McNEIL-PPC, INC. v. L. Perrigo Co.

207 F. Supp. 2d 356, 63 U.S.P.Q. 2d (BNA) 1493, 2002 U.S. Dist. LEXIS 11214, 2002 WL 1377732
CourtDistrict Court, E.D. Pennsylvania
DecidedJune 25, 2002
DocketCIV.A. 01-1100
StatusPublished
Cited by1 cases

This text of 207 F. Supp. 2d 356 (McNEIL-PPC, INC. v. L. Perrigo Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McNEIL-PPC, INC. v. L. Perrigo Co., 207 F. Supp. 2d 356, 63 U.S.P.Q. 2d (BNA) 1493, 2002 U.S. Dist. LEXIS 11214, 2002 WL 1377732 (E.D. Pa. 2002).

Opinion

OPINION AND ORDER

SCHILLER, District Judge.

This is .a patent infringement action. Plaintiff McNeil-PPC, Inc. (“McNeil”) alleges Defendants L. Perrigo Company and Perrigo Company (collectively “Perrigo”) infringe four McNeil patents covering a popular version of the Imodium ® Advanced antidiarrheal. In a Memorandum and Order issued April 8, 2002,1 construed certain disputed claim terms pursuant to Markman v. Westview Instruments, Inc., 517 U.S. 370, 116 S.Ct. 1384, 134 L.Ed.2d 577 (1996). Beginning April 22, 2002, this matter was tried without a jury, and I enter the following Findings of Fact and Conclusions of Law as required by Rule 52(a) of the Federal Rules of Civil Procedure. 1

FINDINGS OF FACT

I. BACKGROUND

This action pits a manufacturer of national brand pharmaceuticals against its competitor, a generic drug manufacturer. Four patents owned by Plaintiff McNeil are at issue in this case: United States Patents 5,248,505 (“the ’505 patent’O(PTXl) and 5,612,054 (“the ’054 patent”)(PTX2) are referred to as “the Gar-win patents”; 2 United States Patents 5,679,376 (“the ’376 patent”) (PTX3) and 5,716,641 (“the ’641 patent”)(PTX4) are referred to as “the Stevens patents.”

A. Plaintiffs Product and the Patents in Suit

Plaintiff McNeil is a subsidiary of a well-known multi-billion-dollar company, Johnson & Johnson. Among other things, McNeil sells over-the-counter (“OTC”) pharmaceuticals, including Tylenol® and Motrin®. (Eble TT at 58.) 3 McNeil’s products can be found in nearly every pharmacy in the United States. (Eble TT at 77-79.)

An antidiarrheal drug known as loper-amide is central to this matter. Loperam-ide, a non-addictive opiate, is believed to treat diarrhea in a number of ways, including: regulating muscular contractions in the intestine, limiting secretions in the intestinal tract, and relieving abdominal discomfort. (Levitt TT at 621-22; PTX721; DX157 at 37.) 4 Also important to the instant controversy is an oily liquid substance known as simethicone, which is employed as an antiflatulent. (Garwin TT at 137.)

During the 1980s, loperamide became the best-selling prescription antidiarrheal in the United States. (Snape TT at 1219.) In March 1988, McNeil began selling lo-peramide as the OTC product Imodium AD. With the January "30, 1990 expiration *359 date for the basic loperamide patent fast approaching, McNeil directed one of its scientists, Dr. Jeffrey Garwin, to develop a new patent-protected form of loperamide. (Garwin TT at 133.) Pursuing this directive, Dr. Garwin developed a drug that combined loperamide with simethicone, and his resulting patent application,, along with continuation applications, led to the issuance of the two Garwin patents: the ’505 patent on September 28, 1993 and the ’054 patent on March 18,1997. (PTX1, 2.)

