McNeil-PPC, Inc. v. Perrigo Co.

443 F. Supp. 2d 492, 2006 U.S. Dist. LEXIS 51172, 2006 WL 2092474
CourtDistrict Court, S.D. New York
DecidedJuly 27, 2006
Docket05 Civ. 1321(WHP)
StatusPublished
Cited by4 cases

This text of 443 F. Supp. 2d 492 (McNeil-PPC, Inc. v. Perrigo Co.) 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.

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McNeil-PPC, Inc. v. Perrigo Co., 443 F. Supp. 2d 492, 2006 U.S. Dist. LEXIS 51172, 2006 WL 2092474 (S.D.N.Y. 2006).

Opinion

MEMORANDUM AND ORDER

PAULEY, District Judge.

McNeill-PPC, Inc. (“McNeil”), Merck & Co., Inc. and Johnson & Johnson- Merck Consumer Pharmaceuticals Co. (collectively, the “Plaintiffs”) bring this action pursuant to the Hatch-Waxman Act, 35 U.S.C. § 271(e)(2), against Perrigo Company, L. Perrigo Company and Perrigo Research & Development Company (collectively, the “Defendants” or “Perrigo”). Plaintiffs accuse Perrigo of infringing U.S. Patent No. 5,817,340 (the “'340 patent”) by filing Abbreviated New Drug Application (“ANDA”) No. 77-355 with the United States Food and Drug Administration (the “FDA”).

Defendants move under Markman v. Westview Instruments, Inc., 52 F.3d 967 (Fed.Cir.1995), aff'd, 517 U.S. 370, 116 S.Ct. 1384, 134 L.Ed.2d 577 (1996) and Fed.R.Civ.P. 56 for the Court to construe the relevant patent claims and for summary judgment dismissing the Complaint on grounds of non-infringement and invalidity. Defendants also seek sanctions under Fed.R.Civ.P. 11 for the inclusion of willful infringement allegations in the Complaint. For the reasons set forth below, Defendants’ motions for summary judgment and Rule 11 sanctions are denied, and this Court grants summary judgment in favor of Plaintiffs on their claim of infringement.

BACKGROUND

The '340 patent pertains to a solid oral dosage of aluminum hydroxide or magnesium hydroxide (the “antacids”) and famoti-dine. Famotidine is a guanidinothiazole compound that inhibits acid secretion in the stomach by interfering with histamine receptors in the stomach lining. (Declaration of Kristopher R. Kiel, dated Feb. 24, 2006 (“Kiel Deck”), Ex. 1: '340 Patent col. 51, 11. 31-32; Transcript of Proceedings, dated Apr. 25, 2006 (“Tr.”) at 13-14.) Aluminum hydroxide and magnesium hydroxide neutralize acid already present in the stomach. (Tr. at 8-9.) When combined in a solid oral dosage, famotidine and antacids are used to treat gastric disorders arising from acid secretion, such as acid indigestion. McNeil markets this combined dosage as Pepcid Complete. (Declaration of James Gabriele, dated Dec. 30, 2005 (“Gabriele Deck”) ¶ 6; Tr. at 15.)

McNeil filed the '340 patent application on December 1, 1992 with Edward John Roche (“Roche”), Susan Decoteau and Eleanor Freeman as the named inventors. (Kiel Deck Ex. 1: Paper No. I.) 1 These inventors discovered that famotidine degrades when exposed to antacids, yielding a therapeutically ineffective product with unknown properties. (Kiel Deck Ex. 1: '340 Patent col. 1, 11. 26-30; col. 2, 11. JI-JO; col. 2, In. 61 — col. 3, In. 2.) The '340 patent teaches a method for preventing famotidine degradation.

