Nexell Therapeutics, Inc. v. AmCell Corp.

199 F. Supp. 2d 197, 2002 U.S. Dist. LEXIS 7308, 2002 WL 724224
CourtDistrict Court, D. Delaware
DecidedApril 19, 2002
DocketCIV.A. 00-141-RRM
StatusPublished
Cited by1 cases

This text of 199 F. Supp. 2d 197 (Nexell Therapeutics, Inc. v. AmCell Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nexell Therapeutics, Inc. v. AmCell Corp., 199 F. Supp. 2d 197, 2002 U.S. Dist. LEXIS 7308, 2002 WL 724224 (D. Del. 2002).

Opinion

MEMORANDUM OPINION

McKELVIE, District Judge.

This is a patent case. Presently before the court is the motion of plaintiffs Nexell Therapeutics, Inc., Becton Dickinson and Company, and The Johns Hopkins Univer *198 sity to amend the court’s April 23, 2001 order granting defendant AmCell’s motion for summary judgment.

I. BACKGROUND

While the facts and procedural background of this case are more fully set forth in the court’s April 23, 2001 opinion, 1 see Nexell Theraputics, Inc. v. AmCell Corporation, 143 F.Supp.2d 407 (2001), the court will begin by reviewing the background that is most pertinent to this memorandum.

The plaintiffs are parties with an interest in two patents, U.S. Patent Nos. 4,714,-680 (the ’680 patent) and 4,965,204 (the ’204 patent), that disclose a method to prepare purified suspensions of human stem cells through the use of specific antibodies for therapeutic use in transplantation and other procedures. 2 The patents are collectively referred to as the Civin patents, after their inventor, Dr. Curt Civ-in. Plaintiff Nexell produces a magnetic cell separation device known as the Isolex system. When used in conjunction with the antibodies identified in the Civin patents, this product can separate stem cells from peripheral blood cells and bone marrow for transplantation and other therapeutic uses.

Defendant Miltenyi Biotec GmbH has developed a magnetic cell separating technology called MACS. Based on MACS, AmCell produces CliniMACS, a device which permits large-scale magnetic cell separation. It is alleged that both Milte-nyi Biotec GmbH and Miltenyi Biotec, Inc. promote and market the CliniMACS device, with Miltenyi Inc. acting as the United States “sales office” of its parent, Milte-nyi Biotec GmbH. Miltenyi Biotec GmbH holds a license from Becton Dickinson to use the antibodies in the Civin patents for in vitro research. The license agreement, however, excludes the use of the antibodies for in vivo therapeutic research.

On March 1, 2000, Nexell, Becton Dickinson, and Johns Hopkins filed a complaint against AmCell, Miltenyi Biotec GmbH, and Miltenyi Biotec, Inc. alleging that by selling or offering to sell the CliniMACS device for use with certain antibodies, the defendants infringed or actively induced others to infringe the Civin patents, breached the license agreement, and engaged in unfair competition.

A. AmCell’s § 271(e)(1) Summary Judgment Motion

On November 8, 2000, AmCell moved for summary judgment of non-infringement, claiming that, pursuant to the statutory exemption set forth in 35 U.S.C. § 271(e)(1), 3 it does not infringe the Civin patents because it is pursuing approval *199 from the Food and Drug Administration (“FDA”) for use of the CliniMACS device in conjunction with the antibodies covered by the Civin patents. On December 18, 2000, Nexell, Becton Dickinson, and Johns Hopkins (collectively referred to as “Nex-ell”) cross-moved for a partial summary judgment of infringement, inducement to infringe, and contributory infringement against the defendants, pursuant to 35 U.S.C. §§ 271(a), (b), and (c). On January 31, 2001 the court heard oral argument on the parties’ motions.

In its briefing and at oral argument, Nexell contended that the defendants have infringed the claims of the Civin patents by selling or offering to sell the Clini-MACS device for use with a reagent known as CD34. In response, AmCell argued that the § 271(e)(1) exemption applies to its allegedly infringing activities because all of its activities were “reasonably related to the development and submission of' information” to the FDA for approval of the CliniMACS device for use in conjunction with the CD34 antibodies.

Nexell countered that while AmCell may be seeking approval of CliniMACS/CD34, the real purpose that motivated many of its activities was to market and promote its device to physicians; these activities, argued Nexell, exceed the scope of the § 271(e)(1) exemption. According to the plaintiffs, these activities included: (i) sending informational packets and letters to physicians in order to recruit clinicians to participate in FDA studies to evaluate the safety and effectiveness of the Clini-MACS/CD34 systems; 4 (ii) maintaining a booth at the American Society of Hematology featuring a display of the CliniMACS device with a sign entitled “CliniMACS— the better alternative ... Now ready to accept IDE clinical protocols;” (iii) advertising CliniMACS in medical journals; (iv) soliciting clinicians through its website; (v) providing the CliniMACS device to FDA-approved clinical investigators for free and providing the CD34 reagent kits to the investigators on a cost-recovery basis. 5 See Nexell, 143 F.Supp.2d at 413-18.

Nexell contended that AmCell infringes the claims of the Civin patents because these activities constitute an offer to sell under § 271(a). Further, Nexell contended that AmCell actively induces the clinicians to infringe and contributes to the infringement of the Civin patents by providing clinicians the CD34 antibodies with the CliniMACS device.

The plaintiffs also pointed to several instances where the FDA had expressed concerns regarding the scope and effectiveness of AmCell’s clinical trials. First, the FDA required AmCell to modify its web site to partition the site into two sections, one for clinicians in the United States and one for clinicians abroad. The FDA then required AmCell to remove language that appeared to constitute an efficacy claim about CliniMACS. 6 Second, on March 30, 2000, the FDA sent a letter to *200 AmCell regarding concerns about the ongoing investigator-sponsored IDEs. Id. The letter stated in relevant part that the FDA

was concerned that such studies will not provide useful information in support of the clinical development of the device, and are subject to disapproval under 812.30(b)(4) due to deficiencies in study-design. In addition, such IDE studies are in violation of 812.7(c), unduly prolonging the investigation of an investiga-tional device ... We also remind you that 21 C.F.R. 812.7 prohibits promotion and commercialization of an investiga-tional device or representing that an investigational device is safe or effective for the purposes for which it is being investigated.

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Bluebook (online)
199 F. Supp. 2d 197, 2002 U.S. Dist. LEXIS 7308, 2002 WL 724224, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nexell-therapeutics-inc-v-amcell-corp-ded-2002.