Astellas Pharma, INC. v. Sandoz INC.Astellas Pharma, INC. v. Sandoz INC.
Decided: September 18, 2024
PAUL WHITFIELD HUGHES, III, McDermott Will & Emery LLP, Washington, DC, argued for plaintiffs-appellants. Also represented by ANDREW LYONS-BERG, CHARLES H. SEIDELL; JASON ALBERT LEONARD, SIMON ROBERTS, New York, NY; DANIEL M. SILVER, McCarter & English, LLP, Wilmington, DE.
WILLIAM R. ZIMMERMAN, Knobbe, Martens, Olson & Bear, LLP, Washington, DC, argued for all defendants-appellees. Defendants-appellees Lupin Ltd., Lupin
KEVIN PATRICK BURKE, Rakoczy Molino Mazzochi Siwik LLP, Chicago, IL, for defendants-appellees Sandoz Inc., Lek Pharmaceuticals, d.d. Also represented by DEANNE M. MAZZOCHI, WILLIAM A. RAKOCZY, RACHEL PERNIC WALDRON.
MICHAEL GAERTNER, Locke Lord LLP, Chicago, IL, for defendants-appellees Zydus Pharmaceuticals (USA) Inc., Zydus Lifesciences Ltd. Also represented by DAVID BRIAN ABRAMOWITZ, HUGH S. BALSAM, CAROLYN ANNE BLESSING, EMILY SAVAS, JONATHAN B. TURPIN.
Before LOURIE, PROST, and REYNA, Circuit Judges.
LOURIE, Circuit Judge.
Astellas Pharma, Inc., Astellas Ireland Co., Ltd., and Astellas Pharma Global Development, Inc. (collectively, “Astellas“) appeal from the final judgment of the United States District Court for the District of Delaware.
Following a five-day bench trial on issues of infringement and validity under
BACKGROUND
I
In 2012, the U.S. Food and Drug Administration (“FDA“) approved the New Drug Application (“NDA“) for extended-release mirabegron tablets for the treatment of overactive bladder (“OAB“), which Astellas markets and sells under the brand name Myrbetriq®. Mirabegron is a beta-3 agonist that stimulates beta receptors in the bladder, thereby inducing bladder relaxation and improving bladder function.
During the development of Myrbetriq, Astellas discovered that immediate-release formulations of mirabegron exhibit an undesirable “food effect,” meaning that the bioavailability of the drug is affected by the presence or absence of food in a patient‘s stomach. Astellas observed that when patients took the drug with a meal, the levels of mirabegron that were absorbed into the blood were too low to impart any therapeutic benefit. But when patients took the drug on an empty stomach, mirabegron was absorbed too rapidly, reaching potentially toxic concentrations in the blood. To solve this problem, Astellas developed sustained-release formulations of mirabegron, which abated the undesirable food effect. Those formulations are covered by the claims of the ‘780 patent.
The ‘780 patent contains two independent claims, each of which is directed to a sustained-release pharmaceutical composition comprising mirabegron. Independent claim 1, from which asserted claims 5 and 20 ultimately depend, recites:
1. A pharmaceutical composition, comprising 10 mg to 200 mg of [mirabegron], or a pharmaceutically acceptable salt thereof, in a sustained release hydrogel-forming formulation comprising a hydrogel-forming polymer having an average molecular weight of 100,000 to 8,000,000 and an additive having a water solubility of at least 0.1 g/mL at 20±5° C.,
wherein the hydrogel-forming polymer is at least one compound selected from the group consisting of polyethylene oxide, hydroxypropyl methylcellulose, hydroxypropyl cellulose, carboxymethyl cellulose sodium, hydroxyethyl cellulose, and a carboxyvinyl polymer,
wherein the additive is at least one selected from the group consisting of polyethylene glycol, polyvinylpyrrolidone, D-mannitol, D-sorbitol, xylitol, lactose, sucrose, anhydrous maltose, D-fructose, dextran, glucose, polyoxyethylene hydrogenated castor oil, polyoxyethylene polyoxypropylene glycol, polyoxyethylene sorbitan higher fatty acid ester, sodium chloride, magnesium chloride, citric acid, tartaric acid, glycine, β-alanine, lysine hydrochloride, and meglumine, and wherein a drug dissolution rate from the pharmaceutical composition is 39% or less after 1.5 hours, and at least 75% after 7 hours, as measured in accordance with United States Pharmacopoeia in 900 mL of a USP buffer having a pH of 6.8 at a paddle rotation speed of 200 rpm.
‘780 patent at col. 20, ll. 19–47; J.A. 8617–18 (Certificate of Correction). Asserted claim 5, which depends directly from claim 1, recites:
5. The pharmaceutical composition according to claim 1, wherein the hydrogel-forming polymer is at least one compound selected from the group consisting of polyethylene oxide, hydroxypropyl methylcellulose, and hydroxypropyl cellulose.
