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    [email protected]  Paper 20

    571-272-7822 Entered: 22 March 2016

    UNITED STATES PATENT AND TRADEMARK OFFICE

     __________

    BEFORE THE PATENT TRIAL AND APPEAL BOARD

     __________

    COALITION FOR AFFORDABLE DRUGS V LLC;

    HAYMAN CREDES MASTER FUND, L.P.;

    HAYMAN ORANGE FUND SPC –  PORTFOLIO A;

    HAYMAN CAPITAL MASTER FUND, L.P.;

    HAYMAN CAPITAL MANAGEMENT, L.P.;HAYMAN OFFSHORE MANAGEMENT, INC.;

    HAYMAN INVESTMENTS, LLC;

     NXN PARTNERS, LLC;

    IP NAVIGATION GROUP, LLC;

    J KYLE BASS, and ERICH SPANGENBERG,

    Petitioners,

    v.

    BIOGEN MA INC.,

    Patent Owner.

     __________

    Case IPR2015-01993

    Patent 8,399,514 B2

     __________

    Before FRED E. McKELVEY, SALLY GARDNER LANE, and

    DEBORAH KATZ, Administrative Patent Judges.

    McKELVEY, Administrative Patent Judge.

    DECISION

    Institution of Inter Partes Review

    37 C.F.R. § 42.108

    mailto:[email protected]:[email protected]:[email protected]

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    I. Introduction

    A. BackgroundA second petition seeking to institute an inter partes review in

    connection with U.S. Patent No. 8,399,514 B2 (“ʼ514 patent”) is before the

    Board. Paper 1.

    A first petition seeking to institute an inter partes review was denied.

    Coalition for Affordable Drugs V LLC v. Biogen MA Inc., IPR2015-01136,

    2015 WL 5169256 (Paper 23) (PTAB Sept. 2, 2015), reh’g denied ,

    IPR2015-01136 (Paper 29) (PTAB Oct. 23, 2015).

    The ʼ514 patent is also involved in Biogen MA Inc. v. Forward

     Pharma, Interference 106,023 (PTAB Declared Apr. 13, 2015).

    Patent Owner timely filed a Preliminary Response. Paper 11.

    Petitioner was invited to file a Reply. Paper 13.

    Petitioner timely filed the Reply.1  Paper 17.

    B. The Parties

    Petitioner is:

    (1) Coalition for Affordable Drugs V LLC,

    (2) Hayman Credes Master Fund, L.P.,

    1  The Reply is styled REPLY TO PATENT OWNER’S PRELIMINARY

    RESPONSE IN SUPPORT OF PETITION FOR INTER PARTES REVIEW

    OF U.S. PATENT 8,399,514 UNDER 35 U.S.C. §§ 311-319. In the future

    the style of any paper filed in this IPR shall not exceed one line. A more

    appropriate style would have been REPLY TO PRELIMINARY

    RESPONSE. Use of a single line renders entry of papers into Board data

    records much easier. Failure to adhere to the one-line rule established in this

    IPR may result in a paper being expunged.

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    (3) Hayman Orange Fund SPC –  Portfolio A,

    (4) Hayman Capital Master Fund, L.P.,(5) Hayman Capital Management, L.P.,

    (6) Hayman Offshore Management, Inc.,

    (7) Hayman Investment, LLC,

    (8) NXN Partners, LLC,

    (9) IP Navigation Group, LLC,

    (10) J. Kyle Bass, and

    (11) Erich Spangenberg.

    Paper 1, pages 1 – 2.

    Patent Owner is Biogen MA Inc. Paper 11, page 1.

    C. Abbreviations

    BG00012 or BG12 Dimethyl fumarate

    DMF Dimethyl fumarate

    ICH International Conference on Harmonisation

    MMF Monomethyl fumarate

    MRI Magnetic resonance imaging

    RRMS Relapsing-remitting multiple sclerosis

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    D. Evidence Relied Upon2 

    The following evidence is relied upon in support of the Petition:Name Exhibit

    No.

    Description Date

    Kappos 2006 1003

     Efficacy of a Novel Oral

    Single-Agent Fumarate,

     BG00012, in Patients with

     Relapsing-Remitting Multiple

    Sclerosis: Results of a Phase2 Study, J.  NEUROL (2006) 

    253 (SUPPL 2); II/1 – II/170,

     page II27

    May 2006

    Kappos 2006 is prior art under 35 U.S.C. § 102(b) based on the filing

    date of Biogen’s PCT application (7 February 2008). If Biogen is entitled to

    a benefit date of its Provisional Application (8 February 2007), Kappos 2006

    is prior art under 35 U.S.C. § 102(a).

    Further discussion of Kappos 2006 occurs later in this opinion.

    Clinical Trials 1022

     Double-Blind, Placebo-

    Controlled, Dose-Ranging

    Study to Determine the Effacacy and Safety of

     BG00012 in Subjects with

     Relapsing-Remitting Multiple

    Sclerosis,

    CLINICALTRIALS.GOV

    ARCHIVE 

    14 Sept. 2005

    Clinical Trials is prior art under 35 U.S.C. § 102(b).

