SmithKline Beecham Corp. v. Geneva Pharmaceuticals, Inc.

210 F.R.D. 547, 53 Fed. R. Serv. 3d 1455, 2002 U.S. Dist. LEXIS 23386, 2002 WL 31526427
Procedural entryThis page is a short order in SmithKline Beecham Corp. v. Geneva Pharmaceuticals, Inc.. Read the opinion of the Court — 287 F. Supp. 2d 576
District Court, E.D. Pennsylvania·Decided October 31, 2002·No. Nos. CIV.A.99-CV-2926, CIV.A.99-CV-4304, CIV.A.00-CV-1393, CIV.A.00-CV-4888, CIV.A.00-CV-5953, CIV.A.00-CV-6464, CIV.A.01-CV-159, CIV.A.01-CV-1027, CIV.A.01-CV-2169, CIV.A.01-CV-2602, CIV.A.01-CV-2981, CIV.A.01-CV-3364, CIV.A.02-CV-1484·Published

Opinion

MEMORANDUM AND ORDER

SURRICK, District Judge.

Presently before the Court are the Motions of Defendants Apotex Corp., Apotex, Inc. and Torpharm, Inc. (collectively, “Apo-tex/Torpharm”) to Intervene in Civil Action Nos. 00-CV-1393 (Doc. No. 26), 00-CV-6464 (Doc. No. 7) and 01-CV-2602 (Doe. No. 19). For the reasons that follow, Defendants’ Motions will be denied.

1. BACKGROUND1

Movants Apotex/Torpharm are Defendants in four of the above-captioned patent infringement actions brought by SmithKline Beecham Corp., Beecham Group, P.L.C. and SmithKline Beecham, P.L.C. (collectively, “SmithKline”) against several companies seeking FDA approval to market generic forms of the drug Paxil®.2 In each of the above-captioned cases, the Defendant generic drug company involved has submitted to the FDA an Abbreviated New Drug Application (“ANDA”) and Paragraph IV certifications stating that SmithKline’s patents related to paroxetine hydrochloride, the active ingredient in Paxil®, are invalid or will not be [550]*550infringed by the manufacture, use or sale of the proposed generic product.3

Apotex/Torpharm was the first generic drug maker to submit an ANDA for a generic form of Paxil®. As the first company to submit an ANDA, Apotex/Torpharm is eligible to receive a 180-day period of exclusivity during which it would be the only company permitted to market a generic form of Pax-il®. See 35 U.S.C. § 355(j)(5)(B)(iv). This exclusivity period will begin to run from the earlier of (1) the date of Apotex/Torpharm’s first commercial marketing of its drug or (2) the date of a court decision holding a patent that is the subject of the Paragraph IV certification to be invalid or not infringed. 21 U.S.C. § 355(j)(5)(B)(iv)(I) and (II).

Among the companies to submit a subsequent ANDA is Zenith Goldline Pharmaceuticals, Inc. (“Zenith”). As required under the Hateh-Waxman Act, Zenith submitted Paragraph IV certifications stating that Smith-Kline’s patents listed with respect to Paxil® are invalid or will not be infringed by Zenith’s proposed generic product.4 See 21 U.S.C. § 355(j)(2)(A)(vii). In conjunction with its ANDA, Zenith submitted Paragraph IV certifications with respect to U.S. Patent Nos. 4,721,723 (the “ ’723 Patent”), 5,900,423 (the “ ’423 Patent”), 5,872,132 (the “ T32 Patent”), 6,080,759 (the “ ’759 Patent”), 6,113,944 (the “ ’944 Patent”), 6,172,233 (the “ ’233 Patent”), 5,789,449 (the “ ’449 Patent”), 6,063,927 (the “ ’927 Patent”), 6,133,289 (the “ ’289 Patent”) and 6,121,291 (the “ ’291 Patent”). After receiving notice of Zenith’s Paragraph IV certifications, SmithKline filed Civil Action No. 00-CV-1393, alleging that the submission of Zenith’s ANDA constitutes infringement of the ’723, ’423 and ’132 Patents. Subsequently, SmithKline filed Civil Action No. 00-CV-6464, alleging infringement of the ’759 and ’944 Patents, and Civil Action No. 01-CV-2602, alleging infringement of the ’233 Patent. SmithKline’s Complaints [551]*551against Zenith do not allege infringement of the ’449, ’927, ’289 and ’291 Patents.

