Pharmacia & Upjohn Co. v. Ranbaxy Pharmaceuticals, Inc.

85 F. App'x 205
CourtCourt of Appeals for the Federal Circuit
DecidedDecember 23, 2003
DocketNo. 03-1536, 03-1566
StatusPublished
Cited by2 cases

This text of 85 F. App'x 205 (Pharmacia & Upjohn Co. v. Ranbaxy Pharmaceuticals, Inc.) 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
Pharmacia & Upjohn Co. v. Ranbaxy Pharmaceuticals, Inc., 85 F. App'x 205 (Fed. Cir. 2003).

Opinion

MICHEL, Circuit Judge.

Ranbaxy Pharmaceuticals, Inc. and Ranbaxy Laboratories Limited (together, “Ranbaxy”) appeal from the July 18, 2003 order of the United States District Court for the District of New Jersey granting the motion for preliminary injunction of Pharmacia & Upjohn Company, Sankyo Company Limited, and Takeda Chemical Industries, Ltd. (together, “Pharmacia”) in Pharmacia’s suit against Ranbaxy for infringement of U.S. Patent No. 4,668,783 (“ ’783 patent”) for the reasons set forth in its memorandum opinion of July 16, 2003. Pharmacia & Upjohn Co. v. Ranbaxy Pharm., Inc., 274 F.Supp.2d 597 (D.N.J. 2003). We hold the district court did not abuse its discretion in issuing the injunction. However, as to the cross-appeal, we hold it erred in requiring Pharmacia to post an injunction bond that would compensate Ranbaxy for sales not made during a 10-month period prior to the entry of the injunction during which Ranbaxy elected not to go to market although it had United States Food & Drug Administration (“FDA”) approval to do so. Pharmacia & Upjohn Co. v. Ranbaxy Pharm., Inc., No. 01-5303(MLC) (D.N.J. July 18, 2003) {“July 18 Order”). Accordingly, we ajfirm-in-part and vacate-in-part the district court’s order and remand for a prorata reduction in the amount of the bond consistent with this decision.

BACKGROUND

On December 19, 2000, Ranbaxy filed two Abbreviated New Drug Applications (“ANDAs”) with the FDA seeking approval to market generic versions of the cefpodoxime proxetil antibiotic product Pharmacia & Upjohn Co. sells in the United States [208]*208under the trade name VANTIN®.1 Pharmacia & Upjohn, 274 F.Supp.2d at 600. On November 15, 2001, after Ranbaxy declared its intention to market its products when approved, Pharmacia2 filed this action seeking a declaration that Ranbaxy’s manufacture, importation, use, sale, or offering for sale of those products in the United States during the term of the ’783 patent3 will infringe and an injunction prohibiting those activities. Four days later, Pharmacia sought an “Order to Show Cause” why Ranbaxy should not be preliminarily enjoined. On December 10, 2001, the district court entered the parties’ stipulated order providing for expedited discovery on issues relevant to the requested injunction. The stipulated order also recited Ranbaxy’s agreement to refrain from importing, selling, or offering for sale its products in the United States until 15 days after giving Pharmacia notice, giving Pharmacia the opportunity to seek a temporary restraining order.

The FDA approved Ranbaxy’s application to market its oral suspension formulation on May 31, 2002. Meanwhile, on May 3, 2002, Pharmacia had filed the present motion for preliminary injunction. Oral argument on the motion was held on July 19, 2002. On July 18, 2003 the district court entered a preliminary injunction enjoining Ranbaxy from, inter alia, manufacturing, using, selling, offering for sale, or importing its generic cefpodoxime proxetil products in the United States before the expiration of the ’783 patent. July 18 Order, at 2. It ordered Pharmacia to post a bond in the amount of $15,000,000, “to cover [Ranbaxy’s] alleged profit loss to date and continuing through the expiration date of the patent” in conjunction with the approved oral suspension product.4 Id.

Ranbaxy timely appealed the injunction. Pharmacia filed a cross-appeal challenging the requirement for a bond to the extent it encompasses sales Ranbaxy allegedly lost by refraining from marketing its approved product prior to the entry of the injunction. We have jurisdiction pursuant to 28 U.S.C. § 1292(c)(1).

DISCUSSION

I. Ranbaxy’s Appeal: Entry of the Injunction

Whether to grant or deny a motion for preliminary injunction is a decision committed to the sound discretion of the district court, which must consider four factors: (1) the likelihood that the patentee will succeed on the merits; (2) irreparable harm if the injunction is not granted; (3) the balance of hardships between the parties; and (4) the public interest. Oakley, Inc. v. Sunglass Hut Int'l, 316 F.3d 1331, 1338-39 (Fed.Cir.2003). ‘We review the district court’s decision for an abuse of discretion, a lapse that occurs when the [209]*209decision is premised on an error of law, a clearly erroneous finding of fact, or a clear error of judgment in weighing the factors.” Id. at 1339.

Ranbaxy challenges the entry of the injunction on the ground that the district court erred in determining that Pharmacia had established a reasonable likelihood of success on the merits in that the district court (1) erroneously construed the claims and (2) incorrectly held that Ranbaxy had failed to raise a substantial question of invalidity regarding the '783 patent. It further asserts that the district court erred in according Pharmacia the benefit of a presumption of irreparable harm and that Pharmacia otherwise failed to establish irreparable harm.

A. Claim Construction

The ’783 patent, entitled “Thiazolylacetamido Cephalosporin Compounds,” was issued on May 26, 1987. It has six claims; only claim 1 is independent:

1. A compound of the formula:

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wherein R4 is a residue of a nucleophilic compound selected from, hydroxyl, mercapto, cyano, azido, amino, carbamoyloxy, carbamoylthio and thiocarbamoyloxy, said group being unsubstituted or substituted by alkyl of up to three carbons, and R5 is hydroxyl or lower alkoxy.

’783 patent, col. 39, I. 26 to col. 40, I. 14 (emphasis added). The emphasized limitation, defining the R4 substituent, is at issue.5 Specifically, Ranbaxy contends that a methoxy (-OCH3) residue, which occupies the R4 position in both Pharmaeia’s VAN-TIN® products and the accused products, is not encompassed by the phrase “hydroxyl ... substituted by alkyl of up to three carbons.” More specifically, Ranbaxy argues that one of ordinary skill in the art would not read “substituted” in claim 1 to modify “hydroxyl.”

As support for its position, Ranbaxy notes (and Pharmacia agrees) that “substituted or unsubstituted” in claim 1 cannot modify every residue recited in the R4 Markush group because, as a matter of chemistry, two of the recited residues— cyano and azido — cannot be “substituted” with an “alkyl of up to three carbons” because they lack substitutable hydrogen atoms. It argues that the recitation of “alkoxy,” a conventional reference to the genus including methoxy, in the claim’s definition for the R5 substituent (but not for R4) shows that R4 and R5 have different meanings, and that the patentee knew how to include “alkoxy” substituents had it meant to.

[210]*210Similarly, Ranbaxy points to the written description’s definition of R4: “-W-R wherein W represents oxygen or sulfur atom and R represents hydrogen, carbamoyl, N-alkylearbamoyl, thiocarbamoyl, Nalkylthiocarbamoyl, an acyl, sulfamoyl, alkylsulfonyl or hetero ring,” ’783 patent, col. 4, I. 67 to col. 5, I.

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Bluebook (online)
85 F. App'x 205, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pharmacia-upjohn-co-v-ranbaxy-pharmaceuticals-inc-cafc-2003.