throbber

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`Paper No. ___
`Filed: April 17, 2018
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`UNITED STATES PATENT AND TRADEMARK OFFICE
`_____________________________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`_____________________________
`
`APOTEX INC., APOTEX CORP., ARGENTUM PHARMACEUTICALS
`LLC, ACTAVIS ELIZABETH LLC, TEVA PHARMACEUTICALS USA,
`INC., SUN PHARMACEUTICAL INDUSTIRES, LTD., SUN
`PHARMACEUTICAL INDUSTRIES, INC., AND SUN PHARMA GLOBAL
`FZE,
`Petitioners,
`
`v.
`
`NOVARTIS A.G.,
`Patent Owner.
`_____________________________
`
`IPR2017-008541
`Patent No. 9,187,405
`_____________________________
`
`PETITIONERS’ MOTION TO EXCLUDE
`37 C.F.R. §42.64
`
`
`1 Cases IPR2017-01550, IPR2017-01946, and IPR2017-01929 have been joined
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`with this proceeding.
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`PROTECTIVE ORDER MATERIAL
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`TABLE OF CONTENTS
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`INTRODUCTION ........................................................................................ 1
`I.
`ARGUMENT................................................................................................ 1
`II.
`A.
`Exhibits 2057& 2070 and any reliance thereon. .................................. 1
`B.
`Exhibit 2063-2066 and any reliance thereon. ...................................... 5
`C.
`mouse data purportedly underlying the Webb reference. ................... 11
`III. CONCLUSION .......................................................................................... 15
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`Testimony based on unpublished and unproduced granular
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`I.
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`INTRODUCTION
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`Pursuant to 37 C.F.R. §§ 42.62 and 42.64(c), Petitioners respectfully move
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`to exclude Exhibits 2057, 2063-2066, 2070, and portions of Exhibits 2022, 2024,
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`2025, 2096-2098. The Federal Rules of Evidence apply. 37 C.F.R. § 42.62; LKQ
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`Corp. v. Clearlamp, LLC, IPR2013-00020, Paper 17, at 3 (Mar. 5, 2013). This
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`Motion addresses issues listed in Petitioner’s Objections to Evidence (Paper
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`Nos.14, 31, 71) and information subsequently obtained through the depositions of
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`Novartis’s witnesses. See, e.g., EX1042, EX1050, EX1061-EX1064.
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`II. ARGUMENT
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`A. Exhibits 2057& 2070 and any reliance thereon.
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`Novartis served Exhibits 2057 and 2070 with its Patent Owner Response
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`(“POR”) (Paper 27). Novartis’s exhibit list describes EX2057 as a May 12, 2009
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`Novartis report and EX2070 as a “signature sheet.” Dr. Jusko discusses EX2057 in
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`¶¶101-07 of his second declaration (EX2024) but never cites EX2070. Dr.
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`Steinman discusses EX2057 in his First Declaration (EX2022, ¶¶101-08) and
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`incorporates his prior testimony into his Third Declaration (EX2096, ¶53). but
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`never cites EX2070. Novartis relies on EX2057 and EX2070 and the cited
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`paragraphs of Exhibits 2022 and 2024 in Paper 27 at 22-25. Petitioners timely
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`objected to Exhibits 2057 and 2070 and reliance thereon. Paper 31 at 8-10.
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`Exhibits 2057 and 2070 and the above-referenced paragraphs of EX2022, EX2024,
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`and EX2096 should be excluded under F.R.E. 602, 801-803, 805, and 901.
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`Novartis relies on statements in the report for the truth of the matters
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`asserted, namely that Peter Hiestand did, in fact, perform the EAE experiments and
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`observed the results recited in EX2057. POR at 22-25. Novartis relies on these
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`statements to prove that administering 0.3 mg/kg of fingolimod once per week to
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`Lewis rats with EAE did, in fact “suppress the progression of subsequent relapses,
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`and also reduced the relapse’s symptoms,” to support the claims of the ’405 patent.
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`Id. Because Novartis relies on the underlying assertions in the report, Novartis
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`must establish admissibility of the underlying assertions. F.R.E. 801, 802, 805,
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`901; Neste Oil OYJ v. REG Synthetic Fuels, LLC, IPR2013-00578, Paper 52 at 6-8
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`(excluding meeting minutes authenticated by author because each hearsay-within-
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`hearsay required its own exception to the hearsay rule); US Endodontics, LLC v.
