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"para_5" }, { "text": "UNITED THERAPEUTICS CORP.; SMITHS MEDICAL ASD, INC.", "paragraph_id": "para_6" }, { "text": "UNITED THERAPEUTICS CORP.,", "paragraph_id": "para_7" }, { "text": "Appellant in No. 24-3067", "paragraph_id": "para_8" }, { "text": "SANDOZ, INC.,", "paragraph_id": "para_9" }, { "text": "Appellant in No. 24-3116", "paragraph_id": "para_10" }, { "text": "RAREGEN, LLC,", "paragraph_id": "para_11" }, { "text": "Appellant in No. 24-3146_________________________________", "paragraph_id": "para_12" }, { "text": "On Appeal from the U.S. District Court, D.N.J.", "paragraph_id": "para_13" }, { "text": "Judge Brian R. Martinotti, No. 2:19-cv-10170", "paragraph_id": "para_14" }, { "text": "Before: RESTREPO, MCKEE, AND AMBRO, Circuit Judges", "paragraph_id": "para_15" }, { "text": "Argued: Nov. 12, 2025; Filed: Oct. 7, 2026__________________________________________________________", "paragraph_id": "para_16" }, { "text": "OPINION OF THE COURT", "paragraph_id": "para_17" }, { "text": "RESTREPO, Circuit Judge. This case involves", "paragraph_id": "para_18" }, { "text": "competitive conduct between two pharmaceutical companies", "paragraph_id": "para_19" }, { "text": "that manufacture and sell the brand-name and generic versions", "paragraph_id": "para_20" }, { "text": "of the drug treprostinil. In 2002, United Therapeutics", "paragraph_id": "para_21" }, { "text": "Corporation (“UTC”) launched an injectable form of", "paragraph_id": "para_22" }, { "text": "treprostinil under the brand name Remodulin to treat", "paragraph_id": "para_23" }, { "text": "pulmonary arterial hypertension, a disease that causes high", "paragraph_id": "para_24" }, { "text": "blood pressure in the arteries running from the heart to the", "paragraph_id": "para_25" }, { "text": "lungs. In 2017, Sandoz, Inc. received approval to market", "paragraph_id": "para_26" }, { "text": "generic injectable treprostinil. Sandoz and its marketing", "paragraph_id": "para_27" }, { "text": "partner RareGen, LLC (together with Sandoz, “Plaintiffs”)", "paragraph_id": "para_28" }, { "text": "contend that, in connection with Sandoz’s launch of generic", "paragraph_id": "para_29" }, { "text": "2", "paragraph_id": "para_30" }, { "text": "treprostinil, UTC violated federal antitrust and state tort laws", "paragraph_id": "para_31", "court_paragraph": 2 }, { "text": "and breached a patent settlement agreement with Sandoz.", "paragraph_id": "para_32" }, { "text": "Because the settlement agreement does not", "paragraph_id": "para_33" }, { "text": "unambiguously establish the interpretation that Sandoz", "paragraph_id": "para_34" }, { "text": "advances, we will reverse the grant of summary judgment in", "paragraph_id": "para_35" }, { "text": "favor of Sandoz as to liability on the breach-of-contract claim", "paragraph_id": "para_36" }, { "text": "and remand with instructions that the issue of liability proceed", "paragraph_id": "para_37" }, { "text": "to trial.1 We will also reverse the grant of summary judgment", "paragraph_id": "para_38" }, { "text": "in favor of UTC on the tortious interference claim and remand", "paragraph_id": "para_39" }, { "text": "for the District Court to analyze the tortious interference claim", "paragraph_id": "para_40" }, { "text": "separately from the antitrust claims. As UTC demonstrated", "paragraph_id": "para_41" }, { "text": "procompetitive justifications for its conduct, we will affirm the", "paragraph_id": "para_42" }, { "text": "dismissal of the antitrust and state tort claims against UTC.", "paragraph_id": "para_43" }, { "text": "Finally, we will affirm the denial of UTC’s motion to exclude", "paragraph_id": "para_44" }, { "text": "Plaintiffs’ damages expert.", "paragraph_id": "para_45" }, { "text": "I. FACTUAL AND PROCEDURAL BACKGROUND", "paragraph_id": "para_46" }, { "text": "A. UTC and Smiths Cartridge Agreements", "paragraph_id": "para_47" }, { "text": "UTC is a pharmaceutical drug company that designs", "paragraph_id": "para_48" }, { "text": "and manufactures the brand-name drug Remodulin for patients", "paragraph_id": "para_49" }, { "text": "with pulmonary arterial hypertension. Remodulin can be", "paragraph_id": "para_50" }, { "text": "administered either intravenously or subcutaneously.", "paragraph_id": "para_51" }, { "text": "Subcutaneous administration requires the use of a pump and", "paragraph_id": "para_52" }, { "text": "disposable cartridges. Smiths Medical ASD, Inc. (“Smiths”)", "paragraph_id": "para_53" }, { "text": "developed and manufactured the CADD-MS 3 pump and", "paragraph_id": "para_54" }, { "text": "cartridges used to administer Remodulin subcutaneously.", "paragraph_id": "para_55" }, { "text": "Smiths sold its pump and cartridges to two specialty pharmacy", "paragraph_id": "para_56" }, { "text": "distributors, Accredo Health Group (“Accredo”) and CVS", "paragraph_id": "para_57" }, { "text": "Specialty (“CVS” and with Accredo, the “Specialty", "paragraph_id": "para_58" }, { "text": "Pharmacies”), which sold the medication to patients.", "paragraph_id": "para_59" }, { "text": "In August 2015, Smiths informed the Specialty", "paragraph_id": "para_60" }, { "text": "Pharmacies it was discontinuing the CADD-MS 3 pumps and", "paragraph_id": "para_61" }, { "text": "that its supply of cartridges was projected to be available for at", "paragraph_id": "para_62" }, { "text": "least three years. In March 2016, UTC and Smiths contracted", "paragraph_id": "para_63" }, { "text": "1 As we reverse the District Court’s summary judgment order", "paragraph_id": "para_64" }, { "text": "as to liability on the breach-of-contract claim and on the tor-", "paragraph_id": "para_65" }, { "text": "tious interference claim, we deny as moot the pretrial eviden-", "paragraph_id": "para_66" }, { "text": "tiary challenges and damages challenges raised on appeal.", "paragraph_id": "para_67" }, { "text": "3", "paragraph_id": "para_68" }, { "text": "for a “life extension” for Smiths’ pumps and cartridges (the", "paragraph_id": "para_69", "court_paragraph": 3 }, { "text": "“Supply Agreement”). UTC paid Smiths $2.5 million up front", "paragraph_id": "para_70" }, { "text": "to produce 7,000 pumps and 1.6 million cartridges, and it", "paragraph_id": "para_71" }, { "text": "agreed to purchase any unsold pumps after six years. Smiths", "paragraph_id": "para_72" }, { "text": "agreed to supply cartridges only to the Specialty Pharmacies in", "paragraph_id": "para_73" }, { "text": "the United States.", "paragraph_id": "para_74" }, { "text": "In March 2017, Smiths informed UTC that it had", "paragraph_id": "para_75" }, { "text": "produced 258,450 of the 1.6 million cartridges, and there was", "paragraph_id": "para_76" }, { "text": "sufficient resin to produce approximately 2.6 million", "paragraph_id": "para_77" }, { "text": "cartridges. In July 2017, UTC and Smiths amended the Supply", "paragraph_id": "para_78" }, { "text": "Agreement and UTC provided additional funding for Smiths’", "paragraph_id": "para_79" }, { "text": "production of 2.1 million cartridges. The amendment also", "paragraph_id": "para_80" }, { "text": "obligated Smiths to use commercially reasonable efforts to", "paragraph_id": "para_81" }, { "text": "amend its contract with the Specialty Pharmacies to include a", "paragraph_id": "para_82" }, { "text": "requirement that the cartridges only be used with Remodulin.", "paragraph_id": "para_83" }, { "text": "B. Sandoz and Generic Treprostinil", "paragraph_id": "para_84" }, { "text": "On September 29, 2015, UTC and Sandoz, a generic", "paragraph_id": "para_85" }, { "text": "drug company, entered into a settlement agreement (the", "paragraph_id": "para_86" }, { "text": "“Settlement Agreement”) arising from patent litigation, which", "paragraph_id": "para_87" }, { "text": "granted Sandoz a license to market treprostinil, the generic", "paragraph_id": "para_88" }, { "text": "form of Remodulin, for both subcutaneous and intravenous", "paragraph_id": "para_89" }, { "text": "administration. The Settlement Agreement included language", "paragraph_id": "para_90" }, { "text": "obligating UTC “[n]ot to take any action directly or indirectly", "paragraph_id": "para_91" }, { "text": "to prevent, delay, limit, or otherwise restrict the launch” of", "paragraph_id": "para_92" }, { "text": "Sandoz’s generic treprostinil and not to cause any third party", "paragraph_id": "para_93" }, { "text": "to “interfere with Sandoz’s efforts to launch” generic", "paragraph_id": "para_94" }, { "text": "treprostinil. App. 2781–82, 2784.", "paragraph_id": "para_95" }, { "text": "On May 17, 2016, a Sandoz executive contacted Smiths", "paragraph_id": "para_96" }, { "text": "regarding the CADD-MS 3 pump, and Smiths informed", "paragraph_id": "para_97" }, { "text": "Sandoz that it was discontinuing the pump. The FDA approved", "paragraph_id": "para_98" }, { "text": "Sandoz’s application for generic treprostinil in November", "paragraph_id": "para_99" }, { "text": "2017. Although the Settlement Agreement permitted Sandoz to", "paragraph_id": "para_100" }, { "text": "begin marketing generic treprostinil in June 2018, it waited to", "paragraph_id": "para_101" }, { "text": "launch the drug. In August 2018, Sandoz partnered with", "paragraph_id": "para_102" }, { "text": "RareGen—a company created by former UTC executives—to", "paragraph_id": "para_103" }, { "text": "market and sell generic