QLT patent under investigation
QLT PhotoTherapeutics Inc QLT
Shares issued 64,419,265 Apr 27 close $74.00
Fri 28 Apr 2000 News Release
Mr. Kenneth Galbraith reports
A civil suit has been filed by Massachusetts Eye and Ear Infirmary (MEEI)
with respect to an ongoing and previously disclosed ownership dispute
involving an issued U.S. use patent to which the company, Massachusetts
General Hospital (MGH) and MEEI have co-ownership rights. The patent under
dispute is U.S. Patent No. 5798349 and was issued in the U.S. on August 25,
1998. There are no non-U.S. counterparts to this patent. The complaint
which has not yet been served, is pending before the United States District
Court of Massachusetts.
The company has negotiated in good faith to secure an exclusive license
position to the co-ownership rights of both MGH and MEEI in return for a
reasonable royalty on Visudyne (verteporfin) sales in the U.S., consistent
with industry standards. In December, 1998, the company successfully
concluded its negotiations with MGH to pay an appropriate royalty on U.S.
Visudyne sales, but has been unable to reach an agreement with MEEI based
on comparable terms.
"We see this law suit as an ill-conceived attempt on the part of MEEI to
obtain a more generous royalty," said Kenneth H. Galbraith, executive
vice-president and chief financial officer. Mr. Galbraith also stated: "OLT
has a strong proprietary position for Visudyne reflected by a number of
different composition of matter, formulation and use patents exclusively
owned or licensed by the company."
"We don't believe the threat of litigation is an effective way to resolve
these types of disputes," said Mr. Galbraith. "Frivolous lawsuits such as
this are all too common in our sector following the launch of breakthrough
products like Visudyne."
Mr. Galbraith added: "We believe their claims are without merit and we are
prepared to vigorously defend any part of our patent portfolio."
Visudyne was discovered by the company's researchers in the mid-1980s and
subsequently co-developed by the company and CIBA Vision, the eye care unit
of Novartis AG. Visudyne was made commercially available in the United
States to patients with age-related macular degeneration on April 12, 2000,
following approval by the U.S. Food and Drug Administration.
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