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Shire Development, LLC v. Mylan Pharmaceuticals, Inc.

Citations: 235 F. Supp. 3d 1298; 2017 U.S. Dist. LEXIS 11441; 2017 WL 388823Docket: Case No: 8:12-cv-1190-T-36AEP

Court: District Court, M.D. Florida; January 26, 2017; Federal District Court

Narrative Opinion Summary

This case involves a patent infringement lawsuit filed by Shire against Mylan under the Hatch-Waxman Act, concerning Mylan's Abbreviated New Drug Application (ANDA) for a generic version of Lialda, a delayed-release mesalamine tablet. Shire claimed that Mylan's product infringed U.S. Patent No. 6,773,720, which relates to controlled-release oral pharmaceutical compositions. The court held a four-day bench trial to assess whether Mylan's product infringed Shire's patent claims, specifically Claims 1 and 3. The court evaluated the literal infringement, as well as possible infringement under the doctrine of equivalents, ultimately finding that Mylan's product met the specifications of the patent claims, including the presence of distinct inner lipophilic and outer hydrophilic matrices. Furthermore, the court addressed induced and contributory infringement, concluding that Mylan's actions constituted both, given their knowledge of the patent and their product's intent to be bioequivalent to Lialda. The court declared that Mylan's ANDA filing infringed the '720 Patent and issued various forms of relief to Shire, including a permanent injunction against Mylan until the patent's expiration. The judgment was rendered in favor of Shire, and Mylan's counterclaims were dismissed with prejudice.

Legal Issues Addressed

Claim Construction in Patent Infringement

Application: The court's claim construction defined critical terms such as 'inner lipophilic matrix' and 'outer hydrophilic matrix,' supporting the infringement analysis against Mylan.

Reasoning: The terms 'inner lipophilic matrix' and 'outer hydrophilic matrix' were defined by the Court, establishing them as macroscopically homogeneous structures that are spatially separate from one another.

Controlled-Release Pharmaceutical Formulations

Application: Mylan's formulation, which included specific matrices and release characteristics, fulfilled the patent's claim requirements for controlled-release compositions, corroborated by expert testimony.

Reasoning: Dr. Little analyzed the ’720 Patent and Mylan’s product details, concluding it qualifies as a controlled-release oral pharmaceutical due to its dual matrix structure.

Doctrine of Equivalents

Application: The court examined whether Mylan's product, not literally infringing, might still infringe under the doctrine of equivalents due to performing the same function in a similar way with similar results.

Reasoning: Under the doctrine of equivalents, a product that does not literally infringe may still infringe if it meets each claim limitation either literally or equivalently.

Induced and Contributory Infringement

Application: The court found that Mylan's actions constituted both induced and contributory infringement of the '720 Patent, given their knowledge and intent regarding the patent's claims and their product's bioequivalence to Lialda.

Reasoning: Shire has demonstrated by a preponderance of evidence that Mylan Inc. induced and contributed to Mylan Pharmaceuticals Inc.'s infringement of the ’720 Patent.

Literal Infringement Analysis

Application: The court found that Mylan's product met the specifications of Claim 1 of the '720 Patent, including the presence of controlled-release mechanisms and specific inner and outer matrices.

Reasoning: The Court determined that Shire successfully demonstrated, by a preponderance of the evidence, that Mylan's product meets this aspect of Claim 1.

Patent Infringement under Hatch-Waxman Act

Application: Shire alleged that Mylan's ANDA submission for a generic version of Lialda infringed on its '720 Patent, which Mylan denied, leading to a bench trial to resolve claims of infringement.

Reasoning: On May 25, 2012, Shire initiated a lawsuit against Mylan for alleged infringement of the ’720 patent, claiming that Mylan's product would infringe specific patent claims.