throbber
UNITED STATES PATENT AND TRADEMARK OFFICE
`
`———————
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`———————
`
`ETON PHARMACEUTICALS, INC.,
`
`Petitioner
`
`v.
`
`EXELA PHARMA SCIENCES, LLC,
`
`Patent Owner
`
`———————
`
`U.S. PATENT NO. 10,478,453
`
`PGR2020-00064
`
`PETITIONER’S REQUEST FOR REHEARING
`
`
`
`
`
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`I.
`
`II.
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`TABLE OF CONTENTS
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`
`Page
`
`INTRODUCTION .......................................................................................... 1
`
`BASIS FOR REHEARING ............................................................................ 1
`
`A.
`
`The Petition Demonstrates The POSITA Would Have Had A
`
`Reasonable Expectation Of Success In Achieving The Claimed
`
`Aluminum Levels ................................................................................. 1
`
`B.
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`The Petition Meets The Particularity Requirement .............................. 8
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`III. CONCLUSION ............................................................................................. 14
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`
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`
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`Cases
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`TABLE OF AUTHORITIES
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` Page
`
`Blue Coat Systems, Inc. v. Finjan, Inc.,
`IPR2016-01444, Paper 11 (P.T.A.B. July 18, 2017) ............................................ 1
`
`Google Inc. v. Koninklijke Philips N.V.,
`Case IPR2017-00447, Paper 7 (P.T.A.B. June 8, 2017), aff’d, 948
`F.3d 1330 (Fed. Cir. 2020) ................................................................................. 10
`
`Other Authorities
`
`37 C.F.R. § 42.71(c) ................................................................................................... 1
`
`37 C.F.R. § 42.71(d) .................................................................................................. 1
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`ii
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`I.
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`INTRODUCTION
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`Pursuant to 37 C.F.R. § 42.71(d), Petitioner requests rehearing of the Board’s
`
`decision denying post grant review entered November 18, 2020 (Paper 12,
`
`hereinafter “Decision”).
`
`II. BASIS FOR REHEARING
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`A request for rehearing “must specifically identify all matters the party
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`believes the Board misapprehended or overlooked, and the place where each such
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`matter was previously addressed in a motion, opposition, or reply.” 37 C.F.R. §
`
`42.71(d). The Board will review the decision for an abuse of discretion. 37 C.F.R.
`
`§ 42.71(c). An abuse of discretion results from an erroneous interpretation of law,
`
`a factual finding that is not supported by substantial evidence, or if the decision
`
`represents an unreasonable judgment in weighing the relevant evidence. Blue Coat
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`Systems, Inc. v. Finjan, Inc., IPR2016-01444, Paper 11 at 2 (P.T.A.B. July 18, 2017).
`
`A.
`
`The Petition Demonstrates The POSITA Would Have Had A
`Reasonable Expectation Of Success In Achieving The Claimed
`Aluminum Levels
`
`
`
`The claimed aluminum levels were not new. As the Petition1 demonstrates,
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`numerous batches of the Sandoz product manufactured by Allergy Labs prior to the
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`1 The term “Petition” also includes the Rabinow Declaration, Johnson Declaration
`
`and the prior art cited therein.
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`1
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`alleged invention contained aluminum within the claimed ranges shortly after
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`manufacture (i.e., at product release) without Allergy even taking affirmative steps
`
`to control aluminum levels; namely, 17 ppb, 61 ppb, 37 ppb, 18 ppb, 50 ppb, 54 ppb,
`
`46 ppb, 47 ppb, 48 ppb, and 43 ppb. (Pet., p. 41; Ex. 1022, Ex. B (pp. 103-112), and
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`Ex. C (pp. 113-123).)2 Post-release, aluminum was known to leach into the Sandoz
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`product from the glass vials in which the Sandoz product was stored, and could rise
`
`to several hundred ppb by the product’s two-year expiration date (Ex. 1022, ¶ 15)3,
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`which was at the lower end of the “[c]ontains no more than 5,000 [ppb] of
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`aluminum” disclosed on the Sandoz Label. The POSITA motivated to reduce
`
`aluminum would have reasonably expected that an optimized Sandoz Label product
`
`would achieve and maintain low aluminum levels (as claimed) for long periods of
`
`time by simply removing the known sources of aluminum contamination.
