[00:00:02] Speaker 01: Our first case today is 2-017-1-017, Icos Corporation v. Atzivalian. [00:00:09] Speaker 01: I don't know if I said that right. [00:00:13] Speaker 01: Pharmaceuticals. [00:00:15] Speaker 01: Mr. Feldstein, please proceed. [00:00:20] Speaker 03: Thank you, Your Honor. [00:00:23] Speaker 03: May it please the court, Mark Feldstein, on behalf of Icos Corporation, the appellant. [00:00:30] Speaker 03: related issues in this case that all of the problems towards the decision stem from. [00:00:36] Speaker 03: The first is that there is undisputed evidence that there's no generic motivation to micronize drugs. [00:00:43] Speaker 03: Without a pre-formulation analysis, you can't know what problem there may be that you would want to solve. [00:00:49] Speaker 03: There was also no specific motivation to micronize Tadalafel. [00:00:54] Speaker 03: Failing to have evidence of those two pieces of the puzzle [00:00:58] Speaker 03: Actellian couldn't meet its burden of showing that claims of the patents were obvious. [00:01:05] Speaker 03: What the patent office did instead is the patent office made new arguments and shifted the burden to ICOS to disprove obviousness. [00:01:13] Speaker 03: And they had to do so. [00:01:15] Speaker 03: They did so. [00:01:15] Speaker 03: And they had to do so because Actellian simply didn't meet its burden. [00:01:20] Speaker 00: Why do you say the patent office shifted the burden? [00:01:23] Speaker 00: So they're clear. [00:01:24] Speaker 00: Well, first of all, I mean, there's language in there about [00:01:28] Speaker 00: the evidence not being sufficient to overcome the evidence submitted on the other side of the issue. [00:01:38] Speaker 00: But that's what the board does. [00:01:40] Speaker 00: It weighs and balances evidence. [00:01:43] Speaker 03: So first, I don't think that Atellian disputes that there was a shift in, at the very least, the burden of production. [00:01:51] Speaker 03: They cite dynamic drinkware for the concept that it's OK to shift the burden of production [00:01:57] Speaker 03: And they ask, I believe, in the third question presented, for this court to affirm. [00:02:02] Speaker 03: But it's more than just language, Your Honor. [00:02:04] Speaker 03: If you look at the PTAB decision in Act 1 at appendix page 15, for example, the PTAB required ICOS to prove why, after Tidalfil's micronized an early stage of pre-formulation, even if only for testing purposes, an ordinary artisan would later, during formulation, abandon that approach. [00:02:27] Speaker 03: It was expressly shifting the burden to ICOS to affirmatively prove why, if it was micronized early, it wouldn't continue to be micronized later. [00:02:38] Speaker 03: They similarly, in terms of motivation to improve Dogan, where there was nothing clearly to improve, patent office at appendix 16 says, again, it's not a matter of language, they expressly say, patent owner has not presented sufficient evidence or persuasive argument to show that the information [00:02:56] Speaker 03: from a pre-formulation analysis would have deterred an artisan from pursuing it. [00:03:03] Speaker 03: So it's not simply that they're weighing the evidence. [00:03:06] Speaker 03: They're saying the burden is on you, patent owner, to show evidence that would have deterred an artisan from going forward. [00:03:13] Speaker 03: When they got to the question of the absence of a pre-formulation analysis, because there is no pre-formulation analysis data available for Dadaoville, [00:03:24] Speaker 04: There's no pre-formulation evidence or analysis for Taddafil? [00:03:29] Speaker 03: Taddafil, that's correct, Your Honor. [00:03:32] Speaker 03: The sole piece of information, well, the little tidbits. [00:03:35] Speaker 03: So Dogan says that Taddafil is poorly soluble without reporting its solubility. [00:03:40] Speaker 03: There's no report of solubility. [00:03:42] Speaker 03: You don't know what poorly soluble means. [00:03:45] Speaker 03: There is evidence of its melting point. [00:03:47] Speaker 03: In Dogan, it includes a melting point of 302 degrees [00:03:51] Speaker 03: which is known to correlate with extremely poor solubility. [00:03:54] Speaker 03: So those pieces of information are known, but there's no solubility analysis to determine the solubility is one microgram, 20 micrograms, 100 micrograms. [00:04:03] Speaker 03: And without that, you can't know whether you're solubility limited. [00:04:07] Speaker 03: There's also, while there's evidence