`UNITED STATES PATENT AND TRADEMARK OFFICE
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`MYLAN PHARMACEUTICALS INC. and MYLAN LABORATORIES
`LIMITED,
`Petitioners,
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`v.
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`UCB PHARMA GMBH,
`Patent Owner.
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`Case IPR2016-005101
`Patent 6,858,650 B1
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`PATENT OWNER’S REPLY TO OPPOSITION TO MOTION
`TO EXCLUDE EVIDENCE UNDER 37 C.F.R. § 42.64(c)
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`1 Petitioners Alembic Pharmaceuticals Limited from IPR2016-01596, Torrent
`Pharmaceuticals Limited from IPR2016-01636, and Amerigen Pharmaceuticals
`Limited from IPR2016-01665 have been joined as Petitioners to this proceeding.
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`IPR2016-00510
`Patent 6,858,650 B1
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`UCB Pharma GmbH (“UCB” or “Patent Owner”) submits this reply in
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`support of its motion to exclude evidence of Mylan Pharmaceuticals Inc. and
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`Mylan Laboratories Limited (“Petitioner”) pursuant to 37 C.F.R. §§ 42.64(c),
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`42.23 and the Scheduling Order entered in this proceeding.
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`I.
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`PETITIONER’S COMMERCIAL SUCCESS EVIDENCE (EXHIBIT
`NOS. 1033-1034, 1036-1049) SHOULD BE EXCLUDED
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`A.
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`Petitioner Identifies No Precedent Supporting Its Introduction of
`Commercial Success Evidence
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`An affirmative showing of commercial success may suggest long felt need,
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`as in ATD Corp. v. Lydall, Inc., 159 F.3d 534, 546 (Fed. Cir. 1998), cited by
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`Petitioner. This does not lead to Petitioner’s proposed legal proposition – that a
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`patent challenger can introduce evidence of a product’s purported market share and
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`marketing spend to somehow disprove medical evidence of therapeutic need. In
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`fact, Petitioner cites no case in which a patent challenger was allowed to introduce
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`commercial success evidence when the patent owner had not first introduced
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`evidence of commercial success.
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`Petitioner cites Santarus, Inc. v. Par Pharm., Inc., 720 F. Supp. 2d 427 (D.
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`Del. 2010) for the proposition that commercial success is relevant to the long felt
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`need inquiry. Petitioner’s Response (Paper 39) at 2. The Santarus court, after
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`considering the evidence of long felt need (unrelated to sales), held there was no
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`need “for advancements on the existing prior art,” but rather, if anything, only a
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`need for recognition of the “commercial potential of what already existed in the
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`prior art.” Santarus, 720 F. Supp. 2d at 455. The court continued, in dicta cited by
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`Petitioner, that “even this commercial and marketing ‘need’ has not proven to be
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`substantial, since [ ] sales continue to be dwarfed…” Id. Although Petitioner’s
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`Opposition would suggest otherwise, the Santarus court’s findings on long felt
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`need did not turn on commercial success evidence, which was of record only
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`because patent owner had advanced it as a separate indicium of non-obviousness.
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`The additional authority cited by Petitioner does not help its argument either.
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`Unlike UCB, the patent owner in In re Cyclobenzaprine Hydrochloride Extended-
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`Release Capsule Patent Litigation, 794 F. Supp. 2d 517 (D. Del. 2011) “did not
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`present expert testimony on [long felt need], instead relying on the commercial
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`success of the immediate release [version of the compound] to show that an ER
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`version was needed.” Id. at 538. Here, UCB has offered no commercial success
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`evidence, but has offered expert testimony from a chemist, Dr. Chyall (Ex. 2024),
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`and a urologist, Dr. MacDiarmid (Ex. 2023), to demonstrate long felt need. The
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`Cyclobenzaprine court found commercial success evidence “insufficient to show
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`long felt need,” which, if anything, suggests that long felt need and commercial
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`success are not as closely linked as Petitioner argues. Id. The court in Vanda
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`Pharmaceuticals Inc. v. Roxane Laboratories, Inc., 13-cv-1973-GMS, 2016 WL
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`4490701 (D. Del. Aug. 25, 2016) does not consider commercial success in
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`assessing long-felt need, but rather identifies increased valuation of a product
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`(prior to launch) as an indicator of long-felt need. Id. at *10. Finally, Petitioner’s
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`quote from Chisum explains “the nexus between commercial success and
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`nonobviousness,” not the “connection between commercial success and long-felt
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`need,” as Petitioner claims. Chisum§5.05[2][a].
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`Petitioner argues that Exhibits 1039 and 1049 “provide useful background
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`regarding the knowledge of one of ordinary skill in the art,” (Paper 39 at 5-6), but
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`they do no such thing. Exhibits 1039 and 1049 present OAB market share and a
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`consumer price index, and the Petition does not explain their relevance. In short,
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`Petitioner’s authority is silent on the issue it seeks to advance: that a patent
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`challenger can introduce commercial evidence, such as market share and marketing
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`spend, when the Patent Owner has not raised the issue of commercial success.
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` Commercial Success Evidence Is Not Relevant to the Nexus Between the B.
