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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`MYLAN PHARMACEUTICALS INC.,
`Petitioner,
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`v.
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`BAUSCH HEALTH IRELAND LIMITED,
`Patent Owner.
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`————————————————
`Case IPR2022-00722
`Patent 7,041,786
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`
`PETITIONER’S REPLY TO
`PATENT OWNER’S PRELIMINARY RESPONSE (PAPER 6)
`AND PETITIONER’S MOTION TO AMEND
`REAL PARTY-IN-INTEREST STATEMENT1
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`1 This Paper was authorized by Board Order (Paper 12) on July 29, 2022.
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`TABLE OF CONTENTS
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`Page
`ANALYSIS OF §325(d) FAVORS INSTITUTION ....................................... 1
`A.
`The Examiner Never Made Any Obviousness Rejection ..................... 1
`B.
`The Petition Presents New and Different Evidence .............................. 2
`REAL PARTY-IN-INTEREST UPDATE AND MOTION ........................... 4
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`I.
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`II.
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`TABLE OF AUTHORITIES
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`Page
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`Cases
`Adello Biologics LLC v. Amgen Inc., PGR2019-00001, Paper 11 ............................ 5
`NRG Energy, Inc. v. Midwest Energy Emissions Corp., IPR2020-00832,
`Paper 17 ................................................................................................................ 4
`PNC Bank, N.A. v. USAA, IPR2021-01073, Papers 20, 25 ....................................... 5
`SharkNinja Operating LLC v. iRobot Corp., IPR2020-00734, Paper 11 .................. 5
`Valeo N. Am., Inc. v. Magna Elecs., Inc., IPR2014-00220, Paper 45 ....................... 5
`Statutes
`35 U.S.C. §102 .......................................................................................................1, 4
`35 U.S.C. §112 .................................................................................................. 1, 2, 4
`35 U.S.C. §325 ........................................................................................................... 1
`Regulations
`37 C.F.R §42.8 ........................................................................................................... 5
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`-ii-
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`I.
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`ANALYSIS OF §325(d) FAVORS INSTITUTION
`The POPR exaggerates the relevance of the examination to the current
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`grounds, misrepresents examiner findings, and overlooks substantial differences.
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`Bausch concedes the petition presents a new reference (Li, EX1006) the Office
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`never previously considered, in combination with Currie (EX1005), which the
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`examiner never applied in any rejection. POPR, 4-5. Bausch argues the petition’s
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`asserted combination is cumulative to the examiner’s assertion of Hidaka 1998
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`(EX2008) in an anticipation rejection and brief citation of Hidaka 2000 (EX2009)
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`in a written description rejection. POPR, 30-36. But Bausch does not assert—nor
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`could it—that the examiner ever issued any obviousness rejection. Nor does
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`Bausch identify any reliance by the examiner on disclosures comparable to the
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`petition’s Currie and Li combination to support modifying uroguanylin as part of
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`an obviousness analysis. The examiner failed to recognize prior art disclosure of
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`the proposed conservative substitution and never considered its unpredictability.
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`A. The Examiner Never Made Any Obviousness Rejection
`The examiner’s only rejections concerned an earlier version of claim 1 that
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`permitted sequence variants of up to three residues, and only under §102 and §112.
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`EX1004, 160-62, 172-73. Bausch amended claim 1 (id., 188) and argued that the
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`amended claim was not anticipated because “Hikada [sic] teaches a peptide
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`-1-
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`sequence of uroguanylin 15 amino acids[2] in length where the residue at position 3
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`is an aspartic acid, but does not teach the peptide sequence of SEQ ID NO: 20.”
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`Id., 192. The examiner allowed claim 1 without further rejection. Id., 271-76. The
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`examiner was unaware of any prior art teaching “a variant of uroguanylin having a
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`glutamate residue at position 3, rather than the naturally occurring aspartate
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`residue.” EX1004, 173 (limited list of “pertinent” art). While Bausch misrepresents
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`the examiner’s §112 findings about the outer limits of Bausch’s earlier and much
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`broader claims as an obviousness determination (POPR, 34-36), the examiner
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`never addressed predictability of the proposed conservative (i.e., very predictable)
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`substitution supported by an analogous sequence identified in the art. EX1006, 53;
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`EX1002, ¶123; Advanced Bionics, IPR2019-01469, Paper 6, at 8.
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`B. The Petition Presents New and Different Evidence
`Bausch urges the Board to ratify the examiner’s facially insufficient
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`examination based on unsupported attorney argument, despite uncontroverted
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`expert testimony. Critically, Bausch dismisses Li as cumulative despite Li’s clear
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`comparison and alignment of rat, opossum, and human uroguanylins—which
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`suggest the conservative substitution proposed as obvious in Ground 1. POPR, 33-
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`2 Reference to “truncated” uroguanylin traces to Bausch’s characterization of
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`Hidaka 1998 during prosecution, despite Bausch’s current position. POPR, 31 n.5.
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`-2-
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`34; Pet., 24-26 (Li shows the aspartic and glutamic acid residues in the second and
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`third positions and identifies them as important for uroguanylin’s desirable activity
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`level); EX1006, 52-53 & FIG. 6; EX1002, ¶¶109, 121-124 (Li on positions 2 and
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`3); id., ¶¶92-94, 120 (Currie on rat relevance). Li thus provides significant linking
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`prior art context in Ground 1 that Hidaka 1998 lacked.