suggestive of permeability issues, the fact that Dogan reports that tidalophil forms a suspension in an organic solvent, labrophil, [00:04:20] Speaker 03: indicates that it's not dissolving in the organic solvent. [00:04:24] Speaker 03: It's suggestive of a permeability problem, but there's simply no permeability data on Tadalafil. [00:04:30] Speaker 03: And so one can't know whether the absorption of Tadalafil will be permeability limited. [00:04:37] Speaker 04: And what WODT, one of the references they rely on, teaches is that... Isn't there a site at 84825 that Tadalafil is a highly permeable drug? [00:04:50] Speaker 03: That's not, there's no evidence in the prior art that Taddlefield is permeable. [00:04:56] Speaker 03: There's evidence post-date of the invention of what the permeability is, but none in the prior art. [00:05:01] Speaker 03: And so you're at the point. [00:05:03] Speaker 04: I guess you need to confront the issue, though, of what was the primary basis of the board's obviousness finding, which was that there is a connection between dissolution and solubility. [00:05:17] Speaker 04: And there was an understanding that [00:05:21] Speaker 04: micronization can improve dissolution and thereby, in turn, improve solubility and thereby, in turn, improve bioavailability. [00:05:32] Speaker 03: Well, there's a key problem there that the patent office made that, Your Honor, quoting them as repeated, is that dissolution particle size does not at all affect solubility. [00:05:43] Speaker 03: You can't make it smaller to increase solubility. [00:05:46] Speaker 03: That's part of the problem here. [00:05:48] Speaker 03: And without knowing whether you're solubility limited, permeability limited, or dissolution rate limited, there's no motivation to micronize. [00:05:57] Speaker 03: You don't know what problem you're trying to fix. [00:06:00] Speaker 03: And it's not the case that smaller is better. [00:06:05] Speaker 03: Wadkey and Seth, for example, both tell you the problems associated with making things small. [00:06:10] Speaker 03: It's not the case that faster is necessarily better. [00:06:13] Speaker 03: The inventors in the nine [00:06:18] Speaker 03: 5.8 patent, they're the ones who point out that clinically the uptake is not fast enough. [00:06:23] Speaker 03: And what Dr. Britton, a tele-ans expert, says multiple times is that if you make it too small, inconsistent with a clinical need, you can cause local and systemic toxicology problems. [00:06:38] Speaker 03: And so there can't be a general motivation to make small. [00:06:43] Speaker 03: There can't be a general motivation to make faster, because you need to know first, [00:06:48] Speaker 03: The only reason to make small is if your dissolution rate limited. [00:06:53] Speaker 03: If you're solubility limited, this is an error in the patent office decision. [00:06:58] Speaker 03: Solubility is not affected by reducing particle size. [00:07:01] Speaker 03: You cannot overcome that. [00:07:02] Speaker 03: That's where the Butler reference came in and taught a way to increase the solubility. [00:07:08] Speaker 03: And it's what Wadki teaches expressly. [00:07:10] Speaker 03: Wadki says that if there is, if dissolution is considered slow, [00:07:16] Speaker 03: the first thing you look for is a more soluble physical chemical form. [00:07:21] Speaker 03: And if those are unavailable, then you move on to micronization. [00:07:25] Speaker 03: And it's because micronization does not increase solubility. [00:07:33] Speaker 03: It's important, for example, Dr. Britton, again, a Kellyanne's expert at Appendix 799798, Dr. Britton agrees [00:07:46] Speaker 03: that you can't draw a correlation between particle size, reduction, and increased absorbable dose, what he says is that you need to know about solubility and permeability. [00:07:56] Speaker 03: And so there's no general correlation between particle size and absorbable dose. [00:08:01] Speaker 03: It's only in the limited circumstances of dissolution rate limited, which was not known to be the case for Tadeauville. [00:08:08] Speaker 03: And what Wadki, for example, says is that if you start grinding it up, it's a mistaken effort [00:08:15] Speaker 03: if you're limited by something else such as permeability. [00:08:21] Speaker 03: Another important point in terms of the general trying to rely on generalities, what Dr. Britten, an Italians expert says, is that it's a bad formulator. [00:08:33] Speaker 03: This is from appendix 4664 to 6.6. [00:08:37] Speaker 