MYLAN PHARMACEUTICALS, INC., PLAINTIFF-APPELLEE, v. TOMMY G. THOMPSON, SECRETARY OF HEALTH AND HUMAN SERVICES, BERNARD A. SCHWETZ, D.V.M., PH.D, ACTING PRINCIPAL DEPUTY COMMISSIONER, U.S. FOOD AND DRUG ADMINISTRATION, AND U.S. FOOD AND DRUG ADMINISTRATION, DEFENDANTS-APPELLEES, AND BRISTOL-MYERS SQUIBB COMPANY, DEFENDANT-APPELLANT.
No. 01-1257
U.S. Court of Appeals, Federal Circuit
October 12, 2001. As amended October 17, 2001.
268 F.3d 1323
Bеfore Mayer, Chief Judge, Newman and Michel, Circuit Judges.
Appealed from: United States District Court for the District of Columbia, Judge Ricardo M. Urbina
Howard S. Scher, Attorney, Appellate Staff, Civil Division, Department of Justice, of Washington, DC, argued for defendants-appellees. With him on the brief were Stuart E. Schiffer, Acting Assistant Attorney General; and Douglas N. Letter, Attorney. Of counsel on the brief were Michael M. Landa, Acting Chief Counsel; and Kevin M. Fain, Associate Chief Counsel, Office of the Chief Counsel, U.S. Fоod and Drug Administration, of Rockville, Maryland.
Evan R. Chesler, Cravath, Swaine & Moore, of New York, New York, argued for defendant-appellant. With him on the brief was Richard J. Stark. Of counsel were David R. Marriott, Swaine & Moore; and Mathew D. Peterson, FoxKiser, of Washington, DC.
Richard A. Samp, Washington, Legal Foundation, of Washington, DC, for amicus curiae Washington Legal Foundation. With him on the brief was Daniel J. Popeo.
Mayer, Chief Judge.
Bristol-Myers Squibb Co. (“Bristol“) appeals the order of the United States District Court for the District of Columbia granting the motion for a preliminary injunction brought by Mylan Pharmaceuticals, Inc. (“Mylan“). See Mylan Pharms., Inc. v. Thompson, No. 00-2876 (D.D.C. Mar. 14, 2001). The injunction directed Bristol to take measures to delist United States Patent No. 6,150,365 from the U.S. Food and Drug Administrаtion‘s “Orange Book,” and directed the FDA to grant final approval of Mylan‘s abbreviated new drug application for a generic version of buspirone. Id. Because we find that such a declaratory relief action against Bristol was not available to Mylan under the patent laws and was not created by the Hatch-Waxman Amendments to the Federal Food, Drug, and Cosmetic Act (“FFDCA“) and to
Regulatory Background
This case turns on the statutory framework governing new and generic drug approvals and its mechanisms for patent enforcement. Under the FFDCA, a pharmaceutical company seeking to manufacture a new drug is required to file a New Drug Application (“NDA“) for consideration by the FDA.
The applicant shall file with the application the patent number and the expiration date of any patent which claims the drug for which the applicant submitted the application or which claims a method of using such drug and with respect to which a claim of pаtent infringement could reasonably be asserted if a person not licensed by the owner engaged in the manufacture, use, or sale of the drug. . . . Upon approval of the application, the Secretary shall publish information submitted under [this section].
Id.
If the FDA approves the NDA, it publishes a listing of the drug and patents on the drug‘s approved aspects in Approved Drug Products with Therapeutic Equivalence Evaluations, otherwise known as the “Orange Book.”
Under the
The Hatch-Waxman provisions concerning patent infringement are part of this balance. Under
As part of the ANDA process, an applicant seeking to market a generic version of a listed drug must make a certification as to еach patent listed in the Orange Book which “claims the listed drug . . . or which claims a use for such listed drug for which the applicant is seeking approval.”
In either case, the applicant must certify either that: (I) no such patent information has been submitted to the FDA; (II) the patent has expired; (III) the patent is set to expire on a certain date; or (IV) such patent is invalid or will not be infringed by the manufacture, use, or sale of the new generic drug for which the ANDA is submitted.
An ANDA containing a Paragraph I or II certification may be approved without additional delаy. See
The Hatch-Waxman Amendments, however, do not include any explicit provisions either enabling or prohibiting an action to challenge a patentee‘s listing of a patent in the Orange Book. By regulаtion, the FDA has provided a limited process for disputing the accuracy or relevance of patent information submitted to the FDA and listed in the Orange Book.
