Torpharm, Inc. v. Ranbaxy Pharmaceuticals, Inc.

336 F.3d 1322, 2003 WL 21697434
CourtCourt of Appeals for the Federal Circuit
DecidedJuly 23, 2003
DocketNo. 02-1590
StatusPublished
Cited by8 cases

This text of 336 F.3d 1322 (Torpharm, Inc. v. Ranbaxy Pharmaceuticals, Inc.) 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
Torpharm, Inc. v. Ranbaxy Pharmaceuticals, Inc., 336 F.3d 1322, 2003 WL 21697434 (Fed. Cir. 2003).

Opinion

CLEVENGER, Circuit Judge.

TorPharm, Inc., appeals the judgment of the United States District Court for the District of New Jersey, which granted summary judgment to Ranbaxy Pharmaceuticals, Inc., Schein Pharmaceutical, Inc., Danbury Pharmacal, Inc., Ranbaxy Laboratories Limited, Ranbaxy Schein Pharma LLC and Ranbaxy Schein Pharmaceuticals, LLC (collectively, “Ranbaxy”), invalidating TorPharm’s United States Patent No. 5,670,671 (“'671”) as obvious. TorPharm, Inc. v. Ranbaxy Pharms., Inc., No. 99-CV-714 (D.N.J. Aug. 6, 2002). Because TorPharm had relied on the novelty of its “improved Form 1 ranitidine” product in prosecuting the '671 process claims, the district court ruled that the subsequent negation of improved Form 1 ranitidine’s novelty in unrelated litigation precluded TorPharm from rebutting Ranbaxy’s obviousness challenge to the '671 process claims. We hold that, despite TorPharm’s assertion of improved Form 1 ranitidine’s novelty during prosecution of the '671 patent, the lack of novelty of the product does not by itself establish that the process for making it is obvious. We therefore reverse the grant of summary judgment of invalidity and remand the case for further proceedings.

I

This appeal concerns the validity of a patent on a process for making the drug ranitidine. Ranitidine is an antihistamine drug that inhibits acid secretion in the stomach, and is used to treat ulcers. Several patents covering different crystalline forms of ranitidine are owned by nonparty Glaxo, Inc., and have been the subject of extensive litigation. Glaxo Group v. TorPharm, Inc., 153 F.3d 1366, 47 USPQ2d 1836 (Fed.Cir.1998); Glaxo, Inc. v. Novop-harm Ltd., 110 F.3d 1562, 42 USPQ2d 1257 (Fed.Cir.1997); Glaxo Inc. v. Novopharm Ltd., 52 F.3d 1043, 34 USPQ2d 1565 (Fed.Cir.1995). That litigation has concerned “Form 2 ranitidine,” a crystalline form of ranitidine that overcame the undesirable drying and filtration characteristics of the original crystalline form, “Form 1 ranitidine.”

The patent in suit, owned by TorPharm, relates to a different crystalline form of ranitidine referred to as “improved Form 1 ranitidine.” The '671 patent discloses a process for producing improved Form 1 ranitidine by crystallizing ranitidine from a solution in isopropyl alcohol. According to the patent specification, improved Form 1 ranitidine “has characteristics of being harder and denser, and providing larger sized crystals,” which gives it acceptable filtration and drying characteristics. '671 patent, col. 3,11. 26-27. Improved Form 1 ranitidine is distinguished from Form 1 ranitidine by two properties reflecting these characteristics: bulk density and tap density. According to the patent, improved Form 1 ranitidine is characterized by a bulk density of at least 0.23 gm/ml, and a tap density of at least 0.28 gm/ml.1 Id. at 11. 31-32.

All claims of the '671 patent are directed to a process for producing improved Form 1 ranitidine. Representative claim 2 illustrates the two principal requirements of the claimed process: that it yields Form 1 ranitidine of the specified densities, and that it involves a three- or four-carbon alcohol solvent:

2. Process for the production of a[sic] improved form of Form 1 Ranitidine Hydrochloride having improved filtration and drying characteristics and having:
[1325]*1325(i) a bulk density of not less than about 0.23 gm/ml; and,
(ii) a tap density of not less than about 0.28 gm/ml,
said process comprising adding Raniti-dine Hydrochloride to a substantially anhydrous hydroxylic solvent comprising at least one alkanol having 3-4 carbon atoms, which has the characteristics that it dissolves Ranitidine Hydrochloride and subsequently recovering the improved form of Form 1 Ranitidine Hydrochloride.

As originally filed, the application for the '671 patent did not include the bulk and tap density limitations, but simply claimed a process yielding “an improved form of Form 1 Ranitidine Hydrochloride.” The bulk and tap density limitations defining the product were later added by amendment to overcome obviousness rejections over the original Glaxo patents disclosing Form 1 ranitidine.

A divisional of the application also yielded United States Patent No. 5,523,423 (“'423”). The '423 patent included a product claim directed to improved Form 1 ranitidine with the specified bulk and tap density limitations, as well as product-by-process claims essentially covering the products of the '671 process. However, in litigation between TorPharm and several other pharmaceutical manufacturers in North Carolina, the product claim of the '423 patent was invalidated for lack of novelty, by reason of a prior sale of Form 1 ranitidine meeting the bulk and tap density limitations. Genpharm, Inc. v. TorPharm Inc., Nos. 5:97-CV-686-BO(3), - 658-BO(2), -968-BO(3) (E.D.N.C. Mar. 8, 1999) (Order granting summary judgment of invalidity). Evidence adduced during the North Carolina litigation revealed that in 1992, more than three years before the priority application for the '423 patent was filed, Interchem Corporation sold three lots (290 kg in all) of Form 1 ranitidine hydrochloride to Geneva Pharmaceuticals, Inc. Id., slip op. at 5. Neither Interchem nor Geneva is related to TorPharm. Quality tests performed by Geneva showed that two of the three lots had bulk densities of more than 0.23 gm/ml and tap densities of more than 0.28 gm/ml. Accordingly, the North Carolina district court held that material meeting the limitations of the '423 product claim had been on sale more than one year prior to filing of the patent application, thereby invalidating the product claim under 35 U.S.C. § 102(b).2 Id., slip op. at 8. However, there was (and still is) no evidence of what process Interchem used to make its Form 1 ranitidine, and by stipulation the product-by-process claims of the '423 patent were not at issue in the North Carolina litigation. Id., slip op. at 2.

TorPharm sued Ranbaxy for infringement of the '671 process patent in the United States District Court for the District of New Jersey. Ranbaxy moved for summary judgment of invalidity, arguing that “under the principles of prosecution history estoppel and collateral estoppel,” the '671 patent was invalid. Ranbaxy contended that because the '671 patent had been allowed “based on a representation by TorPharm that the allowance of the '423 patent made the '671 patent allowable,” the subsequent invalidation of the '423 patent rendered the '671 patent invalid as well.

The district court initially denied Ran-baxy’s motion. TorPharm Inc. v. Ranbaxy Pharms., Inc., No. 99-CV-714 (D.N.J. Aug. 17, 2001) (Order denying summary judgment). While acknowl[1326]*1326edging that TorPharm was estopped from re-litigating the validity of the '423 patent, the district court ruled that the patentability of the '671 process claims was not legally linked to the patentability of the '423 product.claim.

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Torpharm, Inc. v. Ranbaxy Pharmaceuticals, Inc.
336 F.3d 1322 (Federal Circuit, 2003)

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336 F.3d 1322, 2003 WL 21697434, Counsel Stack Legal Research, https://law.counselstack.com/opinion/torpharm-inc-v-ranbaxy-pharmaceuticals-inc-cafc-2003.