03: It's a bad formulator who just throws things in a pot. [00:08:41] Speaker 03: It's his language. [00:08:42] Speaker 03: One ordinary skill [00:08:44] Speaker 03: knows that you have to understand your drug substance first before you design a formulation. [00:08:49] Speaker 03: This is the whole concept that ICOS raised that was not disputed, we believe, by Tellian, that in order to rationally design a formulation, you have to have pre-formulations, solubility, and permeability data. [00:09:04] Speaker 03: And in fact, at appendix 14, the p-tab says there's no reason to doubt that you need such information. [00:09:13] Speaker 03: to rationally design a formulation. [00:09:15] Speaker 03: And then they went on their own, so Espante, to argue that, well, we're not convinced that formulators behave rationally. [00:09:23] Speaker 03: And then they cite to this reference, this non-priority reference for that proposition, making an argument that Atelier never made. [00:09:34] Speaker 03: And so in addition to the lack of a pre-evaluation case, lack of a case, excuse me, on motivation to micronize based on generic language, [00:09:43] Speaker 03: In addition to the burden shifting, the Patent Office made its own arguments on Italian's behalf, which is an APA violation. [00:09:51] Speaker 03: And it did so based on non-priority references. [00:09:55] Speaker 03: If you look at the Italian 2 decision, there are pages and pages between beginning around page 58 of the appendix where the whole basis of their opinion, or at least substantial basis of their opinion, is based on this non-priority reference. [00:10:11] Speaker 03: And most of it is arguments that they are advancing on Italian's behalf. [00:10:16] Speaker 03: They've advanced new arguments. [00:10:18] Speaker 03: Not only is it improper to do it in their 316, where the burden is solely on the petitioner, they do it in the final written decision denying ICOS any opportunity to respond. [00:10:32] Speaker 03: And so while it may be true that in some cases [00:10:35] Speaker 03: The board can come up with its own claim construction. [00:10:37] Speaker 01: I'm sorry, but I read and understood the board's citation of you to be responsive to your argument, your rational design theory. [00:10:48] Speaker 01: You cited you. [00:10:49] Speaker 01: You introduced it. [00:10:50] Speaker 01: Absolutely. [00:10:51] Speaker 01: And so I'm not sure what's wrong with the board pointing to portions of you and saying it didn't agree with your arguments about your rational design theory and your citation of you because it pointed to other portions of you and said they [00:11:05] Speaker 01: didn't think that it supported your argument. [00:11:08] Speaker 01: I don't see why there's a notice and comment problem with that. [00:11:11] Speaker 03: Sure, so I can explain. [00:11:12] Speaker 03: So, what, I don't remember what Icos did in terms of the U reference. [00:11:20] Speaker 03: Icos' expert, Dr. Byrne, said a person of ordinary skill in the art would have understood that you can calculate based on solubility and permeability what [00:11:32] Speaker 03: what regime you're going to be in for what's going to limit your absorption. [00:11:37] Speaker 03: And Dr. Byrne cited the reference by Amidon, the reference by Lipinski, and the reference by you. [00:11:46] Speaker 03: And Dr. Byrne said that that portion of you, the you reference, that reflects the understanding that you can figure out what is going to be your limiting factor, what is going to be your bottleneck. [00:12:00] Speaker 03: That was something a person of ordinary skill in the art knew. [00:12:03] Speaker 03: The problem is that the board went beyond that to rely on other portions of you that were not linked to the prior art and for which ICOs had no opportunity to respond. [00:12:15] Speaker 03: The language they use, the PTAB sites and the non-priority reference for why rational formulation, they don't believe that it applies, it contradicts their expert Dr. Britton. [00:12:29] Speaker 03: The board takes out of context, and because they did it in the final written decision, we didn't even have a chance to respond. [00:12:37] Speaker 03: What the you reference says on page 6892, the patent office quoted it as rational formulation design based on pharmaceutical properties of compounds is far from a reality. [00:12:49] Speaker 03: And that's what the board relied on that hadn't come up before. [00:12:54] Speaker 01: And the reason they say... But it was in