Sandoz Inc. v. Amgen Inc.

198 L. Ed. 2d 114, 26 Fla. L. Weekly Fed. S 640, 137 S. Ct. 1664, 582 U.S. 1, 2017 WL 2507337, 2017 U.S. LEXIS 3723, 122 U.S.P.Q. 2d (BNA) 1685, 85 U.S.L.W. 4323
Supreme Court of the United States·Decided June 12, 2017·No. 15–1039; 15–1195.·Published·Cited by 43 cases

Opinions

Justice THOMAS delivered the opinion of the Court.

These cases involve 42 U.S.C. § 262(l ), which was enacted as part of the Biologics Price Competition and Innovation Act of 2009 (BPCIA), 124 Stat. 808. The BPCIA governs a type of drug called a biosimilar, which is a biologic product that is highly similar to a biologic product that has already been approved by the Food and Drug Administration (FDA). Under § 262(l ), an applicant that seeks FDA approval of a biosimilar must provide its application materials and manufacturing information to the manufacturer of the corresponding biologic within 20 days of the date the FDA notifies the applicant that it has accepted the application for review. The applicant then must give notice to the manufacturer at least 180 days before marketing the biosimilar commercially.

The first question presented by these cases is whether the requirement that an applicant provide its application and manufacturing information to the manufacturer of the biologic is enforceable by injunction. We conclude that an injunction is not available under federal law, but we remand for the court below to decide whether an injunction is available under state law. The second question is whether the applicant must give notice to the manufacturer after, rather than before, obtaining a license from the FDA for its biosimilar. We conclude that an applicant may provide notice before obtaining a license.

I

The complex statutory scheme at issue in these cases establishes processes both for obtaining FDA approval of biosimilars and for resolving patent disputes between manufacturers of licensed biologics and manufacturers of biosimilars. Before turning to the questions presented, we first explain the statutory background.

A

A biologic is a type of drug derived from natural, biological sources such as animals or microorganisms. Biologics thus differ from traditional drugs, which are typically *1670synthesized from chemicals.1 A manufacturer of a biologic may market the drug only if the FDA has licensed it pursuant to either of two review processes set forth in § 262. The default pathway for approval, used for new biologics, is set forth in § 262(a). Under that subsection, the FDA may license a new biologic if, among other things, the manufacturer demonstrates that it is "safe, pure, and potent." § 262(a)(2)(C)(i)(I). In addition to this default route, the statute also prescribes an alternative, abbreviated route for FDA approval of biosimilars, which is set forth in § 262(k).

To obtain approval through the BPCIA's abbreviated process, the manufacturer of a biosimilar (applicant) does not need to show that the product is "safe, pure, and potent." Instead, the applicant may piggyback on the showing made by the manufacturer (sponsor) of a previously licensed biologic (reference product). See § 262(k)(2)(A)(iii). An applicant must show that its product is "highly similar" to the reference product and that there are no "clinically meaningful differences" between the two in terms of "safety, purity, and potency." §§ 262(i)(2)(A), (B) ; see also § 262(k)(2)(A)(i)(I). An applicant may not submit an application until 4 years after the reference product is first licensed, and the FDA may not license a biosimilar until 12 years after the reference product is first licensed. §§ 262(k)(7)(A), (B). As a result, the manufacturer of a new biologic enjoys a 12-year period when its biologic may be marketed without competition from biosimilars.

B

A sponsor may hold multiple patents covering the biologic, its therapeutic uses, and the processes used to manufacture it. Those patents may constrain an applicant's ability to market its biosimilar even after the expiration of the 12-year exclusivity period contained in § 262(k)(7)(A).

The BPCIA facilitates litigation during the period preceding FDA approval so that the parties do not have to wait until commercial marketing to resolve their patent disputes. It enables the parties to bring infringement actions at certain points in the application process, even if the applicant has not yet committed an act that would traditionally constitute patent infringement. See 35 U.S.C. § 271(a) (traditionally infringing acts include making, using, offering to sell, or selling any patented invention within the United States without authority to do so). Specifically, it provides that the mere submission of a biosimilar application constitutes an act of infringement. §§ 271(e)(2)(C)(i), (ii). We will refer to this kind of preapproval infringement as "artificial" infringement. Section 271(e)(4) provides remedies for artificial infringement, including injunctive relief and damages.

C

The BPCIA sets forth a carefully calibrated scheme for preparing to adjudicate, and then adjudicating, claims of infringement. See 42 U.S.C. § 262(l ). When the FDA accepts an application for review, it notifies the applicant, who within 20 days "shall provide" to the sponsor a copy of the application and information about how the biosimilar is manufactured. § 262(l )(2)(A). The applicant also "may provide" the sponsor with any additional information that it requests. § 262(l )(2)(B). These disclosures enable the sponsor to evaluate the *1671biosimilar for possible infringement of patents it holds on the reference product (i.e., the corresponding biologic). § 262(l )(1)(D). The information the applicant provides is subject to strict confidentiality rules, enforceable by injunction. See § 262(l )(1)(H). The first question presented by these cases is whether § 262(l )(2)(A)'s requirement-that the applicant provide its application and manufacturing information to the sponsor-is itself enforceable by injunction.

After the applicant makes the requisite disclosures, the parties exchange information to identify relevant patents and to flesh out the legal arguments that they might raise in future litigation. Within 60 days of receiving the application and manufacturing information, the sponsor "shall provide" to the applicant "a list of patents" for which it believes it could assert an infringement claim if a person without a license made, used, offered to sell, sold, or imported "the biological product that is the subject of the [biosimilar] application." § 262(l )(3)(A)(i). The sponsor must also identify any patents on the list that it would be willing to license. § 262(l )(3)(A)(ii).

Next, within 60 days of receiving the sponsor's list, the applicant may provide to the sponsor a list of patents that the applicant believes are relevant but that the sponsor omitted from its own list, § 262(l

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Sandoz Inc. v. Amgen Inc., 198 L. Ed. 2d 114, 26 Fla. L. Weekly Fed. S 640, 137 S. Ct. 1664, 582 U.S. 1, 2017 WL 2507337, 2017 U.S. LEXIS 3723, 122 U.S.P.Q. 2d (BNA) 1685, 85 U.S.L.W. 4323 (U.S. 2017).

198 L. Ed. 2d 114 (Sandoz Inc. v. Amgen Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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