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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`ARGENTUM PHARMACEUTICALS LLC
`Petitioner
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`v.
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`ALCON RESEARCH, LTD.
`Patent Owner
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`Patent No. 8,268,299
`Issue Date: September 18, 2012
`Title: SELF PRESERVED AQUEOUS PHARMACEUTICAL COMPOSITIONS
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`Inter Partes Review No. IPR2017-01053
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`PETITIONER’S RESPONSE TO ALCON RESEARCH, LTD.’S MOTION
`FOR OBSERVATIONS ON THE DEPOSITION OF PETITIONER’S
`EXPERT JOHN C. STAINES, JR.
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`Petitioner Argentum Pharmaceuticals LLC (“Petitioner”) hereby responds to
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`Alcon Research Ltd.’s (“Alcon”) motion for observations on the deposition of
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`Petitioner’s expert John C. Staines, Jr. (Paper 45, hereafter “Mot.”). Office Patent
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`Trial Practice Guide, 77 Fed. Reg. 48756 at 48767-68 (August 14, 2012).
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`Observation #1: Alcon’s assertion that Mr. Staines’ understanding of the
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`’299 patent undermines his opinions regarding Travatan Z’s sales as a successor
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`product misapprehends the record. Mr. Staines responded to Dr. Grabowski’s
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`analysis which focused on Travatan Z’s alleged commercial success. As Mr.
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`Staines testified, he did not consider use of the ’299 patent for other products
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`because he was unware of such uses. EX2168, 87:1-6.
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`Observation #2: Alcon’s assertions misapprehend Mr. Staines’ deposition
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`testimony relative to his declaration and his deposition testimony. Mr. Staines’
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`declaration states in full “While extrapolations of past trends are subject to
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`uncertainty, the 2001 to 2006 sales trend observed for Travatan® in this case is
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`sufficiently compelling to conclude that Travatan®’s 2007 to 2010 (and 2011)
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`sales absent Travatan Z® would have been much closer to the actual
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`Travatan®/Travatan Z® sales than to Dr. Grabowski’s untenable no-growth
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`assumption, which implies that Travatan Z® generated far more Travatan®
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`cannibalization, and far fewer incremental sales then Dr. Grabowski’s analysis
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`implies.” EX1094, ¶42. Mr. Staines also testified that with respect to the linear
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`extrapolation for the Travatan franchise sales from 2006 to 2011 that “As I said,
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`the predictions are never 100 percent accurate, but it's really close to -- very close
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`to what the actual sales were for those and a lot closer than Dr. Grabowski's
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`assumption, a lot closer than Dr. Grabowski's assumption.” EX2168, 91:12-17.
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`He also explained that “to ignore that right up until Travatan Z came on the market
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`that there was no abating in the increase, Dr. Grabowski's analysis can't be relied
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`on.” EX2168, 94:14-16. Additionally, to further support his analysis based on the
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`“sufficiently compelling” five and one-half years sales trend of Travatan alone
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`from 2001 to 2006, Mr. Staines offered an alternative log extrapolation. See
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`EX1094, Ex. C (dashed blue line).
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`Observation #3: Alcon’s assertion that Mr. Staines’ deposition testimony
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`contradicts Petitioner’s argument is misplaced. Petitioner’s reply references Mr.
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`Staines’ declaration at paragraphs 46-55 (Paper 35 at 27), which do not rely on
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`calculation errors to support their conclusion. See, e.g., EX1094, ¶48 (discussing
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`Dr. Grabowski’s use of wholesale sales not taking into account non-invoice sales
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`allowances); ¶50 (failure to provide net sales revenues); ¶47 (contrasting dollar
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`sales for Travatan Z with unit sales); ¶ 52 (strong suggestion that “Alcon has
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`provided significant rebates to insurers”).
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`Dated: May 25, 2018
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`Respectfully submitted,
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`By: /Michael R. Houston/
`Michael Houston
`Registration No. 58,486
`FOLEY & LARDNER LLP
`321 North Clark Street, Suite 2800
`Chicago, Illinois 60654
`Telephone: 312-832-4500
`Facsimile: 312-832-4700
`mhouston@foley.com
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`Counsel for Petitioner
`Argentum Pharmaceuticals LLC
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`CERTIFICATION OF SERVICE
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`The undersigned hereby certifies that a copy of the foregoing
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`PETITIONER’S RESPONSE TO ALCON RESEARCH, LTD.’S MOTION
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`FOR OBSERVATIONS ON THE DEPOSITION OF PETITIONER’S
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`EXPERT JOHN C. STAINES, JR. was served on May 25, 2018, on Counsel for
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`Patent Owner via electronic mail to the following:
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`dkrinsky@wc.com
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`csuarez@wc.com
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`TravZ-IPR@wc.com
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`By: /Michael R. Houston/
`Michael Houston
`Registration No. 58,486
`Counsel for Petitioner
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`Dated: May 25, 2018
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