direct rebuttal to your rational design theory. [00:12:59] Speaker 01: That's what I don't understand. [00:13:01] Speaker 01: They're not using it to fill a gap in and say motivation to combine using that reference in a way that it was never used. [00:13:09] Speaker 01: You introduced that reference in support of the theory, and the board pointed to a different portion of that reference to say it doesn't support your theory. [00:13:17] Speaker 03: No, I don't believe we cited it to support the theory of rational design. [00:13:21] Speaker 03: Rational design is... Well, then why did you cite it? [00:13:23] Speaker 03: We cited it to explain how a person of skill in the art could [00:13:27] Speaker 03: understand and would understand that there are three different regimes that limit your absorption. [00:13:33] Speaker 03: They can be solubility limited, dissolutionary limited, or permeability limited, and there are models by which you can determine which regime you're in. [00:13:44] Speaker 03: The idea of rational design is something that their expert admitted. [00:13:49] Speaker 03: You wasn't relied on for that. [00:13:51] Speaker 03: It wasn't addressed by anyone. [00:13:53] Speaker 03: But the context is important. [00:13:55] Speaker 03: If you look at the next sentence of the non-priority reference, they're not talking about lack of solubility data or lack of permeability data that inhibits what they call rational design. [00:14:06] Speaker 03: It says, among many factors, our lack of understanding of the causes of poor oral drug absorption often contributes to long and costly formulation development processes. [00:14:18] Speaker 03: So you, even in context, isn't saying, [00:14:21] Speaker 03: people behave irrationally, it's that there's not enough information. [00:14:25] Speaker 03: We need to work harder. [00:14:26] Speaker 01: You're using up all of your rebuttal time. [00:14:28] Speaker 01: Would you like to save some? [00:14:29] Speaker 03: I would like to save my rebuttal, yes. [00:14:32] Speaker 01: Let's hear from the housing council. [00:14:36] Speaker 03: Thank you. [00:14:46] Speaker 02: May it please the court, this is a substantial evidence case. [00:14:52] Speaker 02: The key fact findings made by the board concern how a person's ordinary skill in the ARC would have interpreted the four references that we relied on in both petitions to support the particle size reduction arguments. [00:15:07] Speaker 02: These are Dagen, Butler, Seth, and Waukee. [00:15:11] Speaker 02: And of course, the board's interpretations of the ARC are also subject to substantial evidence review standards. [00:15:20] Speaker 02: In this case, just to recap briefly, the board relied on Dagen, as we did, as the primary reference. [00:15:29] Speaker 02: Dagen invented the Dallapillic Glaxo. [00:15:32] Speaker 02: And the Dagen reference that we relied on was his PCT publication disclosing oral formulations of that drug using specific excipients for the purpose of treating erectile dysfunction and specific dosage ranges that were disclosed. [00:15:49] Speaker 02: That was the starting point for our obviousness analysis. [00:15:53] Speaker 02: And as we pointed out in both petitions, when you compare the claims of the two patents in issue, I reproduced them on the inside cover of the red brief. [00:16:04] Speaker 02: You can see they have a common limitation, a reduced particle size to below 40 microns. [00:16:11] Speaker 02: And that was a common issue between both IPRs. [00:16:14] Speaker 02: We addressed that limitation, which is not taught in Daugen. [00:16:18] Speaker 02: by pointing to the Seth patent, a prior art reference, as well as the Watkey book chapter, also in the prior art. [00:16:30] Speaker 02: Both of those were relied on by the board, and these are at A13 and A58, for the proposition that if a drug has low solubility, it will dissolve slowly. [00:16:46] Speaker 02: That's called slow dissolution. [00:16:49] Speaker 02: And in order for a drug to get into the body when it's administered orally, it must first dissolve the dissolution process. [00:16:57] Speaker 02: And then it must be absorbed. [00:17:00] Speaker 02: Both of these references, Seth and Watkey, taught that since dissolution precedes absorption in this overall process, any low solubility of the drug leading to low dissolution is going to [00:17:17] Speaker 02: impact the entire process down the line and ultimately slow down the absorption of the drug. [00:17:22] Speaker 02: Those findings are