`
`
`
`As the Petition explains, the POSITA would have known that the potential
`
`sources of aluminum contamination in the Sandoz Label product included (1) the
`
`drug product starting ingredients, (2) the manufacturing process, and/or (3)
`
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`2 The Sandoz product attributes are included within the knowledge of the POSITA.
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`(Paper 9, Pet. Reply, p. 2, n.4; Pet., p. 41.)
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`3 The Decision “accepts the disclosures for the matter asserted in the Johnson
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`declaration (Ex. 1022).” (Paper 12, p. 21, n.11.)
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`2
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`aluminum leaching from glass vials in which the Sandoz Label product was stored.
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`By eliminating these known sources of aluminum, the POSITA would have had a
`
`reasonable expectation that the Sandoz Label product could be optimized to
`
`substantially eliminate aluminum to the claimed levels over its projected shelf-life.
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`(Pet., pp. 37-38, 40-43.)4 The POSITA would have optimized the Sandoz Label
`
`product in this manner by following these simple and straightforward steps: (1) using
`
`starting ingredients substantially free of aluminum, (2) ensuring that the
`
`manufacturing process did not contaminate the drug product with aluminum, and (3)
`
`storing the optimized Sandoz Label product in a container that substantially prevents
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`aluminum from leaching into the drug product post-manufacture, such as the Schott
`
`coated glass vials. (Id., pp. 38-39, 40-43, 46.)5 Respectfully, the Decision overlooks
`
`
`4 The challenged claims require a “stable” composition. The specification explains
`
`that a “stable” composition is one that has the claimed aluminum levels when
`
`administered in a clinical setting, which can occur, three months post-manufacture
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`(Pet., p. 25), and likely sooner.
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`5 The Schott coated glass vials (aka Schott Type I Plus® vials) were known to
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`substantially eliminate glass leachables including aluminum. (Ex. 1003, ¶¶ 56-60;
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`Ex. 1014 at 7-8 (explaining that the Schott coated glass vials include an inner surface
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`coated with “an ultrathin film of silicon dioxide [that] forms a highly efficient
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`3
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`the dispositive impact of this critical knowledge possessed by the POSITA, which is
`
`unrebutted and demonstrate more than a reasonable expectation of success.6
`
`
`diffusion barrier that practically eliminates glass leachables”); Ex. 1048 at 21, 12:20-
`
`39 (the Schott coated glass vials substantially prevent aluminum leachables in an
`
`Ibuprofen Lysine solution) see also Tables 16-18 (aluminum below 9 ppb in
`
`solutions stored in the Schott coated glass vials after 9 months storage).)
`
`6 Citing to Bohrer (Ex. 1012), which published in 2003, the Decision criticizes the
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`Petition for failing to explain why a POSITA would have optimized cystine levels
`
`to “reduce aluminum concentrations.” (Paper 12, p. 16.) That criticism,
`
`respectfully, is misplaced. The short answer is that, by the time of the alleged
`
`invention, the POSITA would not have been concerned about cystine levels for
`
`purposes of controlling aluminum levels. (Paper 9, Pet. Reply, pp. 4-5, n.8.) Bohrer
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`addresses the role of cystine and cysteine (and other amino acids) in causing
`
`aluminum to leach from uncoated glass vials. By the time of the alleged invention
`
`in January 2019, however, the POSITA would have packaged the Sandoz Label
`
`product in Schott coated glass vials, which were known to substantially prevent
`
`aluminum from leaching into the drug product (a teaching overlooked by the
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`Decision). (Pet., pp. 41-42, 45-46.)