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`Bausch also contends Li is cumulative to Hidaka 2000 (EX2009), a portion
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`of which the examiner cited in a written description rejection. POPR, 33-35
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`(arguing Fig. 1 “explicitly disclos[ed] rat uroguanylin’s sequence.”). But the
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`examiner only cited Hidaka 2000 to establish that “a mutant peptide” in which the
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`first two residues were deleted lacked the ability to form the correct disulfide
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`pairing. EX1004, 164-65. Thus, the examiner concluded “the structural features of
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`SEQ ID NO: 20 are not particularly representative of the claimed genus.” Id. But
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`no POSA would equate deleting the first two residues with using Li’s naturally-
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`occurring amino acid sequences (DE, ED, and DD) for positions 2 and 3. E.g., Pet.
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`19, 25. Bausch identifies no evidence suggesting the examiner was aware of Li’s
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`prior art uroguanylin variant having a glutamate residue at position 3, let alone Li’s
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`alignment of the rat and human uroguanylin orthologs and disclosure, based on that
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`alignment, of the importance of having acidic residues at positions 2-3. Record
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`evidence supported by expert testimony, including prior art disclosure of the
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`alignment/comparison, overcomes Bausch’s unsupported attorney arguments.
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`-3-
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`Bausch also fails to meaningfully address Currie. POPR, 29-31. While
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`Bausch contends the petition relied on Currie just to disclose uroguanylin’s
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`sequence, the record establishes that Currie also provides reasons why uroguanylin
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`was a known, promising starting point and suggests the analogy between human
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`and rat uroguanylin. See, e.g., Pet., 17, 22-24, 35-36; EX1002, ¶¶59-60. For
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`example, Currie suggests exploiting uroguanylin’s natural laxative effects for
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`treating constipation, discloses that uroguanylin’s activity was desirable because it
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`was stronger than guanylin’s but not so strong as enterotoxin’s pathogenic activity,
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`and discloses peptide synthesis was straightforward. Id. Bausch’s narrow focus on
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`uroguanylin’s sequence ignores the petition’s reliance on Currie for far more,
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`including its support for uroguanylin as a natural lead for a synthetic ligand.
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`The Board should reject Bausch’s arguments that the asserted combination
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`of Currie and Li is cumulative to the examiner’s §102 or §112 rejection. Institution
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`should be granted because the petition presents new art, a new combination, new
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`arguments, and new evidence that were not previously considered and that
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`demonstrate a reasonable likelihood of showing at least one claim is obvious.
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`II.
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`REAL PARTY-IN-INTEREST UPDATE AND MOTION
`The petition identified all known potential RPIs in its “Real Parties-in-
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`Interest” disclosure to avoid any cost or inefficiency of litigating the identity of
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`RPIs. Pet., 2; NRG Energy, Inc. v. Midwest Energy Emissions Corp., IPR2020-
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`-4-
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`00832, Paper 17, 8-10 (no particular form required ). Because no potential time-bar
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`existed, the Board and parties need not incur cost or inefficiency considering
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`whether the petition correctly identified all RPIs. SharkNinja Oper. LLC v. iRobot
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`Corp., IPR2020-00734, Paper 11, 18-20 (prec.); PNC Bank, N.A. v. USAA,
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`IPR2021-01073, Papers 20 & 25, 35-37. Bausch does not contend that any other
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`entity should have been named or that any RPI was time barred. POPR, 11-14.
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`Bausch also concedes that both Bausch and the Board were well aware that Mylan
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`Inc. and Viatris Inc. are parent companies of Mylan Pharmaceuticals Inc. (“MPI”)
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`Id. Nevertheless, Bausch still questioned the petition’s RPI listing.
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`MPI’s petition was a good faith attempt to identify all potential RPIs under
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`37 C.F.R §42.8, not any effort at intentional concealment. MPI updated its
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`mandatory notices within 21 days of Bausch raising the issue, to confirm that MPI
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`does not dispute the status of its parent companies. Paper 9; see Valeo N. Am., Inc.
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`v. Magna Elecs., Inc., IPR2014-00220, Paper 45, 2-4 (update authorized 10 months
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`after merger; filed within 21 days of PO raising the issue). It is in the interests of
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`justice to authorize MPI to update its notices to remove any doubt that Viatris Inc.
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`and Mylan Inc. are parent companies of MPI and are RPIs. See Adello Biologics
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`LLC v. Amgen Inc., PGR2019-00001, Paper 11, 2-3 (prec.). MPI respectfully
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`requests the Board grant this authorization with no impact on the petition filing
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`date. Id.
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`-5-
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`Dated: 8 August 2022
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` Respectfully submitted,
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`/Jad Mills/
`Jad Mills, Reg. No. 63,344
`Counsel for Mylan Pharmaceuticals Inc.
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`-6-
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`CERTIFICATE OF SERVICE
`I certify that today this paper was served by email on Bausch’s counsel at:
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`Justin J. Hasford
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`justin.hasford@finnegan.com
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`Bryan C. Diner
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`bryan.diner@finnegan.com
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`Joshua Goldberg
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`joshua.goldberg@finnegan.com
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`Caitlin O’Connell
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`caitlin.o’connell@finnegan.com
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`Kyu Yun Kim
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`kyuyun.kim@finnegan.com
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`Dated: 8 August 2022
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`Respectfully submitted,
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`/Jad Mills/
`Jad Mills
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`-7-
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