Pfizer Victorious over Ranbaxy in Caduet Patent Litigation
Pfizer (PFE) sued Ranbaxy for infringement of U.S. Patent Nos. 4,681,893 and 6,455,574 after Ranbaxy filed paragraph IV certifications in its ANDA for a generic version of Caduet (atorvastatin calcium/amlodipine besylate). The '893 patent claims atorvastatin calcium, which is also the active ingredient in Lipitor; the '574 patent claims combinations of atorvastatin sodium and amlodipine besylate. Ranbaxy filed counterclaims seeking declaratory judgments that:
The '893 patent is invalid. The '574 patent is invalid and not infringed.
A third patent, U.S. Patent No. 5,273,995, is invalid, unenforceable and not infringed.
In an opinion (pdf file) filed November 29, the district court granted Pfizer's motions to dismiss Ranbaxy's counterclaims on the '893 and '995 patents, leaving only the '574 patent in the case.
On August 2, 2006, the Federal Circuit affirmed (pdf file) the validity of the '893 patent in Pfizer's case against Ranbaxy concerning Ranbaxy's ANDA for a generic version of Lipitor. Ranbaxy appealed to the Supreme Court, and in April, the Court denied Ranbaxy's cert petition. Accordingly, in the Caduet litigation, Pfizer moved to dismiss Ranbaxy's counterclaims of invalidity of the '893 patent on grounds of res judicata. In addition, Pfizer moved for partial summary judgment on the pleadings, asking for a judgment of infringement of the '893 patent on grounds of collateral estoppel.
In opposition to Pfizer's motion, Ranbaxy argued that res judicata principles should be narrowly applied because the issue of obviousness was not presented at trial or adjudicated in the Lipitor litigation, and "significant factual and legal changes have occurred since the Lipitor litigation that fundamentally alter the obviousness analysis of the '893 patent." Specifically, Ranbaxy argued that the Supreme Court's decision in KSR v. Teleflex "dramatically lowered the bar of 35 USC 103."
The district court, however, was unconvinced, stating that Ranbaxy challenged the validity of the '893 patent in the Lipitor litigation, and therefore, absent fraud or a momentous legal change in constitutional rights, "Ranbaxy was required to raise all of its invalidity defenses at that time." Thus, the court granted Pfizer's motion to dismiss. In addition, because Ranbaxy did not contest infringement of the '893 patent, the court granted Pfizer's motion for a judgment of infringement of the '893 patent on the pleadings.
In the same August 2, 2006 decision, the Federal Circuit held that Claim 6 of the '995 patent is invalid. The '995 patent covers pharmaceutical compositions containing atorvastatin calcium. Pfizer is currently seeking a reissue of the '995 patent to correct the defect in Claim 6 and to correct defects in other claims. In the Caduet litigation, Pfizer moved to dismiss Ranbaxy's counterclaims on the '995 patent on grounds that it has provided Ranbaxy a covenant not sue Ranbaxy on all remaining claims of the original '995 patent.
In response to this motion, Ranbaxy argued that its declaratory judgment counterclaims of unenforceability of the '995 patent should not be dismissed, notwithstanding Pfizer's covenant not to sue, because "Pfizer has not agreed to provide Ranbaxy with a covenant not to sue related to any reissue of the '995 patent." Here too, however, the district court was unconvinced by Ranbaxy's arguments. The court stated:
The question of whether a new patent will ever be reissued is speculative, purely hypothetical and unripe for judicial determination. Accordingly, the Court concludes that these circumstances do not support jurisdiction under the MedImmune standard.
As a result of the district court's decision, Ranbaxy will not be able to launch its generic version of Caduet until at least 2010, when the '893 patent expires. Pfizer will now proceed with the case, aiming to keep Ranbaxy off the market until 2018, when the '574 patent expires.
RELATED READING:
FDAnews article
Get Seeking Alpha Free Stock Alerts by Email!
Get Free Stock Alerts by Email!
ETFs In Focus
-
Editor's Picks
-
Most Popular
- Opportunity in Emerging Markets Amidst This Panic
- iPhone Sales Drastically Surpass Q4 Consensus; Apple Reaches 10m Goal
- Buy, Sell or Hold: BofA Will Strengthen as the Weak Perish
- How Much Will a Wells-Wachovia Deal Cost Taxpayers?
- Fannie and Freddie Did Not Cause This Crisis
- 36 Opportunities for the Beginning of the Bull
- Full list of Editor's Picks »
- 36 Opportunities for the Beginning of the Bull »
- 25 Cash Cows to Ride Out the Storm- Barron's »
- 3 Stocks That Are Begging To Be Bought »
- iPhone Sales Drastically Surpass Q4 Consensus; Apple Reaches 10m Goal »
- Iceland: When Too Big to Fail Becomes Too Big to Rescue »
- Big Tech Prepares for Big Layoffs »
- Cramer: Dow Could Drop Another 14%, Oil's Going to $50 »
- Cash Position Best for Apple Investor »
- Why Is Everybody Selling as Buffett Is Loading Up? »
- Fannie and Freddie Did Not Cause This Crisis »
- GE Looks Very Attractive Here »
-
Long Ideas
-
Short Ideas
-
Cramer's Picks
- Unintended Consequences - Fast Money Recap (10/6/08)
- Time To Go Long, For A Short Time?
- Four Energy Bargains
- A-Power Energy Announces Huge Contract, Stock Down 11%
- Dun & Bradstreet: Weeding Out Disinformation in the Information Age
- Cramer: Dow Could Drop Another 14%, Oil's Going to $50
- Irrational Despair Is Creating Great Buying Opportunities in Two Chinese Companies
- Many Companies Are Still Raising Dividends
- Transportation Sector May Be Overly 'Clobbered'
- Gilat Take Two: Anteing Up Again
- Full list of Long Ideas »
- Gaming Stocks Still a Poor Bet - Barron's
- After Coming Rate Cuts, Some Appealing Short ETFs
- M/I Homes: Common Share Price Perplexing
- Trading ERO This Week
- Talk Me Down From the Wells Fargo Ledge
- SKF Regaining Its Old Form?
- Continuing Haircut in DST's Investment Portfolio
- Fortis and Bradford and Bingley Banks Thrown Lifelines
- The Short Case on KBH Homes
- International Game Technology: Good Short Opportunity
- Full list of Short Ideas »
- Time to Hoard Cash - Cramer's Mad Money (10/6/08)
- Buyers On Strike - Cramer's Stop Trading! (10/6/08)
- Still Bullish on RIMM - Cramer's Lightning Round (10/6/08)
- The Cramer Crash?
- Cramer: Dow Could Drop Another 14%, Oil's Going to $50
- Musical Chairs - Cramer's Mad Money (10/3/08)
- Not Much to Recommend - Cramer's Lightning Round (10/3/08)
- Imminent Rate Cut? - Cramer's Stop Trading! (10/3/08)
- American Express to the Sell Block - Cramer's Mad Money (10/2/08)
- Buy Rarely; Sell Repeatedly - Cramer's Lightning Round (10/2/08)
- Full list of Cramers Picks »
Trading Center
Hedge Fund Jobs
Job Seekers: Search jobs by category, get job alerts by email or live feed, apply online See full list of jobs »
Employers: See all recruitment options, get applications online or by email Post a job »


