The patents relate to pharmaceutical formulations containing omeprazole, the active ingredient in Astra’s prescription drug, Prilosec, which is effective in treating acid-related gastrointestinal disorders. The omeprazole molecule can be unstable. To protect it from stomach acid, formulators have used an enteric coating. Enteric coatings contain acidic compounds, which can cause the omeprazole to decompose. To enhance storage stability, alkaline reacting compounds must be added, which can compromise a conventional enteric coating. The inventors of the patents at issue added a water-soluble, inert subcoating, separating the alkaline material from the enteric coating. The resulting formulation provides a dosage form of omeprazole with good storage stability, sufficient gastric acid resistance, and rapid release. After a finding of infringement, the district court awarded $76,021,994.50 plus prejudgment interest on a reasonable royalty theory of recovery. The Federal Circuit rejected challenges to the evidentiary analysis and conclusion that a 50 percent royalty rate constituted fair compensation under the reasonable royalty theory; upheld a finding that there was no reason to exclude the value of the active ingredient when calculating damages and refusal to discount the value of Astra’s patents based on the existence of alternatives to the infringing formulation that Apotex actually used; and reversed the award relating to the pediatric exclusivity period. View "Astrazeneca AB v. Apotex Corp." on Justia Law
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