Tiber Laboratories, LLC v. Hawthorn Pharmaceuticals, Inc.

527 F. Supp. 2d 1373, 2007 U.S. Dist. LEXIS 67381, 2007 WL 2710456
CourtDistrict Court, N.D. Georgia
DecidedSeptember 12, 2007
Docket1:07-cv-00069
StatusPublished
Cited by9 cases

This text of 527 F. Supp. 2d 1373 (Tiber Laboratories, LLC v. Hawthorn Pharmaceuticals, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tiber Laboratories, LLC v. Hawthorn Pharmaceuticals, Inc., 527 F. Supp. 2d 1373, 2007 U.S. Dist. LEXIS 67381, 2007 WL 2710456 (N.D. Ga. 2007).

Opinion

ORDER

RICHARD W. STORY, District Judge.

This case comes before the Court on Tiber Laboratories, LLC’s Motion for Temporary Restraining Order [3], which the parties have recast and which the Court construes as a Motion for Preliminary Injunction; 1 Hawthorn Pharmaceuticals, Inc.’s Motion to Transfer [6]; Hawthorn Pharmaceuticals, Inc.’s Motion to Supplement [7]; and Tiber Laboratories, LLC’s Motion to Supplement [8]. Each of the above motions are pending in TIBER LABORATORIES, LLC v. HAWTHORN PHARMACEUTICALS, INC., No. 2:07-CV-0069-RWS, 2007 WL 4703695 (June 18, 2007). After reviewing the record, the Court enters the following Order.

Background

The present three actions arise out of allegations of patent infringement made by Tiber Laboratories, LLC (“Tiber”). 2 Tiber is the assignee of Patent No. 6,979,689 (the “'689 Patent”), which is directed to a three-ingredient pharmaceutical composition for the treatment of upper respiratory and oral pharyngeal congestion and related symptoms in pediatric patients. The '689 Patent teaches a composition of (i) *1376 diphenhydramine as an antihistamine, (ii) an opioid antitussive agent (such as codeine or hydrocodone), and (iii) a decongestant. Tiber was assigned the '689 Patent in December 2006 as a part of an asset purchase of the now-defunct pharmaceutical company PediaMed Pharmaceutical, Inc. (“PediaMed”).

The events preceding this litigation and Tiber’s acquisition of the '689 Patent from PediaMed warrant discussion. In 2003, PediaMed developed and began distributing the prescription cold syrup “Endal-HD,” and sought to patent Endal’s three-ingredient composition of diphenhydra-mine, an antitussive agent, and a decongestant, as they are used to treat pediatric patients.

Shortly after PediaMed introduced En-dal-HD, Defendants in this action began producing generic versions of Endal-HD. Cypress Pharmaceutical, Inc. (“Cypress”) introduced a generic form labeled “Hydro-DP” in January 2004. Hawthorn Pharmaceuticals, Inc. (“Hawthorn”), a wholly-owned subsidiary of Cypress, introduced a similar generic form of Endal-HD under the label “Dytan-HC” in 2005. Both Hydro-DP and Dytan-HC are distributed by prescription to both pediatric and adult patients.

Two year's after the introduction of En-dal-HD, PediaMed’s efforts before the United States Patent & Trademark Office (“PTO”) bore fruit. On December 27, 2005, the PTO issued the '689 Patent to PediaMed, although only after PediaMed’s financial condition had deteriorated to the point that it had ceased distributing En-dal-HD.

In December of 2006, one year after the PTO issued the '689 Patent, Tiber acquired the Endal-HD product from Pe-diaMed. As a part of this transaction, PediaMed assigned Tiber the '689 Patent. On February 6, 2007, Tiber’s counsel wrote to Cypress’s President, Max Draughn, to inform Cypress that Tiber had acquired the '689 Patent, and that it considered Hydro-DP an infringing product. Tiber also informed Cypress of its intention to reintroduce the Endal-HD product into the market. Discussions commenced between representatives of Tiber and Cypress, during which Mr. Gorman of Tiber proposed a potential licensing arrangement to Cypress and offered licensing terms. Cypress declined to enter into a licensing arrangement. (See Draughn Deck ¶ 10.)

On February 20, 2007, Cypress filed an action in the Southern District of Mississippi seeking a declaration of non-infringement and invalidity as to Tiber’s '689 Patent. See Cypress Pharmaceutical v. Tiber Laboratories, No. 2:07-CV-0092-RWS (filed initially on Feb. 20, 2007, as No. 3:07-CV-108-TSL-JCS (S.D.Miss.)) [hereinafter Cypress Declaratory Action ]. One day later, Tiber brought an action in the Northern District of Georgia against Cypress and a producer of its Hydro-DP product, G & S Enterprises, alleging infringement. See Tiber Laboratories, Inc., LLC v. Cypress Pharmaceuticals, No. 2:07-CV-0093-RWS (filed initially on Feb. 21, 2007, as No. 2:07-CV-0014-RWS) [hereinafter “Tiber /”]. Several months later, on June 18, 2007, Tiber brought a separate action against Hawthorn in the Northern District of Georgia accusing its Dytan-HC product. See TIBER LABORATORIES, LLC v. HAWTHORN PHARMACEUTICALS, INC., No. 207-CV-0069-RWS (June 18, 2007) [hereinafter “Tiber II ”].

Because the Cypress Declaratory Action was filed first in Mississippi, this Court transferred Tiber I to the Mississippi district court to determine, under the first-filed rule, where these related actions should proceed. Shortly thereafter, the Mississippi district court concluded that it *1377 did not have personal jurisdiction over Tiber, and transferred both the Cypress Declaratory Action and Tiber I to this Court. All three actions are now proceeding in this district.

In Tiber I and TIBER II, Tiber has moved to preliminarily enjoin Cypress and Hawthorn from marketing and distributing the Hydro-DP and Dytan-HC products to pediatric patients. {See Tiber’s Emergency Motion for Temporary Restraining Order in Tiber I [Doc. 4 in No. 2:07-CV-0014-RWS]; Tiber’s Motion for Temporary Restraining Order in TIBER II [Doc. 3 in No. 2:07-CV0069-RWS].) The Court held a hearing on August 22, 2007 on Tiber’s request for a preliminary injunction.

In its papers, Tiber initially sought a broad remedy compelling Cypress and Hawthorn to recall the accused products from the market. Nevertheless, at the hearing held on August 22, 2007, Tiber significantly revised the remedy it seeks. While its precise contours are not fully clear, it appears that Tiber now seeks a court order compelling Cypress and Hawthorn to place labels on the accused products indicating that the accused products should not be prescribed or distributed to pediatric patients by order of court due to patent infringement. Tiber also requests an order compelling Cypress and Hawthorn to amend the listing of the Hydro-DP and Dytan-HC products in the National Drug Data File maintained by First DataBank, Inc., Medi-Span, and other similar drug database companies, to reflect that these products should not be prescribed to pediatric patients in compliance with Tiber’s patent rights.

The Court now takes up Tiber’s preliminary injunctive request and several other, preliminary matters.

I. Preliminary Matters

A. Consolidation

During the hearing held on Wednesday, August 22, 2007, the parties to all three actions represented to the Court that consolidation of the above three actions for purposes of discovery and preliminary relief would advance judicial efficiency and avoid unnecessary costs and delay. Accordingly, by consent of the parties, and pursuant to its discretion under Federal Rule of Civil Procedure

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