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`S.L.C.
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`115TI1 (X)NGRESS
`2d Si<]SSION
`
`s.
`
`To aiTiend th(5 Federal F^jod, Dnig, and Cosmetic Act and the Se(;rn'ities
`Excliaiig'e Act of 1934 to prevent the inter ])artes review process for
`cliallenging' ])atents fi'orn diminishing competition in the ])har'macentical
`industry and with res])e(!t to drug innovation, and foi‘ other puiposes.
`
`IN THE SENATE OP THE UNITED STATES
`
`Air. Hatch (for himself and Air. Tibias) introduced the following bill; which
`was road twice and referred to the Committee on
`
`A BILL
`To amend the Federal Pood, Drug, and Cosmetic Act and
`the Securities Exchange Act of 1934 to prevent the
`inter partes review process for cliallenging patents ti'om
`diminishing competition in the pharmaceutical industty
`and with respect to drug innovation, and for other pur
`poses.
`
`1
`2
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`Be it enacted hy the Senate and House of Representa-
`tives of the United States of America in Congress assembled,
`
`3 SECTION 1. SHORT TITLE.
`4
`This Act may be cited as the “Hatch-Waxman Integ-
`5 rityActof 2018”.
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`1 SEC. 2. PREVENTING THE INTER PARTES REVIEW PROCESS
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`2
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`3
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`FOR CHALLENGING PATENTS FROM DIMIN-
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`ISHING COMPETITION IN THE PHARMA-
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`CEUTICAL INDUSTRY AND WITH RESPECT TO
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`DRUG INNOVATION.
`6
`(a) Brand Name Drugs.—Section 505(b)(2) of the
`7 Federal Food, Drug, and Cosmetic Act (21 U.S.(
`8 355(b)(2)) is amended—
`9
`(1) in subparagraph (A)(iv), by striking “and
`n
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`at the end;
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`(2) in subpa,ragTaph, (B), by striking the period
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`at the end and inserting
`u ; and”; and
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`(3) by adding at tlie end the following:
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`(C) in each eei'tification requiivd under sub-
`15
`paragraph (A) with respect to a, patent, a certifi
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`cation that—
`17
`u (i) neither' the applicant nor' any party in
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`pr'hity with, related to, or cooperating vith the
`19
`applicant ha,s filed
`or- will file, a petition to in
`stitute inter partes I'ewew or' post-grant review
`20
`21
`of that pa,tent under chapter 31 or 32, I'espec-
`tivel}^, of title 35, United States Code; and
`22
`“(ii) in making the certification I'equii'ed
`under subparagraph (A), the applicant is not
`relying in whole
`on a,ny decision
`issued b^'' the Patent Trial and Appea,l Board in
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`J.
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`an inter pai'tes I'eview or post-gT'a,nt review
`under chapter 31 or 32, respectwely, of title 35,
`United States Code.”.
`(b) Generic Drugs.—Section 505(,i)(2)(A) of the
`5 Federal Food, Drug, and Cosmetic Act (21 U.S.C.
`6 355 Ci) (2) (A)) is amended-^
`(1) in clause (vii)(IV), by striking “and” at the
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`1 2 3 4
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`end;
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`(2) in clause (viii), by striking the period at the
`end and inseiding and”;
`(3) b.y inserting after clause (viii), as amended
`b.y paragraph (2), the following:
`(ix) in each certification required under
`clause (wi) with respect to a patent, a ceitifi-
`cation that—
`i i (I) neither the applicant nor any
`parly in privity with, r'dated to, or- cooper-
`ating with the applicant has filed. or will
`file, a petition to institute inter' par'tes r'e-
`view or post-gr'ant review of that patent
`under' chapter 31 or 32, r'espeetively, of
`title 35, United States Code; and
`(. i
`(II) in making the cer'tifrcatiori re
`quired under clause (Ui), the a,]:)plicant is
`not relGng in whole or in part on ari}^ deci-
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`sion issued the Patent Ti-ial and AppeaJ.
`Board in an inter partes re’Ndew or post-
`grant review under chapter 31 or 32, re-
`35, United States
`spectively,
`Code.”; and
`(4) in the flush text following clause (ix), as
`added bj'' paragraph (3), b.y striking
`ii (viii)” and in-
`serting “(ix)”.
`(c) Biosimilar Drugs; EvaijUation by the Sec-
`■Section 351 (k) of the Public Health Sendee Act
`10 RETARY.
`11 (42 U.S.C. 262(k)) is ainended
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`(I) in paragraph (2) (A) (hi)—
`(A) by redesignating subelauses (I) and
`13
`(II) as items (aa) and (bb), respective^, and
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`adjusting the m,argins accordingi^s
`(B) in the matter preceding item (aa), as
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`7 y
`so I'edesignated, by striking “An application
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`and insei'ting the following:
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`(I) In general.—^An. applica-
`19
`a
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`tion”;
`(C) in subclause (I)
`(i) in item (aa), as so redesignated, b}^
`striking “and yy
`at the end;
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`(ii) in item (bb), as so redesignated,
`by striking the period at the end and in-
`i i ; and”; and
`(iii) by adding at the end the fol-
`mg:
`
`i i
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`(cc) shall, with respect to a,
`patent desci'ibed in subclanse
`(II), include a
`certification that:
`neithei' the applicant nor any
`party in privity with., related to,
`or coopei'ating with the a-pplicant
`has filed, or will file, a petition to
`institute inter' partes review oi'
`post-grant review of the patent
`under chapter 31 or 32,
`lively, of title 35, United States
`Code.”; and
`(U) b_y ailding at the end the following:
`(II) Patent described.—
`patent is described in this subclause
`if-
`
`(i
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`i c
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`(aa) the patent comrs the
`reference pi'oduct or a method
`for using the refei'ence product;
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`cU.1.1
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`I'eference
`u (bb)(AA)
`pi'ochict desci'ibecl in item (aa) is
`marked under section ‘287(a) of
`United States Code; oi‘
`(BB) there
`is othenvise
`public notice regai'ding the appli-
`eabilit.y of the I'eference pi-oduct
`described in item (aa).”; and
`(2) in paragraph (3)—
`(A) in subpai-agraph (A)(ii), by stiikin
`... A ’ ’
`at
`he end;
`(B) in subparagraph (B), by sti-ilcing the
`period at: the end a,nd inseiding “; and”; and
`(C) by adding at the end the following;
`(Cl) the Secretary determines that the ap
`plication fully complies with the requirements
`under paragraph (2)(A)(iii).”.
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`.O'
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`18 SEC. 3. PREVENTING THE MANIPULATIVE AND DECEPTIVE
`19
`USE OF INTER PARTES REVIEW.
`Section 10(b) of the Securities Exchange Act of 1934
`20
`21 (15 U.S.C. 78j(b)) is amended—
`(1) by inserting “(1)” after “(b)”; and
`22
`(2) b}'' adding at the end the following:
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`“(2) For purposes of paragraph (1), a person shall
`2 be considered to be using a manipuhitive or deceptive de-
`3 vice if'—
`4
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`U
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`(A) the pei'son, oi- an affiliate of the person,
`files a, petition to institute a,n inter pa;it,es reAoew
`under clniptei' 31 of title 35, United States Code,
`with respect to a patent; and
`(B) the person, or an. affiliate of the pei'son,
`a
`during the 180-(h\y period beginning on the date
`that is 90 days before the date on which the person
`files the petition described in subparagi'aph (A), en
`gages in a short sale of any publicly traded security
`of the owner' of the patent that is the subject of the
`petition.”.
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