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`
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`4
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`The Decision’s conclusion that the Petitioner allegedly failed to demonstrate
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`a reasonable expectation of success is predicated on the Board’s finding that the
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`Sandoz Label’s disclosure of “[c]ontains no more than 5,000 ppb” aluminum
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`purportedly does not overlap with the 1-250 ppb range set forth in claim 1 of the
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`’453 patent. (See Paper 12, pp. 21-22 (“[b]ecause we do not find that the product
`
`described in the Sandoz Label discloses a range for aluminum from 0 ppb to 5,000
`
`ppb, we are not persuaded by Petitioner’s position that there is a reasonable
`
`expectation that routine optimization would lead to aluminum concentrations as
`
`recited in claim 1 of the ’453 patent based on optimizing overlapping ranges.”)
`
`(emphasis added).) The Decision’s conclusion, however, (1) misapprehends the
`
`Petitioner’s reasonable expectation of success assertions (which do not depend
`
`exclusively on or require overlapping ranges but instead also assert that the claimed
`
`ranges are the expected result of eliminating the art-recognized sources of aluminum
`
`contamination) and (2) overlooks the unrebutted evidence that demonstrates that the
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`ranges do in fact overlap.
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`With respect to Petitioner’s first point, regardless of how the Sandoz Label is
`
`interpreted, the Petition nevertheless demonstrates a reasonable expectation of
`
`success. As the Decision acknowledges, the POSITA would have been motivated
`
`to “lower aluminum contamination in total parenteral nutritional solutions . . . to
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`avoid aluminum toxicity.” (Paper 12, p. 18.) And, as the Petition explains, the
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`POSITA motivated to reduce aluminum contamination would have optimized the
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`Sandoz Label product by simply eliminating
`
`the sources of aluminum
`
`contamination. (Pet., pp. 37-38, 40-42, 45-46.) By eliminating the sources of
`
`aluminum, the POSITA—quite logically, and as explained in the Petition—would
`
`have had a reasonable expectation of substantially eliminating aluminum from the
`
`product during its projected shelf-life, regardless of how the “no more than 5,000
`
`[ppb]” on the Sandoz Label were interpreted.7
`
`Turning to Petitioner’s second point, the Board, respectfully, abused its
`
`discretion in finding that the Sandoz Label’s disclosure of “contains no more than
`
`5,000 [ppb] of aluminum” does not overlap with (or encompass) the 1-250 ppb
`
`aluminum range recited in claim 1 of the ’453 patent. In reaching this conclusion,
`
`the Decision opted to accept the PO’s assertion that the POSITA would have
`
`understood the not more than 5,000 ppb disclosure to be at the “upper end of the
`
`
`7 Although the Petition also asserts prima facie obviousness based upon overlapping
`
`ranges (Pet., pp. 44-45), neither the motivation for preventing aluminum nor the
`
`reasonable expectation of success are predicated on overlapping ranges. As the
`
`Decision implicitly recognizes, the Petition establishes that the POSITA would have
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`been motivated to reduce aluminum, regardless of how the Sandoz Label is
`
`interpreted.
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`6
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`aluminum concentration that is expected in the [Sandoz Label] product” but leaves
`
`unanswered what the POSITA would have understood the lower end to be, instead
`
`noting that “zero” purportedly is not a reasonable starting point, because the “Sandoz
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`product even right after manufacture contains measurable aluminum.” (Paper 12, p.
