Orexo AB v. Actavis Elizabeth LLC

371 F. Supp. 3d 175
CourtDistrict Court, D. Delaware
DecidedMarch 12, 2019
DocketCivil Action No. 17-205-CFC
StatusPublished
Cited by6 cases

This text of 371 F. Supp. 3d 175 (Orexo AB v. Actavis Elizabeth LLC) 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
Orexo AB v. Actavis Elizabeth LLC, 371 F. Supp. 3d 175 (D. Del. 2019).

Opinion

CONNOLLY, UNITED STATES DISTRICT JUDGE

This patent suit was filed by Plaintiffs Orexo AB and Orexo US, Inc. (collectively, "Orexo") against Defendants Actavis Elizabeth LLC, Actavis Pharma, Inc., Teva Pharmaceuticals USA, Inc., and Teva Pharmaceutical Industries, Ltd. (collectively, "Defendants"). Presently before me is Orexo's motion for summary judgment that issue preclusion bars Defendants from relitigating the validity of U.S. Patent No. 8,454,996 (the "# 996 patent").1 D.I. 172. The matter is fully briefed. D.I. 173, 174, 203, 205, 210, 216, 218. For the reasons discussed below, I will deny Orexo's motion.

I. BACKGROUND

Orexo alleges in its complaint that Actavis Elizabeth LLC's generic versions of Suboxone® and Subutex® infringe the # 996 patent. D.I. 1. In an earlier case filed in this court, Orexo sued Actavis Elizabeth and its parent company, Actavis, Inc., alleging, among other things, that Actavis Elizabeth's generic versions of Zubsolv® infringe the # 996 patent. Orexo AB v. Actavis Elizabeth LLC , 217 F.Supp.3d 756 (D. Del. 2016) [the "Zubsolv *179litigation"], rev'd on other grounds , 903 F.3d 1265 (Fed. Cir. 2018). In response to Orexo's complaint in the Zubsolv litigation, Actavis Elizabeth and Actavis, Inc. asserted as an affirmative defense and in a counterclaim that claims of the # 996 patent are "invalid under one or more provisions of 35 U.S.C. §§ 101, 102, 103, and/or 112." D.I. 173, Ex. A at 16; see also id. at 11, 17.

In September 2014, the parties in the Zubsolv litigation filed, and the court approved, a stipulation to dismiss Actavis, Inc. from the Zubsolv litigation. D.I. 203 at ¶ 12. Under the terms of the stipulation, "Actavis, Inc. including all affiliates and subsidiaries thereof ... agree[d] to be bound by any judgment ... rendered as to Actavis Elizabeth LLC in the Action (including appeals) as if they were named defendants." Id. (quoting D.I. 173, Ex. C at ¶¶ 1, 5). At the time the stipulation was entered by the court, Defendant Actavis Pharma, Inc., like Actavis Elizabeth, was a wholly-owned subsidiary of Actavis, Inc. Id. at ¶ 13. It is undisputed that Actavis Elizabeth and Actavis Pharma (collectively, "Actavis" or the "Actavis entities") are bound by the stipulation and the judgment ultimately issued in the Zubsolv litigation. Id. at ¶¶ 12-14.

In July 2015, Defendants Teva Pharmaceuticals USA, Inc. and Teva Pharmaceutical Industries, Ltd. (collectively "Teva") announced that Teva had agreed to purchase certain Actavis, Inc. assets, including Actavis Elizabeth and Actavis Pharma (the "Actavis transaction"). D.I. 203 at ¶¶ 19, 21.

In June 2016, before the Actavis transaction was consummated, the Zubsolv litigation proceeded to a bench trial before the now retired Honorable Sue L. Robinson. Orexo AB , 217 F.Supp.3d at 759. In the proposed pre-trial order filed jointly by the parties in the Zubsolv litigation, Actavis Elizabeth identified as one of three "substantive issues remaining to be litigated ... whether the Asserted Claims [of the # 996 patent ] are invalid as obvious under 35 U.S.C. § 103." Joint Proposed Pretrial Order, Orexo AB v. Actavis Elizabeth LLC , No. 14-cv-829-SLR (D. Del. May 4, 2016), D.I. 164-1, Ex. 5 at 1. Actavis Elizabeth did not identify any other theories of invalidity in the pre-trial order that remained to be litigated, and the only theory of invalidity it presented at trial was obviousness. See Orexo AB , 217 F.Supp.3d at 762-69.

On August 2, 2016-after trial but before entry of a judgment in the Zubsolv litigation-the Actavis transaction closed and Teva acquired Actavis Elizabeth and Actavis Pharma. D.I. 203 at ¶¶ 19, 21. The terms of the transaction were set forth in a "Master Purchase Agreement." Pursuant to that agreement, Teva assumed Actavis's "Liabilities and Claims." See D.I. 173, Ex. E at 35; Tr. of Feb. 28, 2019 Hr'g at 36:8-39:3.

In an opinion issued on November 15, 2016, Judge Robinson held that the asserted claims of the # 996 patent"are not invalid as obvious" and that Actavis Elizabeth infringed the asserted claims. Orexo AB , 217 F.Supp.3d at 781 ; see also D.I. 203 at ¶ 27. Actavis Elizabeth did not appeal Judge Robinson's rulings with respect to the # 996 patent.2

*180In February 2017, Orexo filed this action. Orexo alleges in its complaint that Actavis Elizabeth's manufacturing and Actavis Pharma's distribution of generic versions of Suboxone ® and Subutex ® infringe the # 996 patent. D.I. 1 at ¶¶ 47-48, 74-75. Orexo alleges that Teva infringes the # 996 patent by manufacturing, selling, offering for sale and/or importing into the United States generic Suboxone® and Subutex® products "either indirectly through [its] subsidiaries or affiliates or directly." Id. at ¶¶ 49, 76.

In their answer to the complaint, Defendants asserted as an affirmative defense and counterclaim that "one or more claims of the [# ]996 patent are invalid under one or more provisions of 35 U.S.C. §§ 101, 102, 103, and/or 112." D.I. 50 at 51; see also

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Bluebook (online)
371 F. Supp. 3d 175, Counsel Stack Legal Research, https://law.counselstack.com/opinion/orexo-ab-v-actavis-elizabeth-llc-ded-2019.