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`Gold Standard Instr., LLC., PGR2015-00019, Paper 54 at 40-41-42 (excluding
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`sworn declaration from another proceeding as hearsay).
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`Novartis submitted a declaration from an in-house attorney, Peter Waibel, to
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`identify Exhibit 2057 as having been produced from a collection of documents
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`previously submitted to FDA. EX2078, ¶10. But Mr. Waibel does not address or
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`purport to have personal knowledge of how the report itself came to be created or
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`how the experiments discussed therein were conducted. In short, Mr. Waibel’s
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`testimony merely establishes that Novartis placed a document into its records
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`system at some undisclosed point in time and thereafter maintained that copy in its
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`records. This is insufficient to satisfy F.R.E. 602, 801-803, 805, or 901.
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`Christian Schnell’s declaration (EX2026) fails to remedy these deficiencies.
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`Mr. Schnell purports to authenticate Exhibit 2057 as a Novartis report “we
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`prepared in 2009.” EX2022, ¶¶1-4. He states that Exhibit 2070 was filed in the
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`same system as EX2057, that it is common for the final signature pages to be filed
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`separately from the main report, and that “this is the signature page that I
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`remember going with this report.” Id. However, Mr. Schnell admitted during his
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`deposition that he did not see Peter Hiestand sign the final report, that “I have not
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`seen the signed page by Peter Hiestand and the TR head,” that he did not
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`personally enter the final report or signature page into the Novartis computer
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`system, that he never looked at the final report in the Novartis system until he was
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`preparing his declaration, and that he “had no role” in filing either Exhibit 2057 or
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`2070 in the Novartis system. EX1050 at 32:12-36:6, 42:11-15. Mr. Schnell’s fails
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`to establish admissibility of EX2057 or EX2070.
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`Peter Hiestand, not Christian Schnell, is the purported, unsworn and
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`unauthenticated declarant of the hearsay assertions in EX2057. Mr. Schnell
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`testified that Peter Hiestand was in charge of designing the protocol for the EAE
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`experiments, that Mr. Schnell prepared only the “neoangiogenesis casing part of
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`the document, not the EAE-related part,” and that Mr. Schnell did not review the
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`EAE-related part of the document prior to its finalization. EX1050 at 56:8-57:17.
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`Mr. Schnell testified that his contribution was assessing whether there was a
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`pattern of increased neoangiogenesis as a result of EAE in Lewis rats, but he
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`agreed that his November 2005 experiments with Peter Hiestand did not invent
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`using FTY720 to inhibit S1P and VEGF-induced neoangiogenesis. Id., 24:14-21,
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`55:21-56:4. Mr. Schnell also testified that he had only ever reviewed a handful of
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`pages of EX2057 prior to his deposition. Id., 57:18-60:4. Mr. Schnell was unable
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`to answer basic questions about the EAE experiments because everything other
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`than neoangiogenesis was purportedly written by Peter Hiestand. Id., 60:5-62:24.
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`In summary, Mr. Schnell lacks personal knowledge of the creation or signing of
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`the report, the EAE experiments described in the report, and whether the signature
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`page in Exhibit 2070 “goes” with the report. He is not competent to authenticate or
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`provide foundation for the report or the statements made therein, or their
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`admissibility. F.R.E. 602, 801-803, 805, 901.
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`In addition to the report being inadmissible, the assertions contained therein
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`are inadmissible hearsay. F.R.E. 801-802, 805. Novartis purports to make the
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`report admissible hearsay as a record of regularly conducted activity, but F.R.E.
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`803(6) applies only to a record of an act, event, condition, opinion, or diagnosis,
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`and only if (1) the record was made at or near the time of the act or event by or
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`from information transmitted by someone with knowledge; (2) the record was kept
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`in the course of regularly conducted activity; (3) making the record was a regular
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`practice of that activity; (4) all of these conditions are shown by testimony of the
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`custodian or another qualified witness; and, (5) the opponent does not show that
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`the source of information or method of circumstances of preparation indicate a lack
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`of trustworthiness. Id. These conditions are not satisfied here.