    2  Because the application maturing into the ʼ514 patent was filed before

    the enactment of the Leahy-Smith America Invents Act (“AIA”), Pub. L.

     No. 112-29, 125 Stat. 284 (2011), we apply the pre-AIA version of 35 U.S.C.

    §§ 102, 103, 112, and 119.

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    Name Exhibit

    No.

    Description Date

    Joshi ʼ999  1030 U.S. Patent 7,320,999 B2

    22 Jan. 2008

    filed

    17 July 2002

    Joshi ʼ999 is prior art under 35 U.S.C. § 102(a) having issued prior to

    Biogen’s PCT filing date (7 February 2008). If Biogen is entitled to a

     benefit date of its Provisional Application (8 February 2007), then Joshi

    ʼ999 is prior art under 35 U.S.C. § 102(e) based on its filing date (17 July

    2002).

    ICH Guideline 1004 ICH Harmonised TripartiteGuideline, DOSE-R ESPONSE

    I NFORMATION TO SUPPORT

    DRUG R EGISTRATION E4

    10 Mar. 1994

    Joshi ʼ992  1036 U.S. Patent 6,436,992 B1 20 Aug. 2002

    Begleiter 1027

     Dietary Induction of NQOI

     Increases the Antitumour

     Activity of Mitomycin C in

     Human Colon Tumours in

    vivo,

    91 BRITISH J. CANCER 1624 – 

    1631 

    2004

    ICH Guideline, Joshi ʼ992, and Begleiter are prior art under 35 U.S.C.

    § 102(b).

    E. Grounds of Unpatentability

    Claims 1 – 20 appear in the ʼ514 patent. Ex. 1001, col. 27:58 through

    col. 30:27.The following grounds of unpatentability are urged in the Petition.

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    Statutory

    Basis

    Prior Art

    Relied On

    Claims

    Ground 1 § 103(a)

    Kappos 2006

    ClinicalTrials,

    Joshi ʼ999, and

    ICH Guideline

    1 – 6, 8 – 16, and 20

    Ground 2 § 103(a)

    Kappos 2006,

    ClinicalTrials,

    Joshi ʼ999,

    ICH Guideline, and

    Joshi ʼ992 

    7

    Ground 3 § 103(a)

    Kappos 2006,

    ClinicalTrials,

    Joshi ʼ999,

    ICH Guideline and

    Begleiter

    17 – 19

    F. Kappos 2006

    The application maturing into the ʼ514 patent was filed on 

    13 February 2012. Ex. 1001, page 1.

    Biogen claims benefit of Provisional Application 60/888,921, filed

    8 February 2007.

    The Petition has not challenged Patent Owner’s 7 February 2008

    claim to priority based on Patent Owner’s PCT application. Paper 1, page 4.

    The Petition alleges that Patent Owner is not entitled to benefit of its

    Provisional Application based on Patent Owner having not been accorded

     benefit in Interference 106,023.  Id .

    Patent Owner was accorded benefit of its Provisional Application at

    the time Interference 106,023 was declared. Interference 106,023, Paper 1,

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     page 4. There came a time in Interference 106,023 when the Board

    determined that Patent Owner was not entitled to claim benefit of itsProvisional Application filing date of 8 February 2007. Interference

    106,023, Paper 171. Subsequent to the Board’s determination, Biogen was

    authorized to file a motion to revive its abandoned application 12/526,296

    for the purpose of entry of an amendment to make a specific reference to its

    Provisional Application. Interference 106,023, Paper 197. The motion to

    revive was timely filed. Interference 106,023, Paper 122. Upon

    consideration of the motion to revive, the Board ordered that application

    12/526,296 be revived and further ordered that an amendment making a

    specific reference to Biogen’s Provisional Application be entered.

    Interference 106,023, Paper 611. In ordering revival and entry of the

    amendment, the Board did not determine on the merits whether Biogen is

    entitled to the benefit of its Provisional Application 60/888,921 under

    35 U.S.C. § 119(e)(1) — in other words, the Board did not determine in

    Interference 106,023 whether the invention claimed in the ʼ514 patent is

    disclosed in the Provisional Application in the manner required by the first

     paragraph of 35 U.S.C. § 112.

    The prior art date of Kappos 2006 is May of 2006. As noted earlier in

    this opinion, Kappos 2006 is prior art under 35 U.S.C. § 102(b) if Biogen is

    not entitled to benefit of the 7 February 2007 filing date of its ProvisionalApplication. Kappos 2006 is prior art under 35 U.S.C. § 102(a) if Biogen is

    entitled to benefit of the 8 February 2007 filing date of its Provisional

    Application — less than one year after May of 2006.

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    In its Preliminary Response, Patent Owner does not assert that it is

    entitled to benefit of its Provisional Application.At this stage, Kappos 2006 will be treated as prior art under 35 U.S.C.