‘780 patent at col. 20, ll. 61–65; J.A. 8617–18 (Certificate of Correction). Asserted claim 20, which depends from claim 1 by way of claims 16 and 18, recites:
20. A method for treating overactive bladder comprising administering the tablet according to claim 18 to a subject in need thereof.
‘780 patent at col. 22, ll. 6–8. Claim 18 recites “[a] tablet, comprising the pharmaceutical composition according to claim 16,” id. at col. 22, ll. 1–2, and claim 16 recites “[t]he pharmaceutical composition according to claim 1, comprising 10 mg to 200 mg of [mirabegron],” id. at col. 21, ll. 30–33.
Independent claim 22, from which asserted claim 25 ultimately depends, recites:
22. A pharmaceutical composition, comprising 10 mg to 200 mg of [mirabegron], or a pharmaceutically acceptable salt thereof, in a sustained release hydrogel-forming formulation comprising a means for forming a hydrogel and a means for ensuring penetration of water into the pharmaceutical composition,
wherein a drug dissolution rate from the pharmaceutical composition is 39% or less after 1.5 hours, and at least 75% after 7 hours, as measured in accordance with United States Pharmacopoeia in 900 mL of a USP buffer having a pH of 6.8 at a paddle rotation speed of 200 rpm.
Id. at col. 22, ll. 13–25. Asserted claim 25, which depends from independent claim 22 by way of claim 23, recites:
25. A tablet, comprising the pharmaceutical composition according to claim 23.
Id. at col. 22, ll. 32–33. Claim 23 recites “[t]he pharmaceutical composition according to claim 22, comprising 10 mg to 200 mg of [mirabegron].” Id. at col. 22, ll. 26–29.
In short, asserted claims 5, 20, and 25 are generally directed to a pharmaceutical composition comprising mirabegron, a method of treating OAB using that composition, and a tablet comprising that composition, respectively.
II
On November 24, 2020, the day that the ‘780 patent issued, Astellas sued each of Sandoz Inc., Zydus Pharmaceuticals (USA) Inc., Zydus Lifesciences Ltd., dba Zydus Ca-Dila, Lupin Ltd., Lupin Pharmaceuticals, Inc., and Lek Pharmaceuticals, D.D. (collectively, “Sandoz“) for patent infringement under
On July 7, 2021, Sandoz produced its initial invalidity contentions. See J.A. 651–52. In those contentions, Sandoz claimed that the asserted claims were invalid under each of
Nearing the February 6, 2023 trial date, the parties continued to narrow their theories of the case. In mid-January, the parties filed a joint proposed pre-trial order, in which Sandoz agreed to limit its invalidity defenses to obviousness under
Nevertheless, the district court issued a final decision holding asserted claims 5, 20, and 25 of the ‘780 patent invalid as directed to patent-ineligible subject matter under
Following the entry of judgment, Sandoz, the prevailing party, moved pursuant to
Astellas timely appealed. We have jurisdiction under
DISCUSSION
I
The Supreme Court has made clear that, “[i]n our adversary system, in both civil and criminal cases, in the first instance and on appeal, we follow the principle of party presentation. That is, we rely on the parties to frame the issues for decision and assign to courts the role of neutral arbiter of matters the parties present.” Greenlaw v. United States, 554 U.S. 237, 243 (2008). By rendering its decision on a ground not raised by any party at any stage of the proceedings, and by expressly declaring that it “sits not [as] an arbiter to resolve the disputes on the parties’ favored terrain,” Decision at *2, the district court disregarded the longstanding principle of party presentation and, in doing so, abused its discretion. United States v. Sineneng-Smith, 590 U.S. 371, 375 (2020) (providing that departures from the principle of party presentation are reviewed for abuse of discretion); United States v. Dowdell, 70 F.4th 134, 146 (3d Cir. 2023) (same); see Innogenetics, N.V. v. Abbott Lab‘ys, 512 F.3d 1363, 1371 (Fed. Cir. 2008) (“We review procedural issues not unique to patent law under regional circuit law.“).
To be sure, “[t]he party presentation principle is supple, not ironclad,” and there are circumstances in which it may be appropriate for a court to take a “modest initiating role” in the shape of the litigation. Sineneng-Smith, 590 U.S. at 376. But rendering a patent invalid on a basis not advanced by any party is not such a circumstance.