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`For example, no witness establishes that the report itself and the assertions
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`made therein qualify for admission under F.R.E. 803(6). The acts or events at issue
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`are the experiments themselves and the data that allegedly resulted from them. No
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`witness, qualified or otherwise, testifies that the report was made at or near the
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`time of the act or events described (the experiments). Indeed, Mr. Schnell admits
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`that the report was not prepared until 2009, but that the experiments described
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`therein were conducted in November 2005. EX2026, ¶2. Novartis cannot use
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`F.R.E. 803(6) to launder the assertions in EX2057 regarding the underlying
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`experiments from 2005 into admissible evidence by purporting to describe them
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`four years later and preserving a copy of that belated description in its files.
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`For each of the reasons discussed above, Exhibits 2057 and 2070 and
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`Novartis’s experts’ reliance upon them should be excluded under F.R.E. 602, 801-
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`803, 805 and 901.
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`B.
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`Exhibit 2063-2066 and any reliance thereon.
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`Novartis served EX2063-EX2066 in connection with its POR. Novartis’s
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`exhibit list describes EX2063 as a redacted email chain copying Fred Lublin,
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`EX2064 as a letter written by Novartis, EX2065 as an email chain, and Exhibit
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`2066 as another letter written by Novartis. Dr. Lublin discusses Exhibits 2063-
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`2066 in ¶¶46-47 (EX2064) and 50-58 (EX2063, EX2065, EX2066) of his Second
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`Declaration (EX2025) and refers to information he derives from them in ¶¶4-7, 39,
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`and 44 of the same. Dr. Lublin relies on and repeats this testimony in ¶¶2-3, 6-7,
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`14-15, 19 of his Fourth Declaration (EX2097). Novartis relies on EX2063-EX2066
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`and portions of EX2025 and EX2097 at least in Paper 27 at 20, 25-27, Paper 63 at
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`9-10, and Paper 64 at 8-9. Petitioners timely objected to Exhibits 2063-2066 and
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`any reliance thereon. Paper 31 at 9-10. Petitioners ask that Exhibits 2063-2066 and
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`the above-referenced paragraphs of EX2025 and EX2097 be excluded under F.R.E.
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`106, 602, 801-803, 805, and 901.
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`As a threshold matter, Novartis has failed to demonstrate that a record of the
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`correspondence in EX2063, EX2065, and EX2066 was maintained in the course of
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`regularly conducted business activities. Mr. Waibel’s own declarations have
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`demonstrated that Novartis does not keep all of its employees’ emails in the regular
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`course of business. Mr. Waibel originally testified that “Novartis personnel draft
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`and maintain records of all communications with third parties regarding clinical
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`trials in the ordinary course of business and as a regularly conducted business
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`activity” and Novartis “continuously maintains copies of communications with
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`third parties regarding clinical trials in the ordinary course of business.” EX2078,
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`¶6 (emphasis added). In his Second Declaration, however, Mr. Waibel testified that
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`Novartis only retains “some correspondence with centers that participate in a given
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`clinical trial” and that Novartis “has no central collection of correspondence with
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`Mount Sinai for this study.” EX2088, ¶8 (emphasis added).2 Although Mr. Waibel
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`admits that one of the Novartis employees involved in the correspondence in
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`Exhibit 2063 and 2065 was still at Novartis at least as recently as January 29, 2018,
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`Novartis had not maintained her emails with Mt. Sinai hospital in the regular
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`course of business. EX2088, ¶9. Indeed, Mr. Waibel admitted that the
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`correspondence produced in Exhibit 2063 and 2065-2066 was available “only due
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`to the happenstance” of a litigation hold for Mr. Watson in another case. EX2088,
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`¶¶9-10. In other words, Novartis has failed to establish even that the
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`correspondence itself “was kept in the course of a regularly conducted activity,” as
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`opposed to being kept for the purposes of litigation. Novartis’s narrow and
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`selective production of documents does not support admissibility of Exhibits 2063-
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`2066.