Factual Background
Bristol owns U.S Patent No. 4,182,763 (“‘763 patent“) directed to the treatment of anxiety through the administration of buspirone hydrochloride. The ‘763 patent is listed in the Orange Book as covering Bristol‘s FDA-approved drug “BuSpar.” Bristol‘s patent was set to expire at the end of the day on November 21, 2000. In anticipation of its expiration, Mylan, a generic manufacturer, had filed and received tentative approval of an ANDA for its buspirone product under a Paragraph III certification. Mylan manufactured and was ready to ship its product at 12:00 a.m. on November 22, 2000, the moment the ‘763 patent was to have expired.
Approximately eleven hours before the ‘763 patent‘s expiration, Bristol hand-delivered to the FDA copies of U.S. Patent No. 6,150,365 (the “‘365 patent“) which issued earlier that day. The ‘365 patent contains only one claim, directed towards:
A process for ameliorating an undesirable anxiety state in a mammal comprising systemic administration to the mammal of an effective but non-toxic anxiolytic dose of . . . [BMY 28674 (the active metabolite of buspirone)] or a pharmaceutically acceptable acid addition salt or hydrate thereof. ‘365 patent, col. 16, ll. 27-32.
Bristol sought to have the ‘365 patent listed in the Orange Book as covering buspirone.
Upon receiving the ‘365 patent from Bristol, the FDA suspended approval of Mylan‘s ANDA and the ANDAs filed by other prospective generic manufacturers of buspirone. Mylan and other ANDA applicants wrote to the FDA to challenge the listing of the ‘365 patent on the grounds that it only covered a metabolite of buspirone and therefore should not be listed because it did not claim the drug, citing our ruling in Hoechst-Roussel Pharmaceuticals, Inc. v. Lehman, 109 F.3d 756 (Fed. Cir. 1997). Mylan also filed a Section viii Statement that the ‘365 patent did not claim a use for which it was sеeking approval.
The FDA responded on November 30, 2000, by asking Bristol to provide a clarification as to whether the ‘365 patent claimed only a metabolite of buspirone. The FDA also requested additional information from the ANDA applicants concerning the effect of our Hoechst ruling on the ‘365 patent claim. Bristol responded that the ‘365 patent did not simply claim a method of using the metabolite, but also a method of using buspirone itself. The FDA informed Bristol that its response was adequate and that the ‘365 patent would be deemed listed in the Orange Book.
Instead of filing a Paragraph IV certification with respect to the ANDA at issue here, Mylan commenced the present action against Bristol and the FDA on the same day, November 30, 2000. It sought a declaratory judgment that Bristol improperly listed the ‘365 patent, and a preliminary injunction requiring Bristol to take steps to delist the ‘365 patent and directing the FDA to approve Mylan‘s ANDA. Mylan also filed an action in the United States District Court for the District of West Virginia for a declaration of noninfringement and invalidity, and Bristol sued Mylan for infringement in the Southern District of New York.
In the present action, the United States District Court for the District of Columbia held that Mylan was entitled to declaratory relief that the ‘365 patent was improperly listed in the Orange Book under the patent laws and the
Bristol appeals the district court‘s order. Although the FDA opposed Mylan‘s motion in the district court, stating that its role in listing patents was solely ministerial and that Mylan‘s remedy was to seek modification of the presumptive thirty-month stay in the infringement litigation, id. at 16, the FDA does not appeal the portion оf the order directing it to approve Mylan‘s ANDA. Instead, the FDA argued to this court that this portion of the order was harmless error, and that Mylan has a cognizable cause of action against Bristol for declaratory judgment under the patent laws that was not prohibited by the FFDCA. We therefore do not address any cause of action that Mylan has or may assert against the FDA.
Discussion
The grant or denial of a preliminary injunction under
An abuse of discretion may be established by showing that the court made a clear error of judgment in weighing relevant factors or exercised its discretion based upon an error of law or clearly erroneous fаctual findings. Id.; Amazon.com, Inc. v. barnesandnoble.com, Inc., 239 F.3d 1343, 1350 (Fed. Cir. 2001) (citing Novo Nordisk of N. Am., Inc. v. Genentech, Inc., 77 F.3d 1364, 1367 (Fed. Cir. 1996)). To the extent that a district court‘s decision to grant a preliminary injunction hinges on questions of law, our review is de novo. See Globetrotter Software, Inc. v. Elan Computer Group, Inc., 236 F.3d 1363, 1367 (Fed. Cir. 2001).