`
`21.) The Board’s analysis suffers from two fundamental misapprehensions of the
`
`record. First, it conflates the Sandoz product with the Sandoz Label. As Petitioner’s
`
`expert (Dr. Rabinow) testified, the POSITA would have interpreted the Sandoz
`
`Label to disclose an aluminum concentration “falling somewhere within the range
`
`of 0 ppb to 5,000 ppb” (i.e., 5,000 ppb aluminum or less) and that the claim 1 range
`
`of from about 1-250 ppb aluminum is within the lower end of the not more than
`
`5,000 ppb range disclosed by the Sandoz Label (Ex. 1003, ¶¶ 32, 98; Pet., p. 27, 44-
`
`45.) That testimony is unrebutted.8 Second, not only do the aluminum levels in the
`
`
`8 PO’s expert merely testified that a pharmacist “calculating the potential aluminum
`
`exposure . . . would use the 5,000 [ppb] aluminum concentration to do so.” (Ex.
`
`2001, ¶¶ 21-23.) But that does not address let alone rebut Dr. Rabinow’s testimony
`
`that the POSITA (who has qualifications beyond those of a pharmacist) would have
`
`understood from the Sandoz Label that the aluminum content was somewhere within
`
`the range extending from 0 to 5,000 ppb, depending on the age of the product. (Paper
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`9, Pet. Reply, p. 2, n.3.)
`
`7
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`Sandoz product manufactured by Allergy Labs overlap with the claimed aluminum
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`ranges, but also they corroborate the reasonableness of Dr. Rabinow’s interpretation
`
`of the Sandoz Label. On the current record, the aluminum levels shortly after
`
`manufacture (i.e., at product release) were as low as 17 ppb and ranged up to several
`
`hundred ppb after two years of storage (Ex. 1022, ¶ 15), which certainly overlaps
`
`with the 1-250 ppb range set forth in claim 1 of the ’453 patent, as well as with the
`
`other, more narrowly claimed ranges. In short, the aluminum range disclosed by the
`
`Sandoz Label and the actual aluminum levels in the Sandoz product manufactured
`
`by Allergy Labs overlap with the ranges claimed in the ’453 patent.
`
`B.
`
`The Petition Meets The Particularity Requirement
`
`Respectfully, the Board abused its discretion in finding a lack of particularity.
`
`Focusing on asserted Ground 1, the Decision concludes that the Petition is allegedly
`
`unclear about “what aspects” of the cited prior art Petitioner relies upon, which
`
`allegedly leaves the PO (and the Board) “to guess how the references are applied to
`
`each particular ground.” (Paper 12, p. 14.) The Decision, however, misapprehends
`
`the asserted Grounds (which are based upon the Sandoz Label in combination with
`
`the knowledge of the POSITA) and overlooks the particularity with which the
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`Petition identifies and explains how the POSITA would have applied that knowledge
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`to optimize the Sandoz Label product. The Petition provides a detailed roadmap;
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`8
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`there is no guess work required as demonstrated by the POPR, which unconvincingly
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`attacks several of the rationales set forth in the Petition.
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`More specifically, the asserted Grounds are based upon the combination of
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`the Sandoz Label product and the knowledge possessed by the POSITA. (Pet., p.
`
`6.) The Petition identifies with particularity the knowledge possessed by POSITA
`
`with citations to the prior art and explains in detail how the POSITA would have
`
`applied that knowledge to optimize the Sandoz Label product as claimed. For
`
`example, the Petition cites to Yaman, Waterman and Butler (among other prior art
`
`references) to corroborate the knowledge possessed by the POSITA. (See Pet., pp.
`
`27-40 (Sections VIII.B and VIII.C provide a detailed summary of the “Knowledge
`
`of the POSITA”).) As the Petition explains, the POSITA would have readily
`
`understood that removing head space and dissolved oxygen were well-known
`
`techniques for preventing oxidative degradation of oxygen sensitive species such as
`
`L-cysteine. (Id., pp. 29-30, 38-41, 46-49.) The Decision’s criticism that the Petition
`
`fails to expressly identify Yaman, Waterman and Butler in the Grounds
`
`misapprehends the asserted Grounds and conflates these references (which merely
`
`corroborate the knowledge of the POSITA) with the “Knowledge of a POSITA” on
`
`which the asserted Grounds are based. As controlling Federal Circuit precedent
`
`demonstrates, the knowledge of a POSITA may be properly combined with the prior
`
`art (in this case, the Sandoz Label product) to establish obviousness. See e.g.,
`
`9
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`Google Inc. v. Koninklijke Philips N.V., Case IPR2017-00447, Paper 7 at 18
`
`(P.T.A.B. June 8, 2017), aff’d, 948 F.3d 1330, 1337-38 (Fed. Cir. 2020) (Hua
`
`reference, although not included in asserted ground, properly relied on as evidence
`
`of the knowledge of the POSITA in finding claims obvious). The particularity
`
`requirement does not require that the asserted Grounds expressly include the prior
`
`art references that are relied upon to corroborate the POSITA’s knowledge. Id.