    § 102(b), without prejudice to Patent Owner establishing its right to a benefit

    date as of the filing date of its Provisional Application. The mere fact that

    Petitioner has not challenged the sufficiency of the PCT application does not

    establish that Patent Owner is entitled to benefit of its Provisional

    Application. There was no need for Petitioner to challenge benefit of the

    PCT because Kappos 2006 is prior art under 35 U.S.C. § 102(b) as to the

    PCT application.

    Should Patent Owner elect to seek benefit of its Provisional

    Application, it is noted that the written description portion of the

    Specification of the ʼ514 patent contains the following: 

    For example, an effective dose of DMF or MMR [sic — 

    MMF] to be administered to a subject orally can be fromabout 0.1 g to 1 g per pay, 200 mg to about 800 mg per

    day (e.g., from about 240 mg to about 720 mg per day; or

     from about 480 mg to about 720 mg per day; or about

    720 mg per day). For example, the 720 mg per day may

     be administered in separate administrations of 2, 3, 4, or

    6 equal doses.

    Ex. 1001, page 24, col. 18:58 – 64 (italics added).

     Atofina v. Great Lakes Chemical Corp., 441 F.3d 991, 1000 (Fed. Cir.

    2006), states that a disclosure of a range of 150 to 350 C does not constitute

    a specific disclosure of the endpoints of that range, i.e., 150ºC and 350º C;

    the disclosure is only that of a range, not a specific temperature in that range

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    and the disclosure of a range is not a disclosure of end points of the range

    any more than it is of each of the intermediate points.Since the description of 480 mg in the ʼ514 patent is an end point, in

    the event Patent Owner elects to seek benefit of its Provisional Application,

    it should address why benefit should be accorded in light of Atofina.

    II. Analysis

    A. Challenge — Claims 1, 11, 15, and 20

    According to Petitioner, claims 1 – 6, 8 – 16, and 20 are unpatentable

    under 35 U.S.C. § 103(a) over a combination of (1) Kappos 2006,

    (2) ClinicalTrials, (3) Joshi ʼ999, and (4) ICH Guideline.

    B. Claims 1, 11, 15, and 20

    The invention can be readily understood by reference to independent

    claims 1, 11, 15, and 20, all reproduced below (indentation added; principal

    limitation in dispute italicized):

    Claim 1

    A method of treating a subject in need of treatment

    for multiple sclerosis comprising

    orally administering to the subject in need thereof

    a pharmaceutical composition consisting essentially of

    (a) a therapeutically effective amount of dimethyl

    fumarate, monomethyl fumarate, or a combination

    thereof, and

    (b) one or more pharmaceutically acceptable

    excipients,

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    wherein the therapeutically effective amount   of

    dimethyl fumarate, monomethyl fumarate, or a

    combination thereof is about 480 mg per day.

    Ex. 1001, col. 27:59 – 67.

    Claim 11

    A method of treating a subject in need of treatment

    for multiple sclerosis consisting essentially of

    orally administering to the subject about 480 mg

     per day of dimethyl fumarate, monomethyl fumarate, or acombination thereof.

    Claim 15

    A method of treating a subject in need of treatment

    for multiple sclerosis comprising

    orally administering to the subject [a] pharma-

    ceutical composition consisting essentially of

    (a) a therapeutically effective amount of dimethyl

    fumarate and

    (b) one or more pharmaceutically acceptable

    excipients,

    wherein the therapeutically effective amount of

    dimethyl fumarate is about 480 mg per day.

    Claim 20

    A method of treating a subject in need of treatment

    for multiple sclerosis comprising

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    treating the subject in need thereof with a

    therapeutically effective amount of dimethyl fumarate,

    monomethyl fumarate, or a combination thereof,

    wherein the therapeutically effective amount of

    dimethyl fumarate, monomethyl fumarate, or a

    combination thereof is about 480 mg per day.

    C. Kappos 2006

    Kappos 2006 is a 27 page document. Ex. 1003. The only relevant

     parts of Kappos 2006 are (1) page 1 of 27 identifying the publication date of

    Kappos 2006 and (2) article number O108 in column 2 of page 27 of 27.

    The remaining parts of Kappos (1) have not been relied upon by

    Petitioner, (2) sua sponte are excluded from evidence, (3) will not be

    considered and (4) are not considered to be part of the record before the

    Board.

    Petitioner is directed to forthwith refile Exhibit 1003 as Exhibit

    1003A containing only pages 1 and 27. Upon filing of Exhibit 1003A,

    Exhibit 1003 will be expunged.

    The relevant description in Kappos 2006 is generally self-explanatory

    and reads as follows (some indentation added):

    Objective: To determine the efficacy of three dose levels

    of BG00012, a novel oral fumarate preparation, on brain

    lesion activity as measured by magnetic resonance

    imaging (MRI) in patients with relapsing-remittingmultiple sclerosis (RRMS).

