The St. Regis Mohawk Tribe and Restasis patent

Last updated
Location of the St. Regis Mohawk Tribe St. Regis Mohawk Tribe Territroy.jpg
Location of the St. Regis Mohawk Tribe
Allergan Headquarters in Irvine, CA Allergan headquarters.jpg
Allergan Headquarters in Irvine, CA

Saint Regis Mohawk Tribe v. Mylan Pharms. Inc., 896 F.3d 1322 (Fed. Cir. 2018) is a United States Patent case, decided by the CAFC, deciding whether or not indigenous tribes' sovereign immunity extended to patent lawsuits. In September 2017, the American pharmaceutical company Allergan agreed to transfer six pharmaceutical patents for the ophthalmic form of the drug Restasis to the St. Regis tribe of the Mohawk people. [1] At the time, the St. Regis tribe viewed this blockbuster deal as a new, viable supply of income outside of their primary source, the gambling industry. [2] Following the deal, Allergan received an onslaught of criticism from outside companies and politicians such as Rep. Trey Gowdy, chairman of the Committee on Oversight and Government Reform, who said that the deal, "'impair[s] competition across the pharmaceutical industry.'" [1]

Contents

Case details

In 2017, Texas intellectual property lawyer Michael Shore established that the principle of sovereign immunity applied to Inter partes review, which gives sovereign entities legal immunity to administrative patent challenges in front of the patent trial and appeal board (PTAB). [3] Following this development, the Saint Regis Mohawk Tribe made the decision to reach out to Allergan, whose patents covering Restasis were the subject of both a federal district court lawsuit and 18 pending inter partes review proceedings in front of PTAB, regarding a patent-transfer deal. [1] On September 8, 2017, the St. Regis Mohawk Tribe and Allergan executed a deal that officially transferred patent ownership to the tribe. [4] The agreement guaranteed that Allergan has license to the patents at an annual royalty rate of $15 million per year in addition to an up-front charge that amounted to $13.75 million. [5] This was a landmark deal, as never before had a Native American tribe been given full ownership of a patent by way of a major American corporation.

Soon after the deal was struck between Allergan and the St. Regis Mohawk Tribe, several generic drug companies began the process of filing cases against Allergan regarding the deal. [6] The generic drug companies challenged both the validity of the Restasis patents and the St. Regis Mohawk Tribe's ability to protect the patents with sovereign immunity. [7] A court hearing was arranged and held on February 23, 2018 to decide the fate of the deal.

Case verdict

On February 23, 2018, the U.S. Patent and Trademark Office deemed the Restasis patents invalid and rejected the St Regis Tribe's ability to use sovereign immunity to protect the Restais patents. Following the announcement, both Allergan and the St. Regis Mohawk Tribe appealed the ruling. [8] PTAB defended their decision by arguing the exclusive licenses sold back to Allergan were so significant that the Saint Regis Mohawk Tribe was essentially giving ownership back. Despite how Allergan and the Saint Regis Mohawk Tribe characterized the sale of the patents, PTAB deemed Allergan as the creator of the patent and therefore the primary owner which invalidated any sovereign immunity the Saint Regis Mohawk Tribe had over Restasis patents. [9] [10] The nullifying of the patent deal between Allergan and the St. Regis Mohawk Tribe effectively closed a loophole in the Hatch-Waxman Act that could have been opened by the deal. [11] The Hatch-Waxman Act prevents pharmaceutical companies from having exclusive rights to a particular drug. The act allows and makes it easier for generic versions of drugs to be made, preventing unaffordable drug prices. If the deal was passed, other pharmaceutical companies could have exploited the loophole and partnered with other sovereign entities such as tribes or state universities in order to maintain exclusivity to drug patents. [12] With this exploitation of the Hatch-Waxman Act, generic medication would not be able to hit the market. Since branded drugs usually lose more than 40% of their value when generic counterparts hit the market, [13] this deal likely would have led to an increase in drug prices across the pharmaceutical industry.

Aftermath

Following the court hearing, Allergan and the St. Regis Mohawk Tribe referenced the Collateral Order Doctrine in court to appeal the case verdict prior to a final decision. A stay (a pause in legal proceedings) was placed on the review of the Restasis patents by PTAB. The stay was granted to Allergan and the St. Regis Mohawk Tribe immediately after the court appeal on the application of sovereign immunity to the Restasis patents. The appeals court heard oral arguments for the protection of the Restasis patents. [14] The Supreme Court issued a final verdict in the case in April 2019 that the Restasis patents cannot have sovereign protection from IPR. [15] It is expected that generic versions of the Restasis drug will hit the market. Wall Street analyst Ronny Gal predicts that the Restasis drug "will lose half its revenue this year". [16]

Related Research Articles

<span class="mw-page-title-main">St. Regis Mohawk Reservation</span> Indian reservation in New York, US

<span class="mw-page-title-main">Generic drug</span> Pharmaceutical equivalent to a brand-name product

A generic drug is a pharmaceutical drug that contains the same chemical substance as a drug that was originally protected by chemical patents. Generic drugs are allowed for sale after the patents on the original drugs expire. Because the active chemical substance is the same, the medical profile of generics is equivalent in performance. A generic drug has the same active pharmaceutical ingredient (API) as the original, but it may differ in some characteristics such as the manufacturing process, formulation, excipients, color, taste, and packaging.

