STARK, U.S. District Judge.
Plaintiff Belcher Pharmaceuticals, LLC ("Plaintiff" or "Belcher") asserts in its June 28, 2018 Complaint that Defendant International Medication Systems, LLC ("Defendant" or "IMS") infringes Plaintiff's U.S. Patent No. 9,283,197 ("the '197 patent"). (D.I. 1) ("Complaint" or "Compl.") Defendant "filed a NDA [New Drug Application] under 21 U.S.C. § 355(b)(2) of the Hatch-Waxman Act (making it a `505(b)(2) application'), for 0.1 mg/mL epinephrine injections (`IMS's NDA')," which Plaintiff asserts is an artificial act of infringement under 35 U.S.C. § 271(e)(2). (D.I. 9 at 2) Pending before the Court is Defendant's motion to dismiss under Federal Rule of Civil Procedure 12(b)(6). (D.I. 8) After considering the parties' briefing and supplemental briefing (D.I. 9, 15, 19, 27, 28), the Court will deny Defendant's motion.
U.S. Patent Application No. 14/460,845 was filed on August 15, 2014, and the '197 patent issued as a result on March 15, 2016. (D.I. 1-1 at 1) The '197 patent was issued to Jugal K. Taneja and assigned to Plaintiff. (D.I. 15 at 4) Of the three independent and four dependent claims, only Claims 6 and 7 are asserted, which the
IMS filed its paper NDA in February, 2018 for 0.1 mg/mL epinephrine injections. (D.I. 9 at 2) This filing was made pursuant to the Drug Price Competition and Patent Term Restoration Act of 1984 (the "Hatch-Waxman Act"), specifically 21 U.S.C. § 355(b)(2), which covers "drug[s] for which the investigations ... relied upon by the applicant for approval of the application were not conducted by or for the applicant and for which the applicant has not obtained a right of reference or use from the person by or for whom the investigations were conducted."
Plaintiff alleges Defendant's NDA filing was an act of infringement under 21 U.S.C. § 271(e)(2)(A), which provides: "It shall be an act of infringement to submit an application under ... section 505(b)(2) of [the Food, Drug, and Cosmetic Act] for a drug claimed in a patent or the use of which is claimed in a patent." Defendant sent notice of its Paragraph IV certification to Plaintiff on May 16, 2018, which opened a 45-day window in which Plaintiff could, by filing suit, obtain an automatic 30-month stay of FDA approval of Defendant's NDA. See 21 C.F.R. § 314.107(b)(3)(i)(A). The parties negotiated an offer of confidential access ("OCA") by Plaintiff to IMS's NDA, pursuant to which Defendant produced a copy of its entire NDA submission to Plaintiff on June 7, 2018, three weeks prior to the 45-day deadline. (D.I. 9 at 3) Plaintiff filed its Complaint on June 28, 2018.
Evaluating a motion to dismiss under Federal Rule of Civil Procedure 12(b)(6) requires the Court to accept as true all material allegations of a complaint. See Spruill v. Gillis, 372 F.3d 218, 223 (3d Cir. 2004). "The issue is not whether a plaintiff will ultimately prevail but whether the claimant is entitled to offer evidence to support the claims." In re Burlington Coat Factory Sec. Litig., 114 F.3d 1410, 1420 (3d Cir. 1997) (internal quotation marks omitted). Thus, the Court may grant such a motion to dismiss only if, after "accepting all well-pleaded allegations in the complaint as true, and viewing them in the light most favorable to plaintiff, plaintiff is not entitled to relief." Maio v. Aetna, Inc., 221 F.3d 472, 481-82 (3d Cir. 2000) (internal quotation marks omitted).
A well-pleaded complaint must contain more than mere labels and conclusions. See Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009); Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). A plaintiff must plead facts sufficient to show that a claim has substantive plausibility. See Johnson v. City of Shelby,
"To survive a motion to dismiss, a civil plaintiff must allege facts that `raise a right to relief above the speculative level on the assumption that the allegations in the complaint are true (even if doubtful in fact).'" Victaulic Co. v. Tieman, 499 F.3d 227, 234 (3d Cir. 2007) (quoting Twombly, 550 U.S. at 555, 127 S.Ct. 1955). A claim is facially plausible "when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged." Iqbal, 556 U.S. at 678, 129 S.Ct. 1937. At bottom, "[t]he complaint must state enough facts to raise a reasonable expectation that discovery will reveal evidence of [each] necessary element" of a plaintiff's claim. Wilkerson v. New Media Tech. Charter Sch. Inc., 522 F.3d 315, 321 (3d Cir. 2008) (internal quotation marks omitted).
The Court is not obligated to accept as true "bald assertions," Morse v. Lower Merion Sch. Dist., 132 F.3d 902, 906 (3d Cir. 1997) (internal quotation marks omitted), "unsupported conclusions and unwarranted inferences," Schuylkill Energy Res., Inc. v. Pa. Power & Light Co., 113 F.3d 405, 417 (3d Cir. 1997), or allegations that are "self-evidently false," Nami v. Fauver, 82 F.3d 63, 69 (3d Cir. 1996).
The pertinent allegations of infringement in the Complaint are as follows:
(Compl.)