    Methods: This was a randomised, double-blind,

     placebo-controlled clinical trial of BG00012 in patients

    with RRMS. Men and women 18 to 55 years of age were

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    eligible for the study if they had a diagnosis of RRMS

    and an Expanded Disability Status Scale (EDSS) score

     between 0.0 and 5.0. In addition, patients must have had

    either ≥   1 relapse within 12 months prior to

    randomisation or gadolinium-enhancing (Gd+) lesions on

    cranial MRI at screening. Patients were assigned to four

    treatment groups and received BG00012 capsules 120 mg

     by mouth (PO)

    [1] once daily (120 mg/day),

    [2] 120 mg three times daily (360 mg/day),

    [3] 240 mg three times daily (720 mg/day), or[4] placebo for 24 weeks.

    The treatment period was followed by a 24-week

    dose-blinded safety-extension period during which all

     patients received BG00012. The primary end point was

    the total number of Gd+ lesions over four MRI scans at

    weeks 12, 16, 20, and 24 (calculated as the sum of the

    four scans). Secondary end points included the

    cumulative number of new Gd+ lesions from week 4 to

    week 24 and the number of new/enlarging

    T2-hyperintense lesions at week 24. Additional end

     points included the number of new T1-hypointense

    lesions at week 24, relapse rate, and disability

     progression as measured by EDSS.

    Results: A total of 257 patients were enrolled in

    the study; 64 patients each were randomly assigned to

    receive one of the three BG00012 doses and 65 patients

    to placebo. Approximately 90% of patients completedthe 24-week treatment period. BG00012 (720 mg/day)

    significantly reduced the mean number of new Gd+

    lesions (the primary end point) compared with placebo.

    In addition, BG00012 reduced the cumulative number of

    new Gd+ lesions, the number of new/enlarging

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    T2-hyperintense lesions, and the number of new

    T1-hypointense lesions compared with placebo.

    Conclusion: BG00012 significantly reduces brain

    lesion activity, in a dose-dependent manner, as measured

     by MRI in patients with RRMS over 24 weeks of

    treatment.

    This study was sponsored by Biogen Idec and

    Fumapharm AG.

    Ex. 1003, page 27, col. 2.“BG00012” and “BG12” are designations for dimethyl

    fumarate (also referred to the record as “DMF”). See Linberg

    Testimony, Ex. 1005, ¶ 23, last three lines referring to Ex. 1002,

     page 1 and Ex. 1022, page 1.

    Kappos 2006 differs from the subject matter of claims 1, 11, 15,

    and 20 of the ʼ514 patent in that Kappos 2006 does not explicitly

    describe the use of a therapeutically effective amount of dimethyl

    fumarate that is “about 480 mg per day.” 

    D. Joshi ʼ999 

    Joshi ʼ999 (Ex. 1030) relates to the use of dialkyl fumarates,

    including dimethyl fumarate (col. 6:16 – 17 and 60; col. 8:19), for preparing

     pharmaceutical preparations for use in transplantation medicine or the

    therapy of autoimmune diseases, including multiple sclerosis (col. 1:29;

    col. 4:45; and col. 8:15), and pharmaceutical preparations in the form of

    micro-tablets or micro-pellets containing dialkyl fumarates.

    Joshi ʼ999 claim 1 reads [indentation added]:

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    A method of treating multiple sclerosis comprising

    treating a patient in need of treatment for multiple

    sclerosis

    with an amount of a pharmaceutical preparation

    effective for treating said multiple sclerosis,

    wherein the only active ingredient for the

    treatment of multiple sclerosis present in said

     pharmaceutical preparation is dimethyl fumarate.

    Ex. 1030, col. 8:14 – 19.Claim 2 reads:

    The method of claim 1, wherein 10 to 300 mg of

    dimethyl fumarate is present in said pharmaceutical

     preparation.

    Ex. 1030, col. 8:20 – 22.

    Claim 9 reads:

    The method of claim 1, wherein 120 mg of

    dimethyl fumarate is present in said pharmaceutical

     preparation.

    Ex. 1030, col. 8:38 – 39.

    Claim 18 reads:

    The method of claim 1, wherein the

     pharmaceutical preparation comprises one or more

    excipients.

    Ex. 1030, col. 8:62 – 63.

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    According to Joshi ʼ999:

    The dialkyl fumarates used according to theinvention may be used alone or as a mixture of several

    compounds, optionally in combination with the

    customary carriers and excipients. The amounts to be

    used are selected in such a manner that the preparations

    obtained contain the active ingredient in an amount

    corresponding to 10 to 300 mg of fumaric acid.

     Preferred  preparations according to the invention

    contain a total amount of 10 to 300 mg of dimethyl

    fumarate and/or diethyl fumarate.

    Ex. 1030, col. 4:39 – 48 (italics added).

    Joshi ʼ999 differs from the subject matter of claims 1, 11, 15,

    and 20 of the ʼ514 patent in that Joshi ʼ999 does not describe the use

    of a therapeutically effective amount of dimethyl fumarate that is

    “about 480 mg per day.” 

    E. ICH Guideline

    ICH Guideline (Ex. 1004) describes guidelines for determining

    appropriate dosages of pharmaceutical products.

    ICH means “International Conference on Harmonisation.” 