treprostinil.", "paragraph_id": "para_104" }, { "text": "4", "paragraph_id": "para_105" }, { "text": "C. Cartridge Restrictions", "paragraph_id": "para_106", "court_paragraph": 4 }, { "text": "In December 2018, UTC learned that Smiths had not", "paragraph_id": "para_107" }, { "text": "been able to obtain contract amendments with the Specialty", "paragraph_id": "para_108" }, { "text": "Pharmacies restricting its cartridges for use with Remodulin", "paragraph_id": "para_109" }, { "text": "only. UTC also learned that Sandoz was preparing to launch", "paragraph_id": "para_110" }, { "text": "generic treprostinil. At UTC’s request, Smiths placed the", "paragraph_id": "para_111" }, { "text": "cartridges on allocation status, which gave UTC approval", "paragraph_id": "para_112" }, { "text": "rights over every cartridge sale by Smiths to the Specialty", "paragraph_id": "para_113" }, { "text": "Pharmacies. UTC used the authority as “negotiating leverage”", "paragraph_id": "para_114" }, { "text": "over the Specialty Pharmacies, App. 1494, refusing to release", "paragraph_id": "para_115" }, { "text": "cartridges until they signed exclusivity agreements restricting", "paragraph_id": "para_116" }, { "text": "use of the cartridges to Remodulin only. Over the next few", "paragraph_id": "para_117" }, { "text": "months, the Specialty Pharmacies sent numerous emails to", "paragraph_id": "para_118" }, { "text": "Smiths, expressing concerns that their supplies were dwindling", "paragraph_id": "para_119" }, { "text": "and that they would be unable to service patients. These", "paragraph_id": "para_120" }, { "text": "shortages created serious risks for patients, who needed", "paragraph_id": "para_121" }, { "text": "continuous infusions of medication. With UTC’s approval,", "paragraph_id": "para_122" }, { "text": "Smiths permitted some shipments of cartridge, but warned the", "paragraph_id": "para_123" }, { "text": "Pharmacies that “this [would] be the process until the", "paragraph_id": "para_124" }, { "text": "amendments have been finalized.” App. 6739.", "paragraph_id": "para_125" }, { "text": "On February 14, 2019, CVS agreed to sell the cartridges", "paragraph_id": "para_126" }, { "text": "only to Remodulin users. On March 18, 2019, Accredo", "paragraph_id": "para_127" }, { "text": "followed suit. But Smiths never countersigned the agreements.", "paragraph_id": "para_128" }, { "text": "A Smiths employee later testified that Smiths was “no longer", "paragraph_id": "para_129" }, { "text": "comfortable signing” and that “it was placing an unfair burden", "paragraph_id": "para_130" }, { "text": "on Smiths Medical to try to dictate the supply chain flow of", "paragraph_id": "para_131" }, { "text": "this, so [Smiths] didn’t really want to be in the middle of that", "paragraph_id": "para_132" }, { "text": "anymore.” App. 1173.", "paragraph_id": "para_133" }, { "text": "In an April 8, 2019, amendment to the Supply", "paragraph_id": "para_134" }, { "text": "Agreement, Smiths sold its existing and future cartridge", "paragraph_id": "para_135" }, { "text": "inventory to UTC and agreed to distribute the pumps and", "paragraph_id": "para_136" }, { "text": "cartridges on UTC’s behalf. In April and May 2019, UTC", "paragraph_id": "para_137" }, { "text": "executed agreements directly with the Specialty Pharmacies,", "paragraph_id": "para_138" }, { "text": "prohibiting them from distributing the cartridges for use with", "paragraph_id": "para_139" }, { "text": "generic treprostinil.", "paragraph_id": "para_140" }, { "text": "Sandoz maintains that Accredo initially assured it that", "paragraph_id": "para_141" }, { "text": "cartridges would be available for use with generic treprostinil,", "paragraph_id": "para_142" }, { "text": "but then in January 2019 stated that cartridges could no longer", "paragraph_id": "para_143" }, { "text": "be provided for non-Remodulin use. On March 25, 2019,", "paragraph_id": "para_144" }, { "text": "5", "paragraph_id": "para_145" }, { "text": "lacking the cartridges for subcutaneous administration, Sandoz", "paragraph_id": "para_146", "court_paragraph": 5 }, { "text": "launched its generic treprostinil for intravenous administration", "paragraph_id": "para_147" }, { "text": "only. In May 2019, RareGen contracted with a device", "paragraph_id": "para_148" }, { "text": "manufacturer to produce cartridges for use with Sandoz’s", "paragraph_id": "para_149" }, { "text": "generic treprostinil. The FDA approved the alternative", "paragraph_id": "para_150" }, { "text": "cartridge on March 26, 2021, and Sandoz launched its generic", "paragraph_id": "para_151" }, { "text": "subcutaneous treprostinil in May 2021. Sandoz’s generic", "paragraph_id": "para_152" }, { "text": "treprostinil underperformed relative to internal forecasts, and", "paragraph_id": "para_153" }, { "text": "Sandoz ultimately destroyed over $6 million of its product.", "paragraph_id": "para_154" }, { "text": "D. Procedural History", "paragraph_id": "para_155" }, { "text": "On April 16, 2019, Sandoz and RareGen filed their", "paragraph_id": "para_156" }, { "text": "complaint against UTC and Smiths, asserting federal antitrust,", "paragraph_id": "para_157" }, { "text": "state antitrust, and state tort claims.2 After the District Court", "paragraph_id": "para_158" }, { "text": "denied Plaintiffs’ motion for a preliminary injunction, Sandoz", "paragraph_id": "para_159" }, { "text": "added a breach of contract claim against UTC based on the", "paragraph_id": "para_160" }, { "text": "Settlement Agreement. The District Court granted summary", "paragraph_id": "para_161" }, { "text": "judgment against RareGen and Sandoz as to the antitrust and", "paragraph_id": "para_162" }, { "text": "state-law tort claims, dismissing RareGen from the case, and", "paragraph_id": "para_163" }, { "text": "granted summary judgment in favor of Sandoz as to liability", "paragraph_id": "para_164" }, { "text": "on its breach-of-contract claim. The court also denied UTC’s", "paragraph_id": "para_165" }, { "text": "motion to exclude the opinion of Sandoz’s damages expert, Dr.", "paragraph_id": "para_166" }, { "text": "Anupam Jena. After a bench trial on damages as to the breach-", "paragraph_id": "para_167" }, { "text": "of-contract claim, the court awarded Sandoz $61,643,251 in", "paragraph_id": "para_168" }, { "text": "damages.", "paragraph_id": "para_169" }, { "text": "On appeal, UTC challenges the District Court’s grant of", "paragraph_id": "para_170" }, { "text": "summary judgment in favor of Sandoz as well as certain", "paragraph_id": "para_171" }, { "text": "evidentiary rulings and aspects of the damages award. RareGen", "paragraph_id": "para_172" }, { "text": "cross-appeals the District Court’s grant of summary judgment", "paragraph_id": "para_173" }, { "text": "in favor of UTC on the antitrust and state law claims. Sandoz", "paragraph_id": "para_174" }, { "text": "adopts RareGen’s arguments and additionally challenges the", "paragraph_id": "para_175" }, { "text": "District Court’s damages award.", "paragraph_id": "para_176" }, { "text": "II. STANDARD OF REVIEW", "paragraph_id": "para_177" }, { "text": "The District Court had jurisdiction under 15 U.S.C. § 15", "paragraph_id": "para_178" }, { "text": "and 28 U.S.C. §§ 1331, 1332, 1337. We have jurisdiction", "paragraph_id": "para_179" }, { "text": "2 Prior to summary judgment, Plaintiffs and Smiths settled and", "paragraph_id": "para_180" }, { "text": "the District Court dismissed all claims against Smiths with", "paragraph_id": "para_181" }, { "text": "prejudice.", "paragraph_id": "para_182" }, { "text": "6", "paragraph_id": "para_183" }, { "text": "under 28 U.S.C. § 1291. We exercise plenary review over the", "paragraph_id": "para_184", "court_paragraph": 6 }, { "text": "District Court’s grant of summary judgment, “applying the", "paragraph_id": "para_185" }, { "text": "same standard that the lower court should have applied.” Le", "paragraph_id": "para_186" }, { "text": "Pape v. Lower Merion Sch. Dist., 103 F.4th 966, 977 (3d Cir.", "paragraph_id": "para_187" }, { "text": "2024) (quoting Chisolm v. McManimon, 275 F.3d 315, 321 (3d", "paragraph_id": "para_188" }, { "text": "Cir. 2001)). Summary judgment is appropriate where there is", "paragraph_id": "para_189" }, { "text": "no genuine dispute as to any material fact and the movant is", "paragraph_id": "para_190" }, { "text": "entitled to judgment as a matter of law, drawing all inferences", "paragraph_id": "para_191" }, { "text": "and reviewing all facts in the light most favorable to the non-", "paragraph_id": "para_192" }, { "text": "moving party. Id. We review a district court’s decision to", "paragraph_id": "para_193" }, { "text": "exclude or admit expert testimony for abuse of discretion. See", "paragraph_id": "para_194" }, { "text": "ZF Meritor, LLC v. Eaton Corp., 696 F.3d 254, 268 (3d Cir.", "paragraph_id": "para_195" }, { "text": "2012).", "paragraph_id": "para_196" }, { "text": "III. BREACH OF CONTRACT", "paragraph_id": "para_197" }, { "text": "UTC argues that the District Court erred in granting", "paragraph_id": "para_198" }, { "text": "partial summary judgment in favor of Sandoz as to liability on", "paragraph_id": "para_199" }, { "text": "its breach-of-contract claim because the meaning of the", "paragraph_id": "para_200" }, { "text": "challenged provisions in the Settlement Agreement is", "paragraph_id": "para_201" }, { "text": "ambiguous. As this case involves a question of contract", "paragraph_id": "para_202" }, { "text": "interpretation, summary