<span class="mw-page-title-main">Warner Chilcott</span> American pharmaceutical company

Warner Chilcott was a company in the pharmaceutical industry based in Rockaway, New Jersey. It was primarily focused on women's healthcare and dermatology. On October 1, 2013, the company was acquired by Actavis.

<span class="mw-page-title-main">Research exemption</span>

In patent law, the research exemption or safe harbor exemption is an exemption to the rights conferred by patents, which is especially relevant to drugs. According to this exemption, despite the patent rights, performing research and tests for preparing regulatory approval, for instance by the FDA in the United States, does not constitute infringement for a limited term before the end of patent term. This exemption allows generic manufacturers to prepare generic drugs in advance of the patent expiration.

Mylan N.V. was a global generic and specialty pharmaceuticals company. In November 2020, Mylan merged with Upjohn, Pfizer's off-patent medicine division, to form Viatris. Previously, the company was domiciled in the Netherlands, with principal executive offices in Hatfield, Hertfordshire, UK and a "Global Center" in Canonsburg, Pennsylvania, US.

Test data exclusivity refers to protection of clinical trial data required to be submitted to a regulatory agency to prove safety and efficacy of a new drug, and prevention of generic drug manufacturers from relying on this data in their own applications. It provides a form of market exclusivity outside that provided by patent rights.

Kaye Scholer was a law firm founded in 1917 by Benjamin Kaye and Jacob Scholer. The firm had more than 450 attorneys in nine offices located in the cities of Chicago, Frankfurt, London, Los Angeles, New York City (headquarters), Shanghai, Palo Alto, Washington, D.C., and West Palm Beach.

<span class="mw-page-title-main">Drug Price Competition and Patent Term Restoration Act</span> US law

The Drug Price Competition and Patent Term Restoration Act, informally known as the Hatch-Waxman Act, is a 1984 United States federal law that established the modern system of generic drug regulation in the United States. The Act's two main goals are to facilitate entry of generic drugs into the market and to compensate the original drug developers for regulatory delays by the Food and Drug Administration. It is generally believed that the Act accomplished both goals: encouraging development of new medications and accelerating market entry of generics.

<span class="mw-page-title-main">Teva Pharmaceuticals</span> Israeli pharmaceutical company

Teva Pharmaceutical Industries Ltd. is an Israeli multinational pharmaceutical company with headquarters in Tel Aviv, Israel. It specializes primarily in generic drugs, but other business interests include active pharmaceutical ingredients and, to a lesser extent, proprietary pharmaceuticals. Teva Pharmaceuticals was the largest generic drug manufacturer, when it was surpassed briefly by US-based Pfizer. Teva regained its market leader position once Pfizer spun off its generic drug division in a merger with Mylan, forming the new company Viatris at the end of 2020. Overall, Teva is the 18th largest pharmaceutical company in the world.

<span class="mw-page-title-main">Actavis</span> Global pharmaceutical company

Actavis Generics is a global pharmaceutical company focused on acquiring, developing, manufacturing and marketing branded pharmaceuticals, generic and over-the-counter medicines, and biologic products. Actavis has a commercial presence across approximately 100 countries. The company has global headquarters in Dublin, Ireland and administrative headquarters in Parsippany-Troy Hills, New Jersey, United States.

Roche Products, Inc. v. Bolar Pharmaceutical Co., 733 F.2d 858, was a court case in the United States related to the manufacturing of generic pharmaceuticals.

Evergreening is any of various legal, business, and technological strategies by which producers extend the lifetime of their patents that are about to expire in order to retain revenues from them. Often the practice includes taking out new patents, or by buying out or frustrating competitors, for longer periods of time than would normally be permissible under the law. Robin Feldman, a law professor at UC Law SF and a leading researcher in intellectual property and patents, defines evergreening as "artificially extending the life of a patent or other exclusivity by obtaining additional protections to extend the monopoly period."

Reverse payment patent settlements, also known as "pay-for-delay" agreements, are a type of agreement that has been used to settle pharmaceutical patent infringement litigation, in which the company that has brought the suit agrees to pay the company it sued. That is, the patent holder pays the alleged infringer to stop its alleged infringing activity for some period of time and to stop disputing the validity of the patent. These agreements are distinct from most patent settlements, which usually involve the alleged infringer paying the patent holder.