    According to ICH:

    Knowledge of the relationships among dose, drug-

    concentration in blood, and clinical response

    (effectiveness and undesirable effects) is important forthe safe and effective use of drugs in individual patients.

    This information can help identify an appropriate starting

    dose, the best way to adjust dosage to the needs of a

     particular patient , and a dose beyond which increases

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    would be unlikely to provide added benefit or would

     produce unacceptable side effects. . . .

    Historically, drugs have often been initially

    marketed at what were later recognized as excessive

    doses (i.e., doses well onto the plateau of the dose-

    response curve for the desired effect), sometimes with

    adverse consequences (e.g. hypokalemia and other

    metabolic disturbances with thiazide-type diuretics in

    hypertension). This situation has been improved by

    attempts to find the smallest dose with a discernible

    useful effect or a maximum dose beyond which no furtherbeneficial effects is seen, but practical study designs do

    not exist to allow for precise determination of these doses.

    Further, expanding knowledge indicates that the concepts

    of minimum effective dose and maximum useful dose do

    not adequately account for individual differences and do

    not allow a comparison, at various doses, of both

     beneficial and undesirable effects. Any given dose

     provides a mixture of desirable and undesirable effects,

    with no single dose necessarily optimal for all patients.

    Ex. 1004, page 5 of 14 (italics added).

    Further according to ICH:

    In adjusting the dose in an individual patient   after

    observing the response to an initial dose, what would be

    most helpful is knowledge of the shape of individual

    dose-response curves, which is usually not the same as

    the population (group) average dose-response curve.

    Study designs that allow estimation of individual dose-response curves could therefore be useful in guiding

    titration, although experience with such designs and their

    analysis is very limited.

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    In utilizing dose-response information, it is

    important to identify, to the extent possible, factors that

    lead to differences in pharmacokinetics of drugs amongindividuals, including demographic factors (e.g. age,

     gender, race), other diseases (e.g. renal or hepatic

    failure), diet , concurrent therapies, or individual

    characteristics (e.g. weight , body habitus, other drugs,

    metabolic differences).

    Ex. 1004, page 6 of 14 (italics added).

    “The choice of the size of an individual dose is often

    intertwined with the frequency of dosing.”  Ex. 1004, page 7 of 14.

    ICH teaches that:

    Assessment of dose-response should be an integral

    component of drug development with studies designed to

    assess dose-response an inherent part of establishing the

    safety and effectiveness of the drug.

    Ex. 1004, page 7 of 14; Ex. 1005, ¶ 32.

    Following up on discussion on page 7 of 15, second paragraph, ICH

    further teaches:

    It is all too common to discover, at the end of a

     parallel dose-response study, that all doses were too high

    (on the plateau of the dose-response curve), or that doses

    did not go high enough. A formally planned interim

    analysis (or other multi-stage design) might detect such a

     problem and allow study of the proper dose range.

    Ex. 1004, page 10 of 27; Ex. 1005, ¶ 32.

    Pages 13 of 14 and 14 of 14 describe guidance and advice for

    determining dosages.

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    F. ClinicalTrials

    ClinicalTrials addresses a proposed study of a “Double-Blind,Placebo-Controlled, Dose-Range Study to Determine the Effacacy and

    Safety of BG00012 in Subjects with Relapsing-Remitting Multiple

    Sclerosis.” Ex. 1022, page 1 of 7.

    As noted earlier, BG00012 is dimethyl fumarate. Ex. 1022, page 1

    of 7; Ex. 1005, ¶ 28.

    In Part 1 of the study, the described dose ranges to be tested are

    essentially the same as the dosages described as having been tested by

    Kappos 2006. Ex. 1022, page 2 of 7; Ex. 1003, page 27 of 27; Ex. 1005,

     ¶ 31.

    In Part 2, ClinicalTrials notes that “[d]ose reduction will be allowed

    for subjects who are unable to tolerate investigational drug.” Ex. 1022,

     page 2 of 7; Ex. 1005, ¶ 31.

    G. Dr. Steven E. Linberg

    Petitioner relies on the direct Declaration testimony of Dr. Steven E.

    Linberg. Ex. 1005.

    With respect to differences between (1) the subject matter of claim 1

    of the ʼ514 patent vis-à-vis (2) Joshi ʼ999 and Kappos 2006, Dr. Linberg

    testifies:

    In my opinion, the  ICH Guideline E4 would haveinstructed a POSITA [“person of skill in the art”] as

    follows: “Assessment of dose-response should be an

    integral component of drug development with studies

    designed to assess dose-response [being] an inherent part

    of establishing the safety and effectiveness of the drug.

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    If development of dose-response information is built into

    the development process it can usually be accomplished

    with no loss of time and minimal extra effort comparedto development plans that ignore dose-response.”

    Ex. 1004, 7[ of 14]:27 – 32. ICH Guideline E4 also would

    have instructed that: “It is all too common to discover, at

    the end of a parallel dose-response study, that all doses

    were too high (on the plateau of the dose-response curve),

    or that doses did not go high enough.”  Ex. 1004, 10[ of

    14]:39 – 41. In my opinion, the  ICH Guideline E4

    instructed a POSITA to perform dosing studies as a

    standard procedure in drug development in order to“allow study of the  proper dose range” in phase III.

