`___________________
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`___________________
`MYLAN PHARMACEUTICALS INC.
`Petitioner,
`v.
`MERCK SHARP & DOHME CORP.
`Patent Owner.
`U.S. Patent No. 7,326,708 to Cypes et al.
`Issue Date: February 5, 2008
`Title: Phosphoric Acid Salt of a Dipeptidyl Peptidase-IV Inhibitor
`Inter Partes Review No.: IPR2020-00040
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`PETITIONER MYLAN PHARMACEUTICALS INC.’S SUPPLEMENTAL
`BRIEFING ON DISCRETIONARY DENIAL
`35 U.S.C. § 314(A)
`
`
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`IPR2020-00040
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`U.S. Patent No. 7,326,708
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`Factor 1 – No motion for a stay has been filed in the district court. However,
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`the parties would be generally disincentivized to stay the concurrent litigation. As a
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`Hatch-Waxman matter, an automatic statutory 30-month stay of FDA approval is in
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`place. By statute, if “either party to the action fail[s] to reasonably cooperate in
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`expediting the [district court] action” it could shorten or lengthen the statutory stay.
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`21 U.S.C. § 355(j)(5)(B)(iii). Further, the district court proceeding involves multiple
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`defendants—distinguishing Fintiv (Paper 11 at 6 n.9), and emulating Sandoz (also a
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`Hatch-Waxman matter). Paper 13 at 5. The other defendants will likely not agree to
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`a stay. Finally, the district court would likely be disinclined to issue a stay because
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`Merck has asserted another patent. On balance, this factor favors institution.
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`Factor 2 - The FWD is due at least five months before the district court trial.
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`POPR, 26. As Fintiv noted, “as a practical matter, it is difficult to maintain a district
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`court proceeding on patent claims determined to be invalid at the ITC.” Fintiv, 9.
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`The same “practical” considerations exist if the PTAB finds the claims invalid.
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`Since the FWD is due many months before trial, the district court has time to
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`consider it and how it streamlines the issues before it. This factor favors institution.
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`Factor 3 - Fintiv focuses on the facts, as they would exist at the time of the
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`Institution Decision. Id., 9-10. Here, institution is expected by May 14. At that time,
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`there will be no substantive rulings from the district court. Joint Claim Construction
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`Briefing is due two months after, and a Markman hearing is scheduled three
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`months after, the instant Institution Decision. Fintiv, 10 n.18. No depositions are
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`scheduled (or have been taken) and the district court will not have considered
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`invalidity issues before institution. Petitioner filed the Petition expeditiously—five
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`weeks after possessing Merck’s Infringement Contentions (September 23, 2019) and
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`well before the § 315(b) one-year statutory window. EX2006; Fintiv, 11 n.21 (citing
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`Intel Corp., eight weeks is diligent). At filing, Mylan was not in possession of and
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`therefore could not have used Merck’s responses to Mylan’s invalidity arguments.
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`Fintiv, 12; Petition, 67; EX1015, 15-16. With its early filing, Mylan did not “impose
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`unfair costs to patent owner.” Fintiv, 11. This factor favors institution.
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`Factor 4 - In the district court, two patents have been asserted against
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`Petitioner – the ’708 patent and U.S. Patent No. 8,414,921. The subject matter of
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`the two patents do not overlap. Further, in the district court, all claims of the ’708
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`patent have been asserted against Petitioner while the Petition only challenges
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`Claims 1-4, 17, 19, and 21-23. With respect to the ’708 patent, Defendants’
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`Invalidity Contentions assert additional statutory grounds of unpatentability
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`including: obviousness-type double patenting,
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`lack of written description,
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`enablement, failure to comply with 35 U.S.C. § 112, paragraph 4, and 35 U.S.C. §
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`102(f). EX2008; Fintiv, 13 n.24 (citing Chegg, Inc., noting different statutory
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`grounds favor institution). With regard to the ’921 patent, Defendants’ Invalidity
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`Contentions comprise invalidity under obviousness and pre-AIA § 112, second
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`paragraph. EX2008. The lack of overlap favors institution.
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`Factor 5 - The Mylan entities are the same (which is the typical case for most
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`IPRs). The district court defendant and IPR petitioner tend to be the same because
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`a non-litigating IPR filer may have appellate standing concerns. General Electric
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`Co. v. United Technologies Corp., 928 F.3d 1349 (Fed. Cir. 2019). The parallel
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`proceeding, however, involves a different defendant entity—more than 10
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`defendants. The lack of overlap in the defendant entity(ies) favors institution.
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`Factor 6 – Here, the grounds are “particularly strong on the preliminary
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`record.” Fintiv, 14, 15 n.29 (citing Illumina, explaining merits outweigh efficiency).
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`The Petition includes, inter alia, two anticipation and one single-reference
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`obviousness grounds. Merck’s POPR provided neither a substantive rebuttal nor
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`any countervailing expert testimony. With an unopposed expert, Mylan’s arguments
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`on the “preliminary record” are particularly strong. Apotex Inc. v. UCB Biopharma
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`SPRL, IPR2019-00400 (Paper 17) at 18-19 (PTAB July 15, 2019) (noting unopposed
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`expert testimony at the preliminary stage). The factor favor institution.
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`Other Considerations (Fintiv, 16) – Merck is trying to antedate certain art
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`for a subset of the grounds. POPR, 34. The USPTO’s Examiners regularly deal
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`with antedating issues, and by extension, the PTAB since it handles Examiner
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`appeals. Paper 13 at 7 (citing PTAB cases). Given this familiarity, the PTAB is
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`particularly well-suited to resolve these issues.
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`IPR2020-00040
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`U.S. Patent No. 7,326,708
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`RESPECTFULLY SUBMITTED,
`
`Katten Muchin Rosenman LLP
`
`Date: April 14, 2020
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`/Alissa M. Pacchioli/
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`Alissa M. Pacchioli (Reg. No. 74,252)
`
`Counsel for Petitioner
`Mylan Pharmaceuticals Inc.
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`IPR2020-00040
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`U.S. Patent No. 7,326,708
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`CERTIFICATION OF SERVICE ON PATENT OWNER
`Pursuant to 37 C.F.R. §§ 42.6(e), 42.8(b)(4), and 42.105, the undersigned
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`certifies that on April 14, 2020, a complete copy of the foregoing Paper was served
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`via email to the Patent Owner’s counsel at:
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`sfisher@wc.com
`jberniker@wc.com
`smahaffy@wc.com
`asheh@wc.com
`bgenderson@wc.com
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`Respectfully submitted,
`Katten Muchin Rosenman LLP
`By: /Alissa M. Pacchioli/
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