Otsuka Pharmaceutical Co., Ltd. v. Lupin Ltd.

CourtCourt of Appeals for the Federal Circuit
DecidedMay 21, 2026
Docket24-2297
StatusUnpublished

This text of Otsuka Pharmaceutical Co., Ltd. v. Lupin Ltd. (Otsuka Pharmaceutical Co., Ltd. v. Lupin Ltd.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Otsuka Pharmaceutical Co., Ltd. v. Lupin Ltd., (Fed. Cir. 2026).

Opinion

Case: 24-2297 Document: 46 Page: 1 Filed: 05/21/2026

NOTE: This disposition is nonprecedential.

United States Court of Appeals for the Federal Circuit ______________________

OTSUKA PHARMACEUTICAL CO., LTD., Plaintiff-Appellant

v.

LUPIN LTD., LUPIN PHARMACEUTICALS, INC., Defendants-Appellees ______________________

2024-2297 ______________________

Appeal from the United States District Court for the District of Delaware in No. 1:21-cv-00900-RGA, Judge Richard G. Andrews. ______________________

Decided: May 21, 2026 ______________________

ZACHARY L. GARRETT, Venable LLP, New York, NY, ar- gued for plaintiff-appellant. Also represented by JOHN D. MURNANE, JOSHUA ROTHMAN, ALICIA ALEXANDRA ROSE RUSSO; MEGAN S. WOODWORTH, Venable LLP, Washington, DC.

WILLIAM R. ZIMMERMAN, Knobbe, Martens, Olson & Bear, LLP, Washington, DC, argued for defendants-appel- lees. Also represented by JARED C. BUNKER, Irvine, CA; CAROL PITZEL CRUZ, Bellevue, WA. Case: 24-2297 Document: 46 Page: 2 Filed: 05/21/2026

______________________

Before HUGHES and CUNNINGHAM, Circuit Judges, and BURROUGHS, District Judge. † HUGHES, Circuit Judge. Otsuka Pharmaceutical Co., Ltd. appeals a final judg- ment of the United States District Court for the District of Delaware. The district court held that certain claims of U.S. Patent Nos. 8,273,735 and 8,501,730 were not in- fringed by Lupin Ltd. and Lupin Pharmaceuticals, Inc.’s manufacturing process incorporated in Abbreviated New Drug Application No. 216063. The court also held that cer- tain claims of U.S. Patent No. 8,273,735 were invalid for obviousness. For the following reasons, we affirm. I Otsuka Pharmaceutical Co., Ltd. (Otsuka) is the owner of U.S. Patent Nos. 8,501,730 and 8,273,735 (collectively, patents-in-suit). Respectively, the patents-in-suit claim highly pure tolvaptan—a compound used to treat Autoso- mal Dominant Polycystic Kidney Disease (ADPKD)—and improved methods for synthesizing tolvaptan. While previ- ous synthesis methods for tolvaptan led to the production of an impurity known as the dechlorinated impurity, the innovation of the patents-in-suit is that, by reducing the amount of a key hydrogenating reagent in the synthesis process—sodium borohydride—the amount of the dechlo- rinated impurity is reduced. Otsuka uses this innovation in manufacturing its ADPKD treatment JYNARQUE®. In May 2021, Lupin Ltd. notified Otsuka that it had submitted an Abbreviated New Drug Application (ANDA)

† Honorable Allison D. Burroughs, District Judge, United States District Court for the District of Massachu- setts, sitting by designation. Case: 24-2297 Document: 46 Page: 3 Filed: 05/21/2026

OTSUKA PHARMACEUTICAL CO., LTD. v. LUPIN LTD. 3

to the Food and Drug Administration, seeking approval to market generic versions of JYNARQUE®. Otsuka then brought an action for infringement of the ’730 patent against Lupin Ltd. and its wholly owned subsidiary Lupin Pharmaceuticals, Inc. (collectively, Lupin) under 35 U.S.C. § 271(a), (e)(2)(A), and (g). Later, Otsuka amended its com- plaint to also assert infringement of the ’735 patent. Prior to and at trial, the issues were narrowed to include in- fringement and invalidity for obviousness. Otsuka asserted claims 1, 2, 4, and 5 of the ’730 patent and claims 7, 8, and 10 of the ’735 patent against Lupin. The asserted claims of the ’730 patent are all independent product-by-process claims, and they require reduction of a benzazepine compound in the presence of a hydrogenating agent. The claims further require that this hydrogenating agent be present in an amount of either 0.25–1 or 0.25–0.5 molar equivalent per 1 mole of benzazepine pre- cursor compound. For example, claim 1 of the ’730 patent recites: 1. A highly pure 7-chloro-5-hydroxy-1-[2-me- thyl-4-(2-methylbenzoylamino)benzoyl]-2,3,4,5 -tetrahydro-1H-1-benzazepine having a purity of more than 99.5%, or a salt thereof, which is produced by the process which comprises re- ducing a benzazepine compound of the formula (1):

