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2023 Supreme(Del) 4971

IN THE HIGH COURT OF DELHI AT NEW DELHI
Navin Chawla, J.
Bayer Healthcare Llc – Appellant
Versus
Natco Pharma Limited – Respondent
CS(COMM) 343 of 2019 & I.As. 8878 of 2019, 9685 of 2019, 1178 of 2022 with CS(COMM) 660 of 2022 & I.As. 15573 of 2022, 15574 of 2022,
Decided On : 05-07-2023

Advocates appeared:
Mr. Pravin Anand, Mr. Dhruv Anand, Ms. Udita Patro, Ms. Swati Jain, Advocates, for the Plaintiff in CS(COMM) 343 of 2019 & I.As. 8878 of 2019, 9685 of 2019, 1178 of 2022 & CS(COMM) 660/2022 & I.As. 15573/2022, 15574/2022, 1432/2023, 1848/2023.
Mr. J. Sai Deepak, Mr. G. Nataraj, Mr. Avinash K. Sharma, Mr. Shashikant Yadav, Mr. Rahul Bhujbal, Ms. Harshita Agarwal, Ms. Garima Joshi, Advocates, for the Defendant in CS(COMM) 343 of 2019 & I.As. 8878 of 2019, 9685 of 2019, 1178 of 2022.
Mr. G. Nataraj, Mr. Avinash K. Sharma, Mr. Shashikant Yadav, Mr. Rahul Bhujbal, Ms. Harshita Agarwal, Ms. Garima Joshi, Advocates, for the Respondent in CS(COMM) 660/2022 & I.As. 15573/2022, 15574/2022, 1432/2023, 1848/2023.

Headnote:(A) Patents Act, 1970 - Section 64(1)(e) and (f) - Patent validity - Claim by Bayer Healthcare LLC for an interim injunction against Natco Pharma Limited concerning Indian Patent No.240207 for the compound Regorafenib - Plaintiff alleges infringement, asserting that the patent has survived without opposition in India and abroad. The defendant contests the patent's validity, claiming it lacks novelty and inventive step due to prior disclosures in genus patent IN'758 and WO'012, asserting that Regorafenib is encompassed within the Markush formula disclosed in these prior patents. The court notes that the plaintiff did not sufficiently establish a prima facie case for the injunction due to the defendant's credible challenge to the patent's validity, emphasizing the need for affordability in cancer medication. The court ultimately finds that public interest favors denying the injunction, thereby balancing the convenience of the parties involved. (Paras 1, 72, 88, and 90)

Table of Content
1. details on the suit patent and its validity. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7)
2. plaintiff's claims about regorafenib. (Para 8 , 9 , 10 , 11 , 12 , 13)
3. defendants' arguments against the suit patent. (Para 14 , 15 , 16 , 17 , 18 , 19)
4. defendants' claims regarding lack of novelty and inventive step. (Para 20 , 21 , 22 , 23 , 24)
5. plaintiff's counterarguments regarding the patent. (Para 25 , 26 , 27 , 28 , 29)
6. discussion on coverage vs disclosure in patents. (Para 30 , 31 , 32 , 33)
7. discussion on the implications of evergreening patents. (Para 34 , 35 , 36 , 37)
8. court observations on the application of law. (Para 38 , 39 , 40 , 41 , 42)
9. previous judgments referenced regarding patent law. (Para 43 , 44 , 45 , 46)
10. prosecution history and the court's interim order. (Para 47 , 48 , 49)
11. updates on other actions related to the patent. (Para 50 , 51)
12. court's decision-making criteria for interim injunction. (Para 52 , 53 , 54 , 55)
13. legal standards set for interim relief in patent matters. (Para 56 , 58 , 59 , 60)
14. discussion about markush claims in patents. (Para 61 , 62 , 63)
15. clarification of terms under patent law. (Para 64 , 65 , 66)
16. determinations regarding patent claims. (Para 67 , 68)
17. analysis of inventive step in the context of patent. (Para 69 , 70 , 71 , 72)
18. implications of international patent coverage. (Para 73 , 74 , 75 , 76 , 77)
19. court's final observations regarding the case. (Para 78 , 79 , 80)
20. essentials for granting interim injunction. (Para 81 , 82 , 83 , 84 , 85)
21. final judgment and directions from the court. (Para 86 , 87 , 88 , 89 , 90)
22. court's order for further proceedings. (Para 91 , 92)

JUDGMENT

I.A. 8878/2019 in CS(COMM) 343/2019

I.A. 15573/022 in CS(COMM) 660/2022

1. The present applications are being taken up together for consideration as they relate to the claim of the plaintiff to an order of interim injunction against the defendants based on the same patent, being Indian Patent No.240207 (hereinafter referred to as the `Suit Patent'), that covers and claims a molecule, which is claimed to be a new chemical entity, 4{4-[3-(4-chloro-3-trifluoromethylphenyl)-ureido]-3-fluorophenoxy}-pyridine-2-carboxylic acid methylamide, which has been assigned an International Non-proprietary Name (`INN'), REGORAFENIB.

CASE OF THE PLAINTIFF

2. The plaintiff is a part of the Bayer Group of Companies ('the Group'), the Holding Company being Bayer AG. The Group conducts its business in the healthcare sector through the plaintiff, which is involved in research, development, manufacturing and marketing products for the prevention, diagnosis and treatment of diseases.

3. As mentioned hereinabove, the plaintiff claims that the suit patent covers and claims a molecule, being a new chemical entity, that is, 4{4-[3-(4-chloro-3-trifluoromethylphenyl)-ureido]-3-fluorophenoxy}-pyridine-2-carboxylic acid methylamide, which has been granted INN, REGORAFENIB.

4. The bibliographic details of the suit patent are given below:

    "a) Indian Patent No.: 240207

    b) Patentee: Bayer HealthCare LLC

    c) Indian Application No.: 402/DELNP/2006

    d) Date of filing in India: 23rd January, 2006

    e) Date of publication u/s 11A: 24th August, 2007

    f) Date of filing of international application: 22nd July, 2004

    g) PCT Application No.: PCT/US04/023500

    h) Priority application nos. and dates:

US 60/489,102 (23-Jul-2003)

US 60/540,326 (02-Feb-2004)

    i) Date of grant: 29th April, 2010

    j) Title: A FLUORO SUBSTITUTED OMEGA-CARBOXYARYL DIPHENYL UREA COMPOUND OR A SALT, OR AN ISOLATED STEREOISOMER THEREOF

    k) Drug covered: REGORAFENIB (WHO INN Nomenclature)-used for treatment of Metastatic colorectal cancer and advanced gastrointestinal stromal tumors.

    l) No. of claims: 9

    m) Claims claiming/covering Regorafenib: Specifically claimed in Claims 1 and 3.

    n) The suit patent discloses the compound REGORAFENIB, its preparation and characterization in Example 1, The HCl salt of Regorafenib is exemplified in Example 2, the Mesylate salt








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