judgment shall be granted only if the", "paragraph_id": "para_203" }, { "text": "contract language is unambiguous, meaning “subject to only", "paragraph_id": "para_204" }, { "text": "one reasonable interpretation.” Mylan Inc. v. SmithKline", "paragraph_id": "para_205" }, { "text": "Beecham Corp., 723 F.3d 413, 418 (3d Cir. 2013) (quoting", "paragraph_id": "para_206" }, { "text": "Arnold M. Diamond, Inc. v. Gulf Coast Trailing Co., 180 F.3d", "paragraph_id": "para_207" }, { "text": "518, 521 (3d Cir. 1999)). Whether a contract is ambiguous is", "paragraph_id": "para_208" }, { "text": "an issue of law subject to plenary review. Sumitomo Mach.", "paragraph_id": "para_209" }, { "text": "Corp. of Am. v. AlliedSignal, Inc., 81 F.3d 328, 332 (3d Cir.", "paragraph_id": "para_210" }, { "text": "1996). “If the non-moving party presents a reasonable", "paragraph_id": "para_211" }, { "text": "alternative reading of the contract, then a question of fact as to", "paragraph_id": "para_212" }, { "text": "the meaning of the contract exists which can only be resolved", "paragraph_id": "para_213" }, { "text": "at trial.” Newport Assocs. Dev. Co. v. Travelers Indem. Co. of", "paragraph_id": "para_214" }, { "text": "Ill., 162 F.3d 789, 792 (3d Cir. 1998). “Thus, the dispositive", "paragraph_id": "para_215" }, { "text": "question is whether [UTC] provided a reasonable reading of", "paragraph_id": "para_216" }, { "text": "the contract.” Id.", "paragraph_id": "para_217" }, { "text": "The Settlement Agreement is governed by New Jersey", "paragraph_id": "para_218" }, { "text": "law, which requires courts to consider “‘all of the relevant", "paragraph_id": "para_219" }, { "text": "evidence that will assist in determining the intent and meaning", "paragraph_id": "para_220" }, { "text": "of the contract’ when making ambiguity determinations.”", "paragraph_id": "para_221" }, { "text": "Mylan, 723 F.3d at 419 (quoting Conway v. 287 Corp. Ctr.", "paragraph_id": "para_222" }, { "text": "Assocs., 901 A.2d 341, 346 (N.J. 2006)). Even when a contract", "paragraph_id": "para_223" }, { "text": "appears to be unambiguous on its face, “[e]vidence of the", "paragraph_id": "para_224" }, { "text": "7", "paragraph_id": "para_225" }, { "text": "circumstances is always admissible in aid of the interpretation”", "paragraph_id": "para_226", "court_paragraph": 7 }, { "text": "of an integrated contract. Id. (quoting Sumitomo Mach.", "paragraph_id": "para_227" }, { "text": "Corp., 81 F.3d at 332). Contracts should be read “as a whole”", "paragraph_id": "para_228" }, { "text": "and “in a fair and common sense manner” that is based on “the", "paragraph_id": "para_229" }, { "text": "intent of the parties, the express terms of the contract,", "paragraph_id": "para_230" }, { "text": "surrounding circumstances and the underlying purpose of the", "paragraph_id": "para_231" }, { "text": "contract.” Manahawkin Convalescent v. O’Neill, 85 A.3d 947,", "paragraph_id": "para_232" }, { "text": "958 (N.J. 2014) (citation modified). Therefore, we must", "paragraph_id": "para_233" }, { "text": "consider “all relevant evidence to determine if any ambiguity", "paragraph_id": "para_234" }, { "text": "exists,” and summary judgment is inappropriate “if the", "paragraph_id": "para_235" }, { "text": "contested provisions fall in that gray area.” Mylan, 723 F.3d at", "paragraph_id": "para_236" }, { "text": "419.", "paragraph_id": "para_237" }, { "text": "Plaintiffs alleged that UTC breached the Settlement", "paragraph_id": "para_238" }, { "text": "Agreement’s terms prohibiting it from impeding the launch of", "paragraph_id": "para_239" }, { "text": "treprostinil. Specifically, under Section 11(b), UTC agreed", "paragraph_id": "para_240" }, { "text": "“[n]ot to take any action directly or indirectly to prevent, delay,", "paragraph_id": "para_241" }, { "text": "limit, or otherwise restrict the launch, manufacture, use, sale,", "paragraph_id": "para_242" }, { "text": "offer for sale, importation or distribution of the Sandoz ANDA", "paragraph_id": "para_243" }, { "text": "Product in or for the Territory by Sandoz and its Affiliates as", "paragraph_id": "para_244" }, { "text": "permitted under the terms of this Agreement.” App. 2781–82.", "paragraph_id": "para_245" }, { "text": "Under Section 15(a), UTC additionally agreed that it “shall not", "paragraph_id": "para_246" }, { "text": "cause any Third Party to . . . initiate or otherwise undertake any", "paragraph_id": "para_247" }, { "text": "activity in the Territory, directly or indirectly, against the . . .", "paragraph_id": "para_248" }, { "text": "Sandoz ANDA Product to . . . interfere with Sandoz’s efforts", "paragraph_id": "para_249" }, { "text": "to launch the Sandoz ANDA Product in the Territory as of the", "paragraph_id": "para_250" }, { "text": "Effective Launch Date under the terms provided by this", "paragraph_id": "para_251" }, { "text": "Agreement.” App. 2784. Plaintiffs alleged that UTC’s", "paragraph_id": "para_252" }, { "text": "cartridge restrictions breached these provisions because they", "paragraph_id": "para_253" }, { "text": "prevented, delayed, and limited Sandoz’s efforts to launch", "paragraph_id": "para_254" }, { "text": "generic treprostinil.", "paragraph_id": "para_255" }, { "text": "In holding UTC liable for breach of contract, the District", "paragraph_id": "para_256" }, { "text": "Court ruled that UTC breached Sections 11(b) and 15(a) by", "paragraph_id": "para_257" }, { "text": "“locking up the existing inventory by taking title to all", "paragraph_id": "para_258" }, { "text": "commercially available cartridges as Sandoz was preparing to", "paragraph_id": "para_259" }, { "text": "launch its generic.” App. 93. The court held that “there is no", "paragraph_id": "para_260" }, { "text": "genuine dispute UTC unambiguously promised not to ‘prevent,", "paragraph_id": "para_261" }, { "text": "limit, delay, or otherwise restrict’ Sandoz’s generic launch.”", "paragraph_id": "para_262" }, { "text": "App. 92. However, context complicates an isolated reading of", "paragraph_id": "para_263" }, { "text": "Sections 11(b) and 15(a), which would seemingly restrict UTC", "paragraph_id": "para_264" }, { "text": "from taking any actions that would have the effect of impeding", "paragraph_id": "para_265" }, { "text": "its competitor Sandoz’s efforts to launch generic treprostinil.", "paragraph_id": "para_266" }, { "text": "8", "paragraph_id": "para_267" }, { "text": "First, both Sections 11(b) and 15(a) are limited by “the", "paragraph_id": "para_268", "court_paragraph": 8 }, { "text": "terms” of the Settlement Agreement, which include other", "paragraph_id": "para_269" }, { "text": "provisions that UTC argues foreclose any obligation", "paragraph_id": "para_270" }, { "text": "concerning the cartridges. Specifically, the Settlement", "paragraph_id": "para_271" }, { "text": "Agreement’s definition of the product at issue, termed the", "paragraph_id": "para_272" }, { "text": "Sandoz ANDA Product, states that it “expressly [does] not", "paragraph_id": "para_273" }, { "text": "include . . . any technology associated with any UTC", "paragraph_id": "para_274" }, { "text": "product(s).” App. 2776. The Settlement Agreement also", "paragraph_id": "para_275" }, { "text": "provides that Sandoz’s license to make, market, sell, and", "paragraph_id": "para_276" }, { "text": "distribute generic treprostinil “expressly and specifically", "paragraph_id": "para_277" }, { "text": "excludes conferring any and all rights . . . to the use of any", "paragraph_id": "para_278" }, { "text": "device(s), pump(s), or equipment that may be used with the", "paragraph_id": "para_279" }, { "text": "Sandoz ANDA Product.” App. 2778. Finally, both parties", "paragraph_id": "para_280" }, { "text": "represented and warranted that “[n]othing in this agreement", "paragraph_id": "para_281" }, { "text": "shall be construed to grant any right to any Third Party", "paragraph_id": "para_282" }, { "text": "proprietary technology, including . . . any other pump or", "paragraph_id": "para_283" }, { "text": "delivery system for the Sandoz ANDA Product or any other", "paragraph_id": "para_284" }, { "text": "form of treprostinil.” App. 2782.", "paragraph_id": "para_285" }, { "text": "Further, UTC offers an alternative reading that Sections", "paragraph_id": "para_286" }, { "text": "11(b) and 15(a) are merely “catch-all provisions aimed at", "paragraph_id": "para_287" }, { "text": "reinforcing UTC’s agreement not to wield its intellectual", "paragraph_id": "para_288" }, { "text": "property rights against Sandoz.” UTC Br. 28. Indeed, the", "paragraph_id": "para_289" }, { "text": "surrounding context of 11(b) and 15(a)—provisions in a patent", "paragraph_id": "para_290" }, { "text": "litigation settlement agreement—suggest that those provisions", "paragraph_id": "para_291" }, { "text": "refer to UTC refraining from using its intellectual property", "paragraph_id": "para_292" }, { "text": "rights to derail Sandoz’s launch and FDA approval, rather than", "paragraph_id": "para_293" }, { "text": "a blanket ban on any conduct interfering with Sandoz’s launch.", "paragraph_id": "para_294" }, { "text": "Section 11(a), which immediately precedes Section 11(b) and", "paragraph_id": "para_295" }, { "text": "is the only other subsection in Section 11, obligates UTC not", "paragraph_id": "para_296" }, { "text": "to bring suit against Sandoz for patent infringement. Section", "paragraph_id": "para_297" }, { "text": "15 