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`2 Mr. Waibel’s Second Declaration contains attorney characterization of
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`EX2065 and Mt. Sinai. Novartis declined to produce Mr. Waibel for deposition
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`and agreed not to rely upon Mr. Waibel’s testimony substantively for patentability.
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`Moreover, Novartis and Dr. Lublin rely on specific assertions within each
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`document, not just the existence of the document in Novartis’s files, and must
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`therefore prove admissibility of the underlying statements. For example, Dr. Lublin
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`relies on Mr. Watson’s statements in EX2066 to establish that two sentences in Mr.
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`Watson’s email actually came from minutes of a meeting between Novartis and
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`FDA, that the minutes reflect an assertion made by FDA, and that the assertions
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`are true. EX2025 at ¶55. Dr. Lublin repeatedly testified that the FDA selected the
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`0.5 mg dose for inclusion in the “phase III studies as the minimum effective dose.”
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`EX1042 at 165:16-24; EX2025 at ¶¶4-6, 39, 44, 53-58, 64); EX2097, ¶¶19-21;
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`POR at 25-27; Paper 63 at 10. Dr. Lublin stated that he was relying on assertions in
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`the documents that those two sentences came from minutes of a meeting with the
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`FDA, and that the assertions were made by FDA, and that he was relying on the
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`sentences to establish the content of FDA’s alleged request. EX1042 at 158:24-
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`161:4, 162:25-164:16, 193:8-195:10.
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`As another example, Dr. Lublin relies on EX2064 to provide a March 3,
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`2008 description of a “futility analysis” plan allegedly submitted to FDA in a
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`“briefing book.” EX2025, ¶¶46, 53-54. During his deposition, Dr. Lublin admitted
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`he was “relying on counsel’s representation” that Exhibit 2064 contains “the final
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`plan that was actually submitted to the FDA.” EX1042 at 169:5-170:25. As another
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`example, Dr. Lublin relies on the truth of Colleen Farrell’s statements that the
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`comments attributed to the IRB were actually said by the IRB, as well as the truth
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`of the statements attributed to the IRB (e.g., about being unable to approve the
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`project; it being the IRB’s opinion that the inclusion of 0.5 mg dose the Phase III
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`trial was questionable). EX2063 at 2; EX2065 at 5. Thus, Novartis relies upon the
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`document not merely to establish that the documents existed in Novartis’s files, but
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`also to establish the truth of the statements asserted in the documents.
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`The purported excerpts of minutes from a meeting with FDA in Exhibit
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`2066 and from the briefing book in EX2064 should be excluded under F.R.E. 106.
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`Under this rule, Petitioners are entitled to “require” the introduction of “any other
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`part” of a recorded statement “that in fairness ought to be considered at the same
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`time.” Novartis and its witnesses have relied on the excerpts as proving the content
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`of statements made by FDA in the minutes and as proof of the final study plan
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`employed in the study. Novartis and its witnesses have incorrectly characterized
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`those statements as meaning that FDA selected the 0.5 mg dose for inclusion in the
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`phase 3 trials because it believed the dose would lack any efficacy and that
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`including the 0.5 mg dose in the phase 3 trial without first performing a separate
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`phase 2 trial reflected skepticism that the dose would have any efficacy. Fairness
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`requires that Petitioners be permitted to introduce the remainder of the minutes and
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`briefing book to demonstrate that Novartis’s characterizations are incorrect and
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`that the 0.5 mg dose was included in the phase 3 study because it was reasonably
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`believed that it would work. Petitioners requested production of the minutes and
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`briefing book, Novartis refused, and the Board denied Petitioners motion for
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`discovery. Papers 35, 47. Novartis’s refusal to permit Petitioners access to the full
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`document renders Novartis’s reliance on the excerpts a violation of F.R.E. 106.
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`Exhibits 2063-2066 are also inadmissible because they contain multiple
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`levels of hearsay. F.R.E. 801-803, 805. For example, Exhibit 2065 contains
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`hearsay assertions from Tom Watson, Valentina Curovic-Perisic, Jim Prodafikas,
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`and Colleen Farrell, including Ms. Farrell’s assertions that “the IRB” made still
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`further hearsay assertions and Mr. Watson’s assertions that “FDA” made other
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`hearsay assertions. As discussed above, Novartis relies on these documents to
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`establish more than simply delivery of the correspondence without respect to the
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`truth.