`
`Stated differently, the knowledge of a POSITA must be substantiated with evidence,
`
`which Petitioner has done by citing Yaman, Waterman and Butler (and other prior
`
`art). The failure to substantiate the knowledge of a POSITA would result in a lack
`
`of particularity, not the other way around, as the Decision erroneously suggests.
`
`Respectfully, the Board thus abused its discretion in concluding that the Petition
`
`lacks particularity.
`
`
`
`The Decision also mistakenly asserts that the Petitioner’s citation to Yaman,
`
`Waterman and Butler demonstrates reliance on “more than just the knowledge of the
`
`ordinary artisan.” (Paper 12, pp.15-16.) Once again, the Decision misapprehends
`
`the asserted Grounds. As noted above, the Petition relies on these references to
`
`corroborate the knowledge of the POSITA set forth in the asserted Grounds. The
`
`knowledge possessed by the POSITA is not independent of but is instead
`
`corroborated by Yaman, Waterman, Butler, and the other prior art discussed in the
`
`Petition.
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`The Decision also incorrectly concludes that the failure to expressly cite
`
`Yaman, Waterman, and Butler in the asserted Grounds is an attempt to circumvent
`
`the requirement of articulating a rationale for combining these references with the
`
`Sandoz Label with a reasonable expectation of success. (Paper 12, p. 16.) But this
`
`holding also misapprehends the asserted Grounds and overlooks the rationales for
`
`optimizing the Sandoz Label product set forth in the Petition. The asserted Grounds
`
`rely on the knowledge possessed by the POSITA, which is corroborated by Yaman,
`
`Waterman and Butler (as well as other prior art) and the Petition articulates with
`
`particularity how and why the POSITA would have applied that knowledge to
`
`optimize the Sandoz Label product to arrive at the challenged claims. As the Petition
`
`explains, the POSITA would have known that oxygen sensitive drugs such as L-
`
`cysteine are stabilized by removing head space and dissolved oxygen from the drug
`
`product, and that achieving the claimed head space and dissolved oxygen levels was
`
`well within the capabilities of the POSITA. (Pet., pp. 29-30, 38-40, 42-43, 46-47.)
`
`The Petition also articulates why the POSITA, armed with this knowledge, would
`
`have applied these techniques to optimize the Sandoz Label product to prevent
`
`oxidation of L-cysteine, a known oxygen sensitive drug, and why the POSITA would
`
`have reasonably expected that these art-recognized techniques for removing oxygen
`
`would substantially prevent oxidative degradation of L-cysteine to its known
`
`impurities, L-cystine and pyruvic acid. (Id.)
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`Importantly, the Petition does not leave the PO (nor the Board) to guess about
`
`how the POSITA would have applied their knowledge to optimize the Sandoz Label
`
`product. As noted above, the Petition explains that the POSITA would have applied
`
`the known techniques of removing headspace and dissolved oxygen to prevent
`
`oxidation of L-cysteine in the Sandoz Product. (Id.) Similarly, the Petition explains
`
`that the POSITA would have applied the knowledge that aluminum contamination
`
`can be prevented by avoiding the known sources of contamination; namely, starting
`
`materials contaminated with aluminum, a manufacturing process that contaminates
`
`the drug product with aluminum, and a container that leaches aluminum into the drug
`
`product. (Id., pp. 37-38, 40-42, 45-46.) The Petition also explains why the POSITA
`
`would have had a reasonable expectation of success of achieving the claimed
`
`aluminum levels during the projected shelf-life by simply using starting ingredients
`
`substantially free of aluminum, a manufacturing process that does not contaminate
`
`the drug product with aluminum, and packaging the optimized Sandoz Label product
`
`in the Schott coated glass vials, which were known to prevent aluminum from
`
`leaching into the drug product. (Id.)
