`IN THE HIGH COURT OF JUSTICE
`CHANCERY DIVISION
`PATENTS COURT
`B E T W E E N:
`
`
`(1) SILENCE THERAPEUTICS GmbH
`Claimant in the SPC action /
`Defendant in the revocation action
`(2) SILENCE THERAPEUTICS PLC
`Defendant in the revocation action
`
`- and -
`
`(1) ALNYLAM UK LIMITED
`(2) ALNYLAM PHARMACEUTICALS INC
`(3) THE MEDICINES COMPANY UK LIMITED
`Defendants in the SPC action /
`Claimants in the revocation actions
`
`
`
`DEFENDANTS’ SKELETON ARGUMENT FOR THE CMC
`(Hearing estimated at 2 – 3 hours)
`
`
`Mark Chacksfield
`
`Michael Conway
`
`
`
`Instructed by Potter Clarkson LLP for the First and Second Defendants
`
`and
`
`Bird & Bird LLP for the Third Defendant
`
`
`1.
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`
`
`
`
`
`
`
`
`
`
`Silence Therapeutics GMBH Exhibit 2001 Page 1
`
`
`
`Suggested pre-reading
`(estimate 2 hours)
`
`The Patent (skim for flavour) [A1]
`
`Pleadings – Silence’s SPC declaratory action
`
`Particulars of Claim [B1/2]
`Alnylam’s Defence [B1/4]
`[TMC’s materially similar Defence is at [B1/5] but need not be read separately]
`
`
`
`Alnylam’s revocation action & Silence’s infringement counterclaim
`
`Particulars of Claim [B1/8]
`Grounds of Invalidity [B1/11]
`(the prior art need not be read, but for reference is in [B2, parts 1 & 2])
`Defence and Counterclaim [B1/12]
`Reply and Defence to Counterclaim [B1/13]
`[Note also the materially parallel TMC’s revocation action & Silence’s infringement counterclaim are
`at [B1/14 – 18] but need not be considered separately.]
`
`Evidence
`
`Morgan 2 [C1/5]
`Nicholas McDonald 2 [D1/7]
`Morag Macdonald 2 [D2/4]
`Morag Macdonald 3 [D2/9]
`
`Excerpt from Alnylam’s EPO opposition [attached hereto]
`
`Draft consolidated order (with opposing positions marked up) and clean version [D2/10]
`
`Introduction and issues
`
`This is the CMC in a patent action concerning so-called RNA interference (‘RNAi’). The
`patent in suit (EP (UK) 2,258,847, ‘the Patent’) is a relatively recently granted divisional
`patent based on a filing in 2003, nearly 15 years ago.
`
`The Patent is under opposition, the 9 month window having recently closed. There were
`also earlier opposition proceedings against the grandparent patent (EP 1,527,176), during
`which Silence was forced to abandon its initially broad claims and amend down to a very
`restricted narrow set of features which are not said to be of any commercial relevance.
`
`Finally there is the parent patent (EP 1,857,547, the ‘Parent’) in relation to which the EPO
`has recently issued a decision to grant. So far Silence has refused to state its intentions
`with respect to this patent.
`
`2.
`
`1.
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`2.
`
`3.
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`
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`Silence Therapeutics GMBH Exhibit 2001 Page 2
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`
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`4.
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`5.
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`6.
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`7.
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`Used as a therapy, RNAi, in a nutshell, involves taking a chunk of modified RNA and
`introducing it into a patient, where it interferes with expression of specific undesirable
`proteins. It is a complex and relatively new field, based upon observations in nematode
`worms reported in Nature in 1999 and was the subject of the 2006 Nobel Prize for
`Medicine. It is not, to our knowledge, a technology that has previously been before the
`Court.
`
`Silence is a smallish biotech company. Silence describes itself as a ‘leader in the
`discovery, delivery and development of novel RNA therapeutics for the treatment of
`serious diseases with unmet medical needs’ and states that ‘[its] fundamental chemical
`modification technology is a core foundational innovation for today’s RNAi sector’ 1.
`Despite the passage of 15 years since the priority date of its allegedly foundational Patent,
`Silence does not have any RNAi projects of its own which have successfully progressed
`beyond early pre-clinical work2. It is apparently in the light of these difficulties that Silence
`has sought to develop a business model as a patent assertion entity, which is the focus of
`these proceedings.