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`Novartis has submitted no testimony that would render the underlying
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`statements admissible. For example, Mr. Waibel’s First Declaration (EX2078)
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`merely asserts that copies of the documents were preserved in Novartis’s records.
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`As discussed above in Section II.A, however, this is insufficient to render each
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`level of hearsay within the e-mail chain admissible. Indeed, Novartis never
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`submitted in this case a record made “at or near the time” of the alleged
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`conversation with FDA, has not established who made the minutes, whose
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`assertion was allegedly being quoted by Mr. Watson as a statement by FDA, or
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`whether the anonymous individual who allegedly wrote the minutes had personal
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`knowledge of the conversation. The fact that a company’s email system
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`automatically puts time-stamps on employees’ emails does not render the
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`statements made by or to its employees admissible evidence. Novartis’s theory
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`amounts to trial built on unsworn statements in emails, in violation of Board and
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`evidentiary rules. 37 C.F.R. § 42.53(a).
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`Dr. Lublin’s testimony similarly does not render the underlying assertions
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`admissible. Dr. Lublin testified that he was never even copied on Exhibits 2065-
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`2066, did not discuss this case with Colleen Farrell or anyone other than Novartis’s
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`attorneys, that he received Exhibits 2065-66 from Novartis’ counsel, and that he
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`was relying on counsel for Exhibits 2064, 2065, & 2066. EX1042 at 176:5-179:10.
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`For each of the reasons discussed above, Exhibits 2063-2066 and Novartis’s
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`experts’ reliance upon them should be excluded under F.R.E. 106, 602, 801-803,
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`805, and 901.
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`C. Testimony based on unpublished and unproduced granular
`mouse data purportedly underlying the Webb reference.
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`Novartis served Exhibits 2096 and 2098 on March 23, 2018 in connection
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`with its Sur-Reply (Paper 63) and its Reply in support of its Motion to Amend
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`(Paper 64). Novartis’s exhibit list describes EX2096 as the Third Declaration of
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`Lawrence Steinman, M.D. and EX2098 as the Declaration of Jerold Chun, M.D.,
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`Ph.D. Each of these exhibits provides testimony based on data that was not
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`published in the Webb reference and that was not produced in this case. See, e.g.,
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`EX2096, ¶¶28, 31-40; EX2098, ¶¶6-8, 17, 26-43.Novartis relies upon Dr.
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`Steinman’s and Dr. Chun’s theories based on this unpublished and unproduced
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`data in its Sur-Reply (Paper 63), at least at 6-7.
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` Petitioners objected to Exhibits 2096 and 2098 and any reliance thereon.
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`Paper 71 at 2-4. Petitioners requested production prior to Dr. Chun’s deposition of
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`the data underlying the Webb reference and any descriptions or summaries of the
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`data Dr. Chun relied upon, but Novartis informed Petitioners that neither Novartis
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`nor Dr. Chun had the underlying data in its possession. EX1063 at 103:13-25,
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`106:2-107:14. Novartis’s failure to produce the underlying data renders the
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`testimony cited above both unreliable and entitled to no weight, justifying
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`exclusion of the testimony from consideration. F.R.E. 702-703; Mylan
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`Pharmaceutical Inc. v. Allergan, Inc., IPR2016-01127, Paper 33, at 3
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`(“Accordingly, because Patent Owner will not produce the clinical trial data
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`underlying Schiffman Exhibits B, D, E, F and Attar Exhibits C and D, those
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`exhibits and related testimony are entitled to no weight and will not be considered
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`in determining patentability of the challenged claims. 37 C.F.R. § 42.65.”).
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`To the extent Novartis intends to argue that it may evade evidentiary and
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`Board rules requiring disclosure of data underlying an expert’s opinion by having
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`the expert rely upon his or her “memory” of that data, the fallacy of this argument
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`is demonstrated by the breadth of the exception. Indeed, a memory exception to the
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`rule requiring disclosure of underlying data would swallow the rule requiring the
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`disclosure of underlying data.
