MedImmune settles suits, must pay royalties to Celltech
Friday July 1, 3:31 pm ET
MedImmune has agreed to settle two lawsuits with Celltech R&D regarding a patent for MedImmune's blockbuster drug Synagis.
As a result of the settlements, which MedImmune (NASDAQ: MEDI - News) disclosed in a regulatory filing June 30, the Gaithersburg-based biotech company must begin paying royalties to Celltech based on net sales of the drug in the United States.
MedImmune's Securities and Exchange Commission filing didn't say how much the company would have to pay.
However, Synagis, a treatment for respiratory infections in infants, does account for the bulk of MedImmune's sales, which topped $1 billion in 2004.
Synagis generates about 85 percent of the company's revenue.
The agreement settles a January 2004 claim by MedImmune, in which it challenged the validity of Celltech's patent on Synagis, as well as Celltech's March 2004 claim seeking royalties based on U.S. sales of the drug.
The two businesses partnered in January 1998, when MedImmune licensed intellectual property from Celltech for Synagis.
To date, MedImmune hasn't made any royalty payments to Celltech under the initial license agreement. But on June 24, MedImmune and Celltech, a division of the United Kingdom-based Celltech Group, were able to end their license disputes. The Gaithersburg drug maker agreed to pay royalties to Celltech, but not before July 1, the SEC filing says.... |
