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Infringement, direct competition, and past harms support permanent injunction against generics company

Infringement, direct competition, and past harms support permanent injunction against generics company

Endo v. Teva is a nonprecedential case decided on May 16, 2018 on appeal from the Southern District of New York. The district court found all asserted claims by plaintiff Endo against defendant Teva not invalid, and found all but two asserted claims infringed. The district court then issued a permanent injunction against Teva’s “manufacture, use, offer to sell, or sale of its generic version of” the drug prior to the expiration of the patents. Teva appealed.

The Federal Circuit affirmed the judgment on invalidity, infringement, and the permanent injunction.

The district court did not abuse its discretion by enjoining Teva. “The district court found that Endo will likely suffer irreparable harm relying on, among other things, its subsidiary findings that: (1) [Teva]’s generic [drug] infringed Endo’s patents; (2) Endo and [Teva] are direct competitors in the oxymorphone market; and (3) the introduction of additional generics into the market has led Endo to suffer past harms (losing its market share, cutting its sales force, reducing its promotional expenses, and changing its research and development strategies)—which would continue unabated in the absence of an injunction—and, relatedly, that Endo is also at risk of intangible harms such as reputational, organizational, and administrative.” (parenthesis in original). It is proper for a district court “to consider evidence of past harm to assess irreparable injury.” Moreover, Endo showed “that it had to lay off its sales force, which may damage its reputation in the market segment and make the company less attractive to potential new hires.”

Teva, “on the other hand, made no affirmative argument that it would suffer hardship from an injunction to counter Endo’s likely hardship. Finally, the court also found that public interest favors Endo’s right to exclude others as the rightful patent owner.”
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Endo Pharm. Inc. v. Teva Pharm. USA, Inc., 731 F. App’x 962 (Fed. Cir. 2018)