     Kappos 2006  . . . [does] not disclose doses between 360

    mg/day and 720 mg/day. However, in my opinion,

     Kappos 2006 . . . disclose[s] that single dosage forms

    were readily available in 120 mg units (“120 mg by

    mouth once daily”), making dose ranges of 480 mg daily

    and 600 mg daily readily apparent intervals for further

    testing. Further, ClinicalTrials . . . indicates that side

    effects such as gastrointestinal distress were known and

    were enough of a concern, that dosing could be reduced“for subjects who are unable to  tolerate investigational

    drug” (Ex. 1022, page 2).  Joshi also discloses unwanted

    side effects from the administration of the drug (“By

    administration of the dialkyl fumarates in the form of

    micro-tablets, which is preferred, gastrointestinal

    irritations and side effects, which are reduced already

    when conventional tablets are administered but is still

    observed, may be further reduced vis-a-vis fumaric acid

    derivatives and salts.” Ex. 1030, col. 5:29 – 33.) Becauseside effects are always a concern in drug development, as

    they were for DMF, and because doses in multiples of

    120 mg were readily available, a POSITA, in my opinion,

    would have been motivated to develop a method of

    treating a subject in need of treatment for multiple

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    sclerosis by administering dimethyl fumarate at about

    480 mg per day (as well as 600 mg per day) in order to

    identify an appropriate dose of DMF that minimized sideeffects. It would have been apparent to a POSITA that

    the teaching of  Kappos 2006 in view of at least

    ClinicalTrials  . . . , Joshi, and  ICHGuideline E4 would

    have enabled just such a development of a method such

    as described at alternative dosing levels with a reasonable

    expectation of success because the intervals were readily

    available for a standard process of drug development.

    Ex. 1005, ¶ 32.H. Discussion

    1. Case for Likelihood of Obviousness

    Consistent with applicable precedent, a claimed range within a range

    described by the prior art is typically prima facie obvious.  In re Boesch,

    617 F.2d 272, 275 (CCPA 1980) (where ranges overlap, a prima facie case

    of obviousness is made out). The Federal Circuit has consistently followed

     Boesch. See, e.g., In re Peterson, 315 F.3d 1325, 1329 (Fed. Cir. 2003) (a

     prima facie case of obviousness typically exists when the ranges of a

    claimed composition overlap the ranges disclosed in the prior art); In re

     Harris, 409 F.3d 1339, 1341 (Fed. Cir. 2005) (a prima facie case of

    obviousness arises when the ranges of a claimed composition are completely

    encompassed by the prior art); In re Huang , 100 F.3d 135, 139 (Fed. Cir.

    1996) (same).

    In the case before us, Patent Owner’s range of “about 480 mg per

    day” squarely falls within the combined ranges described by Kappos 2006

    (720 mg/day on the high end) and Joshi ʼ999 (10 to 300 mg/day on the low

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    end, it being noted that Joshi ʼ999 claim 1 calls for a broader “amount of a

     pharmaceutical preparation effective for treating . . . multiplesclerosis . . . .”). The combined “effective” ranges described by Kappos

    2006 and Joshi ʼ999 are consistent with Patent Owner’s statement in its

    Specification that “an effective dose of DMF or MMR . . . can be from about

    0.1 to 1 g [1000 mg] per [d]ay.” Ex. 1001, page 24, col. 18:59– 60.

    The ICH Guideline provides convincing evidence of how a person of

    ordinary skill in the art likely would go about determining an appropriate

    dosage for a particular person having multiple sclerosis.

    For example, if a dose is too high for a particular individual, one

    skilled in the art likely would have tested lower dosages for that individual

    in an attempt to find a most appropriate dose to achieve a result, all the while

    minimizing side-effects.

    Petitioner has made out a sufficient case to establish a reasonable

    likelihood of success as to each of the independent claims.

    2. Preliminary Response

    The Preliminary Response asserts numerous reasons why an

    inter partes review should not be instituted.

    (a) Non-merits Arguments

    In determining whether to institute an inter partes review, “the

    Director may take into account whether, and reject the petition . . . because,the same or substantially the same prior art or arguments previously were

     presented to the Office.” 35 U.S.C. § 325(d).

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    According to Patent Owner, the prior art and arguments here are

    the same as those made in IPR2015-01136 involving the same parties.Paper 11, pages 5 – 14. An inter partes review was not instituted in

    IPR2015-01136. Coalition for Affordable Drugs V LLC v. Biogen MA Inc.,

    IPR2015-01136, 2015 WL 5169256 (PTAB Sept. 2, 2015), reh’g denied ,

    IPR2015-01136 (Paper 29) (PTAB Oct. 23, 2015).

    In IPR2015-01136, Petitioner did not cite or rely on (1) the two Joshi

     patents relied upon in this IPR or (2) Kappos 2006.