`
`Alnylam3 is a larger US-based biotech company which has extensively developed RNAi
`technology and, as can be seen from the evidence, has invested heavily in R&D directed
`to developing RNAi into actual therapeutic candidates including an extensive programme
`of clinical trials (see Nicholas McDonald 1 & 2).
`
`The Medicines Company (‘TMC’), in collaboration with Alnylam, has also been
`developing RNAi therapeutic products as a class of medicines and in particular ‘inclisiran’.
`TMC has made and is continuing to make a substantial investment in developing inclisiran
`(see witness statements of Morag Macdonald 1 & 2).
`
`8.
`
`The action involves three claims:
`
`i.
`
`The first is a very unusual type of claim for declaratory relief of a kind never
`previously brought in the UK nor elsewhere4. Silence seeks a declaration that it
`would be entitled to SPCs for the Patent based on Alnylam’s and TMC's as yet un-
`granted (and save in respect of patisiran, yet to be applied for) marketing
`
`
`1 Morag Macdonald 2 §19.
`2 Morag Macdonald 2 §19.
`3 For the purposes of this CMC (but without any admission on issues of substance), there is no need to
`distinguish between the two Alnylam entities.
`4 To our knowledge, at least.
`
`
`
`3.
`
`Silence Therapeutics GMBH Exhibit 2001 Page 3
`
`
`
`authorisations, on the footing that it says that it wants to claim licence fees for the
`SPC period5 (‘the SPC Declaration Action);;
`
`ii.
`
`The second and third are claims for the revocation of the Patent and declarations of
`non-infringement, respectively by Alnylam and TMC, wherein Silence has brought
`counterclaims for infringement (‘the Patent Actions’).
`
`9.
`
`The SPC Declaration Action was issued in July 2017. At Silence’s insistence, and upon
`its application, the three actions have already been set down to be heard from the first
`available date on or after 3 December 2018. The trial is estimated to require 10 days of
`Court time, and additionally 2 days of pre-reading. The technical difficulty rating is agreed
`to be 5.
`
`10. The claims are each valued at in excess of £10M, and the products themselves are
`predicted by third party analysts to achieve total sales until the end of 2028 (the date when
`any SPC will expire) of around $60 billion6. Silence has previously stated that its claims
`for royalties could reach “hundreds of millions of pounds”7. On any basis this is amongst
`the very heaviest of biotech litigation.
`
`The Products
`
`11. There are four different products in issue at different stages of development. Each of them
`has the potential to offer important therapies to patients in areas of unmet or insufficiently
`met clinical need:
`
`i.
`
`Patisiran is an investigational RNAi therapeutic targeting transthyretin (TTR) in
`development for the treatment of hereditary ATTR amyloidosis (hATTR amyloidosis)
`– a genetic disease affecting approximately 50,000 patients worldwide, with limited
`treatment options.
`
`ii.
`
`Fitusiran is an investigational RNAi therapeutic targeting antithrombin (AT) in
`development for the treatment of haemophilia and rare bleeding disorders.
`
`iii. Givosiran is an investigational RNAi therapeutic targeting aminolevulinic acid
`synthase 1 (ALAS1) for the treatment of acute hepatic porphyrias (AHPs).
`
`
`5 More particularly that the four products are protected by the Patent within the meaning of Art 3(a) of the
`SPC Regulation, and that any MA granted would be a valid authorisation within the meaning of Art 3(b).
`6 Nicholas McDonald 2 §8.
`7 [B1/9].
`
`
`
`4.
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`Silence Therapeutics GMBH Exhibit 2001 Page 4
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`
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`iv.
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`Inclisiran is an investigational RNAi therapeutic being developed by TMC for the
`treatment of hypercholesterolemia.
`
`Issues in the case
`
`12. The claims are at p.110-111 of the Patent [A1]. Claims 1 – 6, 8 – 10 and 13 of the Patent
`are asserted. Claim 1 reads:
`
`13.
`
`Infringement is disputed, and the basis for Silence’s assertion of infringement is far from
`clear and to date has not been explained. For example, the structure of patisiran (likely
`the first of the products to obtain an MA) is set out in Alnylam’s opposition to the Patent
`as follows:
`
`
`
`
`
`14.
`
`It is admitted that not all of the claims are entitled to priority, and validity is attacked for
`lack of novelty, obviousness and insufficiency.