is titled “Regulatory Approval,” and 15(a) also restricts", "paragraph_id": "para_298" }, { "text": "UTC from “interfer[ing] with Sandoz’s efforts to obtain FDA", "paragraph_id": "para_299" }, { "text": "approval” of its product. App. 2784.", "paragraph_id": "para_300" }, { "text": "We thus cannot say there is “only one reasonable", "paragraph_id": "para_301" }, { "text": "interpretation” of the contract. Mylan, 723 F.3d at 418 (citation", "paragraph_id": "para_302" }, { "text": "modified). In light of the broader context, “the contested", "paragraph_id": "para_303" }, { "text": "provisions fall in that gray area” of ambiguity, and", "paragraph_id": "para_304" }, { "text": "consequently, “summary judgment is improper.” Id. at 419.", "paragraph_id": "para_305" }, { "text": "Instead, the breach-of-contract claim should proceed to trial", "paragraph_id": "para_306" }, { "text": "and the “fact-finder must attempt to discover what the", "paragraph_id": "para_307" }, { "text": "9", "paragraph_id": "para_308" }, { "text": "contracting parties . . . intended [the disputed provisions] to", "paragraph_id": "para_309", "court_paragraph": 9 }, { "text": "mean.” Fed Cetera, LLC v. Nat’l Credit Servs., Inc., 938 F.3d", "paragraph_id": "para_310" }, { "text": "466, 470 (3d Cir. 2019) (quoting Wayne Land & Mineral Grp.", "paragraph_id": "para_311" }, { "text": "LLC v. Del. River Basin Comm’n, 894 F.3d 509, 534 (3d Cir.", "paragraph_id": "para_312" }, { "text": "2018)). Therefore, we will reverse the District Court’s grant of", "paragraph_id": "para_313" }, { "text": "summary judgment as to the breach-of-contract claim.", "paragraph_id": "para_314" }, { "text": "IV. SHERMAN ACT CLAIMS", "paragraph_id": "para_315" }, { "text": "A. Forfeiture", "paragraph_id": "para_316" }, { "text": "As a preliminary matter, we hold that Sandoz properly", "paragraph_id": "para_317" }, { "text": "adopted RareGen’s arguments regarding the antitrust and state", "paragraph_id": "para_318" }, { "text": "law claims. In its appellate brief, Sandoz adopted the Sherman", "paragraph_id": "para_319" }, { "text": "Act antitrust and state law arguments asserted in RareGen’s", "paragraph_id": "para_320" }, { "text": "cross-appeal under Federal Rule of Appellate Procedure 28(i).", "paragraph_id": "para_321" }, { "text": "Rule 28(i) provides that in cases involving multiple appellants", "paragraph_id": "para_322" }, { "text": "or appellees, “any party may adopt by reference a part of", "paragraph_id": "para_323" }, { "text": "another’s brief.” Fed. R. App. P. 28(i). UTC argues that Sandoz", "paragraph_id": "para_324" }, { "text": "has forfeited the antitrust and state law claims on appeal", "paragraph_id": "para_325" }, { "text": "because its “blanket statement” of incorporation does not", "paragraph_id": "para_326" }, { "text": "sufficiently identify the arguments incorporated and, even if", "paragraph_id": "para_327" }, { "text": "the statement were adequate, the incorporation would violate", "paragraph_id": "para_328" }, { "text": "the word count. UTC Resp. Br. 40 (citation omitted).", "paragraph_id": "para_329" }, { "text": "This Circuit encourages parties to adopt “portions of", "paragraph_id": "para_330" }, { "text": "already-filed briefs” under Rule 28(i) so long as the issues are", "paragraph_id": "para_331" }, { "text": "“specifically and explicitly identified” and not incorporated", "paragraph_id": "para_332" }, { "text": "under “general statements of adoption.” United States v.", "paragraph_id": "para_333" }, { "text": "Williams, 974 F.3d 320, 339 n.7 (3d Cir. 2020). Otherwise,", "paragraph_id": "para_334" }, { "text": "leaving the court to “scour the record” and “identify the issues", "paragraph_id": "para_335" }, { "text": "to be adopted” will result in the abandonment and waiver of", "paragraph_id": "para_336" }, { "text": "the unspecified issues. United States v. Fattah, 914 F.3d 112,", "paragraph_id": "para_337" }, { "text": "146 n.9 (3d Cir. 2019).", "paragraph_id": "para_338" }, { "text": "Sandoz’s statement of incorporation is not a general", "paragraph_id": "para_339" }, { "text": "statement of adoption. Sandoz specified it adopted RareGen’s", "paragraph_id": "para_340" }, { "text": "arguments related to the antitrust and state-law claims. Sandoz", "paragraph_id": "para_341" }, { "text": "Br. 1 n.1 (“RareGen . . . separately appeals the summary", "paragraph_id": "para_342" }, { "text": "judgment decision on the antitrust and related state-law claims.", "paragraph_id": "para_343" }, { "text": "Sandoz adopts RareGen’s arguments.”) Sandoz then further", "paragraph_id": "para_344" }, { "text": "detailed that it “adopts by reference the entirety of the Brief of", "paragraph_id": "para_345" }, { "text": "Appellee RareGen, LLC, including specifically argument", "paragraph_id": "para_346" }, { "text": "10", "paragraph_id": "para_347" }, { "text": "Sections I and II, which appeal the district court’s order", "paragraph_id": "para_348", "court_paragraph": 10 }, { "text": "granting summary judgment in UTC’s favor on Plaintiffs’", "paragraph_id": "para_349" }, { "text": "antitrust and related state-law claims.” Sandoz Br. 3–4. Thus,", "paragraph_id": "para_350" }, { "text": "the adopted arguments are “specifically and explicitly", "paragraph_id": "para_351" }, { "text": "identified.” Williams, 974 F.3d at 339 n.7.", "paragraph_id": "para_352" }, { "text": "UTC also argues that Sandoz exceeded the word count", "paragraph_id": "para_353" }, { "text": "in Federal Rule of Appellate Procedure 28.1(e) by", "paragraph_id": "para_354" }, { "text": "incorporating RareGen’s arguments. In support, UTC cites to", "paragraph_id": "para_355" }, { "text": "Federal Circuit authority holding that a party may not exceed", "paragraph_id": "para_356" }, { "text": "the word limit when incorporating arguments by reference. See", "paragraph_id": "para_357" }, { "text": "Promptu Sys. Corp. v. Comcast Cable Commc’ns, LLC, 92", "paragraph_id": "para_358" }, { "text": "F.4th 1384, 1386 (Fed. Cir. 2024) (per curiam); Medtronic, Inc.", "paragraph_id": "para_359" }, { "text": "v. Teleflex Life Scis. Ltd., 86 F.4th 902, 906–07 (Fed. Cir.", "paragraph_id": "para_360" }, { "text": "2023).", "paragraph_id": "para_361" }, { "text": "We have not addressed this issue precedentially, but we", "paragraph_id": "para_362" }, { "text": "have rejected the related practice of a party incorporating on", "paragraph_id": "para_363" }, { "text": "appeal its own briefs filed in the district court, proscribing such", "paragraph_id": "para_364" }, { "text": "incorporation as “effectively nullify[ing] the page or word", "paragraph_id": "para_365" }, { "text": "limits.” Papp v. Fore-Kast Sales Co., 842 F.3d 805, 816 (3d", "paragraph_id": "para_366" }, { "text": "Cir. 2016). In so ruling, we cited to the Tenth Circuit, id. & n.9", "paragraph_id": "para_367" }, { "text": "(citing Gaines-Tabb v. ICI Explosives, USA, Inc., 160 F.3d", "paragraph_id": "para_368" }, { "text": "613, 623–24 (10th Cir. 1998)), which prohibits the adoption of", "paragraph_id": "para_369" }, { "text": "district court filings because the practice circumvents the", "paragraph_id": "para_370" }, { "text": "appellate page limitations and “unnecessarily complicate[s] the", "paragraph_id": "para_371" }, { "text": "task of an appellate judge.” Gaines-Tabb, 160 F.3d at 624.", "paragraph_id": "para_372" }, { "text": "However, the Tenth Circuit has held that adopted arguments", "paragraph_id": "para_373" }, { "text": "do not count toward the word limit when a party adopts by", "paragraph_id": "para_374" }, { "text": "reference arguments from a co-party’s appellate brief. United", "paragraph_id": "para_375" }, { "text": "States v. Butler, 141 F.4th 1136, 1149 (10th Cir. 2025). The", "paragraph_id": "para_376" }, { "text": "Eighth Circuit holds the same because “[p]ermitting unlimited", "paragraph_id": "para_377" }, { "text": "adoption of briefs will generally not cause the problems that", "paragraph_id": "para_378" }, { "text": "word limits are designed to avoid, since courts and parties", "paragraph_id": "para_379" }, { "text": "already have to read and respond to the briefs being adopted.”", "paragraph_id": "para_380" }, { "text": "In re Target Corp. Customer Data Sec. Breach Litig., 855 F.3d", "paragraph_id": "para_381" }, { "text": "913, 916–17 (8th Cir. 2017).", "paragraph_id": "para_382" }, { "text": "We agree that the concerns that arise when adopting", "paragraph_id": "para_383" }, { "text": "briefing below are not present when a party adopts a part of an", "paragraph_id": "para_384" }, { "text": "appellate brief in the same case. Unlike in the former context,", "paragraph_id": "para_385" }, { "text": "the federal appellate rules explicitly permit parties to adopt by", "paragraph_id": "para_386" }, { "text": "reference co-parties’ arguments raised in appellate briefs, with", "paragraph_id": "para_387" }, { "text": "11", "paragraph_id": "para_388" }, { "text": "no indication that the arguments should count toward the word", "paragraph_id": "para_389", "court_paragraph": 11 }, { "text": "limit. And, because the relevant argument has already been", "paragraph_id": "para_390" }, { "text": "raised on appeal by one party, the court must review the", "paragraph_id": "para_391" }, { "text": "argument regardless of whether another party adopts it.", "paragraph_id": "para_392" }, { "text": "Therefore, we join the Eighth and Tenth Circuits in holding", "paragraph_id": "para_393" }, { "text": "that a party’s proper adoption of arguments pursuant to Rule", "paragraph_id": "para_394" }, { "text": "28(i) does not count toward the word limits prescribed by", "paragraph_id": "para_395" }, { "text": "Federal Rule of Appellate Procedure 28.1(e).3", "paragraph_id": "para_396" }, { "text": "B. The Sherman Act", "paragraph_id": "para_397" }, { "text": "Sandoz and RareGen brought claims under Sections 1", "paragraph_id": "para_398" }, { "text": "and 2 of the Sherman Act. Section 1 prohibits “[e]very", "paragraph_id": "para_399" }, { "text": "contract, combination in the form of trust or otherwise, or", "paragraph_id": "para_400" }, { "text": "conspiracy, in restraint of trade or commerce among the", "paragraph_id": "para_401" }, { "text": "several States.” 