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Takeda Chemical Industries, Ltd. v. Mylan Laboratories, Inc.

Citations: 459 F. Supp. 2d 227; 2006 WL 2686779Docket: 03 CIV. 8253(DLC), 04 CIV.1966

Court: District Court, S.D. New York; September 20, 2006; Federal District Court

Narrative Opinion Summary

This case involves Takeda Pharmaceutical Company, Ltd., defending its U.S. Patent No. 4,687,777, which covers the diabetes drug pioglitazone, against challenges from generic manufacturers Alphapharm Pty. Ltd., Mylan Laboratories, Inc., and others. The defendants filed Paragraph IV certifications under the Hatch-Waxman Act, claiming the patent was invalid, but the court found these assertions baseless and pursued in bad faith. The defendants were accused of litigation misconduct for failing to provide a factual basis for their claims and for engaging in frivolous legal tactics. The court deemed the case exceptional under 35 U.S.C. § 285, warranting the award of attorneys' fees to Takeda. Alphapharm's legal strategy was criticized for relying on an unfounded obviousness argument, while Mylan's inequitable conduct claim was dismissed as frivolous. The court found both defendants infringed the patent by filing ANDAs for generic pioglitazone before the patent expired. Ultimately, the court granted Takeda's motion for attorneys' fees due to the defendants' conduct throughout the litigation.

Legal Issues Addressed

Exceptional Cases under 35 U.S.C. § 285

Application: The court found the case exceptional due to the defendants' litigation misconduct and lack of a good faith basis for their Paragraph IV certifications, warranting attorneys' fees.

Reasoning: The court concluded that the misconduct exhibited by both defendants warranted the award of attorneys' fees.

Inequitable Conduct and Litigation Strategy

Application: Mylan's attempt to allege inequitable conduct was deemed frivolous, lacking a reasonable basis and contributing to litigation misconduct.

Reasoning: Mylan's claims regarding compound 3894 were particularly baseless, especially since its expert admitted at trial that it was not the closest prior art to pioglitazone.

Infringement under 35 U.S.C. 271(e)(2)

Application: By filing ANDAs for a generic version of pioglitazone before the patent's expiration, the defendants infringed Takeda's patent.

Reasoning: By filing Abbreviated New Drug Applications (ANDAs) for a generic version of pioglitazone before the patent's expiration, both Alphapharm and Mylan infringed Takeda's patent under 35 U.S.C. 271(e)(2).

Misconduct in Patent Litigation

Application: Alphapharm's failure to disclose opinions of counsel and reliance on unfounded arguments constituted litigation misconduct.

Reasoning: Alphapharm forfeited its right to rely on the Kipnes opinion by failing to identify it in a privilege log in response to Takeda's June 2, 2004 document production request.

Obviousness and Lead Compound Analysis

Application: Alphapharm's argument for obviousness was rejected due to a lack of reasonable expectation of success with compound (b) as a lead compound.

Reasoning: Despite Alphapharm's evolving arguments, evidence presented at trial indicated that a skilled individual would not reasonably choose compound (b) over more viable alternatives in the prior art.

Paragraph IV Certification under the Hatch-Waxman Act

Application: Defendants failed to provide a factual and legal basis for their certifications, constituting misconduct under the Hatch-Waxman Act.

Reasoning: Both Alphapharm and Mylan submitted baseless certifications attacking the validity of the '777 Patent.