    Kappos 2006 has a highly relevant and significant teaching not

     present in Kappos 2005 (Ex. 1003A of IPR2015-01136). Compare the

    (1) “Results” in Kappos 2006, which states that BG00012 at 720 mg/day

    significantly reduced Gd+ lesions, with (2) the “Results” in Kappos 2005

    detailing only what a paper based on tests might reveal.

    We have taken into account the differences in prior art cited and relied

    upon in IPR2015-01136 vis-à-vis the different prior art cited and relied upon

    in this IPR. In view of those differences, and because we find the prior art

    cited and relied upon in this IPR to be considerably more persuasive, we see

    no reason for not instituting an inter partes review in this IPR.

    In support of its position, Patent Owner cites numerous decisions in

    other IPRs. Whether an inter partes review is instituted in a particular IPR

     based on alleged obviousness manifestly depends on the precise facts.Cf. In re Jones, 958 F.2d 347, 350 (Fed. Cir. 1992). Accordingly, institution

    or non-institution decisions in other IPRs based on different facts are of little

    help in resolving whether to institute in the IPR before us.

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    According to Patent Owner, “[t]he Board’s practice is to prevent

     petitioners from using failed institution attempts as ‘how-to guide(s)’ in preparing later challenges.” Paper 11, page 15. We are unaware of any

    established per se rule of this Board declining to institute based on so-called

    “how-to guide(s).” While it may be true that some cases determined that it

    was inappropriate to institute based on a second petition, § 325(d) gives the

    Director discretion to consider the merits of a second petition, apart from

    any refusal to institute on the basis of a first petition. As noted earlier,

     because the prior art here is significantly different from that in IPR2015-

    01136, we find that it is appropriate to institute an inter partes review in this

     proceeding.

    We have considered all the remaining non-merits arguments presented

     by Patent Owner, but find them unpersuasive on the issue of whether an

    inter parties review should be ordered in this IPR.

    (b) Merits Arguments

    According to Patent Owner, one skilled in the art would have had no

    reason to select a dose of 480 mg/day. Paper 11, page 20.

    Further according to Patent Owner, “the [P]etition presents no

    evidence that one of ordinary skill based on the asserted prior art, would

    have had a reasonable expectation that a dose of about 480 mg/day of DMF

    would [have been] therapeutically effective or useful in treating MS asclaimed.”  Id . See also Paper 11, page 25.

    Still further according to Patent Owner, “one of ordinary skill would

    not have been motivated to add a dose of about 480 mg/day to an already

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    well-designed [Kappos 2006] Phase II study.” Paper 11, page 21, last

    sentence.Patent Owner also maintains that gastrointestinal side-effects would

    have provided no reason to select a dose of 480 mg/day. Paper 11, page 22.

     KSR International Co. v. Teleflex Inc., 550 U.S. 398, 418 (2007)

    instructs:

    Often, it will be necessary . . . to look to interrelated

    teachings of multiple patents; the effects of demands

    known to the design community or present in themarketplace; and the background knowledge possessed

     by a person having ordinary skill in the art, all in order to

    determine whether there was an apparent reason to

    combine the known elements in the fashion claimed by

    the patent at issue. To facilitate review, this analysis

    should be made explicit. See  In re Kahn, 441, F.3d 977,

    988 (C.A.Fed.2006) (“[R]ejections on obviousness

    grounds cannot be sustained by mere conclusory

    statements; instead, there must be some articulated

    reasoning with some rational underpinning to support thelegal conclusion of obviousness”). As . . . [Supreme

    Court] precedents make clear, however, the analysis need

    not seek out precise teachings directed to the specific

    subject matter of the challenged claim, for a court can

    take account of the inferences and creative steps that a

     person of ordinary skill in the art would employ.

     In re O’Farrell , 853 F.2d 894, 903 – 04 (Fed. Cir. 1988), further

    instructs that o bviousness does not require absolute predictability of

    success; all that is required is a reasonable expectation of success. 

    Patent Owner’s “selection” argument does not undermine a reasonable

    likelihood of success on the part of Petitioner. Petitioner has not made any

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    selection; rather, it is Patent Owner who selected 480 mg/day from broad

    dosage ranges described in the prior art. Based on the public domain priorart before us, absent an unexpected result, a person having ordinary skill in

    the art was free to use any dosage that would be effective in treating multiple

    sclerosis. Further, based on ICH, we find that one skilled in the art would

    have been capable of determining effective dosages vis-à-vis non-effective

    dosages.

    Joshi ʼ999 teaches that a dosage of range of 10 to 300 mg/day is

    effective. See, e.g., claim 2 of the Joshi ʼ999 patent. Ex. 1030, page 7,

    col. 8:20 – 22. Kappos 2006 teaches that a dosage of 720 mg/day is effective.

     Not apparent is why dosages between 300 mg/day and 720 mg/day

    reasonably would not also have been expected to be effective, a fact Patent

    Owner is in somewhat of a poor position to challenge given its assertion in

    the ʼ514 patent that dosages from 0.1 g/day to 1000 g/day constitute an

    “effective dosage.”  ClinicalTrials reveals that one skilled in the art would

    have recognized that a “[d]ose reduction will be allowed for subjects who

    are unable to tolerate [an] investigational drug.” Ex. 1022, page 2. Hence,

    on this record there was ample reason for one skilled in the art to have

    looked into dosages below 720 mg/day.