15 U.S.C. § 1. Section 1 applies only to", "paragraph_id": "para_402" }, { "text": "unreasonable restraints of trade. Race Tires Am., Inc. v.", "paragraph_id": "para_403" }, { "text": "Hoosier Racing Tire Corp., 614 F.3d 57, 74 (3d Cir. 2010). To", "paragraph_id": "para_404" }, { "text": "prevail on a Section 1 claim, a plaintiff must prove (1)", "paragraph_id": "para_405" }, { "text": "concerted action by the defendants; (2) that the concerted", "paragraph_id": "para_406" }, { "text": "actions produced anti-competitive effects within the relevant", "paragraph_id": "para_407" }, { "text": "product and geographic markets; (3) that the concerted actions", "paragraph_id": "para_408" }, { "text": "were illegal; and (4) that it was injured as a proximate result of", "paragraph_id": "para_409" }, { "text": "the concerted action. Gordon v. Lewistown Hosp., 423 F.3d", "paragraph_id": "para_410" }, { "text": "184, 207 (3d Cir. 2005).", "paragraph_id": "para_411" }, { "text": "3 We do not address UTC’s argument that RareGen lacks", "paragraph_id": "para_412" }, { "text": "antitrust standing to advance its Sherman Act claims because", "paragraph_id": "para_413" }, { "text": "we affirm the District Court’s dismissal of the antitrust claims.", "paragraph_id": "para_414" }, { "text": "Further, even if RareGen does not have antitrust standing, UTC", "paragraph_id": "para_415" }, { "text": "does not dispute that Sandoz has antitrust standing as a", "paragraph_id": "para_416" }, { "text": "competitor to UTC. Ethypharm S.A. France v. Abbott Lab’ys,", "paragraph_id": "para_417" }, { "text": "707 F.3d 223, 233 (3d Cir. 2013) (stating that a competitor in", "paragraph_id": "para_418" }, { "text": "the relevant market can establish antitrust injury). Because we", "paragraph_id": "para_419" }, { "text": "hold that Sandoz validly adopted RareGen’s Sherman Act", "paragraph_id": "para_420" }, { "text": "arguments, those claims are properly before us. Cf. In re Yellow", "paragraph_id": "para_421" }, { "text": "Corp., 152 F.4th 491, 500 n.2 (3d Cir. 2025) (holding that even", "paragraph_id": "para_422" }, { "text": "if appellants raising challenge lacked standing under prudential", "paragraph_id": "para_423" }, { "text": "standing doctrine, the issue “would remain properly before us”", "paragraph_id": "para_424" }, { "text": "where another appellant that “has standing unquestionably . . .", "paragraph_id": "para_425" }, { "text": "joins in [co-appellants’] challenge to the regulations”).", "paragraph_id": "para_426" }, { "text": "12", "paragraph_id": "para_427" }, { "text": "Section 2 prohibits monopolization, attempts to", "paragraph_id": "para_428", "court_paragraph": 12 }, { "text": "monopolize, and conspiracies to monopolize any part of", "paragraph_id": "para_429" }, { "text": "interstate commerce. 15 U.S.C. § 2. To prevail on a Section 2", "paragraph_id": "para_430" }, { "text": "claim, a plaintiff must show “(1) the possession of monopoly", "paragraph_id": "para_431" }, { "text": "power in the relevant market and (2) the willful acquisition or", "paragraph_id": "para_432" }, { "text": "maintenance of that power as distinguished from growth or", "paragraph_id": "para_433" }, { "text": "development as a consequence of a superior product, business", "paragraph_id": "para_434" }, { "text": "acumen, or historic accident.” Broadcom Corp. v. Qualcomm", "paragraph_id": "para_435" }, { "text": "Inc., 501 F.3d 297, 307 (3d Cir. 2007) (quoting United States", "paragraph_id": "para_436" }, { "text": "v. Grinnell Corp., 384 U.S. 563, 570–71 (1966)). Both", "paragraph_id": "para_437" }, { "text": "Sections require plaintiffs to allege that the defendant engaged", "paragraph_id": "para_438" }, { "text": "in anticompetitive conduct and that the conduct caused the", "paragraph_id": "para_439" }, { "text": "plaintiff to suffer antitrust injury. See ZF Meritor, 696 F.3d at", "paragraph_id": "para_440" }, { "text": "281.", "paragraph_id": "para_441" }, { "text": "The parties do not dispute that the alleged", "paragraph_id": "para_442" }, { "text": "anticompetitive conduct should be evaluated through the “rule", "paragraph_id": "para_443" }, { "text": "of reason” analysis, which the District Court applied below.", "paragraph_id": "para_444" }, { "text": "The Supreme Court has described the rule of reason as a “three-", "paragraph_id": "para_445" }, { "text": "step, burden-shifting framework,” Ohio v. Am. Express Co.,", "paragraph_id": "para_446" }, { "text": "585 U.S. 529, 541 (2018), while advising that this framework", "paragraph_id": "para_447" }, { "text": "is not a “rote checklist” and is not “an inflexible substitute for", "paragraph_id": "para_448" }, { "text": "careful analysis,” Nat’l Collegiate Athletic Ass’n v. Alston, 594", "paragraph_id": "para_449" }, { "text": "U.S. 69, 97 (2021). First, the plaintiff must prove that “the", "paragraph_id": "para_450" }, { "text": "challenged restraint has a substantial anticompetitive effect", "paragraph_id": "para_451" }, { "text": "that harms consumers in the relevant market.” Am. Express,", "paragraph_id": "para_452" }, { "text": "585 U.S. at 541. Only a restraint that, “on its face, has no", "paragraph_id": "para_453" }, { "text": "purpose except stifling competition” is unreasonable per se.", "paragraph_id": "para_454" }, { "text": "Eisai, Inc. v. Sanofi Aventis U.S., LLC, 821 F.3d 394, 402 (3d", "paragraph_id": "para_455" }, { "text": "Cir. 2016) (quoting Burtch v. Milberg Factors, Inc., 662 F.3d", "paragraph_id": "para_456" }, { "text": "212, 221 (3d Cir. 2011)). All other restraints are evaluated", "paragraph_id": "para_457" }, { "text": "under the rule of reason. Am. Express, 585 U.S. at 541.", "paragraph_id": "para_458" }, { "text": "The parties and the District Court understood the", "paragraph_id": "para_459" }, { "text": "alleged anticompetitive conduct to involve an “exclusive", "paragraph_id": "para_460" }, { "text": "dealing arrangement,” where a buyer agrees to purchase certain", "paragraph_id": "para_461" }, { "text": "goods only from a particular seller for a certain period. ZF", "paragraph_id": "para_462" }, { "text": "Meritor, 696 F.3d at 270. Courts apply the rule of reason to", "paragraph_id": "para_463" }, { "text": "exclusive dealing arrangements because they may offer", "paragraph_id": "para_464" }, { "text": "economic benefits to consumers like “assuring them the", "paragraph_id": "para_465" }, { "text": "availability of supply and price stability,” and therefore are not", "paragraph_id": "para_466" }, { "text": "per se violations of the antitrust laws. Eisai, 821 F.3d at 403.", "paragraph_id": "para_467" }, { "text": "13", "paragraph_id": "para_468" }, { "text": "An exclusive dealing agreement will not satisfy the rule of", "paragraph_id": "para_469", "court_paragraph": 13 }, { "text": "reason only if “the ‘probable effect’ of the arrangement is to", "paragraph_id": "para_470" }, { "text": "substantially lessen competition, rather than merely", "paragraph_id": "para_471" }, { "text": "disadvantage rivals.” ZF Meritor, 696 F.3d at 271 (quoting", "paragraph_id": "para_472" }, { "text": "Tampa Elec. Co. v. Nashville Coal Co., 365 U.S. 320, 329", "paragraph_id": "para_473" }, { "text": "(1961)).", "paragraph_id": "para_474" }, { "text": "Here, Plaintiffs identify the challenged restraint as", "paragraph_id": "para_475" }, { "text": "UTC’s 2019 agreements with Smiths and the Specialty", "paragraph_id": "para_476" }, { "text": "Pharmacies. To prevail under the rule of reason’s first step,", "paragraph_id": "para_477" }, { "text": "Plaintiffs must demonstrate that the restrictions resulted in", "paragraph_id": "para_478" }, { "text": "“substantial foreclosure of the market for the relevant product”", "paragraph_id": "para_479" }, { "text": "and had “likely or actual anticompetitive effects.” Eisai, 821", "paragraph_id": "para_480" }, { "text": "F.3d at 403. If Plaintiffs make this showing, the burden shifts", "paragraph_id": "para_481" }, { "text": "to UTC to show a procompetitive justification. Am. Express,", "paragraph_id": "para_482" }, { "text": "585 U.S. at 541. If UTC demonstrates such a justification, the", "paragraph_id": "para_483" }, { "text": "burden shifts back to Plaintiffs to show that “the", "paragraph_id": "para_484" }, { "text": "procompetitive efficiencies could be reasonably achieved", "paragraph_id": "para_485" }, { "text": "through less anticompetitive means.” Id. at 542; see ZF", "paragraph_id": "para_486" }, { "text": "Meritor, 696 F.3d at 271 (noting that exclusive dealing", "paragraph_id": "para_487" }, { "text": "agreements generally require an analysis of “likely or