Tyco Healthcare Group LP v. Mutual Pharmaceutical Co.

762 F.3d 1338, 111 U.S.P.Q. 2d (BNA) 2031, 2014 WL 3844166, 2014 U.S. App. LEXIS 15096
CourtCourt of Appeals for the Federal Circuit
DecidedAugust 6, 2014
Docket2013-1386
StatusPublished
Cited by23 cases

This text of 762 F.3d 1338 (Tyco Healthcare Group LP v. Mutual Pharmaceutical Co.) 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
Tyco Healthcare Group LP v. Mutual Pharmaceutical Co., 762 F.3d 1338, 111 U.S.P.Q. 2d (BNA) 2031, 2014 WL 3844166, 2014 U.S. App. LEXIS 15096 (Fed. Cir. 2014).

Opinions

Opinion for the court filed by Circuit Judge BRYSON.

Dissenting opinion filed by Circuit Judge NEWMAN.

BRYSON, Circuit Judge.

Mutual Pharmaceutical Company, Inc., and United Research Laboratories, Inc., (collectively, “Mutual”) appeal from a summary judgment entered by the United States District Court for the District of New Jersey in favor of Tyco Healthcare Group LP and Mallinckrodt, Inc., (collectively, “Tyco”). In the order on appeal, the district court held that Tyco did not violate the antitrust laws by filing suit against Mutual or by filing a “citizen petition” with the Food and Drug Administration (“FDA”) seeking to bar Mutual from obtaining PDA permission to market its generic version of one of Tyco’s drugs. We affirm in part, vacate in part, and remand.

I

Tyco is the owner of several patents directed to formulations or methods of treatment with temazepam, a drug used to treat insomnia. Tyco markets temazepam under the brand name Restoril. Tyco acquired Restoril and several related patents from Sandoz Limited in 2001. The patents all claim 7.5 mg formulations of temazep-am having a specific surface area between 0.65 and 1.1 square meters per gram (m2 /g). Specific surface area is a measure of the surface area of a drug per unit of weight. Generally, as chunks of drug material are ground down into smaller particles, the specific surface area increases because more of the drug is exposed to the surrounding environment.

The claims of the temazepam patents do not recite any particular measurement technique. However, the specifications of each of the patents state that “[sjurface area measurements are made essentially in accordance with the standard B.E.T. procedure of Brunauer, Emmet and Teller.” E.g., U.S. Patent No. 5,211,954 (“the '954 patent”), col. 2, ll. 1-4.

B.E.T. testing is a gas-adsorption technique for measuring specific surface area. The procedure measures the amount of an adsorbate gas that has bound to the surface of the test material. In order to prepare a sample of a drug for measurement, a process of outgassing is performed, during which gas or vapor is removed from the surface of the sample to produce a clean surface that can be measured accurately. Outgassing is performed at a particular temperature, and the selection of that temperature can affect the ultimate specific surface area measurement. Increasing the outgassing temperature speeds the process of cleaning the test material’s surface and allows measurements to be obtained more quickly. It is important, however, to avoid selecting a temperature so high that the heat physically alters the test material, for example by softening or melting it.

Sandoz conducted specific surface area testing while seeking FDA approval for [1341]*1341Restoril. Tyco also performed testing after acquiring Restoril and the temazepam patents. In both cases, the testers used the B.E.T. procedure with an outgassing temperature of 105°C.

In November 2006, Mutual filed an Abbreviated New Drug Application (“ANDA”) with the FDA, seeking approval to manufacture and sell a generic 7.5 mg version of temazepam. Mutual’s ANDA represented that its product would have a specific surface area of not less than 2.2 m2/g, which was well above the specific surface area range claimed in the temazep-am patents. Mutual’s ANDA included a certification representing that the generic drug was not protected by a U.S. patent, as required by 21 U.S.C. § 355(j)(2)(A)(vii). Mutual’s certification was filed under paragraph TV of section 355(j)(2)(A)(vii), which permits a generic manufacturer to assert that the patent or patents at issue are invalid or that the generic product that is the subject of the ANDA would not infringe those patents. Such certifications are known as “paragraph IV certifications.” On February 5, 2007, Mutual sent Tyco a “paragraph IV certification letter” notifying Tyco of its ANDA. The letter set forth Mutual’s position that the proposed ANDA product would not infringe the temazepam patents because the generic product’s specific surface area would not fall within the 0.65-1.1 m 2/g range claimed by those patents.

In response to Mutual’s paragraph IV certification, Tyco filed an action alleging that Mutual’s ANDA infringed Tyco’s patents under 35 U.S.C. § 271(e)(2)(A), the special infringement provision of the Hatch-Waxman Act. Pursuant to the automatic stay provision of the Act, 21 U.S.C. § 355(j)(5)(B)(iii), Tyco was entitled to an automatic stay of the FDA’s approval of Mutual’s ANDA until the earlier of 30 months from the date Tyco filed its complaint or the date that a court determined that Tyco’s patents were invalid or not infringed by Mutual’s ANDA. In its amended answer, Mutual raised antitrust counterclaims, which the district court temporarily stayed pending the resolution of Tyco’s infringement claims.

On August 4, 2009, the district court granted judgment of noninfringement under Fed.R.Civ.P. 52(c). At that point only the '954 patent was at issue because Tyco’s other temazepam patents had expired.

Based on this court’s decision in Bayer AG v. Elan Pharmaceutical Research Corp., 212 F.3d 1241 (Fed.Cir.2000), the district court found that Mutual did not infringe the '954 patent under section 271(e) because Mutual’s ANDA “defines the proposed temazepam product in a manner that directly addresses the issue of infringement” and because a “product manufactured to the ANDA’s specification,” i.e., a product having a specific surface area of not less than 2.2 m 2/g, “could not literally infringe the '954 Patent.” Tyco Healthcare Grp. LP v. Mutual Pharm. Co., No. 2:07-cv-01299, slip op. at 6, 13, 2009 WL 2422382 (D.N.J. Aug. 4, 2009).

On August 5, 2009, the day after the district court entered its judgment of non-infringement, Tyco filed a citizen petition with the FDA. The citizen petition urged the FDA to change the criteria for evaluating the bioequivalence of proposed generic temazepam products in order to “help ensure therapeutic equivalence” of generic temazepam to Restoril. Tyco proposed guidelines that would require generic tem-azepam manufacturers to demonstrate bioequivalence to Restoril through a series of pharmacokinetic parameters considerably more extensive and complex than the parameters traditionally required by the FDA for a bioequivalence determination. [1342]*1342Tyco reasoned that the safety and efficacy of Restoril was likely linked to its pharma-cokinetic profile, and that changes to parameters such as specific surface area in a generic version could alter that profile and thereby affect the safety and efficacy of the generic version as compared to Resto-ril.

On September 8, 2009, although the citizen petition was still pending, the FDA approved Mutual’s ANDA, which allowed Mutual to bring its generic temazepam product to market. Five months later, the FDA denied Tyco’s citizen petition in its entirety.

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762 F.3d 1338, 111 U.S.P.Q. 2d (BNA) 2031, 2014 WL 3844166, 2014 U.S. App. LEXIS 15096, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tyco-healthcare-group-lp-v-mutual-pharmaceutical-co-cafc-2014.