Syntex (u.s.a.) LLC and Allergan, Inc. v. Apotex, Inc., Apotex Corp., and Novex Pharma

407 F.3d 1371
CourtCourt of Appeals for the Federal Circuit
DecidedJune 13, 2005
Docket04-1252
StatusPublished
Cited by50 cases

This text of 407 F.3d 1371 (Syntex (u.s.a.) LLC and Allergan, Inc. v. Apotex, Inc., Apotex Corp., and Novex Pharma) 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
Syntex (u.s.a.) LLC and Allergan, Inc. v. Apotex, Inc., Apotex Corp., and Novex Pharma, 407 F.3d 1371 (Fed. Cir. 2005).

Opinions

Opinion for the court filed by Circuit Judge GAJARSA.

Concurring opinion filed by Circuit Judge PROST.

GAJARSA, Circuit Judge.

Apotex, Inc., Apotex Corp. and Novex Pharma (collectively “Apotex”) appeal from the final judgment of the United States District Court for the Northern District of California, which, after a bench trial, held U.S. Patent No. 5,110,493 (the “ ’493 patent”) owned by Syntex (U.S.A.) LLC not invalid, enforceable, and infringed by Apotex’s Abbreviated New Drug Application (“ANDA”). Allergan, Inc., Syntex’s distributor, has exclusive rights to manufacture the commercial embodiment of the ’493 patent marketed under the trademark ACULAR.1 Syntex (U.S.A.) LLC v. Apotex, Inc., No. 01-CV-2214 (January 27, 2004). Because we find the district court committed legal error in establishing certain factual predicates to its non-obviousness determination, we reverse the judgment of validity and remand for further consideration consistent with this opinion.

BACKGROUND

A. The Patents and Prosecution History

The ’493 patent, entitled “Ophthalmic NSAID Formulations Containing a Quaternary Ammonium Preservative and a Nonionic Surfactant,” claims a formulation for sterile, preserved eye drops to treat eye inflammation such as that caused by conjunctivitis or eye surgery.

The ’493 patent teaches combining a nonsteroidal anti-inflammatory drug (“NSAID”) such as ketoralac trometha-mine (“KT”) and a quaternary ammonium preservative such as benzalkonium chloride (“BAC”) with a surfactant such as oetoxynol 40. The NSAID is the active ingredient for reducing eye inflammation. The quaternary ammonium preservative, [1374]*1374in turn, kills any bacteria introduced into the eye during administration of the NSAID. However, quaternary ammonium preservatives, such as BAC, do not always mix well with NSAIDs. Neither ingredient is water soluble, and the two active ingredients may react with each other to form complexes when mixed. These complexes will eventually cause the mixture to look cloudy or lose its antibacterial properties.

The chemical arts often solve this type of mixing problem by using surfactants. A surfactant is a “surface active agent” used to make otherwise insoluble chemicals soluble in water. The ’493 patent claims to solve the complex formation problem by adding octoxynol 40, a surfactant, to the KT/BAC mixture.

The ’493 patent claims ophthalmic formulations (eye drops) useful for treating eye inflammation, methods of using eye drops to treat eye disease, and preservative systems for use in eye drops. The claims of the ’493 patent fall into three categories: claims 1 to 7 are composition claims, claims 8 to 14 are method claims, and claims 15 and 16 recite a “preservative system.” Claims 1, 8, and 15 are independent claims, the others are all dependent. Claim 1, the basic embodiment of the compound, provides:

1.- An ophthalmologically acceptable -non-steroidal anti-inflammatory drug formulation, comprising:
an opthalmologieally acceptable non-steroidal anti-inflammatory carboxyl group-containing drug in an effective amount for ophthalmic treatment between 0.001% and 10.0% wt/vol;
a quaternary ammonium preservative in an antimicrobially effective amount between 0.0001% and 1.0% wt/vol;
an ethoxylated alkyl phenol that conforms generally to the formula C8H17C6 H4(OCH2CH2)nOH2 where n has an average value of 40 in a stabilizing amount between 0.001% and 1.0% wi/vol; and an aqueous vehicle q.s. to 100%.

’493 patent, col. 8, II. 42-55.

The ’493 patent issued from U.S. Patent Application No. 07/624,027 (“the ’027 application”), which was filed on December 7, 1990. The ’027 application was a continuation of U.S. Patent Application No. 07/096,-173 (“the ’173 application”) filed on September 11, 1987. The two applications were reviewed by different examiners at the Patent and Trademark Office (“PTO”).

Each examiner rejected the application before him as obvious in view of U.S. Patent No. 4,349,563 to Gilbert and U.S. Patent No. 4,559,343 to Han in view of McCutcheon’s Emulsifiers and Detergents p. 154 (1982) (“McCutcheon’s”). U.S. Patent No. 4,454,151 to Waterbury, another patent assigned to Syntex, was listed on the ’493 patent as prior art, but was not cited by the examiner in his obviousness rejection. The prior art patents Waterbury, Gilbert, and Han all teach ophthalmic formulations containing NSAIDs, quaternary preservatives, and nonionic surfactants to stabilize the formulation. While Waterbury, Gilbert, and Han do not teach the .specific use of oc-toxynol 40, they do teach using the general class of water-soluble nonionic surfactants as stabilizers. Waterbury and Gilbert teach the use of polysorbate 80.3 McCutcheon’s, a comprehensive directory of emulsifiers and detergents, teach that [1375]*1375octoxynol 40 was a known stabilizer. According to both examiners,' it was well known in the art that surfactants such as octoxynol 40 have a stabilizing effect on ophthalmic compounds containing NSAIDs.4 The examiner reviewing the ’027 continuation application rejected what has become claim 1 on the grounds that “[t]he mere substitution of one [surfactant] for another ... is not deemed a patentable distinction in the absence of a showing of some unobvious result.”

Syntex responded to that rejection by asserting that it had provided acceptable data demonstrating results superior to the formulations disclosed by the Han and Gilbert references. Syntex supported its superior results claim with a declaration from Deborah M. Lidgate (“Lidgate”), one of the named inventors. In the declaration, Lidgate stated that “octoxynol 40, and not octoxynol 3 or octoxynol 5, is suitable to use with benzalkonium chloride to prepare a preservative system for an ophthalmic formulation, or to prepare an ophthalmic formulation, of the present application.” In presenting her findings of superior results, Lidgate excluded the additional experimental data that she had developed showing octoxynol 12.5 to be a surfactant capable of stabilizing a KT/BAC formulation.

Following this submission, the examiner allowed the application to issue, stating that Syntex had “overcome the prior art rejections ... by showing that unexpected results are obtained when one uses [octox-ynol 40]. These results are unobvious because one of ordinary skill in the art would not have known that one surfactant would outperform other surfactants.” The patent issued on May 5,1992.

Syntex markets the patented ophthalmic formulation as ACULAR. ACULAR embodies the claims of the ’493 patent and has been approved by the Food and Drug Administration (“FDA”). From 1993 to 2001, ACULAR captured a substantial market share for ophthalmic anti-inflammation drugs.

B. The Hatchr-Waxman Amendments

The Hatch-Waxman Amendments5 to the Federal Food, Drug, and Cosmetic Act permit an applicant to file an ANDA with the FDA requesting approval of a bioequi-valent (“generic”) version of a drug that is already listed by the FDA as approved for safety and effectiveness without having to submit additional safety and efficacy data. See 21 U.S.C.

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Bluebook (online)
407 F.3d 1371, Counsel Stack Legal Research, https://law.counselstack.com/opinion/syntex-usa-llc-and-allergan-inc-v-apotex-inc-apotex-corp-and-cafc-2005.