Par Pharmaceutical, Inc. v. TWi Pharmaceuticals, Inc.

120 F. Supp. 3d 468, 2015 U.S. Dist. LEXIS 97977, 2015 WL 4577737
CourtDistrict Court, D. Maryland
DecidedJuly 28, 2015
DocketCivil No. CCB-11-2466
StatusPublished
Cited by3 cases

This text of 120 F. Supp. 3d 468 (Par Pharmaceutical, Inc. v. TWi Pharmaceuticals, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Par Pharmaceutical, Inc. v. TWi Pharmaceuticals, Inc., 120 F. Supp. 3d 468, 2015 U.S. Dist. LEXIS 97977, 2015 WL 4577737 (D. Md. 2015).

Opinion

MEMORANDUM

CATHERINE C. BLAKE, District Judge.

Plaintiffs Par Pharmaceutical, Inc. and Alkermes Pharma Ireland, Limited (collectively, “Par”) filed this action against TWi Pharmaceuticals, Inc. (“TWi”) alleging infringement of U.S. Patent No. 7,101,576 (“'576 patent”).1 After a five-day bench trial, the court issued a memorandum concluding that “the '576 patent was obvious, and thus invalid.” (Post-Tr. Mem. 1, ECF No. 212.) Par appealed to the Federal Circuit, which vacated the court’s judgment of invalidity, and remanded the case for further analysis. The court held a hearing to consider the parties’ remand arguments on invalidity. Based on the arguments presented then and in the parties’ remand briefs, and after reviewing the trial record, the court now makes additional findings of fact and conclusions of law under Federal Rule of Civil Procedure 52(a). In sum, the court concludes that TWi has shown by clear and convincing evidence that the asserted claims in the '576 patent are invalid on two separate grounds: they are obvious, and they are not enabled.

BACKGROUND

The following has occurred since the court issued its post-trial memorandum on February 21, 2014.2 On March 18, 2014, Par appealed the court’s judgment in TWi’s favor. (ECF No. 219.) On August 12, 2014, the court granted Par’s motion for an injunction pending appeal. (ECF Nos. 257-58.) On September 10, 2014, TWi filed a notice of appeal concerning the injunction.

On December 3, 2014, the Federal Circuit issued an opinion vacating the court’s judgment that the '576 patent was invalid as obvious and remanding because, in its view, the court “incorrectly applied [Federal Circuit] law on inherency in the context of obviousness.” Par Pharm., Inc. v. TWi Pharms., Inc., 773 F.3d 1186, 1188 (Fed.Cir.2014).

The Federal Circuit’s opinion began by outlining its standard for inherency. It stated that, while “inherency may supply a missing claim limitation[,] ... the use of inherency ... must be carefully circumscribed in the context of obviousness.” Id. at 1194-95 (citations omitted). It then [471]*471described the “high standard” parties must meet to show that a claim limitation is inherent in the prior art: “the limitation at issue necessarily must be present, or the natural result of the combination of elements explicitly disclosed by the prior art.” Id. at 1196.

The Federal Circuit concluded that the court “did not require that TWi present evidence sufficient to prove inherency under this standard.” Id. TWi had presented evidence that a reduction in particle size would improve bioavailability, and TWi had elicited testimony from its expert, Dr. Beach, that “an improvement in bioa-vailability ‘necessarily results in a decrease in any food effect[.]’ ” Id. (citing Post-Tr. Mem. 13). On the basis of those two facts, the court concluded, “thus any food effect will inherently be reduced.” (Post-Tr. Mem. 26.) But the Federal Circuit concluded that the court had'“ignore[d] the claim limitations at issue.”- Par Pharm., 773 F.3d at 1196. “There [we]re simply no findings of fact addressing th[e] question” of whether TWi had “present[ed] evidence sufficient to demonstrate that the claimed food effect limitations necessarily are present in the prior art combinations” — that is, whether “a reduction in particle size naturally results” in (1) “ ‘no substantial difference in Cmax- between the fed and fasted states” (as in claim 1), and (2) a “ ‘difference in Cmax' between the fed and fasted states [that is] within an enumerated percentage difference” (as in. claim 4). Id. (emphasis in original) (citations omitted).

The Federal Circuit accepted this court’s analysis in all other respects. Specifically, the Federal Circuit held that the court did not err' in: (1) concluding that TWi failed to prove “that a food effect for micronized megestrol was known in the art[,]” id. at 1194 (citing Post-Tr. Mem. 6-10); (2) considering “motivations beyond the food effect[,]” id. at 1197; (3) finding that “the viscosity and interpatient variability problems with micronized megestrol” were valid “alternate motivations[,]” id.; (4) finding sufficient “motivation to combine megestrol with nanoparticle technology^]” id. at 1198; (5) finding a “reasonable likelihood of success in combining meges-trol with nanoparticle technology[,]” id.; (6) concluding that “Graham d[id] not teach away from combining megestrol with the NanoCrystal technology[,]” id. at 1198-99; and (7) “its analysis of the objective indicia of nonobviousness[,]” id. at 1199.

- The Federal Circuit’s mandate issued on February 13, 2015. (ECF Nos. 267-68.) That same day, Par filed a motion for a temporary restraining order and injunction pending entry of final judgment" on remand, (ECF No. 269), which the court granted as to the injunction, (ECF Nos. 279-80). After the parties filed briefs, the court held a hearing on June 12, 2015.

ANALYSIS

Because the parties dispute the scope of the issues on remand, thé court addresses that question first before turning to the merits of TWi’s invalidity arguments.

I. Scope of Issues on Remand

At the end of its opinion, the Federal Circuit concluded: • ■

[although we agree with the district court’s analysis and conclusions on motivation to combine, reasonable expectation of success, and objective indicia of nonobviousness, we vacate the district court’s judgment that the '576 patent is obvious, and remand for further analysis of the food effect limitation consistent •with our precedent on inherency. The district court should also consider TWi’s [472]*472other grounds for invalidity, such as en-ablement, if necessary.

Par Pharm., 773 F.3d at 1200-01.

The Federal Circuit’s instructions are clear. On obviousness, only the inherency analysis with réspect to the food effect limitations is subject to- further evaluation; motivation to combine, reasonable expectation of success, and the secondary considerations are not. The court is also free to consider TWi’s other invalidity arguments. That is the full scope of the issues on remand; all . the other issues decided on appeal “are deemed incorporated within the [Federal Circuit’s] mandate and thus are precluded from further adjudication.” Engel Indus., Inc. v. Lockformer Co., 166 F.3d 1379, 1383 (Fed.Cir.1999).

Despite these clear instructions, Par argues that two additional issues fall within this limited scope. Neither argument is persuasive.

First,.Par argues that TWi “improperly attempts to narrow the broad motivation to combine nanoparticle technology and megestrol ... found by this Court” to a particular .particle size range. (Par Remand Br. 4, ECF No. 288 (citation omitted).) Par acknowledges that the court found there was a “general motivation” to combine megestrol acetate with nanoparti-cle technology, but it argues the court did not find “a specific

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120 F. Supp. 3d 468, 2015 U.S. Dist. LEXIS 97977, 2015 WL 4577737, Counsel Stack Legal Research, https://law.counselstack.com/opinion/par-pharmaceutical-inc-v-twi-pharmaceuticals-inc-mdd-2015.