Teva Pharmaceuticals USA, Inc. v. Azar, II

District Court, District of Columbia·Decided February 26, 2019·No. Civil Action No. 2018-2394·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

TEVA PHARMACEUTICALS USA, INC., Plaintiff,

v. Civil Action No. 18-2394 (RDM)

ALEX M. AZAR, II, et al., Defendants.

MEMORANDUM OPINION

Plaintiff Teva Pharmaceuticals USA, Inc. (“Teva”) brings this action to obtain “immediate injunctive and declaratory relief” barring the Food and Drug Administration (“FDA”) from “depriving [Teva] of its statutory right to 180 days of marketing exclusivity for its generic version of the brand-name drug Restasis®.” Dkt. 1 at 2 (Compl. ¶ 1). Teva seeks a preliminary injunction. Dkt. 2. The FDA and intervenor defendants—Mylan Pharmaceuticals Inc. (“Mylan”), Deva Holding AS (“Deva”), and Famy Care Private Limited (“Famy Care”)— oppose that motion and move to dismiss the case for lack of subject matter jurisdiction. Dkt. 25; Dkt. 27. Because Teva has failed to demonstrate that it has standing, the Court will DENY Teva’s motion for a preliminary injunction and will GRANT the defendants’ motions to dismiss for lack of standing.

I. BACKGROUND

A. Statutory and Regulatory Background The Food, Drug, and Cosmetic Act (“FDCA”), 21 U.S.C. § 301 et seq., sets forth the procedures that manufacturers must follow to obtain FDA approval to sell pharmaceutical products. To obtain approval for a brand-name or pioneer drug, a pharmaceutical manufacturer

must file a New Drug Application (“NDA”) demonstrating the drug’s safety and efficacy using scientific data. Id. §§ 355(a)–(b). The NDA must also include “the patent number and the expiration date of any patent . . . to which a claim of patent infringement could reasonably be asserted if a person not licensed by the owner engaged in the manufacture, use, or sale of the drug.” Id. § 355(b)(1). If the patent is issued after the NDA is filed, the applicant or holder of the approved NDA must notify the FDA of the patent number and expiration date. Id. § 355(c)(2). The FDA then lists this patent information in the “‘Orange Book: Approved Drug Products with Therapeutic Equivalence Evaluations’ or, as it is commonly known, simply the ‘Orange Book.’” Amneal Pharms. LLC v. FDA, 285 F. Supp. 3d 328, 332 (D.D.C. 2018).

Prior to 1984, companies that manufactured generic medicines, like Teva, also had to file NDAs supported by full investigative studies. See Serono Labs., Inc. v. Shalala, 158 F.3d 1313, 1316 (D.C. Cir. 1998) (recognizing that “the NDA process,” which is “costly and time- consuming,” impedes the “availab[ility] of low cost generic drugs”). In 1984, however, Congress enacted the Drug Price Competition and Patent Term Restoration Act, Pub. L. No. 98- 417, 98 Stat. 1585 (1984), popularly known as the “Hatch-Waxman Amendments.” Among other things, the Amendments were designed “to increase competition in the drug industry by facilitating the approval of generic copies of drugs.” Mead Johnson Pharm. Grp. v. Bowen, 838 F.2d 1332, 1333 (D.C. Cir. 1988). To that end, the Amendments eliminated the requirement that generic manufacturers submit full NDAs and allowed generic manufacturers to “seek FDA approval by submitting an abbreviated new drug application (‘ANDA’).” Serono Labs., Inc., 158 F.3d at 1316; see also 21 U.S.C. § 355(j). Under the ANDA process, a manufacturer may “piggyback[] on the original manufacturer’s evidence of safety and efficacy,” Teva Pharms. USA, Inc. v. Leavitt, 548 F.3d 103, 104 (D.C. Cir. 2008), and need demonstrate only that the

generic drug has the same active ingredient(s), route of administration, dosage form, conditions of use, and strength as the approved drug, and that the generic drug has an appropriate label and is bioequivalent to the approved drug. See 21 U.S.C. § 355(j)(2)(A); id. § 355(j)(4). Although far less demanding than the full NDA process, “obtaining FDA approval for an ANDA remains a prolonged” and demanding “task,” which “can take years to complete.” Amneal Pharms. LLC, 285 F. Supp. 3d at 333.

An ANDA must also contain one of four certifications “with respect to each” of the Orange Book patents claimed by the brand-name drug. 21 U.S.C. § 355(j)(2)(A)(vii). The four certifications are as follows:

(I) that such patent information has not been filed [a “Paragraph I certification”],

(II) that such patent has expired [a “Paragraph II certification”],

(III) of the date on which such patent will expire [a “Paragraph III certification”], or

(IV) that such patent is invalid or will not be infringed by the manufacture, use, or sale of the new drug for which the application is submitted [a “Paragraph IV certification”].

Id. A generic applicant may not enter the market until every patent in the Orange Book implicated by the generic product has expired, unless it files a Paragraph IV certification. See Mylan Pharms., Inc. v. FDA, 789 F. Supp. 2d 1, 3 (D.D.C. 2011) [hereinafter “Mylan”].

When a generic applicant submits a Paragraph IV certification in its original ANDA, the applicant must provide notice to the patent owner and holder of the approved NDA “not later than 20 days after the date” on which the FDA “informs the [ANDA] applicant that the [ANDA] has been filed.” 21 U.S.C. § 355(j)(2)(B)(ii)(I). The FDA issues an acknowledgement letter informing an applicant that its ANDA has been “received” after it reviews the ANDA and

concludes that the application is sufficiently complete to permit substantive review. 21 C.F.R. § 314.101(b)(2); see also SB Pharmco P.R., Inc. v. Mutual Pharm. Co., 552 F. Supp. 2d 500, 507 (E.D. Pa. 2008). When an applicant submits a Paragraph IV certification through “an amendment or supplement to the” applicant’s ANDA, the applicant must notify the patent owner and holder of the NDA “at the time at which the [ANDA] applicant submits the amendment or supplement” to the FDA. 21 U.S.C. § 355(j)(2)(B)(ii)(II).

The filing of an ANDA containing a Paragraph IV certification is treated as an act of patent infringement. 35 U.S.C. § 271(e)(2)(A); see also Eli Lilly & Co. v. Medtronic, Inc., 496 U.S. 661, 677–78 (1990). If the patent owner fails to sue for infringement within forty-five days of receiving notice, the generic applicant may bring a declaratory judgment action against the patent owner. 21 U.S.C. § 355(j)(5)(C)(i)(I)(aa). If, however, the patent owner brings an infringement action, the FDA’s approval of the ANDA “shall be made effective upon the expiration of the thirty-month period beginning on the date of the receipt of” the required notice to the patent owner and holder of the NDA. Id. § 355(j)(5)(B)(iii). This period is referred to as the “thirty-month stay.” Eli Lilly & Co. v. Teva Pharms. USA, Inc., 557 F.3d 1346, 1348–49 (Fed. Cir. 2009). During this time, the agency is limited to issuing “tentative approval”—a “notification . . . that [an] application . . . meets the requirements [for approval]. . . but cannot receive effective approval” because of a patent issue or outstanding period of exclusivity. 21 U.S.C. § 355(j)(2)(B)(iv)(II)(dd). If the ANDA applicant prevails in district court before the thirty-month stay expires, the FDA may immediately approve the ANDA. Id. § 355(j)(5)(B)(iii)(I). The thirty-month stay is unavailable, moreover, if the relevant patent was listed after the ANDA was submitted. Id. § 355(j)(5)(B)(iii).

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