wherein X1 is a halogen atom, R1 and R2 are in- dependently a lower alkyl group, or a salt Case: 24-2297 Document: 46 Page: 4 Filed: 05/21/2026

thereof in the presence of a hydrogenating agent selected from the group consisting of lith- ium aluminum hydride, sodium borohydride, zinc borohydride, and diborane in an amount of 0.25 to 1 mole per 1 mole of the compound (1). ’730 Patent, 29:9–32. Similarly, the asserted claims of the ’735 patent are method claims, all of which also require the reduction of a benzazepine compound in the presence of a hydrogenating agent in an amount of either 0.25–1 or 0.25–0.5 molar equivalent per 1 mole of benzazepine compound. For exam- ple, claim 7, which depends from unasserted claim 6, re- cites (reproduced with claim 6 below for reference): 6. A process for producing a 2,3,4,5-tetrahydro- 1H-1-benzazepine compound of the formula (10):

wherein X1 is a halogen atom, R1 and R2 are in- dependently a lower alkyl group, or a salt thereof, which comprises reducing a benzaze- pine compound of the formula (1): Case: 24-2297 Document: 46 Page: 5 Filed: 05/21/2026

OTSUKA PHARMACEUTICAL CO., LTD. v. LUPIN LTD. 5

wherein R1, R2 and X1 are as defined above, or a salt thereof in the presence of a hydrogenat- ing agent selected from the group consisting of lithium aluminum hydride, sodium borohy- dride, zinc borohydride, and diborane in an amount of 0.25 to 1 mole per 1 mole of the com- pound (1). 7. The process according to claim 6, wherein the hydrogenating agent is sodium borohydride which is used in an amount of 0.25 to 1 mole per 1 mole of the compound (1). ’735 Patent, 31:61–32:36. Lupin’s ANDA submission incorporates Drug Master File (DMF) No. 036263, which describes the process by which Lupin intends to synthesize its generic tolvaptan ANDA product. Lupin’s DMF indicates that its tolvaptan synthesis process also makes use of a reduction reaction like the one claimed by Otsuka, but where Otsuka’s claimed process generally uses 1 molar equivalent or less of hydrogenating agent such as sodium borohydride per 1 mole of precursor compound, Lupin’s process uses at least 1.2 molar equivalents of sodium borohydride per 1 mole of precursor. See, e.g., J.A. 2571–73. In Lupin’s process, after this sodium borohydride has been added, two samples are taken, one after 15 minutes and one after 75 minutes. At each point, the sample is tested to see if no more than 0.05% of the original amount of precursor compound re- mains in the reaction mixture. If these tests indicate that 0.05% or less of the original amount of precursor compound remains, then Lupin quenches the reaction by adding wa- ter and hydrochloric acid. This destroys the chemical bonds in the sodium borohydride, preventing any further reac- tion. If these tests indicate that more than 0.05% of the amount of precursor compound remains, more sodium bo- rohydride is added. Case: 24-2297 Document: 46 Page: 6 Filed: 05/21/2026

After a bench trial, the district court held that Lupin’s DMF method for producing tolvaptan did not infringe the asserted claims of the patents-in-suit. Separately, the dis- trict court considered evidence of the invalidity of the pa- tents-in-suit for obviousness over several pieces of prior art, ultimately concluding that “Lupin has shown by clear and convincing evidence that a POSA would have found the claimed invention [of the ’735 patent] obvious.” Otsuka Pharm. Co. v. Lupin Ltd., No. 21-cv-00900, 2024 WL 3618123, at *11 (D. Del. July 31, 2024) (Bench Trial Opin- ion). The district court also found, however, that Lupin did not demonstrate the invalidity of the asserted ’730 patent claims under its obviousness theory. Otsuka appeals. We have jurisdiction under 28 U.S.C.

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