`
`15. The insufficiency plea is of particular relevance to the issues on this CMC, and the Court
`is invited to read sections 9.2 – 9.4 of Alnylam’s Notice of Opposition to the Patent
`[attached hereto], which are directed to scope of claim under obviousness in the AgrEvo
`sense (Art 56) and insufficiency (Art 83) for a flavour of some of the arguments.
`
`16. There are additionally issues arising out of Silence’s claim to declaratory relief, and as to
`the meaning and scope of Arts 3(a) and 3(b) of the SPC Regulation.
`
`
`
`5.
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`Silence Therapeutics GMBH Exhibit 2001 Page 5
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`
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`The Issues on the CMC
`
`17. Subject to the Court’s approval of the agreed provisions, the following matters remain in
`issue:
`
`i.
`
`ii.
`
`Disclosure in relation to insufficiency;;
`
`Deadlines for fact evidence;;
`
`iii.
`
`The number of expert witnesses;;
`
`iv. Clarification of Silence’s position on the Parent Patent;;
`
`v.
`
`A few remaining disputes on the dates for specific steps.
`
`Disclosure
`
`18. The parties have filed disclosure statements [B1/6, 21, and 22]. That of Silence is directed
`only to its SPC claim, and not to the Patent Actions.
`
`19. The parties are agreed that Alnylam and TMC should between them provide product
`descriptions addressed to the four products.
`
`20. No disclosure is sought as regards obviousness. The issue between the parties concerns
`disclosure relating to insufficiency.
`
`21. This is a case in which insufficiency is, as the Court will appreciate from the pleadings and
`the gist of the opposition submissions, a substantive and substantial one – it is not just a
`‘sheep dog’ as is sometimes the case. The allegation that the teaching of the Patent is
`not sufficient to support claims of the breadth that Silence appears to advance is plainly a
`real one which will require serious investigation at trial, and one of the core issues is this:
`do the oligonucleotides as parameterised within the claims actually work?
`
`22. This raises a straight issue of fact – which of the modified oligonucleotides are stable and
`effective? That is something that is likely not readily answerable from the published
`papers, since rarely if ever do companies publicise failures, but it is material that the
`parties have in their possession which can readily be produced8.
`
`23. Alnylam and TMC, in the course of R&D work, have between them made and tested many
`different modified potential RNAi products, in the course of which testing they have
`
`
`8 Morag Macdonald 3 §5.
`
`
`
`6.
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`Silence Therapeutics GMBH Exhibit 2001 Page 6
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`
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`encountered many difficulties, failures and dead end potential products. The identification
`of the oligonucleotides tested, and the results of the tests performed on them, is highly
`relevant to the question of whether and to what extent the claims encompass inoperative
`subject matter9.
`
`24. Alnylam and TMC intend to adduce fact evidence at trial about this, and, if ordered, to
`provide the appropriate disclosure.
`
`25. Mr Morgan questions whether the disclosure from Silence would be useful10. But given its
`15 years of work, without any real progress, the inference is that Silence has carried out
`research into a variety of RNAi therapeutic targets and presumably researched the
`modification of a range of siRNAs for this purpose which have not in fact proved stable
`and efficacious, despite their knowledge at least of what is disclosed in the Patent11.
`
`26. Alnylam and TMC have written to Silence requesting that it clarify whether or not it
`proposes to advance any positive case at trial on insufficiency based upon or by reference
`to any RNAi molecules produced or tested by it or its licensees (whether developed in
`factual evidence, via expert evidence or through materials or questions put to any witness
`at trial)12. This is a letter to which Silence has failed to respond, despite being chased.
`
`27. One can understand, tactically, why Silence refuses to do so. It wishes to keep open the
`option of adducing such evidence without stating this now, since stating this now would
`have obvious disclosure ramifications.
`
`28. Silence should not, however, be allowed to duck the issue in this way, and should make
`clear at the CMC whether or not it will advance any such case at trial. If it will not make
`its position plain, then a timetable for it to do so should be provided, as per paragraph 9.2
`of Alnylam and TMC’s updated draft order (see Exhibit MXM-7 to Morag Macdonald 3).
`
`
`9 Or, if said to be functionally limited, are clearly defined.
`10 Morgan 2 §§16-19.