actual", "paragraph_id": "para_488" }, { "text": "anticompetitive effects considered in light of any", "paragraph_id": "para_489" }, { "text": "procompetitive effects”).", "paragraph_id": "para_490" }, { "text": "Even assuming Plaintiffs established substantial", "paragraph_id": "para_491" }, { "text": "foreclosure of the relevant market and anticompetitive effects", "paragraph_id": "para_492" }, { "text": "of the restrictions, UTC has demonstrated procompetitive", "paragraph_id": "para_493" }, { "text": "objectives that justify its conduct. A valid procompetitive", "paragraph_id": "para_494" }, { "text": "justification “relates directly or indirectly to the enhancement", "paragraph_id": "para_495" }, { "text": "of consumer welfare.” LePage’s Inc. v. 3M, 324 F.3d 141, 163", "paragraph_id": "para_496" }, { "text": "(3d Cir. 2003) (en banc) (quoting Data Gen. Corp. v.", "paragraph_id": "para_497" }, { "text": "Grumman Sys. Support Corp., 36 F.3d 1147, 1183 (1st Cir.", "paragraph_id": "para_498" }, { "text": "1994)). “Thus, pursuit of efficiency and quality control might", "paragraph_id": "para_499" }, { "text": "be legitimate competitive reasons[,] while the desire to", "paragraph_id": "para_500" }, { "text": "maintain a monopoly market share or thwart the entry of", "paragraph_id": "para_501" }, { "text": "competitors would not.” Id.", "paragraph_id": "para_502" }, { "text": "The District Court found that UTC offered “several", "paragraph_id": "para_503" }, { "text": "good faith procompetitive justifications for its 2019 cartridge", "paragraph_id": "para_504" }, { "text": "restriction.” App. 86. We agree that UTC proffered valid", "paragraph_id": "para_505" }, { "text": "justifications for its conduct: it was concerned there would not", "paragraph_id": "para_506" }, { "text": "be enough cartridges for Remodulin patients and it sought to", "paragraph_id": "para_507" }, { "text": "increase output, ensure supply, and discourage free riding", "paragraph_id": "para_508" }, { "text": "14", "paragraph_id": "para_509" }, { "text": "through its investment in Smiths’ cartridges, which would have", "paragraph_id": "para_510", "court_paragraph": 14 }, { "text": "otherwise been discontinued. See Am. Express, 585 U.S. at 549", "paragraph_id": "para_511" }, { "text": "(describing “expanding output” as exemplary of", "paragraph_id": "para_512" }, { "text": "procompetitive conduct); Race Tires Am., 614 F.3d at 76", "paragraph_id": "para_513" }, { "text": "(explaining that exclusive dealing arrangements that assure", "paragraph_id": "para_514" }, { "text": "supply are often considered efficient). Smiths continued", "paragraph_id": "para_515" }, { "text": "producing the CADD-MS3 cartridges and pumps because of", "paragraph_id": "para_516" }, { "text": "UTC’s funding commitment, which undoubtedly did increase", "paragraph_id": "para_517" }, { "text": "output, ensure supply, and discourage free riding.", "paragraph_id": "para_518" }, { "text": "Plaintiffs argue these justifications are pretextual. We", "paragraph_id": "para_519" }, { "text": "do not deny that UTC understood—and even desired—that the", "paragraph_id": "para_520" }, { "text": "cartridge restrictions would hinder Plaintiffs’ launch.", "paragraph_id": "para_521" }, { "text": "Nonetheless, the record shows that UTC’s procompetitive", "paragraph_id": "para_522" }, { "text": "justifications are sincere, as UTC was consistently concerned", "paragraph_id": "para_523" }, { "text": "about securing a cartridge supply for its own product. There is", "paragraph_id": "para_524" }, { "text": "nothing pretextual about seeking to protect a procompetitive", "paragraph_id": "para_525" }, { "text": "investment and also seizing the opportunity to disadvantage a", "paragraph_id": "para_526" }, { "text": "competitor along the way. Indeed, we have encouraged the", "paragraph_id": "para_527" }, { "text": "“competition to be an exclusive supplier” and called such", "paragraph_id": "para_528" }, { "text": "competition “a vital form of rivalry.” ZF Meritor, 696 F.3d at", "paragraph_id": "para_529" }, { "text": "270 (quoting Race Tires Am., 614 F.3d at 83). And Plaintiffs", "paragraph_id": "para_530" }, { "text": "themselves restricted the alternative cartridges they developed", "paragraph_id": "para_531" }, { "text": "for exclusive use with Sandoz’s generic treprostinil.", "paragraph_id": "para_532" }, { "text": "Finally, Plaintiffs have not established that UTC can", "paragraph_id": "para_533" }, { "text": "achieve its legitimate objectives through a “viable” and", "paragraph_id": "para_534" }, { "text": "“substantially less restrictive alternative” that can provide", "paragraph_id": "para_535" }, { "text": "“comparable benefits” to the restraint. United States v. Brown", "paragraph_id": "para_536" }, { "text": "Univ., 5 F.3d 658, 679 (3d Cir. 1993). Plaintiffs propose that", "paragraph_id": "para_537" }, { "text": "“UTC could have encumbered only the cartridges necessary", "paragraph_id": "para_538" }, { "text": "for the procompetitive justification, or committed to purchase", "paragraph_id": "para_539" }, { "text": "a specific volume of cartridges (and pre-paying Smiths)", "paragraph_id": "para_540" }, { "text": "without imposing restrictions on the remainder.” RareGen Br.", "paragraph_id": "para_541" }, { "text": "54. However, Plaintiffs have not demonstrated these", "paragraph_id": "para_542" }, { "text": "alternatives are actually viable or provide comparable benefits", "paragraph_id": "para_543" }, { "text": "to the cartridge restrictions. It is far from clear that these", "paragraph_id": "para_544" }, { "text": "alternatives are “substantially less restrictive,” Brown, 5 F.3d", "paragraph_id": "para_545" }, { "text": "at 679, and “courts should not second-guess ‘degrees of", "paragraph_id": "para_546" }, { "text": "reasonable necessity’ so that ‘the lawfulness of conduct turn[s]", "paragraph_id": "para_547" }, { "text": "upon judgments of degrees of efficiency.’” Alston, 594 U.S. at", "paragraph_id": "para_548" }, { "text": "98 (alteration in original) (quoting Rothery Storage & Van Co.", "paragraph_id": "para_549" }, { "text": "v. Atlas Van Lines, Inc., 792 F.2d 210, 227 (D.C. Cir. 1986)).", "paragraph_id": "para_550" }, { "text": "15", "paragraph_id": "para_551" }, { "text": "Accordingly, we will affirm the District Court’s", "paragraph_id": "para_552", "court_paragraph": 15 }, { "text": "dismissal of the Sherman Act claims on the basis that UTC", "paragraph_id": "para_553" }, { "text": "established procompetitive justifications for the restrictive", "paragraph_id": "para_554" }, { "text": "agreement and Plaintiffs failed to rebut these justifications.", "paragraph_id": "para_555" }, { "text": "V. STATE LAW CLAIMS", "paragraph_id": "para_556" }, { "text": "RareGen challenged the District Court’s entry of", "paragraph_id": "para_557" }, { "text": "summary judgment against Plaintiffs’ claims of unfair and", "paragraph_id": "para_558" }, { "text": "deceptive trade practices and tortious interference.4 Sandoz", "paragraph_id": "para_559" }, { "text": "adopted RareGen’s arguments on appeal.", "paragraph_id": "para_560" }, { "text": "A. Unfair and Deceptive Trade Practices", "paragraph_id": "para_561" }, { "text": "The District Court dismissed Plaintiffs’ unfair-and-", "paragraph_id": "para_562" }, { "text": "deceptive-trade-practices claim under North Carolina General", "paragraph_id": "para_563" }, { "text": "Statutes § 75-1.1 because it is “based on the same conduct as", "paragraph_id": "para_564" }, { "text": "their antitrust claims” and their antitrust claims failed. App. 89.", "paragraph_id": "para_565" }, { "text": "Plaintiffs argue that the District Court failed to consider that", "paragraph_id": "para_566" }, { "text": "the unfair-and-deceptive-trade-practices claim was not “based", "paragraph_id": "para_567" }, { "text": "solely” on the antitrust claims, but also on the “conduct giving", "paragraph_id": "para_568" }, { "text": "rise to the breach-of-contract claim.” RareGen Br. 56.", "paragraph_id": "para_569" }, { "text": "4 The District Court also dismissed Plaintiffs’ restraint-of-trade", "paragraph_id": "para_570" }, { "text": "claims, but Plaintiffs failed to address them in their appellate", "paragraph_id": "para_571" }, { "text": "brief. See RareGen Br. 56 (challenging only the “district", "paragraph_id": "para_572" }, { "text": "court’s decision on Plaintiffs’ unfair trade practices and", "paragraph_id": "para_573" }, { "text": "tortious interference claims”). They have thus forfeited any", "paragraph_id": "para_574" }, { "text": "challenge to the dismissal of these claims. See Montemuro v.", "paragraph_id": "para_575" }, { "text": "Jim Thorpe Area Sch. Dist., 99 F.4th 639, 646–47 (3d Cir.", "paragraph_id": "para_576" }, { "text": "2024). Regardless, we would affirm the District Court’s", "paragraph_id": "para_577" }, { "text": "dismissal because Plaintiffs’ restraint-of-trade causes of action", "paragraph_id": "para_578" }, { "text": "are identical to their federal antitrust causes of action, which", "paragraph_id": "para_579" }, { "text": "we have dismissed, and the state laws governing these claims", "paragraph_id": "para_580" }, { "text": "mirror federal antitrust laws and are analyzed using federal", "paragraph_id": "para_581" }, { "text": "antitrust jurisprudence. Compare App. 336–38 with App. 338–", "paragraph_id": "para_582" }, { "text": "40; see Kugler v. Koscot Interplanetary, Inc., 293 A.2d 