    (c) Unexpected Results

    Patent Owner argues that “Petitioner did not attempt to rebut theclaimed invention’s unexpected results established during prosecution.”

    Paper 11, page 30. The unexpected results are said to have been established

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    via ex parte Rule 132 Declarations of Dr. Katherine Dawson (Ex. 1 of

    Ex. 1007) and Dr. Richard Rudick (Ex. 2011).  Id. at 31.We disagree that Petitioner made no attempt to rebut the ex parte

    evidence asserting unexpected results. Paper 1, pages 11 – 14.

    Apart from the fact that there was a rebuttal in the Petition, there are

    at least two additional reasons why Patent Owner’s “fail to rebut” argument

    is not persuasive.

     First , the unexpected results evidence was presented in an ex parte

    examination. The results of that examination are not binding on Petitioner.

    See Keystone Bridge Co. v. Phoenix Iron Co., 95 U.S. 274, 279 (1877)

    (patents are procured ex parte; the public is not bound by decision of the

    Patent Office to issue the patent); Sze v. Bloch, 458 F.2d 137, 140 (CCPA

    1972) (decision during ex parte examination cannot be binding in

    subsequent inter partes case involving same application in which decision

    was made); Switzer v. Sockman, 333 F.2d 935, 767 – 8 (CCPA 1964) (same).

    Second , Petitioner has not had a chance to cross-examine Dr. Dawson

    or Dr. Rudick. Whether unexpected results have been established is a

    question of fact.  In re Harris, 409 F.3d 1339, 1341 (Fed. Cir. 2005)

    (whether an invention produces an unexpected result is a question of fact);

     In re Geisler , 116 F.3d 1465, 1469 (Fed. Cir. 1997) (same). At this stage of

    the proceeding, resolution of whether the Dawson/Rudick showingestablishes unexpected results is a disputed question of fact, best resolved at

    trial — which could include cross-examination if Patent Owner places the

    Dawson/Rudick testimony in evidence as part of its opposition on the merits.

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    Because the Petition establishes a prima facie case of obviousness, it

    follows that Petitioner has made out a case “that there is a reasonablelikelihood that . . . [it] would prevail with respect to . . . claims [1, 11, 15,

    and 20] challenged in the petition.” 35 U.S.C. § 314(a). 

    I. Remaining Claims and Challenges

    Patent Owner does not separately address on the merits Grounds 2

    and 3 or dependent claims involved in Ground 1.

    We have considered the arguments made in, and evidence presented

    with, the Petition and find, for the reasons given, that those arguments and

    evidence support a finding that Petitioner has made out a case “that there is a

    reasonable likelihood that . . . [it] would prevail with respect to . . . [the

    remaining] claims [on Grounds 1, 2, and 3 as] challenged in the petition.”

    35 U.S.C. § 314(a).

    III. ORDER

    Upon consideration of the Petition (Paper 1), the Preliminary

    Response (Paper 11), and Reply to the Preliminary Response (Paper 17), and

    for the reasons given, it is

    ORDERED that pursuant to 35 U.S.C. § 314(a), an inter partes 

    review trial is hereby instituted on the following grounds.

    Ground 1: claims 1 – 6, 8 – 16, and 20 of the ’514 patent as

    unpatentable under § 103(a) over Kappos 2006, ClinicalTrials, Joshi ʼ999,and ICH Guideline.

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    Ground 2: claim 7 of the ’514 patent as unpatentable under

    § 103(a) over Kappos 2006, ClinicalTrials, Joshi ʼ999, ICH Guideline, andJoshi ʼ992. 

    Ground 3: claims 17 – 19 of the ’514 patent as unpatentable

    under § 103(a) over Kappos 2006, ClinicalTrials, Joshi ʼ999, ICH Guideline,

    and Begleiter.

    FURTHER ORDERED that inter partes review of the ʼ514

     patent is hereby instituted commencing on the date of this DECISION.

    35 U.S.C. § 314(a).

    FURTHER ORDERED that notice is hereby given of the

    institution of an inter partes review trial. 35 U.S.C. § 314(c); 37 C.F.R.

    § 42.4.

    FURTHER ORDERED that the trial is limited to the grounds

    and claims identified above.

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    PETITIONER:

    Robert W. HahlRobert Mihail

    John K. Pike

     NEIFELD IP LAW

    [email protected]

    [email protected]

     [email protected]

    [email protected]

    James T. CarmichaelCarmichael IP, PLLC

     [email protected]

    PATENT OWNER:

    Michael Flibbert

    Maureen D. Queler

    FINNEGAN, HENDERSON, FARABOW, GARRETT & DUNNER, LLP

    [email protected]

    [email protected]

    mailto:[email protected]:[email protected]:[email protected]:[email protected]