Teva Pharmaceuticals USA, Inc. v. Eisai Co., Ltd.

620 F.3d 1341, 96 U.S.P.Q. 2d (BNA) 1808, 2010 U.S. App. LEXIS 20972, 2010 WL 3895375
CourtCourt of Appeals for the Federal Circuit
DecidedOctober 6, 2010
Docket2009-1593
StatusPublished
Cited by7 cases

This text of 620 F.3d 1341 (Teva Pharmaceuticals USA, Inc. v. Eisai Co., Ltd.) 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
Teva Pharmaceuticals USA, Inc. v. Eisai Co., Ltd., 620 F.3d 1341, 96 U.S.P.Q. 2d (BNA) 1808, 2010 U.S. App. LEXIS 20972, 2010 WL 3895375 (Fed. Cir. 2010).

Opinion

PROST, Circuit Judge.

This is a declaratory judgment action arising under the Hatch-Waxman Act. We must decide whether the district court properly dismissed the case for lack of jurisdiction, specifically, lack of a justiciable controversy under Article III of the United States Constitution.

Teva Pharmaceuticals, Inc. (“Teva”) seeks to manufacture and market a generic version of the drug donepezil hydrochlo *1343 ride (“donepezil”), an approved treatment for Alzheimer’s disease. Eisai Co. and Eisai Medical Research, Inc. (collectively “Eisai”) hold the approved New Drug Application (“NDA”) for donepezil, which Eisai currently markets as Aricept®. Eisai also owns the five patents listed for Aricept® in the Orange Book. Teva requests a declaratory judgment that its generic version of donepezil does not infringe four of these Orange Book patents, Patent Nos. 5,985,864 (“'864 patent”); 6,140,321 (“'321 patent”); 6,245,911 (“'911 patent”); and 6,372,760 (“'760 patent”), (collectively the “DJ patents”).

Aside from the value of such a judgment in itself, a finding of noninfringement has special significance to generic drug manufacturers like Teva under the Hatch-Wax-man Act. To market a generic version of a previously-approved drug, manufacturers must file and receive approval of an Abbreviated New Drug Application (“ANDA”). In conjunction with an ANDA, manufacturers must also submit a certification with respect to each of the drug’s Orange Book patents. The first manufacturer to file what is called a “Paragraph IV Certification” for a given Orange Book patent is entitled to 180 days of generic marketing exclusivity. Until the first-filer’s exclusivity period has run, the FDA may not approve ANDA applications by other manufacturers who have filed Paragraph IV certifications for that same patent. The first-filer’s exclusivity period can be triggered by either the (1) commercial marketing of the drug by the first Paragraph IV filer or (2) entry of a court judgment finding that patent invalid or not infringed, whichever happens first. A subsequent Paragraph IV filer can thus trigger the first-filer’s exclusivity period by obtaining a court judgment.

Teva is a subsequent Paragraph IV filer. This case turns on whether a subsequent Paragraph IV filer has a legally cognizable interest in when the first-filer’s exclusivity period begins, such that delay in triggering that period qualifies as “injury-in-fact” for the purposes of Article III.

In this case, the alleged injury-in-fact stems from a pending ANDA filed by Gate Pharmaceuticals (“Gate ANDA” or “second ANDA”), an unincorporated division of Teva. FDA approval of the Gate ANDA has been delayed indefinitely because the exclusivity period of the first-filer, a company called Ranbaxy Laboratories Ltd. (“Ranbaxy”), has not been triggered. Before the district court, patent owner Eisai argued that Teva failed to establish the existence of an Article III controversy. The district court agreed and dismissed the case for lack of jurisdiction. In finding that Teva failed to allege a controversy of sufficient immediacy and reality for Article III purposes, the district court relied in part on a preliminary injunction entered against Teva and Gate in a separate, still-pending patent infringement action regarding Patent No. 4,895,841 (“'841 patent”). 1

Teva appeals the dismissal of its declaratory judgment action and argues the case should proceed. We agree. Under this court’s decision in Caraco Pharmaceutical Laboratories, Ltd. v. Forest Laboratories, Inc., 527 F.3d 1278 (Fed.Cir.2008), Teva has alleged a sufficiently concrete injury fairly traceable to Eisai’s actions. Further, the injury can be redressed by the requested relief: a declaratory judgment of noninfringement would trigger the first-filer’s exclusivity period, which currently blocks FDA approval of the Gate ANDA. The district court’s decision is reversed *1344 and the case remanded for further proceedings consistent with this opinion.

Background

Because Teva’s declaratory judgment claims were disposed of at the motion to dismiss stage, we take the following facts from Teva’s amended complaint and the materials submitted in response to Eisai’s motion to dismiss. See MedImmune, Inc. v. Genentech, Inc., 549 U.S. 118, 121, 127 S.Ct. 764, 166 L.Ed.2d 604 (2007).

Eisai holds the approved New Drug Application (“NDA”) for donepezil, which it markets as the prescription drug Aricept®. For Aricept®, Eisai listed five patents in the Orange Book, thus attesting that those patents claim either donepezil or a method for using it, and accordingly could reasonably be asserted against any unlicensed party seeking to manufacture, use, or sell the drug. Of the five patents, the '841 patent is the subject of separate patent infringement litigation brought by Eisai against Teva and Gate. The four DJ patents are at issue here.

A significant number of events occurred before Teva brought this action. While the timeline and statutory scheme is complex, for our purposes, only the following facts matter.

The first ANDA for a generic form of donepezil was filed by Ranbaxy in 2003. For the '841 patent, Ranbaxy submitted a Paragraph III certification, thus agreeing not to market a generic version of Aricept® until after the '841 patent expires in November 2010. For the DJ patents, Ranbaxy submitted Paragraph IV certifications, meaning that in Ranbaxy’s opinion the four patents are invalid or will not be infringed by its drug. 21 U.S.C. § 355(j)(2)(A)(vii). Because Ranbaxy filed the first Paragraph IV certifications for the DJ patents, Ranbaxy is eligible for 180 days of market exclusivity upon FDA approval of its ANDA. Id. § 355(j)(5)(B)(iv). The exclusivity period begins when Ranbaxy begins commercially marketing its drug or upon issuance of a court judgment holding the relevant listed patents invalid or not infringed. Id. § 355(j)(5)(B)(iv) (2000). 2

Teva subsequently filed two separate ANDAs for generic donepezil. As initially filed with the FDA, Teva’s first ANDA (“first ANDA” or “Teva ANDA”) had the same certifications as Ranbaxy’s ANDA: For the '841 patent, Teva initially included a Paragraph III certification; for the DJ patents, Teva included Paragraph IV certifications. Teva subsequently amended this first ANDA, changing the '841 patent’s certification from Paragraph III to Paragraph IV.

Teva’s second ANDA (“second ANDA” or “Gate ANDA”) was filed by Gate Pharmaceuticals, a division of Teva. This second ANDA was for a different form of generic donepezil than the one claimed in Teva’s first ANDA. According to Teva, the FDA requested separate ANDAs filed under different company names because the forms of donepezil were different and the likelihood of confusion otherwise greater. The Gate ANDA originally included Paragraph III certifications for all five listed patents; following an amendment, however, these were changed to Paragraph IV certifications.

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620 F.3d 1341, 96 U.S.P.Q. 2d (BNA) 1808, 2010 U.S. App. LEXIS 20972, 2010 WL 3895375, Counsel Stack Legal Research, https://law.counselstack.com/opinion/teva-pharmaceuticals-usa-inc-v-eisai-co-ltd-cafc-2010.