One cornerstone of patent litigation lies in
Here, the district court appears to have misapprehended its role in adjudicating the issue of patentability. It interpreted Astellas‘s “zealous defense” on issues of
Further, the district court‘s treatment of patent eligibility suffered from its own “fundamental flaw.” It appears that the district court believed patent eligibility under
Sandoz‘s attempts to excuse the district court‘s departure from that principle are unavailing. In its view, the district court acted within its authority in light of precedent and Astellas‘s “stunning admissions” at trial regarding the invention. Sandoz Br. 23. Relying on cases from the late 1800s and certain non-binding out-of-circuit cases,3 Sandoz argues that “[t]he
held that a court may consider the eligibility or validity of a patent, even if such a defense is not raised by the defendant in the action.” Id. at 18 (citing Slawson v. Grand Street, P.P & F.R. Co., 107 U.S. 649, 652 (1883); Brown v. Piper, 91 U.S. 37, 43–44 (1875); Dunbar v. Myers, 94 U.S. 187, 188 (1876)); see id. at 19–20 (citing Barkeij v. Lockheed Aircraft Corp., 210 F.2d 1, 1 (9th Cir. 1954); Howes v. Great Lakes Press Corp., 679 F.2d 1023, 1028 (2d Cir. 1982)). But those decisions were rendered before, or did not address the impact of, the Patent Act of 1952‘s codification of a patent‘s presumption of validity and the requirement that a patent challenger affirmatively plead its defenses. See Pub. L. No. 82-593, § 282, 66 Stat. 792, 812 (1952) (codified at
Sandoz‘s invocation of public policy to justify the district court‘s decision is no more persuasive. Sandoz Br. 23–24 (arguing that the “public has a strong interest in the elimination of invalid pharmaceutical patents that delay or deter low-cost generic alternatives“). That argument is entirely irrelevant to the scope of a court‘s authority to stray from the case as designed by the parties. Indeed, we have long rejected such “public responsibility” concerns in favor of adherence to the party presentation principle. See Lannom Mfg., 799 F.2d at 1579 (rejecting argument that the International Trade Commission has a public responsibility to “verify the validity of any patent brought before it“).
Accordingly, because the district court abused its discretion in holding the asserted claims invalid under
II
We turn now to Astellas‘s request that this case be reassigned to a different district court judge on remand. Astellas argues that “[t]aken together, the district court‘s two post-trial decisions are rather extraordinary,” Astellas Br. 55, such that reassignment is necessary to maintain an appearance of impartiality and fairness in the forthcoming remand proceedings.
Reassignment is “an exceptional remedy, one that we weigh seriously and order sparingly.” United States v. Kennedy, 682 F.3d 244, 258 (3d Cir. 2012); see Lazare Kaplan Int‘l, Inc. v. Photoscribe Techs., Inc., 714 F.3d 1289, 1298 (Fed. Cir. 2013) (providing that reassignment requests are evaluated “under the law of the regional circuit in which the district court sits“). When reviewing requests for reassignment, the Third Circuit applies “a standard that calls for reassignment when a reasonable person, with knowledge of all
Astellas first argues that the district court‘s failure to abide by the party presentation principle is, “standing alone,” enough to warrant reassignment. See Astellas Br. 55–56. We disagree. The Third Circuit has made clear that “adverse rulings—even if they are erroneous—are not in themselves proof of prejudice or bias” that warrant judicial reassignment. Arrowpoint, 793 F.3d at 330. We have already concluded that the district court abused its discretion, as a matter of procedure, in rendering its judgment. And, although we have serious doubts that, on the merits, the asserted claims—directed to nonnatural compositions of matter and associated methods of use—are ineligible for patent protection (an issue we decline to resolve), those kinds of errors, i.e., errors relating to the propriety of the district court‘s analysis, are insufficient to warrant reassignment.
Astellas next points to various statements that the district court made in its two decisions on appeal as evidencing judicial bias. For example, in its denial of Sandoz‘s
We agree with Astellas that these statements have no relevance to the proceedings in this case, which are limited to the issues of infringement and validity under
Although we have concerns with the analysis of the district court, we are not convinced that the judge, who has overseen nearly two hundred patent cases and has ruled in favor of both innovative and generic manufacturers alike, cannot resolve the outstanding issues impartially and fairly, particularly now that we have clarified the proper course for adjudication. Significantly, other than the court‘s two rulings, Astellas cannot identify any instance in the life of this nearly four-year-old litigation in which the district court judge acted in a way that called into question his ability to do just that. Further, as Sandoz points out, the district court judge
Ultimately, we trust that, upon remand, the district court can and will take an objective, measured, and thorough look into the legal issues and evidence of record to resolve only those disputes that exist between the parties.
CONCLUSION
We have considered the parties’ remaining arguments and find them unpersuasive. For the reasons set forth above, we vacate the district court‘s judgment and remand for adjudication of the case as it was shaped by the parties.
VACATED AND REMANDED
COSTS
No costs.