At issue are independent composition claim 1 and independent method claim 5 of the '340 patent. Claim 1 recites as follows:

1. A solid oral dosage form for the treatment of gastrointestinal disorders comprising a therapeutically effective amount of impermeably coated famoti-dine granules for the treatment of gastric disorders and pharmacologically *497 acceptable salts thereof; and a therapeutically effective amount of aluminum hydroxide or magnesium hydroxide wherein the oral dosage form has said coated famotidine granules and the aluminum hydroxide or magnesium hydroxide in contact with each other, but separated by said impermeable coating on the famotidine granules which is impermeable to the aluminum hydroxide or magnesium hydroxide.

('340 Patent col. 14, 11. 39^49.) Claim 5 recites as follows:

5. A method for manufacturing a solid oral dosage form comprising: a) forming granules containing famotidine for the treatment of gastric disorder; b) coating the granules with a coating impermeable to aluminum hydroxide or magnesium hydroxide to form impermeably coated famotidine granules; c) mixing a therapeutically effective amount of aluminum hydroxide or magnesium hydroxide with a therapeutically effective amount of impermeably coated famotidine granules and pharmaceutically acceptable excipi-ents to form a compression mixture; then d) pressing the compression mixture to form a solid oral dosage form.

('340 Patent col. 15, In. 6 — col. 16, In. 2.) The specification details several embodiments of the invention. In the preferred embodiment, granulated famotidine is coated with an impermeable material that protects the famotidine from the antacids. ('340 Patent col. 9,11. 7-12.) The specification details two variations on this embodiment. In Examples I and V, the coated famotidine granules and the antacids are interspersed throughout a single-layer tablet. ('340 Patent col. 9, In. 39 — col. 10, In. 60; col. 13, In. 52 — col. 14, In. 37.) Examples II and III depict two-layer embodiments in which the coated famotidine granules comprise one layer and the antacids comprise the other layer. 2 ('340 Patent col. 10, In. 63 — col. 12, In. 51.)

The specification also presents three-layer embodiments in which a layer of impermeable film-forming polymer separates a layer of uncoated famotidine from a layer of antacids. ('340 Patent col. 3, In. 14 — col. 4, In. 43.) There are two variations of this embodiment in the specification. In Figures 1 and 2, the uncoated famotidine is on top and the antacids are on the bottom, with a layer of impermeable material in between (the “barrier sandwich” embodiment). ('340 Patent col. 3,11. 14-34.) Figures 3 and 4 depict an inner core of antacids encapsulated by the impermeable material, which is surrounded by an outer layer of uncoated famotidine (the “core” embodiment). ('340 Patent col. 3,11. 35-65.)

The original '340 application encompassed all of the above-described embodiments (Kiel Decl. Ex. 2: Paper No. 1, at 5-8, 20-32.). The application purported to show that at 40 degrees Celcius and 75% humidity, uncoated guanidinothiazole exposed to aluminum hydroxide experienced 1.1% degradation by weight over the course of a month. (Kiel Decl. Ex. 2: Paper No. 1, Fig. 8.) Under the same conditions, coated famotidine experienced approximately 0.1-0.2% degradation by weight. (Kiel. Decl. Ex. 2: Paper No. 1, Fig. 9.) Thus, McNeil argued that the coating reduced the level of famotidine degradation.

The Patent Office repeatedly rejected McNeil’s claims, primarily on grounds of obviousness. (See Kiel Decl. Ex. 2: Paper Nos. 5, 9, 16, 20, 29.) The examiner stated that primary references such as Boswell (Defendants’ Summary Judgment Exhibit *498 (“Defs.SJ.Ex.”) C), Estevenel et al. (Defs. SJ Ex. D) and EP 294,933 (Defs. SJ Ex. E) use a coating material to prevent interaction between solid forms. (Kiel Decl. Ex. 2: Paper No. 16, at 3-4.) Plaintiffs also submitted to the examiner Roche’s U.S. Patent No. 5,075,114 (the “'114 patent”) which recited a method for masking the taste of famotidine granules with an impermeable coating material. (Defs.SJ.Ex.

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443 F. Supp. 2d 492, 2006 U.S. Dist. LEXIS 51172, 2006 WL 2092474, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcneil-ppc-inc-v-perrigo-co-nysd-2006.