. at 2). This terminal disclaimer disclaimed any term' of the '538 Patent that would otherwise have extended beyond the '422 Patent, which expired on June 23, 2003. (Teva Br. at 2). The original termination date of the '422 Patent was June 3, 2002 (seventeen years from its issue date); however, pursuant to 35 U.S.C. § 154, this date was reset to June 23, 2003 (twenty years from its filing date). (Teva Br. at 5). The United States Patent and Trademark Office (the “PTO”) agreed that the '538 Patent’s expiration date should be reset at June 23, 2003 as well since the term of the '538 Patent was linked to the term of the '422 Patent. (Teva Br. at 2). Thus, based on the terminal disclaimer, the '538 Patent had been scheduled to expire on June 23, 2003. (King’s Br. at 3; Teva’s Br. at 1-2).

However, on June 4, 2003, pursuant to 35 U.S.C. § 156, the PTO extended the term of the '538 Patent for a period of 1810 days, running from June 23, 2003, based on the regulatory review of the product Sonata® (zalephon) by the FDA (the “Patent Term Extension”). (Compl. ¶ 10; Compl. Ex. B). Based on the Patent Term Extension, the expiration date of the '538 Patent became June 6, 2008. (Compl.¶ 8).

This action relates to an Abbreviated New Drug Application (“ANDA”) filed by Teva with the United Stated Food and Drug Administration (“FDA”) for approval to market generic versions of King’s Sonata® drug products (“ANDA No. 77-239”). (Compl.lffl 1,15). In a June 20, 2005 notification letter Teva sent to King and Wyeth, Teva stated that it had submitted ANDA No. 77-239 to the FDA seeking approval to engage in the commercial manufacture, use, and sale of capsules of zaleplon. (Compl.¶¶ 15, 16). King alleges on information and belief that ANDA No. 77-239 indicates that the zaleplon capsules Teva seeks to market are bioequivalent to King’s Sonata® drug products, have the same active ingredient, administration, dosage form, and strength as King’s Sonata® drug products, and have the same, or substantially the same, proposed labeling as King’s Sonata® drug products. (Compl.¶ 18).

King filed its Complaint on August 2, 2005, alleging that Teva’s ANDA filing constitutes patent infringement and that, if the FDA approves Teva’s ANDA filing, Teva will infringe the '538 Patent by making, using, offering to sell, importing, and selling its zaleplon capsules in the United States. (Compl.¶ 20-21). King seeks a declaratory and injunctive relief, damages, attorneys’ fees, and costs and expenses. On September 22, 2005, Teva moved to dismiss the Complaint for failure to state a claim upon which relief can be granted. The Court heard oral argument on Teva’s motion on December 20, 2005. The crux of Teva’s argument is that the term of a terminally disclaimed patent may not be extended under 35 U.S.C. § 156 and, therefore, the '538 Patent expired on June 23, 2003.

III. STANDARD OF REVIEW

Teva argues that the '538 Patent expired on June 23, 2003 as a matter of law and that, because no valid and enforceable *612 patent is being asserted, the Complaint fails to state a claim for relief. Under Federal Rule of Civil Procedure 12(b)(6), a defendant may file a motion to dismiss for “failure to state a claim upon which relief can be granted.” Fed.R.Civ.P. 12(b)(6). A complaint should not be dismissed “unless plaintiff can prove no set of facts that would entitle [plaintiff] to relief’ and “it appears beyond doubt that ‘the facts alleged in the complaint, even if true, fail to support the claim.’ ” Gaines v. Sarlo, No. 03-2688(GEB), 2005 WL 1241973, at *1-2 (D.N.J. May 25, 2005) (quoting Ransom v. Marrazzo, 848 F.2d 398, 401 (3d Cir.1988)); see also Hishon v. King & Spalding, 467 U.S. 69, 73, 104 S.Ct.

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409 F. Supp. 2d 609, 78 U.S.P.Q. 2d (BNA) 1237, 2006 U.S. Dist. LEXIS 1674, 2006 WL 146619, Counsel Stack Legal Research, https://law.counselstack.com/opinion/king-pharmaceuticals-inc-v-teva-pharmaceuticals-usa-inc-njd-2006.