`11 Morag Macdonald 2 §32. The Defendants’ position in this regard is also supported by the learned
`editors of Terrell, who state that “In contrast to the position on obviousness, disclosure going to pleaded
`insufficiency allegations is generally more readily ordered. It can be powerful evidence in support of an
`insufficiency if the patentee’s own documents show that despite serious efforts to do so, they were unable
`to work the claimed invention, either at all or in some material respect. Similarly, attempts of the party
`alleging insufficiency will be equally relevant.” – Terrell on Law of Patents, (18th Edn. Sweet & Maxwell
`2016) at 19-295.
`12 Morag Macdonald 3 §8.
`
`
`
`7.
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`Silence Therapeutics GMBH Exhibit 2001 Page 7
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`
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`29.
`
`If Silence chooses not to run a case based upon or by reference to its (or its licensees)
`work, then Alnylam and TMC are more sanguine about the disclosure issue, and will not
`press for it13.
`
`30.
`
`If, however, Silence is to run such a case then it should give appropriate disclosure. The
`question is then just one of what is appropriate, in all the circumstances14.
`
`31. This is of course a case of the highest value, and complexity. Third parties put the total
`aggregate sales up to 202815 of the four products in the region of $60 billion. Silence has
`proclaimed that it seeks royalties in the “hundreds of millions”, and whilst it will no doubt
`seek to retreat from those figures at the hearing by reference to the local nature of this
`action, the reality is that it is trying to use this jurisdiction as a testing bed for the totality of
`its royalty claim.
`
`32.
`
`It is also an action with a wider public interest, relating as it does not only to a public
`monopoly right, but a monopoly right which Silence has threatened to try to use to prevent
`the marketing by Alnylam and TMC of the four products16, each of which is directed to
`treating areas of unmet or insufficiently met clinical need.
`
`33. Mr Morgan’s evidence is that the disclosure exercise would be expensive. He quotes a
`figure of £1.5M, although the explanation of this in his evidence is most unclear. Given
`that this figure is 10 times the costs anticipated by Alnylam, a company which is
`substantially larger and which has successfully taken four products into advanced stages
`of development, one would have expected a much more detailed explanation to support
`these figures.
`
`34. Furthermore Ms Macdonald is surprised by these numbers, and in her experience puts
`the normal costs of a disclosure search even of the scope described at about a fifth of that
`figure. She does not understand why this exercise would cost the sorts of sums that Mr
`Morgan suggests, and he does not provide any detail to explain the figures he advances.
`See Macdonald 3 §§10 – 12 [D2/9].
`
`35. Lastly Mr Morgan notably fails to make any counter suggestion that would be, in his view,
`proportionate to the matters which are in issue in this case;; a case which Silence seeks to
`
`
`13 Reserving their rights to draw inferences in due course.
`14 CPR 31.5(7) and the overriding objective are germane here, in particular so as to achieve justice
`between the parties having regard inter alia to the value and importance of the case to the parties, equality
`of arms, the relevance of the documents sought and the costs of the exercise.
`15 The end of any potential SPC period.
`16 E.g. Morgan 1 §30 [C1/1].
`
`
`
`8.
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`Silence Therapeutics GMBH Exhibit 2001 Page 8
`
`
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`use to extract royalties it puts in the hundreds of millions. Where a party brings a case to
`Court, and intends to rely on its own internal work to support it, it is not good enough for it
`just to say “the disclosure you propose is too much so you can’t have anything”. Only
`Silence has knowledge of the nature of the documents in its possession after all17. In
`particular it is not clear whether all of the potential documents he refers to actually relate
`to the core issue of the identities of modified oligonucleotides tested for stability and
`efficacy in vitro and in vivo, and the results of those tests, nor does he indicate a different
`search that would capture the relevant material in a more cost-effective manner.
`
`36. As regards the suggestion of a PDD, this was proposed so as to facilitate the parties’, and
`the Court’s, understanding of the documents disclosed. The proposal was purely a
`practical one, intended to reduce costs overall. Given Mr Morgan’s suggestion that the
`costs of this would extend to £3M (a figure that, we submit, indicates more about Silence’s
`approach to estimating costs than anything else), then Alnylam and TMC are not going to
`press the point.
`
`37. As regards the SPC claim, both sides may wish to adduce fact evidence relating to the
`pleaded issues, but are content to progress this part of the case without disclosure on
`either side.
