Generic Biologic Applicant Not Required to Disclose License Application: Federal Circuit | Practical Law

Generic Biologic Applicant Not Required to Disclose License Application: Federal Circuit | Practical Law

In Amgen Inc. v. Sandoz Inc., the US Court of Appeals for the Federal Circuit affirmed the district court's decision that a biosimilar applicant under the Biologics Price Competition and Innovation Act of 2009 (BPCIA) is not required to disclose its abbreviated biologics license application and manufacturing information to the reference product sponsor within 20 days after the applicant is notified that the FDA has accepted the application for review.

Generic Biologic Applicant Not Required to Disclose License Application: Federal Circuit

by Practical Law Intellectual Property & Technology
Published on 23 Jul 2015USA (National/Federal)
In Amgen Inc. v. Sandoz Inc., the US Court of Appeals for the Federal Circuit affirmed the district court's decision that a biosimilar applicant under the Biologics Price Competition and Innovation Act of 2009 (BPCIA) is not required to disclose its abbreviated biologics license application and manufacturing information to the reference product sponsor within 20 days after the applicant is notified that the FDA has accepted the application for review.
On July 21, 2015, in Amgen Inc. v. Sandoz Inc., the US Court of Appeals for the Federal Circuit affirmed in part, and vacated and remanded in part, the US District Court for the Northern District of California's decision (No. 2015-1499, (Fed. Cir. July 21, 2015)). The Federal Circuit agreed with the district court that a biosimilar applicant under the Biologics Price Competition and Innovation Act of 2009 (BPCIA) is not required to disclose its abbreviated biologics license application (aBLA) and manufacturing information to the reference product sponsor (RPS) within 20 days of the FDA's acceptance of the aBLA. The Federal Circuit's decision allows biosimilar applicants to avoid the "patent dance" contemplated by the BPCIA, a strategy used by several aBLA applicants in recent litigations.
The case involved Neupogen, a biologic filgrastim product that Amgen Inc. has marketed since 1991. In May 2014, Sandoz Inc. filed an aBLA for a biosimilar product that would compete with Neupogen, as provided for by 42 U.S.C § 262(k). In July 2014, the FDA accepted Sandoz's aBLA for review and Sandoz immediately notified Amgen that:
  • It had filed an aBLA referencing Neupogen.
  • The aBLA would likely be approved in the first or second quarter of 2015.
  • Sandoz intended to launch its biosimilar product immediately after receiving FDA approval.
Shortly thereafter, Sandoz refused to provide Amgen with Sandoz's aBLA and manufacturing information for its product. When the FDA approved Sandoz's aBLA on March 6, 2015, Sandoz gave Amgen further notice of Sandoz's intent to launch its biosimilar product.
In October 2014, Amgen sued Sandoz, asserting claims of:
  • Unfair competition for unlawful business practices under California state law based on two alleged violations of the BPCIA. Amgen claimed that Sandoz violated the BPCIA by:
    • failing to disclose its aBLA and manufacturing information to Amgen within 20 days after receiving notification of the FDA's acceptance of the aBLA, as required by 42 U.S.C § 262(l)(2)(A); and
    • providing a premature and ineffective notice of commercial marketing under 42 U.S.C § 262(l)(8)(A) because the notice was sent before the FDA approved Sandoz's biosimilar product.
  • Conversion for alleged wrongful use of Amgen's approved license on Neupogen.
  • Infringement of Amgen's US Patent No. 6,162,427 ('427 patent), which covers a method of using filgrastim.
In response, Sandoz counterclaimed for a declaratory judgment that its actions were permitted under the BPCIA and that the '427 patent was invalid and not infringed. In January 2015, the parties filed cross-motions for judgment on the pleadings and Amgen also filed a motion for a preliminary injunction to enjoin Sandoz from launching its biosimilar product until after FDA approval.
The district court granted partial judgment to Sandoz on its BPCIA counterclaims and dismissed Amgen's state law claims, concluding that Sandoz did not violate the BPCIA. The district court found that:
  • The BPCIA supported Sandoz's decision not to disclose its aBLA and manufacturing information, subject to 42 U.S.C § 262(l)(9)(C), which permits a RPS (such as Amgen) to sue an aBLA applicant (such as Sandoz) who refuses to disclose its biosimilar application and manufacturing information within 20 days after the FDA's acceptance of the aBLA.
  • Sandoz's refusal to provide its aBLA and manufacturing information does not provide a basis to award Amgen injunctive relief or damages.
  • An aBLA applicant may give notice of its intended commercial marketing of the generic biologic before the FDA approves the aBLA.
On appeal, the Federal Circuit affirmed the district court's holding regarding Sandoz's failure to disclose its aBLA and manufacturing information, explaining that the BPCIA expressly contemplates the scenario where an aBLA applicant refuses to provide this information within 20 days after receiving notice of the FDA's acceptance of the aBLA. Specifically, under 42 U.S.C § 262(l)(9)(C), the only remedies under the BPCIA are those based on a claim of patent infringement when an aBLA applicant refuses to provide this information within the deadline.
With respect to Sandoz's notice of commercial marketing, the Federal Circuit reversed the district court, holding that the FDA must approve the aBLA in question before the aBLA applicant can provide effective notice of its intent to commercially market the generic biologic product (see 42 U.S.C § 262(l)(8)(A)). The court supported its interpretation by noting that the purpose of the notice requirement is to give the RPS time to assess and act upon its patent rights. Accordingly, the court held that:
  • Sandoz's July 2014 notification to Amgen did not constitute an effective notice of commercial marketing because the FDA had not approved the aBLA on this date.
  • Sandoz provided effective notice on March 6, 2015, and therefore cannot market its generic product until 180 days after that date (September 2, 2015).
The Federal Circuit also affirmed the dismissal of Amgen's conversion claims and deemed its motion for preliminary injunction moot. Amgen's infringement claims are still pending in district court at the time of the Federal Circuit's decision.
Judges Newman and Chen issued separate opinions concurring in part and dissenting in part. Judge Newman would have held that the BPCIA requires Sandoz to disclose its aBLA and manufacturing information within 20 days of the FDA's acceptance of Sandoz's aBLA. Judge Chen would have held that the 180 day notice of commercial marketing requirement is inapplicable when an aBLA application refuses to provide the application and manufacturing information within 20 days after the FDA's acceptance of the application.