Otsuka Pharmaceutical Co. v. Apotex Corp.

143 F. Supp. 3d 188, 2015 U.S. Dist. LEXIS 105048, 2015 WL 4756636
CourtDistrict Court, D. New Jersey
DecidedAugust 11, 2015
DocketCivil Action No. 14-8074 (JBS/KMW)
StatusPublished
Cited by6 cases

This text of 143 F. Supp. 3d 188 (Otsuka Pharmaceutical Co. v. Apotex Corp.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Otsuka Pharmaceutical Co. v. Apotex Corp., 143 F. Supp. 3d 188, 2015 U.S. Dist. LEXIS 105048, 2015 WL 4756636 (D.N.J. 2015).

Opinion

MEMORANDUM OPINION

SIMANDLE, Chief Judge:

This patent infringement action, one of twenty-six related actions under the Hatch-Waxman Act, 35 U.S.C. §§ 271, 281, generally concerns Plaintiff Otsuka Pharmaceutical Co, Ltd.’s (hereinafter, “Otsuka”) position that Apotex Corp.’s and Apotex Inc.’s (collectively, “Apotex”) proposed generic aripiprazole product infringes one or more claims of four of the various patents covering Otsuka’s Ability aripiprazole product, U.S. Patent Nos. 8,017,615 (“the '615 patent”), 8,580,796 (“the '796 patent”), 8,642,760 (“the '760 [191]*191patent”), and 8,759,350 (“the '350 patent” and collectively, the “Patents-in-Suit”).

Otsuka now moves to dismiss Apotex’s Ninth and Tenth Counterclaims for “Unlawful Monopolization” and for “Patent Misuse” (hereinafter, the “Counterclaims”) pursuant to Federal Rule of Civil Procedure 12(b)(6) or, in the alternative, to bifurcate and stay Apotex’s Counterclaims pending resolution of the primary patent infringement issues pursuant to Federal Rule of Civil Procedure 42(b). [Docket Item 102.] The Court recently addressed the viability of substantively identical, but slightly less developed, counterclaims in Otsuka Pharmaceutical Co., Ltd. v. Torrent Pharm. Ltd., Inc., 118 F.Supp.3d 646, No. 14-1078, 2015 WL 3869677 (D.N.J. June 22, 2015), and reaches substantially the same result in connection with the pending motion.1 For the reasons that follow, Otsuka’s motion will be granted in part and denied in part. The Court finds as follows:

1.As this Court has summarized on numerous occasions, Otsuka holds New Drug Application (hereinafter, “NDA”) No. 21-436, approved by the Food and Drug Administration (hereinafter, the “FDA”), for aripiprazole tablets, which Otsuka markets under the trade name Ability®. (See Am. Compl. at ¶¶ 1, 18, 20.) In connection with Ability®’s listing in the Orange Book, the FDA’s book of drug products approved under the Food, Drug, and Cosmetic Act (hereinafter, the “Orange Book”), 21 U.S.C. § 355(j), Otsuka identifies the Patents-in-Suit, and discloses Ability®’s active ingredient as “aripiprazole,” the dosage form as a “tablet” or “oral,” and the strengths as 2 mg, 5 mg, 10 mg, 15 mg, 20 mg, and 30 mg. (Countercl. at ¶¶ 32-34.)

2. In late 2014, Apotex filed Abbreviated New Drug Application (hereinafter, “ANDA”) No. 78-583 with the FDA, seeking approval to market generic 2 mg, 5 mg, 10 mg, 15 mg, 20 mg, and 30 mg aripiprazolé tablets in the United States, prior to expiration of the Patents-in-Suit. (See Countercl. at ¶¶ 35-37.) Apotex’s ANDA filing included a “paragraph IV certification” pursuant to 21 U.S.C. § 355(j) (2) (A) (vii) (IV), in which Torrent set forth its assertion that the Ability® patents would not be infringed by the commercial manufacture, use, or sale of Apo-tex’s generic aripiprazole product. (See id.)