McNeil initially marketed the loperam-ide-simethicone combination drug as the Imodium Advanced chewable tablet. In developing the Imodium Advanced tablet, McNeil researchers became concerned that over time the simethicone interacted negatively with the loperamide, limiting the drug’s shelf life. (Schwartz TT at 433.) In response, Dr. Charles Stevens and other McNeil researchers considered different ways of keeping an antidiarrheal separated from simethicone. (Schwartz TT at 438-39.) This work became the basis for the Stevens patents. (PTX3, 4.)

B. Perrigo’s Abbreviated New Drug Application (“ANDA”) and the Instant Litigation

With sales exceeding $800 million per year, Defendant Perrigo is the world’s largest manufacturer of store brand — commonly referred to as “generic” — OTC pharmaceutical products. (Needham TT at 798, 800, 804; DX158.) Major retail chains such as Wal-Mart, Rite-Aid, and CVS sell Perrigo’s products under their stores’ respective labels. (Needham TT at 800, 803.) Perrigo’s store brand products generally cost thirty to forty percent less than corresponding national brand products. (Needham TT at 800.)

'Perrigo competes with McNeil in the antidiarrheal market. After the basic lo-peramide patent expired in the late 1980s, Perrigo began marketing a store brand loperamide product similar to McNeil’s Imodium-A-D tablet. (Needham TT at 813-14.) When McNeil introduced the Imodium Advanced combination drug, Perri-go became interested in developing a lo-peramide-simethicone product in order to better compete in the antidiarrheal market. (Needham TT at 814^15.) Pursuing this interest, Perrigo consulted outside patent counsel, who rendered a final opinion that Perrigo’s proposed loperamide-simethicone product would not infringe the Stevens patents and that the Garwin patents were invalid. (Needham TT at 823-27.)

In November 2000, Perrigo filed an Abbreviated New Drug Application with the FDA seeking the approval of a loper-amide-simethicone combination tablet. Thereafter, Perrigo sent a Patent Certification Notice Letter informing McNeil that McNeil’s patents were invalid or not infringed by Perrigo’s ANDA drug. (PTX14.) On March 7, 2001, McNeil filed suit against Perrigo, alleging the infringement of a host of patent claims. .Subsequently, McNeil twice amended its complaint, narrowing the patent claims at issue.

II. The Garwin Patents

Upon its approval by the Food and Drug Administration (“FDA”) in 1977, Janssen Pharmaceutica (“Janssen”), a Johnson & Johnson subsidiary, began selling loperam-ide as a prescription drug. (Eble TT at 65; DX16 at MC13403-06.) McNeil inherited loperamide from Janssen. After lo-peramide was approved as an OTC drug in 1988, McNeil began selling loperamide as Imodium A-D. (Eble TT at 65 — 66; DX16 *360 at MC13404.) With the basic loperamide patent 5 set to expire within two years of McNeil’s launch of Imodium A-D, McNeil asked Dr. Garwin “to come up with a patent-protected form of Imodium.” (Gar-win TT at. 131; DX104) Additionally, following McNeil’s involvement in litigation that resulted in the invalidation of a patent combining ibuprofen and pseudoephedrine, see Richardson-Vicks, Inc. v. Upjohn Co., 122 F.3d 1476 (Fed.Cir.1997), Dr. Garwin was instructed “to think more aggressively about patents.” (Garwin TT at 123-24; DX6 at MC73095). Dr. Garwin described McNeil’s reaction to the Richardson-Vicks litigation as follows:

[T]here was concern at McNeil that there might be other sleeper patents out there that cohld inhibit McNeil's ability to work in the area where McNeil was already working or planning to work, and if there were patents to be had, McNeil wanted to have^ — wanted us to think of them first.

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Related

McNeil Inc. v. L. Perrigo Company and Perrigo Company
337 F.3d 1362 (Federal Circuit, 2003)

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207 F. Supp. 2d 356, 63 U.S.P.Q. 2d (BNA) 1493, 2002 U.S. Dist. LEXIS 11214, 2002 WL 1377732, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcneil-ppc-inc-v-l-perrigo-co-paed-2002.