`
`In short, there is no ambiguity in the Petition, and the PO is on notice of how
`
`the Petition applies the knowledge possessed by the POSITA to optimize the Sandoz
`
`Label product to arrive at the claimed invention. The PO has a full and fair
`
`opportunity to explain why the POSITA either lacks the knowledge alleged in the
`
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`Petition or would not have applied that knowledge in the manner set forth in the
`
`Petition to optimize the Sandoz Label product as claimed with a reasonable
`
`expectation of success.9
`
` Finally, the Decision mistakenly concludes that the Petition “does not
`
`sufficiently explain[] why one of ordinary skill in the art would want to look at
`
`cystine levels” or maintain cystine “within the claimed range.” (Paper 12, p. 17.)
`
`As explained in the Petition, cystine levels reflect the extent to which L-cysteine has
`
`oxidatively degraded to L-cystine, which can form undesirable particulate matter.
`
`(Pet., pp. 38, 42, 46-47.) Minimizing L-cystine is the reasonably expected result of
`
`preventing oxidative degradation of L-cysteine. The Decision overlooks this
`
`evidence. This is not a situation where Petitioner merely disagrees with the Board’s
`
`
`9 The Decision cites Butler’s statement that a nitrogen purge is “a poor method to
`
`preserve solutions containing redox-sensitive species.” (Paper 12, pp. 16-17.) The
`
`PO is certainly free to argue that Butler, when considered in the relevant context,
`
`would have allegedly discouraged the POSITA from applying a nitrogen purge to
`
`the Sandoz Label product. However, Dr. Rabinow’s testimony that the POSITA
`
`would have applied art recognized techniques such as a nitrogen or argon purge to
`
`remove oxygen stands unrebutted. (Ex. 1003, ¶ 49; see also Paper 9, Pet. Reply at
`
`p. 3, n.6.)
`
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`conclusion. Petitioner explained all of this, and more, in its Petition and is merely
`
`pointing out what the Board overlooked and misapprehended.
`
`III. CONCLUSION
`
`
`
`For these reasons, Petitioner respectfully requests rehearing and institution of
`
`trial.
`
`December 18, 2020
`
`
`
`
`
`/s/ Ralph J. Gabric
`
`Ralph J. Gabric (Reg. No 34,167)
`
`HAYNES and BOONE LLP
`2323 Victory Ave. Suite 700
`Dallas, TX 75219
`Tel.: (312) 216-1620
`ralph.gabric.ipr@haynesboone.com
`
`Counsel for Petitioner
`
`
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`CERTIFICATE OF SERVICE
`
`Pursuant to 37 C.F.R. §§ 42.105 and 42.6, I certify I caused a true and correct
`
`copy of the forgoing document on Patent Owner as detailed below.
`
`
`
`Date of service December 18, 2020
`
`Person served Dorothy P. Whelan
`PGR48751-0005PSa@fr.com
`
`Alana Mannige
`PTABInbound@fr.com
`
`
`
`
`
`/s/ Ralph J. Gabric
`Ralph J. Gabric (Reg. No 34,167)
`
`HAYNES AND BOONE LLP
`2323 Victory Ave. Suite 700
`Dallas, TX 75219
`Tel.: (312) 216-1620
`ralph.gabric.ipr@haynesboone.com
`Counsel for Petitioner
`
`
`
`
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