3. On November 12, 2014, Apotex then mailed notice of its ANDA certification to Otsuka, and provided a detailed explanation of the bases for Apotex’s position that its generic aripiprazole tablets would not infringe any valid or enforceable claim of the Orange Book-listed Patents-in-Suit. (Id. at ¶ 38.) In order to substantiate its non-infringement and/or invalidity positions, Apotex’s notice “included an Offer of Confidential Access” to its ANDA and supporting materials. (Id.)

4. Despite Apotex’s assertions, Otsuka filed an initial and Amended Complaint in this District, alleging that Apotex’s proposed generic product “will, if approved and marketed,” infringe at least one claim of the Patents-in-Suit. (Am. Compl. at ¶¶ 24, 34, 44, 54.) On March 23, 2015, Apotex responded to Otsuka’s Amended Complaint and, as relevant here, asserted Counterclaims for “Unlawful Monopolization in Violation of the Sherman Act: [192]*192Sham Litigation” and for a “Declaratory Judgment of Unenforceability” of the Patents-in-Suit for “Patent Misuse.” (Coun-tercl. at ¶¶ 55 72-118.)

5. Apotex’s “Unlawful Monopolization” Counterclaim alleges, in particular, that Otsuka “has the power to control prices and/or exclude competition in, or prevent entry into” the aripiprazole market, and claims that Otsuka has wielded that power “to monopolize” the market. {Id. at ¶¶ 80-81.) Indeed, Apotex claims that Otsuka has “engaged” in a “predatory scheme to monopolize” the aripiprazole market through its institution of “objectively baseless and sham judicial proceedings designed to continue its monopoly of aripi-prazole tablets” and to prevent Apotex, among other generic companies, from competing in the aripiprazole market. {Id. at ¶¶ 55 86-88, 106-108.) Apotex therefore alleges that this infringement litigation amounts to “sham” and “bad faith” litigation, in violation of the Sherman and Clayton Acts, 15 U.S.C. §§ 2, 15, and 15/26" style="color:var(--green);border-bottom:1px solid var(--green-border)">26. {Id. at ¶¶ 72-110.)

6. Apotex’s patent misuse Counterclaim largely reiterates the allegations of its antitrust Counterclaim, and specifically alleges that Otsuka filed this action without “any good faith factual or legal basis” to support its infringement positions, and for purposes of delaying Apotex’s entry into the marketplace for aripiprazole tablets. {Id. at ¶¶ 111-14.) Apotex further alleges that Otsuka has, in filing and prosecuting this “baseless” action, “impermissi-bly broadened the physical or temporal scope” of the Patents-in-Suit and asserted the patents in order “to obtain a market benefit beyond that which inheres in the statutory patent right.” {Id. at ¶¶ 115-16.)

7. In moving to dismiss, Otsuka argues, as it did in connection with substantially similar counterclaims in Torrent, 118 F.Supp.3d 646, 2015 WL 3869677, that Apotex’s antitrust and patent misuse Counterclaims must be dismissed, because Apotex has not alleged the “anticompeti-tive” or “antitrust injury” required for antitrust standing, because Apotex’s “cursory conclusions” fail to plausibly overcome Ot-suka’s Noerr-Pennington immunity, and because Apotex’s patent misuse counterclaim fails as a matter of law to state a cognizable claim for patent misuse. {See Otsuka’s Br. at 5-11; Otsuka’s Reply at 1-5.) In the alternative, Otsuka requests that the Court follow the “ ‘standard practice’ ” of bifurcating for trial the patent issues raised in this litigation from the antitrust and/or patent misuse issues. (Otsuka’s Br. at 12 (citations omitted); Ot-suka’s Reply at 6.)

8. Under Federal Rule of Civil Procedure

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143 F. Supp. 3d 188, 2015 U.S. Dist. LEXIS 105048, 2015 WL 4756636, Counsel Stack Legal Research, https://law.counselstack.com/opinion/otsuka-pharmaceutical-co-v-apotex-corp-njd-2015.