at A16 and A64. [00:17:27] Speaker 02: And so both of these references were relied on as teaching that the known low solubility of Tadalafel, which is taught in the Butler reference, we relied on Butler for that, would have been interpreted by persons skilled in the art [00:17:45] Speaker 02: based on the knowledge such persons have concerning the concepts taught in Seth and Waki, that the drug simply wouldn't dissolve fast. [00:17:55] Speaker 02: It would dissolve too slow. [00:17:56] Speaker 02: You would need to do something about it. [00:17:59] Speaker 02: And then what we also relied on Seth and Waki for was the teaching of common pharmaceutical techniques for addressing that problem of slow dissolution. [00:18:11] Speaker 02: The most common technique used in the art is to grind the drug. [00:18:16] Speaker 02: It's called micronizing, and specifically to grind it to the size range claimed in the patents. [00:18:26] Speaker 02: The second actillian decision at A58 refers to this grinding process and set this frequently used. [00:18:33] Speaker 02: The first decision at A13-14 calls it a conventional method. [00:18:39] Speaker 02: Simile calls it a commonly employed practice. [00:18:43] Speaker 02: The board's interpretation of the art is solidly grounded in the art. [00:18:49] Speaker 02: I also cited in the Red Breed the citations to our own expert testimony on that. [00:18:54] Speaker 02: I'm not going to go through all of that here today. [00:18:57] Speaker 02: And it was based on this art, Dagen, Butler, Seth, and Waukee, that the board concluded at 826 and 858 that person skilled in the art would have had a reasonable expectation that micronizing to Dallifil [00:19:13] Speaker 02: would have the effect of improving its absorption in the Dagen populations because they knew it was a poorly soluble drug, and they knew that poorly soluble drugs typically are micronized as one of the conventional methods that was taught in New York. [00:19:34] Speaker 02: The only other issue that the board had to deal with in the case on our petition grounds were the excipient limitations [00:19:42] Speaker 02: in the second patent, the water-soluble diluent, et cetera. [00:19:48] Speaker 02: And they found that all of those were disclosed in the Dagen reference. [00:19:55] Speaker 02: As I mentioned, Dagen formulated the drug for tablets and capsules. [00:19:59] Speaker 02: Those findings are in A11 and A12. [00:20:02] Speaker 02: And as I pointed out, [00:20:04] Speaker 02: very close to the end of my brief. [00:20:06] Speaker 01: Those arguments were never... You know your opposing counsel didn't raise any of this argument, so now you've opened the door to him to raise it on rebuttal when he wouldn't have been able to otherwise. [00:20:14] Speaker 01: But why don't you talk about you, which he did raise? [00:20:16] Speaker 02: I'm happy to talk about it. [00:20:18] Speaker 02: So you was introduced by ICOS, as Your Honor recognizes. [00:20:24] Speaker 02: And we responded to you by pointing out that although it's not a prior reference, [00:20:31] Speaker 02: The portions that were emphasized at trial by both us and ICOS's counsel concern the same text where we pointed out that you is just teaching the same thing that Seth and Watkey already taught, that when drugs are poorly soluble, they will have a dissolution problem. [00:20:49] Speaker 02: We also pointed to use characterization of a drug, rizia fulvin, which is discussed at pages, the last two pages of the reference. [00:21:00] Speaker 02: That's a well-known prior drug that we already discussed in our petition and other references. [00:21:05] Speaker 02: That was a drug that was characterized as a so-called solubility-limited drug, which was Icoza's argument. [00:21:12] Speaker 02: And yet you showed that even with the brisea fulvin, the micronization of the drug doubled its absorption, which is exactly what we're talking about. [00:21:22] Speaker 02: So that was how it arose in the proceedings. [00:21:27] Speaker 02: It wasn't our argument. [00:21:28] Speaker 02: It wasn't the basis for our petitions. [00:21:31] Speaker 02: We certainly responded to it. [00:21:33] Speaker 02: And I think with the petitions, I'm sorry, what the decisions of the board reflect is a very thorough analysis of all the parties' petitions and arguments and just weighing the evidence and arguments that the parties supplied. [00:21:50] Speaker 02: But to reiterate, [00:21:51] Speaker 02: Our petitions were based on Dagen, Butler, Seth, and