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`Furthermore, Dr. Chun’s memory cannot be relied upon to support the
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`testimony. In his deposition, Dr. Chun testified that he has not had access to the
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`data underlying the Webb reference since he left Merck in June 2003, has not
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`reviewed the data since approximately 16 years ago in 2002, that he left any Webb-
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`related materials describing the data at Merck when he left, and that he did not
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`review the data or any summaries or descriptions of the data in preparing his
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`declaration. EX1063 at 101:14-20, 103:13-107:18, 125:17-25.
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`Dr. Chun’s deposition testimony also confirms that Novartis’s
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`unsubstantiated claims about the unpublished and unproduced data should not be
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`credited. Dr. Chun’s deposition revealed that his involvement in the preparation of
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`the Webb publication was extremely limited. He confirmed that he was not the
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`lead author of the Webb paper. EX1063 at 150:14-151:16. He did not know the
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`role of the various co-authors in the experiments because it was Drs. Webb and
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`Rao, not Dr. Chun that were involved in running the experiments. Id. at 90:5-
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`94:13. He testified that he did not personally submit the Webb manuscript for
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`publication and did not know who did, and that he did not know when any of the
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`co-authors gave final approval for the manuscript to be submitted for publication.
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`EX1063 at 126:2-127:8, 181:7-13, EX1063 at 181:14-182:15. He also testified that
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`he did not know how many peer reviewers provided comments on the Webb
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`reference manuscript and did not know what revisions were made to the original
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`manuscript. EX1063 at 271:23-272:13.
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`An example illustrates the danger in relying on Novartis’s new arguments
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`about the granular mouse data purportedly underlying the Webb paper. Novartis’s
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`experts drafted almost identically-worded assertions in the Chun and Steinman
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`declaration that all nine authors of the Webb paper had agreed that the
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`unpublished, unproduced granular mouse data supported Novartis’s “at least” 70%
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`lymphopenia argument. EX2096,¶40 (“That finding was the product of the nine
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`authors’ collective judgment.”); EX2098, ¶¶7-8 (“Our conclusion…was the
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`product of our collective judgment….it was the result of collective judgment”)
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`(emphases added). In his deposition, however, Dr. Chun confirmed that, prior to
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`the submission of the Webb manuscript for publication, he never discussed with
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`any of co-authors Hale, Tham, Lin, Lariosa-Willingham, Yu, or Mandala any
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`correlation between lymphopenia and cumulative clinical score. EX1063 at
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`182:16-183:15. He testified that co-author Hale was not even on his team. Id. at
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`92:5-18. Dr. Chun’s testimony confirms that the speculative and unsubstantiated
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`discussion of granular mouse data in the declarations of Novartis’s declarants was
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`merely aspirational on the part of Novartis’s attorneys and is untethered from the
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`facts in evidence. Novartis should not be permitted to rely upon imputed,
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`unpublished, and unproduced granular data in support of its teaching away
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`arguments. The paragraphs identified above should be excluded from consideration
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`as unreliable and for failure to disclose the underlying data. F.R.E. 702-703; 37
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`C.F.R. §42.65(a).
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`III. CONCLUSION
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`For the foregoing reasons, Petitioners request that this Motion to Exclude be
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`granted.
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`Dated: April 17, 2018
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`Respectfully submitted,
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`/ Steven W. Parmelee /
` Steven W. Parmelee
` Reg. No. 31,990
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`PROTECTIVE ORDER MATERIAL
`
`

`

`CERTIFICATE OF SERVICE
`
`
`
`This is to certify that I caused to be served true and correct copies of the
`
`foregoing Petitioners’ Motion To Exclude on this 17th day of April, 2018, on the
`
`Patent Owner at the correspondence address of the Patent Owner as follows:
`
`Jane M. Love, Ph.D.
`Robert W. Trenchard
`GIBSON, DUNN & CRUTCHER LLP
`200 Park Avenue, 47th Floor
`New York, NY 10166
`Email: jlove@gibsondunn.com
`Email: rtrenchard@gibsondunn.com
`
`
`
`
`Dated: 17 April 2018
`
`
`
`
`
`
`/ Steven W. Parmelee /
` Steven W. Parmelee
` Reg. No. 31,990
`
`
`
`-16-
`
`
`
`PROTECTIVE ORDER MATERIAL
`
`

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