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

Court of Appeals for the Federal Circuit·Decided May 21, 2026·No. 24-2297·Unpublished

Opinion

NOTE: This disposition is nonprecedential.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, argued 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-appellees . Also represented by JARED C. BUNKER, Irvine, CA; CAROL PITZEL CRUZ, Bellevue, WA.

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

Before HUGHES and CUNNINGHAM, Circuit Judges, and BURROUGHS, District Judge. † HUGHES, Circuit Judge.

Otsuka Pharmaceutical Co., Ltd. appeals a final judgment 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 infringed by Lupin Ltd. and Lupin Pharmaceuticals, Inc.’s manufacturing process incorporated in Abbreviated New Drug Application No. 216063. The court also held that certain 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 Autosomal Dominant Polycystic Kidney Disease (ADPKD)—and improved methods for synthesizing tolvaptan. While previous 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 dechlorinated 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 Massachusetts , sitting by designation.

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 complaint to also assert infringement of the ’735 patent. Prior to and at trial, the issues were narrowed to include infringement 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 precursor compound. For example, claim 1 of the ’730 patent recites:

1. A highly pure 7-chloro-5-hydroxy-1-[2-methyl -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 reducing a benzazepine compound of the formula (1):

wherein X1 is a halogen atom, R1 and R2 are independently a lower alkyl group, or a salt 4 OTSUKA PHARMACEUTICAL CO., LTD. v. LUPIN LTD.

thereof in the presence of a hydrogenating agent selected from the group consisting of lithium 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 example , claim 7, which depends from unasserted claim 6, recites (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 independently a lower alkyl group, or a salt thereof, which comprises reducing a benzazepine compound of the formula (1):

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 hydrogenating agent selected from the group consisting of lithium aluminum hydride, sodium borohydride , zinc borohydride, and diborane in an amount of 0.25 to 1 mole per 1 mole of the compound (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 remains 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 water and hydrochloric acid. This destroys the chemical bonds in the sodium borohydride, preventing any further reaction . If these tests indicate that more than 0.05% of the amount of precursor compound remains, more sodium borohydride is added.

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

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 district court considered evidence of the invalidity of the patents -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 Opinion ). 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.

§ 1295(a)(1).

II

On appeal, Otsuka challenges the district court’s infringement conclusions, its conclusion that Lupin’s expert at trial qualified as a skilled artisan, and its invalidity conclusions regarding the ’735 patent. We address each argument in turn.

A

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

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