Waukee. [00:21:55] Speaker 02: And the findings based on those references in terms of particle size reduction have substantial evidence support in the record. [00:22:04] Speaker 04: So could you just answer the question why pre-formulation analysis isn't required in this instance? [00:22:11] Speaker 02: Well, the board found that, first of all, you're already starting with a formulated drug in Dagen. [00:22:22] Speaker 02: So pre-formulation analysis to determine how to make a formulation wouldn't even be your starting point. [00:22:29] Speaker 02: If Dagen is your starting point, you've got formulations. [00:22:31] Speaker 02: And the only difference between Dagen and these claims at issue is whether to micronize the drug. [00:22:38] Speaker 02: But more importantly, what both board decisions found is why would you need to do that when you already know that the drug is poorly soluble? [00:22:49] Speaker 02: And as taught in Seth and Wachie, you'd expect the drug to have slow dissolution. [00:22:54] Speaker 02: That's confirmed also in the U reference that ICOS relied on to support this argument. [00:23:00] Speaker 02: So the board concluded it wouldn't be necessary to carry it out because obviousness doesn't require absolute predictability. [00:23:13] Speaker 02: It requires a reasonable expectation of success. [00:23:15] Speaker 02: And based on what's taught in Seth and Wachie, [00:23:18] Speaker 02: There's a reasonable expectation that the drug would dissolve slowly. [00:23:24] Speaker 02: There was a lot of post-filing evidence that was introduced that the Actilium 1 decision tried to resolve, ultimately concluded that it didn't buy Icos's argument, agreed with our experts' arguments. [00:23:37] Speaker 02: But I don't think that those reliance on the post-filing art was really relevant to begin with, as found in the second decision. [00:23:47] Speaker 02: Judge Sneddon in act 2 pointed out, if we look at the part that existed at the time of filing, we're talking about 1998, we use this as the critical date, 1999 was the filing date. [00:23:59] Speaker 02: Butler, Daugher, Seth, and Wadke supported our position by a proponent to the evidence, and that's why we won. [00:24:10] Speaker 02: I hope I'm answering your question, Judge Sneddon. [00:24:13] Speaker 02: Yes. [00:24:15] Speaker 02: So I'm not going to re-argue all the other issues that have come up in the case. [00:24:21] Speaker 02: I want to rely on the red brief for that, unless there are questions on that. [00:24:25] Speaker 02: But I just want to point out there was one statement that my friend mentioned in his argument that there was nothing to improve in Daugin. [00:24:37] Speaker 02: That is a new argument. [00:24:38] Speaker 02: It wasn't raised before the board. [00:24:40] Speaker 02: I'm not even sure I read it in the blue brief. [00:24:42] Speaker 02: But our position is that's a new argument. [00:24:46] Speaker 02: If you have questions about that, I'd be happy to answer them. [00:24:48] Speaker 02: Otherwise, I've got nothing more. [00:24:51] Speaker 01: OK. [00:24:51] Speaker 01: Thank you, Mr. Weddle. [00:24:53] Speaker 01: Mr. Feldstein, you have a little bit of rebuttal time. [00:24:55] Speaker 03: Thank you. [00:24:58] Speaker 03: So let me start pointing to the Wadke reference raised by Actillian's counsel. [00:25:09] Speaker 03: Actillian's counsel relies on Seth and Wadke to say, oh, they uniformly point in favor of dissolution. [00:25:15] Speaker 03: and that any slow dissolution will be increased by, will slow down absorption. [00:25:21] Speaker 03: That's actually just wrong to say that any slow dissolution will be increased by particle size. [00:25:29] Speaker 03: The whole point of Wadkey at pages 4023 and 4024 in the appendix are that it's a mistaken effort to reduce particle size if you're permeability limited. [00:25:40] Speaker 03: And even in the context of where you have relatively low solubility, [00:25:44] Speaker 03: which isn't the case for Tobalofil, you need to go look at permeability to understand what to do. [00:25:56] Speaker 03: And in terms of the council raised an argument saying that our argument about Dogan not having a problem to solve is new, that we believe is a reply brief, page nine. [00:26:08] Speaker 04: Your reply brief, page nine. [00:26:09] Speaker 04: Correct. [00:26:11] Speaker 04: OK. [00:26:13] Speaker 01: Okay, I thank both counsel. [00:26:15] Speaker 01: The case is taken under submission. [00:26:17] Speaker 04: Thank you, Your Honor.