`
`Deadlines for fact evidence and CEA notices
`
`38. There is a dispute over the deadline for the parties to serve fact evidence. Silence seeks
`a date in line with the expert evidence: 14 September 2018 for evidence in chief and replies
`on 26 October 2018. Alnylam and TMC consider this unworkable. It is likely that
`substantial aspects of the fact evidence will be material to which the experts will need to
`have reference when preparing their reports – insufficiency for example. Fact evidence
`therefore needs to come properly in advance of the expert reports.
`
`39. The only reason Silence has given for its proposed dates is the inconvenience that it says
`would be involved in requiring the parties to serve fact evidence during the summer
`vacation period.18 As it is, however, Alnylam and TMC now propose that fact evidence be
`exchanged on 31 May for evidence in chief and 28 June for any reply evidence. These
`dates are suggested to ensure that there is proper time between the service of fact and
`expert evidence, but have the happy coincidence of dealing with Mr Morgan’s summer
`vacation point.
`
`
`17 And this is not helped by Silence’s failure to provide a disclosure report relating to the Patent Actions.
`18 Morgan 2 §38.
`
`
`
`9.
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`Silence Therapeutics GMBH Exhibit 2001 Page 9
`
`
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`40. CEA notices should be filed with fact evidence in chief, since after all that is what they are.
`
`The number of expert witnesses
`
`41. The Patent relates to the therapeutic use of modified oligonucleotides in RNAi. Alnylam
`and TMC wish to call two experts (they agree that it is appropriate for them to share
`experts): one in RNAi technology and one in oligonucleotide therapeutics, reflecting the
`underlying issues.
`
`42. Silence disagrees and says that only one expert witness is necessary on each side, in the
`field of oligonucleotide therapeutics.
`
`43. The evidence of Ms Macdonald, based on her investigations of the field to date, is that
`typically no one individual is expert in both the chemistry relating to oligonucleotides and
`the therapeutic application of RNA interference technology. As such Silence’s proposal is
`unrealistic or unworkable.
`
`44. Mr Morgan cites the increased costs of having two experts, but that must be considered
`in the context of litigation of this value and complexity. As Ms Macdonald notes in her
`evidence, it is not uncommon that more than one expert will be instructed in
`biopharmaceutical cases involving issues of both the underlying science and therapeutic
`application19, and there is a need for such here.
`
`Clarification of Silence’s position on the Parent Patent
`
`45. Shortly before Christmas the EPO issued a decision to grant the Parent Patent. The
`expected date for mention of the grant is 17 January 2018. The Defendants have
`separately written to Silence requesting that it state its intentions in relation to the Parent
`Patent. It must know its plans, since this patent has been 15 years in the writing, and no
`doubt has been crafted with its patent assertion business in mind. But thus far Silence
`has failed to respond substantively.20
`
`46. The Parent Patent and the Patent derive from the same application, and are very closely
`related. If Silence intends to make any claim in respect of the Parent Patent, whether for
`infringement and/or for some kind of declaratory relief (if available), then it is self-evidently
`desirable that it should do so within the present proceedings.
`
`
`19 Macdonald 2 §38.
`20 CMS second letter of 8 January 2017.
`
`
`
`10.
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`Silence Therapeutics GMBH Exhibit 2001 Page 10
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`
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`47.
`
`It would have been helpful had Silence chosen to indicate its intentions in advance of the
`CMC, but its position has instead been tactical and remains unknown21. This game playing
`should stop, and if it is not willing to break its silence at the CMC then Silence should be
`required to state its position within a reasonable period thereafter – by 28 February 2018
`is proposed.
`
`Miscellaneous dates
`
`48. There are a number of other dates on which the parties have yet to agree, namely:
`
`i.
`
`ii.
`
`Notices to Admit Facts;;
`
`Notification of independently valid claims;;
`
`iii. Date for nominating experts;;
`
`iv. Service of expert reports in chief and in reply.
`
`49. The first two have a little substance. Silence proposes 1 June and 13 April 2018
`respectively. These are too late. In general, and in litigation of this weight in particular,
`the parties should deal with matters promptly and up front. This is litigation of Silence’s
`bringing, and it is they who forced an early application for a trial date on Alnylam and TMC.
`There is no reason to delay getting on with matters. Alnylam and TMC suggest 14
`February 2018 and 28 February 2018 respectively.
`
`50. The remaining dates appear minor points, which it is hoped can be agreed, and if not
`should not take long to address orally.
`
`
`21 See CMS’ second letter of 8 January 2017.
`
`
`
`11.
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`Silence Therapeutics GMBH Exhibit 2001 Page 11
`
`