682,", "paragraph_id": "para_583" }, { "text": "694 (N.J. Super. Ct. Ch. Div. 1972); Sykes v. Health Network", "paragraph_id": "para_584" }, { "text": "Sols., Inc., 2017 WL 3601347, at *6 (N.C. Super. Ct. Aug. 18,", "paragraph_id": "para_585" }, { "text": "2017), aff’d, 828 S.E.2d 467 (N.C. 2019).", "paragraph_id": "para_586" }, { "text": "16", "paragraph_id": "para_587" }, { "text": "When allegations of unfair and deceptive trade practices", "paragraph_id": "para_588", "court_paragraph": 16 }, { "text": "“describe the same conduct that is the subject of plaintiffs’", "paragraph_id": "para_589" }, { "text": "[failed] antitrust claims,” dismissal is warranted “to the extent", "paragraph_id": "para_590" }, { "text": "that these allegations overlap.” Sykes v. Health Network Sols.,", "paragraph_id": "para_591" }, { "text": "Inc., 828 S.E.2d 467, 471–72 (N.C. 2019); see also R.J.", "paragraph_id": "para_592" }, { "text": "Reynolds Tobacco Co. v. Philip Morris Inc., 199 F. Supp. 2d", "paragraph_id": "para_593" }, { "text": "362, 396 (M.D.N.C. 2002) (“Because Plaintiffs do not allege", "paragraph_id": "para_594" }, { "text": "any facts that suggest that Defendant’s conduct is unlawful", "paragraph_id": "para_595" }, { "text": "beyond the conduct that is the basis for their failed federal", "paragraph_id": "para_596" }, { "text": "[antitrust] claims, Plaintiffs’ state common law and statutory", "paragraph_id": "para_597" }, { "text": "[unfair trade practices] claims fail as well.”), aff’d, 67 F. App’x", "paragraph_id": "para_598" }, { "text": "810 (4th Cir. 2003). Here, Plaintiffs do not specify any alleged", "paragraph_id": "para_599" }, { "text": "conduct distinct from the conduct underlying the antitrust", "paragraph_id": "para_600" }, { "text": "claims. Moreover, “a mere breach of contract, even if", "paragraph_id": "para_601" }, { "text": "intentional, is not sufficiently unfair or deceptive to sustain an", "paragraph_id": "para_602" }, { "text": "action under [the UTPA,] N.C.G.S. § 75-1.1,” and Plaintiffs", "paragraph_id": "para_603" }, { "text": "have not put forth the necessary “substantial aggravating", "paragraph_id": "para_604" }, { "text": "circumstances” to support such an action. Broussard v.", "paragraph_id": "para_605" }, { "text": "Meineke Disc. Muffler Shops, Inc., 155 F.3d 331, 347 (4th Cir.", "paragraph_id": "para_606" }, { "text": "1998) (alteration in original) (quoting Branch Banking & Trust", "paragraph_id": "para_607" }, { "text": "Co. v. Thompson, 418 S.E.2d 694, 700 (N.C. Ct. App. 1992)).", "paragraph_id": "para_608" }, { "text": "Accordingly, we will affirm summary judgment in favor of", "paragraph_id": "para_609" }, { "text": "UTC on the unfair-and-deceptive-trade-practices claim.", "paragraph_id": "para_610" }, { "text": "B. Tortious Interference", "paragraph_id": "para_611" }, { "text": "The District Court also dismissed Plaintiffs’ tortious", "paragraph_id": "para_612" }, { "text": "interference claim because it was based on the same conduct", "paragraph_id": "para_613" }, { "text": "underlying the antitrust causes of action. The court recognized", "paragraph_id": "para_614" }, { "text": "that “tortious interference claims can cover wrongful conduct", "paragraph_id": "para_615" }, { "text": "other than antitrust activity,” yet dismissed the claim because", "paragraph_id": "para_616" }, { "text": "Plaintiffs based their tortious interference claim only on UTC’s", "paragraph_id": "para_617" }, { "text": "anticompetitive activity. App. 88–89. We have rejected the", "paragraph_id": "para_618" }, { "text": "“premise that state tortious interference law and federal", "paragraph_id": "para_619" }, { "text": "antitrust law should be read in pari materia.” Brokerage", "paragraph_id": "para_620" }, { "text": "Concepts, Inc. v. U.S. Healthcare, Inc., 140 F.3d 494, 532 (3d", "paragraph_id": "para_621" }, { "text": "Cir. 1998). As relevant here, a New Jersey tortious interference", "paragraph_id": "para_622" }, { "text": "claim requires “[w]rongful conduct,” which encompasses", "paragraph_id": "para_623" }, { "text": "actions that are malicious but otherwise lawful. Avaya Inc., RP", "paragraph_id": "para_624" }, { "text": "v. Telecom Labs, Inc., 838 F.3d 354, 383 (3d Cir. 2016). Thus,", "paragraph_id": "para_625" }, { "text": "New Jersey tortious interference jurisprudence requires that the", "paragraph_id": "para_626" }, { "text": "“line must be drawn where one competitor interferes with", "paragraph_id": "para_627" }, { "text": "another’s economic advantage through conduct which is", "paragraph_id": "para_628" }, { "text": "17", "paragraph_id": "para_629" }, { "text": "fraudulent, dishonest, or illegal.” Id. (emphasis added)", "paragraph_id": "para_630", "court_paragraph": 17 }, { "text": "(quoting Ideal Dairy Farms, Inc. v. Farmland Dairy Farms,", "paragraph_id": "para_631" }, { "text": "Inc., 659 A.2d 904, 936 (N.J. Super. Ct. App. Div. 1995)). In", "paragraph_id": "para_632" }, { "text": "other words, the fact that UTC did not violate the antitrust laws", "paragraph_id": "para_633" }, { "text": "does not alone foreclose a tortious interference claim, which", "paragraph_id": "para_634" }, { "text": "can still stand if UTC’s conduct is found to be malicious,", "paragraph_id": "para_635" }, { "text": "fraudulent, or dishonest. Accordingly, we will reverse and", "paragraph_id": "para_636" }, { "text": "remand for the District Court to consider whether the Plaintiffs", "paragraph_id": "para_637" }, { "text": "can sustain their tortious interference claim independently", "paragraph_id": "para_638" }, { "text": "from the merits of their antitrust claims.", "paragraph_id": "para_639" }, { "text": "VI. DAUBERT MOTION", "paragraph_id": "para_640" }, { "text": "In its summary judgment opinion, the District Court", "paragraph_id": "para_641" }, { "text": "also denied UTC’s motion under Daubert v. Merrell Dow", "paragraph_id": "para_642" }, { "text": "Pharms., Inc., 509 U.S. 579 (1993), to exclude the testimony", "paragraph_id": "para_643" }, { "text": "of Plaintiffs’ damages expert, Dr. Anupam Jena. Under Federal", "paragraph_id": "para_644" }, { "text": "Rule of Evidence 702, we have distilled two major", "paragraph_id": "para_645" }, { "text": "requirements governing the admission of expert testimony: (1)", "paragraph_id": "para_646" }, { "text": "the expert must be “qualified to express an expert opinion” and", "paragraph_id": "para_647" }, { "text": "(2) the expert opinion “must be reliable.” In re TMI Litig., 193", "paragraph_id": "para_648" }, { "text": "F.3d 613, 664 (3d Cir. 1999), amended, 199 F.3d 158 (3d Cir.", "paragraph_id": "para_649" }, { "text": "2000). Focusing on the second requirement, UTC argues that", "paragraph_id": "para_650" }, { "text": "Jena’s estimate of generic treprostinil’s performance absent", "paragraph_id": "para_651" }, { "text": "UTC’s alleged breach was not sufficiently reliable. Jena’s", "paragraph_id": "para_652" }, { "text": "model of a “but-for” world relied on an internal forecast", "paragraph_id": "para_653" }, { "text": "prepared by RareGen in April 2019. His model used the", "paragraph_id": "para_654" }, { "text": "RareGen forecast’s projected penetration rate of generic", "paragraph_id": "para_655" }, { "text": "treprostinil, its projected share of generic treprostinil sales that", "paragraph_id": "para_656" }, { "text": "Plaintiffs would capture, and the actual real-world price of", "paragraph_id": "para_657" }, { "text": "generic treprostinil.", "paragraph_id": "para_658" }, { "text": "It is permissible for an expert to “construct a reasonable", "paragraph_id": "para_659" }, { "text": "offense-free world as a yardstick for measuring what,", "paragraph_id": "para_660" }, { "text": "hypothetically, would have happened ‘but for’ the defendant’s", "paragraph_id": "para_661" }, { "text": "unlawful activities,” and in some circumstances, the expert", "paragraph_id": "para_662" }, { "text": "may rely on others’ estimates to build that hypothetical reality.", "paragraph_id": "para_663" }, { "text": "ZF Meritor, 696 F.3d at 292 (quoting LePage’s, 324 F.3d at", "paragraph_id": "para_664" }, { "text": "165). We have recognized that “‘internal projections for future", "paragraph_id": "para_665" }, { "text": "growth’ often serve as legitimate bases for expert opinions.”", "paragraph_id": "para_666" }, { "text": "Id. (quoting LePage’s, 324 F.3d at 165). Indeed, “experts", "paragraph_id": "para_667" }, { "text": "frequently use a plaintiff’s business plan to estimate the", "paragraph_id": "para_668" }, { "text": "plaintiff’s expected profits in the absence of the defendant’s", "paragraph_id": "para_669" }, { "text": "18", "paragraph_id": "para_670" }, { "text": "misconduct.” Id. This is because companies are “generally", "paragraph_id": "para_671", "court_paragraph": 18 }, { "text": "well-informed about the industries in which they operate” and", "paragraph_id": "para_672" }, { "text": "incentivized “to develop accurate projections.” Id.", "paragraph_id": "para_673" }, { "text": "However, the expert “must explain why he relied on", "paragraph_id": "para_674" }, { "text": "such estimates and must demonstrate why he believed the", "paragraph_id": "para_675" }, { "text": "estimates were reliable.” Id. In ZF Meritor, we upheld the", "paragraph_id": "para_676" }, { "text": "exclusion of an expert report based on internal projections", "paragraph_id": "para_677" }, { "text": "where the expert “lacked