As the moving party, Mylan was required to establish its right to a preliminary injunction in light of four factors: “(1) a reasonable likelihood of success on the merits; (2) irreparable harm if the injunction were not granted; (3) the balance of the hardships and (4) the impact of the injunction on the public interest.” Purdue, 237 F.3d at 1363 (citing Polymer Techs. v. Bridwell, 103 F.3d 970, 973 (Fed. Cir. 1996)). If we find that Mylan was not likely to succeed on the merits, we may reverse the injunction. Reebok Int‘l Ltd. v. J. Baker, Inc., 32 F.3d 1552, 1556 (Fed. Cir. 1994).
With respect to the first factor, Bristol argues that the district court erred because Mylan did not assert a cognizable cause of action. According to Bristol, Mylan‘s claim seeks to delist a patent from the Orange Book, which is an impermissible attempt by a private party to enforce the FFDCA. See
Mylan and the FDA concede that there is no cause of action to delist a patent from the Orange Book. They also concede that such an action would be a private right of action barred by the FFDCA. They submit, however, that Mylan‘s cause of action, and the basis for our jurisdiction and declaratory relief, arises under the patent laws as a defense to patent infringement.
This is a matter of first impression for this court. The
Applying the “well-pleaded complaint rule” for analyzing a purported declaratory judgment, we do not look to the plaintiff‘s complaint to determine which federal law is the basis of the declaratory plaintiff‘s cause of action, “but to the action that the declaratory defendant would have brought” to enforce its rights. Speedco, Inc. v. Estes, 853 F.2d 909, 912 (Fed. Cir. 1988); see Fina Oil and Chem. Co. v. Ewen, 123 F.3d 1466, 1470 (Fed. Cir. 1997) (“We apply [the well-pleaded complaint rule] not to the declaratory judgment complaint but to the hypothetical action the declaratory defendant would have brought.“) Although in Speedco and Fina we used this rule to determine whether the district court had subject matter jurisdiction, the principles also are helpful for determining which federal law is the basis for the declaratory plaintiff‘s cause of action.
Mylan argues that the action Bristol, the declaratory judgment defendant, would have brought is an action for patent infringement under
This assertion, however, is not a recognized defense to patent infringement. Defenses to allegations of patent infringement fall into two broad groups: statutory and equitable. The statutory defenses are set forth in
Mylan does not tie its argument to any of these defenses. The issue that Mylan seeks to litigate under this declaratory judgment action is not infringement of the ‘365 patent, i.e., that Mylan did not infringe under
Because the Hatch-Waxman Amendments create the statutory act of infringement here, however, we should also examine them to determine whether they add an additional defense.2 A review of the amendments shows no explicit provisions allowing an accused infringer to defend against infringement by challenging the propriety of the Orange Book listing of the patent.
The only explicit statement in the amendments concerning an applicant‘s rights to seek judicial relief against the patentee is in
Mylan‘s arguments further bolster our conclusion that its сlaim is not a recognized defense to patent infringement. There is no indication in
Therefore, we are forced to conclude that Mylan‘s action here against Bristol is in essence an attempt to assert a private right of action for “delisting” under the FFDCA. We see nothing in the Hatch-Waxman Amendments to alter the statement in
Our cases do not suggest a different result. In Abbott Laboratories v. Novopharm Ltd., 104 F.3d 1305, 1309 (Fed. Cir. 1997), we held that, as part of its inherent power to give effect to a judgment, a court may order the delisting of a patent in the context of a properly filed patent infringement suit. Abbott and its rationale, however, do not provide us the authority to hear an independent cause of action seeking delisting outside a properly filed patent case. In DuPont Merck Pharmaceutical Co. v. Bristol-Myers Squibb Co., 62 F.3d 1397 (Fed. Cir. 1995), we held that an actual controversy was presented under the
Notably, Congress has considered legislation to amend the FFDCA to loosen the restrictions on generic ANDA applicants under
Conclusion
Accordingly, the judgment of the United States District Court for the District of Columbia is reversed.
REVERSED