Defendant argues that "Belcher's Complaint is fatally flawed" because it "merely states legal conclusions without alleging any facts that could make a plausible case for patent infringement against IMS." (D.I. 9 at 3) Defendant contends that the mere allegation that "[t]he manufacture of IMS's NDA Product is covered by Claims 6 and 7 of the '197 Patent" (Compl. at ¶ 20) is conclusory and provides insufficient notice of Plaintiff's claim. According to IMS,
Underlying Defendant's contentions is the contention that Plaintiff's Complaint should be treated like any other complaint for patent infringement, and not given special treatment — even at the pleading stage — under § 271(e)(2). (See D.I. 9 at 7; D.I. 19 at 2, n.2) "`(Section 271 (e)(2)(A) defines the filing of an ANDA as an act of infringement, but it does not alter the underlying patent infringement analysis.'") (quoting Bayer Schering Pharma AG v. Lupin, Ltd., 676 F.3d 1316, 1325 (Fed. Cir. 2012)) In essence, Defendant's position is that while the Hatch-Waxman Act creates subject matter jurisdiction over the "artificial act of infringement" of filing a paper NDA (or ANDA), actual infringement still must be pled with particularity to survive a Rule 12(b)(6) motion. Further, meeting this requirement means complying with the "mandate[]" of the Supreme Court in Iqbal and Twombly to include in a complaint "`factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.'" (D.I. 19 at 3) (quoting Iqbal, 556 U.S. at 678, 129 S.Ct. 1937) To Defendant, "Supreme Court precedent is clear, and given Belcher's full access to all the documents it needs to allege infringement, Belcher's fact-free Complaint should be dismissed." (Id. at 1)
Plaintiff responds that only the asserted claims and the artificial act of infringement need be pled, "because `Congress defined infringement in a special way to create an `artificial' act of infringement under § 271(e)(2): submitting an ANDA.'" (D.I. 15 at 5-6) (quoting Bristol-Myers Squibb Company v. Mylan Pharm. Inc., 2017 WL 3980155, at *10 (D. Del. Sept. 11, 2017)) Plaintiff contends it provided Defendant with fair and sufficient notice of infringement by describing Defendant's NDA submission and alleging that the NDA product will infringe Claims 6 and 7. (Id. at 6) The Complaint also references Plaintiff's pre-Complaint review of Defendant's NDA and Paragraph IV notice letter, from which it may be reasonably inferred that Plaintiff's holds a good faith belief in its ability to prove actual infringement. (Id.) Fundamentally, in the view of Plaintiff, given all of this exchange of information, "Defendant should be well aware of the basis of the Complaint." (Id.)
The Court agrees with Plaintiff. In the Court's view, both the language and the purpose of the Hatch-Waxman Act establish that a plaintiff in receipt of a paragraph IV certification providing notice of the filing of an ANDA (or, as here, a paper NDA)
As the Supreme Court has described, the Act created a unique action to facilitate the speedy and cost-effective entrance of generic drug to the market:
Eli Lilly & Co. v. Medtronic, Inc., 496 U.S. 661, 676, 110 S.Ct. 2683, 110 L.Ed.2d 605 (1990).
This purpose is advanced by allowing plaintiff's in this type of case to rely on the sufficiency of pleading the artificial act of infringement, allowing the particularized theory of infringement to be developed through discovery and other phases of the case. A plaintiff in receipt of a paragraph IV certification has an extremely limited time, just 45 days, in which to decide whether (and, if so, where and against whom), to file suit, if it is to obtain the benefit of the automatic stay of FDA approval.
In the Court's view, Plaintiff's pleading here complies with the requirements of Iqbal and Twombly as applied to the unique context of a Hatch-Waxman claim for patent infringement. In context, the Complaint does "allow[] the court to draw the reasonable inference that the defendant is liable for the misconduct alleged." Iqbal, 556 U.S. at 678, 129 S.Ct. 1937.
This holding is not in conflict with "the patentee's burden of proving ultimate infringement," which "is not met by the filing of the ANDA" and "is the same as it is in any other infringement suit." Glaxo, Inc., 110 F.3d at 1569-70. The parties have not drawn the Court's attention to any case (nor has the Court itself found one) that says that what is required for
Finally, the Court is unpersuaded by Defendant's suggestion that the reason for the lack of specificity in Plaintiff's Complaint — and the futility that would mar any amended complaint the Court might contemplate permitting Plaintiff to file — is that Plaintiff knows and understands that "any theory of infringement would necessarily invalidate the '197 patent." (D.I. 9 at 1) Defendant asserts:
(Id.) The Court, of course, is not in a position to evaluate the merits of Defendant's invalidity defense at the motion to dismiss stage. As Plaintiff explains, many
(D.I. 15 at 2-3)
More fundamentally, the Court presumes (as it is permitted to do, on the record before it) that Plaintiff's counsel are well aware of their obligations, including under Federal Rule of Civil Procedure 11, and therefore presumes Plaintiff has a non-frivolous, good faith basis for its allegation of infringement. Should this turn out not to be correct, Defendant will have an opportunity to seek appropriate relief. But dismissal of the Complaint on the basis of the pending motion is not warranted.
For the foregoing reasons, the Court will deny Defendants' motion to dismiss. An appropriate Order follows.
At Wilmington this
The parties shall meet and confer and, no later than April 8, 2019, submit a proposed scheduling order.