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`Claimed Invention and Long Felt Need
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`Petitioner argues that its commercial evidence, particularly the testimony of
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`its economist, DeForest McDuff (Ex. 1033), support its contention that there is no
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`“nexus” between long felt need and the merits of the claimed invention. Paper 39
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`at 4-5. Petitioner’s economist is not qualified to respond to the testimony of
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`UCB’s expert chemist or urologist regarding nexus between long felt need and the
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`benefits of the claimed invention. Paper 20 at 64-65.
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`Moreover, the cases cited by Petitioner finding a lack of nexus involve
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`entirely different facts and are uninformative. See Paper 39 at 5; Ethicon Endo-
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`Surgery, Inc. v. Covidien LP, 812 F.3d 1023, 1035 (Fed. Cir. 2016) (need for
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`staples of different heights rather than claimed surgical device); Merck Sharpe &
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`Dohme B.V. v. Warner Chilcott Co., 13-cv-2088-GMS, 2016 WL 4497054, at *14
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`(D. Del. Aug. 26, 2016) (no need for the alleged inventive aspect of the claimed
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`vaginal drug delivery system); Mark Sharp & Dohme Corp. v. Hospira Inc., 14-cv-
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`915-RGA, 2016 WL 5872620, at *11 (D. Del. July 10, 2016) (need for the
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`chemical compound, not the claimed formulation). As in Hospira, the need that
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`existed prior to the introduction of Toviaz® was for the chemical compound
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`fesoterodine. Petitioner’s cited cases, including Hospira, are inapposite because
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`they involved patent claims to related formulations or devices. The patents-at-
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`issue here claim the source of the need, i.e., the chemical compound.
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`II.
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`EXHIBIT NOS. 1050-1072 SHOULD BE EXPUNGED
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`Petitioner agrees that “it would have been proper to wait” to submit its
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`supplemental evidence. Paper 39 at 9. Petitioner is mistaken that UCB should
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`have objected to its improperly filed supplemental evidence when it was filed. Id.
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`at 8. The Board has advised that “there is only one round of supplemental
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`evidence filed in response to objections,” and “no objection should be made to
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`supplemental evidence to trigger another round of supplemental evidence.” Pier 1
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`Imports (U.S.), Inc. v. Cosmo Lighting Inc., IPR2016-00296 (P.T.A.B. June 30,
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`2016) (Paper 12) at 2; Google Inc. v. Patrick Zuili, CBM2016-00021 (P.T.A.B.
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`June 30, 2016) (Paper 13) at 2.
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`Respectfully submitted,
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`WHITE & CASE LLP
`/Jeffrey J. Oelke/ (Electronically signed)
`Jeffrey J. Oelke, Reg. No. 37,409
`joelke@whitecase.com
`James S. Trainor, Jr., Reg. No. 52,297
`jtrainor@whitecase.com
`Robert E. Counihan, Reg. No. 61,382
`rcounihan@whitecase.com
`White & Case LLP
`1155 Avenue of the Americas
`New York, NY 10036
`(212) 819-8200
`Attorneys for UCB Pharma GmbH
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`Date: March 29, 2017
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`IPR2016-00510
`Patent 6,858,650 B1
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`CERTIFICATE OF SERVICE
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`The undersigned hereby certifies that a copy of the foregoing Patent
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`Owner’s Reply to Opposition to Motion to Exclude Evidence Pursuant to 37
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`C.F.R. § 42.64(c) was served on March 29, 2017, by filing this document through
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`the Patent Trial and Appeal Board End to End system as well as delivering a copy
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`via electronic mail upon the following attorneys of record for the Petitioners:
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`Mitchell G. Stockwell, Reg. No. 39,389
`mstockwell@kilpatricktownsend.com
`D. Clay Holloway, Reg. No. 58,011
`cholloway@kilpatricktownsend.com
`Alyson L. Wooten, Reg. No. 58,045
`awooten@kilpatricktownsend.com
`Kilpatrick Townsend & Stockton LLP
`1100 Peachtree Street, NE Suite 2800
`Atlanta, Georgia 30309
`(404) 815-6500
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`William Hare, Reg. No. 44,739
`bill@miplaw.com
`Gabriela Materassi, Reg. No. 47,774
`materassi@miplaw.com
`Renita S. Rathinam, Reg. No. 53,502
`rathinam@miplaw.com
`MCNEELY, HARE & WAR LLP
`5335 Wisconsin Ave., NW
`Suite 440
`Washington, DC 20015
`(202) 640-1801
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`Neal Seth, Reg. No. 67,075
`nseth@wileyrein.com
`Lawrence Sung, Reg. No. 38,330
`lsung@wileyrein.com
`WILEY REIN LLP
`1776 K Street NW
`Washington, DC 20006
`(202) 719-7000
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`Manish Mehta, Reg. No. 64, 570
`mmehta@sheppardmulllin.com
`Laura Burson, Reg. No. 40,929
`lburson@sheppardmullin.com
`SHEPPARD MULLIN
`Three First National Plaza
`70 West Madison Street, 48th Floor
`Chicago, Illinois 60602
`(312) 499-6300
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`/Jeffrey J. Oelke/ (Electronically signed)
`Jeffrey J. Oelke
`Reg. No. 37,409
`Phone: (212) 819-8936
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`Date: March 29, 2017
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