critical information” about the", "paragraph_id": "para_678" }, { "text": "internal model, including “who initially calculated” the", "paragraph_id": "para_679" }, { "text": "projections, “the methodology used to create” the projections,", "paragraph_id": "para_680" }, { "text": "and “the assumptions on which [the] price and volume", "paragraph_id": "para_681" }, { "text": "estimates were based.” Id. at 293. UTC argues that Jena", "paragraph_id": "para_682" }, { "text": "similarly “lacked critical information” about, and thus", "paragraph_id": "para_683" }, { "text": "unreasonably relied on, the RareGen forecast—Jena was", "paragraph_id": "para_684" }, { "text": "unaware of who created and provided the data for the forecast,", "paragraph_id": "para_685" }, { "text": "why the forecast was created, or how it was used. And while", "paragraph_id": "para_686" }, { "text": "the expert in ZF Meritor was excluded despite knowing that", "paragraph_id": "para_687" }, { "text": "the forecast was presented to the board of directors, revised", "paragraph_id": "para_688" }, { "text": "several times in response to the board’s concerns, and relied", "paragraph_id": "para_689" }, { "text": "upon by the board in making business decisions, Jena had no", "paragraph_id": "para_690" }, { "text": "knowledge of the business uses for RareGen’s forecast. See id.", "paragraph_id": "para_691" }, { "text": "at 292.", "paragraph_id": "para_692" }, { "text": "We conclude the District Court did not abuse its", "paragraph_id": "para_693" }, { "text": "discretion in admitting Jena as an expert. The court", "paragraph_id": "para_694" }, { "text": "acknowledged that Jena did not know the identity or", "paragraph_id": "para_695" }, { "text": "qualifications of the person who prepared the RareGen forecast", "paragraph_id": "para_696" }, { "text": "and that this may weigh in favor of exclusion in certain cases.", "paragraph_id": "para_697" }, { "text": "Even so, it found that Jena’s testimony was reliable because,", "paragraph_id": "para_698" }, { "text": "unlike the expert in ZF Meritor, Jena ensured reliability by", "paragraph_id": "para_699" }, { "text": "comparing the forecasted rates against a range of other sources.", "paragraph_id": "para_700" }, { "text": "He reviewed thirty-three forecast models and selected the", "paragraph_id": "para_701" }, { "text": "RareGen forecast because it did not account for the alleged", "paragraph_id": "para_702" }, { "text": "breach, it was the most up-to-date, and it provided specific", "paragraph_id": "para_703" }, { "text": "details about the projected penetration rate and share of sales.", "paragraph_id": "para_704" }, { "text": "Jena testified at his deposition that, despite not recalling who", "paragraph_id": "para_705" }, { "text": "specifically created the RareGen model or the creator’s", "paragraph_id": "para_706" }, { "text": "qualifications, he found the model to be reliable because its", "paragraph_id": "para_707" }, { "text": "forecast was “reasonable,” “in line with what one would", "paragraph_id": "para_708" }, { "text": "expect,” and “at the mid-point” in comparison with other", "paragraph_id": "para_709" }, { "text": "models he reviewed. He also testified that, based on his", "paragraph_id": "para_710" }, { "text": "19", "paragraph_id": "para_711" }, { "text": "experience, the RareGen model is the sort of analysis that", "paragraph_id": "para_712", "court_paragraph": 19 }, { "text": "would be produced in the ordinary course of business.5", "paragraph_id": "para_713" }, { "text": "As the District Court noted, Jena explained that the", "paragraph_id": "para_714" }, { "text": "forecast provided details about the assumptions made and he", "paragraph_id": "para_715" }, { "text": "validated the forecast by reviewing corroborating material. ZF", "paragraph_id": "para_716" }, { "text": "Meritor does not require courts to exclude an expert who", "paragraph_id": "para_717" }, { "text": "cannot provide the information that was lacking in ZF Meritor.", "paragraph_id": "para_718" }, { "text": "Rather, it requires themto “perform a case-by-case inquiry to", "paragraph_id": "para_719" }, { "text": "determine whether the expert’s reliance on the business plan in", "paragraph_id": "para_720" }, { "text": "a given case is reasonable.” ZF Meritor, 696 F.3d at 292. Here,", "paragraph_id": "para_721" }, { "text": "despite not knowing the particular indicia discussed in ZF", "paragraph_id": "para_722" }, { "text": "Meritor, Jena engaged in an in-depth comparative analysis", "paragraph_id": "para_723" }, { "text": "lacking in ZF Meritor. Therefore, the District Court did not err", "paragraph_id": "para_724" }, { "text": "in ruling that Jena could “rely on the estimates of others in", "paragraph_id": "para_725" }, { "text": "constructing a hypothetical reality” after concluding, in its", "paragraph_id": "para_726" }, { "text": "discretion, that Plaintiffs met their burden to “explain why", "paragraph_id": "para_727" }, { "text": "[Jena] relied on such estimates” and “demonstrate why he", "paragraph_id": "para_728" }, { "text": "believed the estimates were reliable.” Id.", "paragraph_id": "para_729" }, { "text": "As the District Court did not abuse its discretion in", "paragraph_id": "para_730" }, { "text": "denying UTC’s motion to exclude Jena’s testimony, we will", "paragraph_id": "para_731" }, { "text": "affirm its ruling.", "paragraph_id": "para_732" }, { "text": "* * * * *", "paragraph_id": "para_733" }, { "text": "For the reasons discussed above, we will reverse the", "paragraph_id": "para_734" }, { "text": "grant of summary judgment in favor of Sandoz on the breach-", "paragraph_id": "para_735" }, { "text": "of-contract claim as to liability and the grant of summary", "paragraph_id": "para_736" }, { "text": "judgment in favor of UTC on the tortious interference claim;", "paragraph_id": "para_737" }, { "text": "affirm the dismissal of the Sherman Act claims and North", "paragraph_id": "para_738" }, { "text": "5 Jena’s trial testimony corroborated his report and deposition", "paragraph_id": "para_739" }, { "text": "testimony. He explained that the model was reliable because", "paragraph_id": "para_740" }, { "text": "there were business incentives for the model to be accurate, it", "paragraph_id": "para_741" }, { "text": "was prepared closest in time to the launch of treprostinil, its", "paragraph_id": "para_742" }, { "text": "creators—former UTC executives employed by RareGen—", "paragraph_id": "para_743" }, { "text": "had specialized knowledge, and its forecast was in the middle", "paragraph_id": "para_744" }, { "text": "when compared to other forecasts he examined. Jena dismissed", "paragraph_id": "para_745" }, { "text": "concerns that the model, which was created after this litigation", "paragraph_id": "para_746" }, { "text": "commenced, was altered for litigation because there were", "paragraph_id": "para_747" }, { "text": "earlier versions with the same or higher generic penetration", "paragraph_id": "para_748" }, { "text": "rates.", "paragraph_id": "para_749" }, { "text": "20", "paragraph_id": "para_750" }, { "text": "Carolina unfair and deceptive trade practices claim; affirm the", "paragraph_id": "para_751", "court_paragraph": 20 }, { "text": "denial of the Daubert motion against Plaintiffs’ damages", "paragraph_id": "para_752" }, { "text": "expert Dr. Anupam Jena; and dismiss the remaining", "paragraph_id": "para_753" }, { "text": "evidentiary and damages challenges as moot. Because we will", "paragraph_id": "para_754" }, { "text": "reverse the grant of Sandoz’s motion for partial summary", "paragraph_id": "para_755" }, { "text": "judgment on Count VII, breach of contract, as to liability, we", "paragraph_id": "para_756" }, { "text": "will vacate the November 1, 2024 judgment and damages", "paragraph_id": "para_757" }, { "text": "award entered in favor of Sandoz and against UTC on Count", "paragraph_id": "para_758" }, { "text": "VII, and remand for further proceedings consistent with this", "paragraph_id": "para_759" }, { "text": "Opinion.", "paragraph_id": "para_760" }, { "text": "Counsel for Appellant United Therapeutics Corp.", "paragraph_id": "para_761" }, { "text": "Charles L. McCloud [Argued]", "paragraph_id": "para_762" }, { "text": "Edward J. Bennett", "paragraph_id": "para_763" }, { "text": "Jonathan B. Pitt", "paragraph_id": "para_764" }, { "text": "Sean Douglass", "paragraph_id": "para_765" }, { "text": "WILLIAMS & CONNOLLY LLP", "paragraph_id": "para_766" }, { "text": "Stephen M. Orlofsky", "paragraph_id": "para_767" }, { "text": "Michael R. Darbee", "paragraph_id": "para_768" }, { "text": "BLANK ROME LLP", "paragraph_id": "para_769" }, { "text": "Counsel for Appellant Sandoz, Inc.", "paragraph_id": "para_770" }, { "text": "Matthew D. Kent [Argued]", "paragraph_id": "para_771" }, { "text": "David A. Hatchett", "paragraph_id": "para_772" }, { "text": "Karla M. Doe", "paragraph_id": "para_773" }, { "text": "Jenny R. Kramer", "paragraph_id": "para_774" }, { "text": "Jonathan D. Parente", "paragraph_id": "para_775" }, { "text": "ALSTON & BIRD LLP", "paragraph_id": "para_776" }, { "text": "Counsel for Appellant RareGen, LLC.", "paragraph_id": "para_777" }, { "text": "Kathleen R. Hartnett [Argued]", "paragraph_id": "para_778" }, { "text": "Patrick J. Hayden", "paragraph_id": "para_779" }, { "text": "COOLEY LLP", "paragraph_id": "para_780" }, { "text": "Kevin H. 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