AbbVie Inc. is an American pharmaceutical company headquartered in North Chicago, Illinois. It is ranked 6th on the list of largest biomedical companies by revenue. The company's primary product is Humira (adalimumab), administered via injection. It is approved to treat autoimmune diseases including rheumatoid arthritis, Crohn's disease, plaque psoriasis, and ulcerative colitis.

FTC v. Actavis, Inc., 570 U.S. 136 (2013), was a United States Supreme Court decision in which the Court held that the FTC could make an antitrust challenge under the rule of reason against a so-called pay-for-delay agreement, also referred to as a reverse payment patent settlement. Such an agreement is one in which a drug patentee pays another company, ordinarily a generic drug manufacturer, to stay out of the market, thus avoiding generic competition and a challenge to patent validity. The FTC sought to establish a rule that such agreements were presumptively illegal, but the Court ruled only that the FTC could bring a case under more general antitrust principles permitting a defendant to assert justifications for its actions under the rule of reason.

The Patent Trial and Appeal Board (PTAB) is an administrative law body of the United States Patent and Trademark Office (USPTO) which decides issues of patentability. It was formed on September 16, 2012, as one part of the America Invents Act. Prior to its formation, the main judicial body in the USPTO was the Board of Patent Appeals and Interferences (BPAI).

Mutual Pharmaceutical Co. v. Bartlett, 570 U.S. 472 (2013), is a decision by the Supreme Court of the United States holding that generic drug manufactures cannot be held liable under state law for not adequately labeling medication when federal law prohibits them from changing the label from the original brand name drug.

An inter partes review (IPR) is a procedure for challenging the validity of a United States patent before the United States Patent and Trademark Office.

Allergan plc is an American, Irish-domiciled pharmaceutical company that acquires, develops, manufactures and markets brand name drugs and medical devices in the areas of medical aesthetics, eye care, central nervous system, and gastroenterology. The company is the maker of Botox.

Oil States Energy Services, LLC v. Greene's Energy Group, LLC, 584 U.S. ___ (2018), was a United States Supreme Court case in which the Court held that the inter partes review process granted by Congress to the United States Patent and Trademark Office for challenging the validity of patents, rather than a jury trial, is constitutional and did not violate either Article III of the Constitution nor the Seventh Amendment.

References

  1. 1 2 3 Tirrell, Meg (2017-10-03). "Allergan responds to mounting criticism of Mohawk patent deal". CNBC. Retrieved 2018-03-04.
  2. "Casinos Aren't Enough as Native Tribe Makes Deal on Drug Patents". Bloomberg.com. 2017-09-09. Retrieved 2018-04-15.
  3. Davidson, Adam (2017-11-13). "Why Is Allergan Partnering with the St. Regis Mohawk Tribe?". The New Yorker. ISSN   0028-792X . Retrieved 2018-03-04.
  4. plc, Allergan. "Allergan and Saint Regis Mohawk Tribe Announce Agreements Regarding RESTASIS® Patents". www.prnewswire.com (Press release). Retrieved 2018-03-04.
  5. "One of Allergan's blockbuster drugs was dealt a major legal blow". Business Insider. Retrieved 2018-04-17.
  6. "Allergan Patent Deal Is No Sham, Tribe Tells PTAB - Law360". www.law360.com. Retrieved 2018-04-17.
  7. "5 Sens. Introduce Bill To Bar Tribal Immunity Deals At PTAB - Law360". www.law360.com. Retrieved 2018-04-15.
  8. "Allergan, Tribe to Appeal Patent Office Immunity Rejection". www.bna.com. Retrieved 2018-03-05.
  9. "Allergan, Tribe Rush To Appeal PTAB Decision To Review IP - Law360". www.law360.com. Retrieved 2018-04-15.
  10. Webb, Patterson Belknap; Engelhardt, Tyler LLP-Jordan; Schwartz, Rachel S. (9 March 2018). "PTAB Holds Indian Tribes Don't Offer an Out from IPR | Lexology" . Retrieved 2018-04-12.
  11. "Patents for Restasis are Invalidated, Questions About Allergan-Tribe Patent Deal Linger". 2017-12-03. Retrieved 2018-04-17.
  12. "Hatch-Waxman Act Keeps Generic Drugs Off the Market". OncLive. Retrieved 2018-04-17.
  13. "How the Hatch-Waxman Act Changed the Playing Field for Generic Drugs". Verywell Health. Retrieved 2018-03-23.
  14. "Fed. Circ. Pauses PTAB Review Of Restasis Patents - Law360". www.law360.com. Retrieved 2018-04-15.
  15. "U.S. Supreme Court rejects Allergan bid to use tribe to shield drug patents - Reuters". www.reuters.com. 15 April 2019. Retrieved 2021-03-01.
  16. "Allergan was blasted for its unusual Mohawk patent license, and now it's a total flop | FiercePharma". www.fiercepharma.com. 26 February 2018. Retrieved 2018-04-15.