In response to SmithKline’s Complaint in CM Action No. 00-CV-1393, Zenith filed a counterclaim seeking a declaratory judgment that its proposed generic product -will not infringe the ’449 Patent. SmithKline moved to dismiss Zenith’s counterclaim, stating that Zenith’s proposed product would not infringe the ’449 Patent and that, therefore, no justi-ciable case or controversy existed regarding infringement of the ’449 Patent. Judge Kauffman denied SmithKline’s motion to dismiss, finding that under the circumstances, Zenith had an objectively reasonable apprehension that it might face an infringement suit by SmithKline regarding the ’449 Patent.5 Following Judge Kauffman’s ruling, SmithKline filed an amended Reply to the counterclaim in which it unconditionally represented that it would not sue Zenith for any infringement of any claim of the ’449 Patent concerning Zenith’s ANDA. In light of SmithKline’s covenant not to sue, Zenith has requested that the Court enter an order dismissing the counterclaim in Civil Action No. 00-CV-1393 based on the lack of any justicia-ble case or controversy to support subject matter jurisdiction.

In a similar series of events, Zenith also filed counterclaims in CM Action Nos. 00-CV-6464 and 01-CV-2602, requesting declaratory judgments of non-infringement with respect to the ’927 Patent and the ’289 and ’291 Patents, respectively. In those cases, SmithKline did not move to dismiss the counterclaims but, rather, filed responses providing similar covenants not to sue Zenith for infringement of those patents. Zenith thereafter submitted to the Court proposed orders for dismissal of its counterclaims in Civil Action Nos. 00-CV-6464 and 01-CV-2602 based on the lack of any justiciable case or controversy.

Concerned that the orders of dismissal proposed by Zenith may constitute “court decisions” that could jeopardize their 180-day exclusivity period, Apotex/Torpharm filed the instant motions seeking to intervene in Civil Action Nos. 00-CV-1393, 00-CV-6464 and 01-CV-2602. Apotex/Torpharm contend that Zenith lacked any meritorious basis to file its declaratory judgment counterclaims because it never had a reasonable apprehension of ever being sued by Smith-Kline for infringement of the ’449, ’927, ’289 or ’291 Patents. As such, Apotex/Torpharm argue, there was never a case or controversy, and subject matter jurisdiction over Zenith’s counterclaims was lacking at the moment they were filed. Apotex/Torpharm allege that Zenith nonetheless filed its counterclaims in order to engineer a “court decision” that could trigger Apotex/Torpharm’s exclusivity period and cause it to run out before Apotex/Torpharm are in a position to market their generic product.6

Apotex/Torpharm object to the entry of Zenith’s proposed orders of dismissal and have submitted proposed Complaints in Intervention seeking declaratory judgment that Zenith lacked a meritorious basis to file its counterclaims relating to the ’449, '927, ’289 or ’291 Patents; that Zenith never had a reasonable apprehension of being sued for infringement of those patents; and that Ze[552]*552nith filed its counterclaims solely for the purpose of obtaining a “court decision” that would trigger Apotex/Torpharm’s exclusivity period. Apotex/Torpharm request that the court deny entry of Zenith’s proposed orders and permit Apotex/Torpharm to take discovery to prove the foregoing assertions. Alternatively, Apotex/Torpharm request that any order of dismissal entered be without prejudice and include language precluding Zenith or others from asserting that the dismissal is a “court decision” for purposes of Apo-tex/Torpharm’s exclusivity period.

II. LEGAL STANDARD

Apotex/Torpharm seeks intervention as of right pursuant to Fed.R.Civ.P. 24

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SmithKline Beecham Corp. v. Geneva Pharmaceuticals, Inc., 210 F.R.D. 547, 53 Fed. R. Serv. 3d 1455, 2002 U.S. Dist. LEXIS 23386, 2002 WL 31526427 (E.D. Pa. 2002).

210 F.R.D. 547 (SmithKline Beecham Corp. v. Geneva Pharmaceuticals, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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